Yes, but the question also states "Given the Trade-offs" which changes the question.
Since the 500+ Tesla doesn't exist today, we have to assume what those trade-offs are. So if I assume the battery technology will be much better and for $2K over today's price I can get 500+ mile car as, and it will only be 100lb heavier costing me only 0.1s for 0-60, then the Trade-offs are definitely worth it. 600mile range Model 3 for $37K, definitely worth it, even is 0.1s slower 0-60 than the $35K version.
Even-money says you're an engineer.
And you make a decent point, but, no one can really predict exactly what the future speed of battery improvement will be.
So in the absence of that, ppl go by their needs. If someone says they want 500+ miles of range, then that's what they want, they're not making some sort of super-exact Nostradamus-like prediction that battery development will enable that at a reasonable weight/cost/space trade-off in X number of years (or at least, they shouldn't).
What would be more reasonable is to look at the present and what the trade-offs are like right now... for instance, Tesla will increase the range of the Model 3 from the base 220 miles on up to 310 miles (+90 miles) for you if you give them $9K more dollars.
And in the Model S class (i.e. luxury), they'll up the range from 259 miles to 335 (+76 miles) if you fork over $20K more (although you also get a higher top speed and very slightly faster 0-60 accel along with that).
So, roughly extrapolate from that... assuming Tesla ever wants to offer a ULR (Ultra-Long Range) product. They may not, or they may have to be dragged kicking and screaming into it by EV competitors engaging in 'range wars' with them. But no one can say for sure yet.
Far as weight goes, ppl can look at the specs for the MS 75D vs the 100D and note the weight delta easily enough. And if the same specs are already out for the base Model 3 vs the long-range 3, they can do so there as well.
The interior room delta? If there's not direct data on interior volume for each model to compare, ppl can calculate from the likely energy density how much room X number of additional kWh in batteries takes up.
So I guess I'm not really seeing the major issue... ppl want what they want, if it gets delivered before they get sick of waiting then they'll buy it (and if not, then they'll buy something else), and no one can predict the speed of future development, especially when it comes to batteries.
I've heard that major battery breakthroughs are 'just around the corner' for well over a decade now, but somehow, we're still using Li-ion (first sold in 1991), aren't we? So, yeah.
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