When Elon discovered that the model three was stealing sales from the model `Xs and Ss, he came out with his famous announcement that the model three was simply a cheaper and inferior version of the model S.
I don't see it that way as there are no Model 3s to sell and a backlog on both Model S/X.
What Elon did say, as I remember, he was reading/hearing people thought Model 3 was going to be a half priced Model S or the "next generation of Tesla electric car" and so he set out to explain the differences.
Many wrote that Model S sales would stop with Model 3 as why would people pay twice the price for the Model S? I have always thought size was/is the main difference, as with most other manufacturers.
Since Teslas are battery powered cars, the biggest battery wins performance for now. Model 3 probably won't have room for a 100 battery, right? 5 or 10 years from now? We shall see. Weight to get power to the ground may ironically mean the heavier car is quicker??
PS- As you can see, I prefer the Model 3 size [but as long as the Saab runs, I can't see bothering to get anything else for my age and stage in life. Just don't drive that much, and never bought new, but maybe a used Model 3 some day? perhaps.