His approach is wrong on many levels.
First of all he thinks only of the American market. I believe this car will be mainly produced in China and Germany factories for the benefit of the Asian/European markets. A small, relatively cheap electric hatch will sell like hotcakes. Roads are far narrower over here. Model S, Model X (never mind Cybertrack) are not really suitable outside US.
Secondly being a Model 3 owner myself that part where apparently people who can afford only cheap cars are less tolerant to quality issues is insulting at least. I bought a relatively expensive car; yes. This does't mean that I am happy to throw money down the sink if it breaks all the time. So far I was lucky but Tesla need to pull their act together on quality.
To close this a 25k Tesla may be the only way for this company to go mainstream outside of the US. So they need to build it, it needs to be a decent quality wise car and it needs to be directed to the right market for it.