It's interesting to think how Tesla will slash $20,000 off the sticker price of Bluestar (targeting the entry-level luxury market - BMW 3-series as the benchmark).
The batteries are such a huge proportion of the cost of the car that you cannot really make any headway without slashing the battery size. A BMW 3-series weighs 700 pounds less than a BMW 5-series. So Tesla probably needs to chop 700 pounds in weight. Chopping that weight, in and of itself, probably does not save you that much money (how much does 700# of aluminum cost?). But the real savings would be a smaller amount of energy needed to move the car (possibly a smaller motor) and a smaller battery pack since you can get more mileage with less energy.
Given the current investment in aluminum producing infrastructure (and the expertise they are developing) I would think they stick with aluminum for the weight factor (and resulting battery size).
Bluestar probably is narrower, has less of a frunk and less of a trunk and a slightly smaller back seat. Probably remains a hatchback for the aerodynamics. Has fewer bells and whistles.
The best scenario is that battery costs come down so substantially that most of the $20K gap is covered by that. The 160 mile pack costs somewhere between $16,000 and $24,000 to make. If prices drop by 25-35% that right there would mean a $4,000 - $8,000 chop in prices. Smaller size and smaller battery packs might be enough then to lower the price and maintain the same level of bells & whistles & creature comforts inside the cabin. And if this happens then the Model S can be upgraded with an even nicer interior and even more bells & whistles standard.