That statement ignores scale economies, in particular fixed cost absorption with factory utilization. Other things remain equal high capacity utilization reduces per vehicle costs more than most other factories. Tesla’s production technologies (e.g. GigaPress, robot use) tend to be low cost at maximum production levels, high cost at lower levels. Thus Tesla has high incentive to stimulate demand to keep consistent high utilization rates.Cost reductions are independent of demand...
Many recent commentators here and elsewhere fail to understand how cost efficient Tesla is due to high factory utilization and very, very inexpensive distribution. Unlike most others, short term tactics to maintain consistently high efficiency are quite productive. Competitors normally have such tactics executed through dealers, which increases costs, delays implementation and invariably makes very short term tactics impossible.