Since the Model S does not have a remarkable set of features compared to most luxury cars in its price range, it's questionable how the Model 3 would win over the larger market share of BMW, Audi and Mercedes customers.
How does the BMW, Audi, and Mercedes feature set compare with:
- ~90MPG / with 5.X second 0-60
- Top end acceleration comparable to $500K supercars
- Drive coast-to-coast (possibly for "free")
- Never stopping at a gas station again
- Autopilot / Collision Avoidance / Summon / Mobile App
- Over-the-air updates for any hardware-present feature
- No 5K mile routine maintenance
- 8-year unlimited mile drivetrain warranty
- 5-star safety rating across the board (planned but not yet achieved)
- More interior space than any car its size
- More storage space than any car its size
Comparing interior build quality, as in "the seats and leather in a BMW exceeds a Tesla", is utterly missing the forest for the trees.
I'm an Audi A4 owner and a reservation holder.
I'm assuming the other ~370K reservation holders aren't all first-time car buyers, so it's possible some of them are also current BMW/Audi/Mercedes owners.