I dont see it that way. I see it as they wish Tesla made a Luxury competitor to like an AMG63 or a BMW M3, with a bunch of differentiation from the regular model 3s.
Tesla model 3 performance variants compete with those vehicle in only one category (actual performance). Tesla isnt interested in loading up a bunch of extra cost stuff on there that takes away from their profit per vehicle. The performance versions are the most profitable (for BMW and Mercedes too).
BMW / Mercedes lean into the "show everyone you got the higher trim visually" aesthetic, with more options on the upper trims etc, rather than them just being faster. Tesla just uses existing parts and software to deliver a faster car with almost no real extra cost, but at a higher profit margin.
Its easy for Tesla to just "Stay the course" and ship a performance version that is faster, but thats it. If people buy it, great, Tesla makes more money per sale. If they dont, also not an issue, since they didnt sink a bunch of costs into trying to make it different.
Note that, I happen to be someone who would prefer more visual differentiation, as well. I just also know that Tesla chose not to do that, and it makes them more money NOT to. I dont think we are going to see a model 3 with fancy stock headliner options, or different colors available on the performance trim vs regular trim, or leather on the performance trim, or none of that other stuff BMW / Merc do. People who want that stuff will go back to BMW / Merc, and I personally think thats fine.
Trying to be everything to everyone is what is getting BMW in trouble now, for example. Every car is not for everyone. Tesla should stick to "mass market fast cars", since I dont think they can actually compete with car manufacturers that know how to make a "real" luxury car, nor should they, in my opinion at least.