@Magnets!
You are absolutely right, there is no way they would have cut existing configurations if the orders were still rolling in. For what reason would they choose to make less money on the work they do if they could sell all the cars they can produce at their maximum production, it would be just horrible business to cut the prices and increase lead times for those customers who are ordering.
It’s arguable whether or not Elon Musk is a genius, but it’s not arguable whether or not he’s ignorant of basic business principles. The only rational reason to cut prices across the board like they did is because they weren’t able to sell all the cars they can produce, because the demand wasn’t there at the prices they were offering. Lowering the prices should increase the demand, and opening up the SR will open up another level of potential customers. It should allow them to sell out their current maximum production and even create a queu for delivery.
Whether or not this was a smart business move is debatable. I personally would have liked them to focus on the high end market, somewhat like BMW. Someone mentioned that they should have kept the Tesla brand high end, and created another marque for the less expensive models they plan to offer. One of the hardest things to do in business is create luxury branding. It remains to be seen whether or not this was a smart decision. As a Tesla owner, I sure hope it was.