If, say a 18 inch diameter wheel is the base with a 245/45-18, it has an overall diameter of 26.9". A 245/35-20 has a 26.8" diameter which is acceptable for overall diameter but this 20" tire has a wider section width compared to the the 18" tire. Now the engineer has to consider "space for the wider tire and wheel . Using a a 275/30-20 (on the rear of the Model 3) which has a section width of 10.9" requires an even wider wheel. As the section number goes down ; 45 to 35 to 30, the height of the sidewall of the tire is less meaning it is easier to damage the rim if the tire goes flat. Another factor is speed rating. Usually, the lower the profile, the higher the speed rating which quite often means better grip by using softer rubber which translates to less tire wear. Another cost factor to consider is the cost of the wheel, goes up with diameter and the cost of the tire, goes up with the lowering of the series of the tire (45 series is less than, 40 which is less than 35 etc. given the same brand and type of tire). Therefore, if the tire fills the wheel well then I would choose the 245/45-18 tire if given the choices listed above since this size tire can be both a good mileage tire as well as a performance tire. If I was racing then I would choose the wider tire and cost would be ignored. As a practical example, my street tires on my Corvair are 245/50--14 on 7" wheels, autocross tires are 245/40-15 front and 275/35-15 rears on 8.5" front rims and 10" rear. The street tires are 23.68" overall diameter and the Hoosier A7's are 23". Would have liked to have the race tires be the same diameter as the street tires but this is the closest I could get without getting to tall for the wheel well.