I’ve had several friends ask me, as a Tesla owner, what the difference will be between my S and the MUCH cheaper 3 (basically $90K+ versus sub$40K). And I’m having a bit of difficulty answering that. The 3 should be smaller, but many people have posted that it isn’t that much smaller (and I’m not claiming that pricing between BMW 2, 4, 5 and 7 series necessarily makes total sense). The 3 may also be cheaper steel instead of aluminum. And the battery may be somewhat smaller. But beyond that, the technology is still all there. When people think of what really makes a Tesla (the tech, autopilot, big screen with app, etc), it’s all in the 3 as well as the S or X. So, does the pricing make sense? When the Model 3 launches late next year, will people still be willing to pay for a slightly larger S for more than twice the price?