Because they want to undercut all their competition. Their profit margins are insane compared to every other car maker especially in the EV space. It puts mor

Because they want to undercut all their competition. Their profit margins are insane compared to every other car maker especially in the EV space. It puts more downward pressure on Ford, VW, Kia, etc to cut into their already razor thin margins. Tesla could sell the model 3 at 30K and still make a profit but they have zero reason to do that.