This article sits on the false premise that Tesla aimed to make luxury vehicles long-term, which we know isn't the case. Elon has long stated that the plan was

This article sits on the false premise that Tesla aimed to make luxury vehicles long-term, which we know isn't the case. Elon has long stated that the plan was to start with profitable, low volume vehicles and work his way down to mass market. While you can make comparisons to Mercedes in regards to their profit margins, I think the more accurate explanation is that Tesla kept their prices high to reap profits while the cars were in demand, and now that the car market has more or less stabilized they're adjusting their prices again while other companies (who were maybe less flexibility in price due to dealership models) aren't.