I'm on my phone and about to head into work, so I'll have to keep this short. Tesla is selling in the luxury price range, because their cars are more expensive to manufacture. This is because of both the technology of the car as well as volume. They don't actually compare to luxury vehicles. I have sat in a Model S. I've also ridden shotgun in Mercedes, Jaguars, and Lexuses. Teslas are nicer than Civics for example, but they're not Mercedes nice. Also, the $35,000 is normal people price and seems quite reasonable. The Chevy Bolt will sell for near similar price and both the Nissan Leaf and the Ford Focus Electric scratch around $30,000 as well. Tesla is compared to other luxury cars because of their price point. That doesn't mean they're actually luxury cars though. You can get Camaros and Mustangs for $40,000 easily. That doesn't actually make them luxury cars either.