There is still a lot to differentiate the Tesla from both the less expensive and the more expensive competition. They give people good reasons to spend a bit more due to free extras the others don’t offer and excellent resale values and also give good reasons to compromise ultimate fit, finish and luxury with outstanding performance and loaded tech like superior sound systems and entertainment included. 
The elephant in the room is the incredible safety and reliability not to mention autopilot on the highway.  Unless the high end and low end competition address some of this the customers will make obvious choices. 
For example - my next OTA update will allow me to monitor any sentry mode cameras on my phone from anywhere in the world and alert me if someone messes with the car. I will even be able to activate the outside speaker and warn them or talk to them.  I had no idea it could do this and dozens of other features like this when I bought the car.  They all keep coming for free. Same for the guys who bought the first Model3 or a 12 year old model S .   You see the difference once you own these cars.