This means the competition will have to stomach a loss per electric car sale until they catch up to Tesla’s price advantage or not be cost competitive. According to the author Tesla was 3-4 years ahead, with a growing gap given the battery day announcement (5+ years?).

This can already be seen when looking at existing competition. VW’s ID4 compact SUV will cost $40k pre-subsidy when introduced next year, vs Tesla’s model Y at the same price.

VW itself isn’t a luxury brand, unlike Tesla, and wouldn’t normally be compared. The audis, BMWs etc would likely produce a more expensive car. The most comparable luxury brand cars are Porsche’s taycan which starts at $100k vs Tesla’s model S at ~$75k, polestar (Volvos electric brand), Jaguar I-pace, Audi etron etc which are all substantially more expensive while typically delivering less range and a worse software experience (which i’d say is the new panel gap).

All in all this looks to me very much like the smart phone transition when apple and Samsung/google took over the market. Maybe 1-2 of the old guard will survive, with everyone else ending in the slaughterhouse.