[hatberet]

> It also means the Prius wins in a lot of states.

That's true. But I think Tesla is trying to sell the Model S to people who would otherwise buy a similar luxury car. There are a not-insignificant number of people in the world who just hate the Prius because it sacrifices handling, performance, and interior finish for the sake of fuel-efficiency. If Tesla builds and sells a car that those people like, isn't it still a net win? People who like hybrid Priuses can still buy them.