> I mean, he could have started with a low performance, average-looking, electric, family sedan.

There are other reasons Tesla started with a high-end model. Because building the cars was going to take a lot of R&D, Tesla supported the cost by starting with fancy sports cars, which have a better ROI, and then used the technology to manufacture less pricey cars later on.

Source (ctrl + f "the business plan"): http://waitbutwhy.com/2015/06/how-tesla-will-change-your-lif...