The Model S was in the same price range as the BMW 3 Series but only when you take into account the tax credit which just expired. Without that tax credit there's a difference of over $7k. That's part of the reason why Tesla is dropping their prices a bit now.

From the article:

"Tesla said more than three-quarters of orders for the sedan in the year’s final three months were from new customers, rather than reservation holders. That suggests many consumers are still waiting to buy versions of the vehicle at the long-promised $35,000 sticker price."

Compared to what most people can afford. My sister would love a Model 3 if she could get one for $20k