Another thing about high cost of living in places like that is maybe you're willing to spend 10% as much on a car as on a house. In Palo Alto that means you can buy two new loaded Teslas to go with your 2BR/1BA cottage; in the midwest, one used Toyota to go with a 4BR/3BA house on 5 acres.
(and Elon Musk's counterargument to all of this is that he's working on a 30-50k car next. I'm sure he'll deliver. The segment they're neglecting is the truck/commercial market -- there probably is an opportunity for someone (Textron? they make the new EV UPS/Fedex trucks) to make an awesome commercial EV platform, maybe with a CNG or LNG generator onboard. Whoever replaces with pickup truck and light commercial truck will have a next-Ford sized business, too)
http://www.npr.org/2012/04/02/149703488/oil-scare-turns-fede... is interesting
I suspect that if more people in NYC had garages in their owns we'd be seeing more Teslas.
I'd include Long Island (which do have traditional homes and garages) in this as well where I've never seen one on the road.
I think there are issues that exist beyond what you mentioned.
I have spoken with a few of my non-tech friends about Tesla and they're all pretty bearish on it so maybe you're right. What do non-tech people on the West Coast thing about it?
Moreover, many cars are mostly used for weekend road trips, when range is a paramount concern.
Check out Smith Electric:
So, I would expect that, on average, on the order of 1:10,000 cars on the road would be a Tesla.
If people say way more of them in California, there must be spots where people see fewer.