If the Model 3 doesn't get mass produced at the prices they have quoted, then I will agree with you. The Model S has been produced at levels that have met demand. It's just not everyone who will pay that kind of money for a car.
BTW, I'm against all subsidies, even the ones I benefit from.
Tesla's will soon excluded from the federal tax credit. Most of the Model 3's will not be eligible for the tax credit. We'll see how they do when they have to competed on a more level playing field.