You're mixing categories to make a point that doesn't really hold up. The Model 3 sits in the midsize EV segment, there are also compact, full-size, luxury, and SUV classes. It's a solid car, but it's not the global benchmark across all segments. There are highly competitive EVs coming out of China that we simply don't see here, largely due to policy and trade barriers, not because there isn't demand. If those cars entered the U.S. market at scale, Tesla would face real competition, and yes, that would put pressure on margins.
On the autonomy side, comparing cars to horses misses the point. Solving full self-driving is a fundamentally harder problem than building a functional internal combustion car ever was. It's not a linear progression, it's an entirely different class of engineering challenge.
Right now, true FSD (meaning a system that can handle the full range of real-world driving scenarios without human intervention) doesn't exist. The SAE levels help frame this: Tesla is operating at Level 2 (driver assistance; steering, acceleration, braking, but constant human supervision required). That's useful tech, but it's not autonomy. Systems like Waymo push closer to Level 3 in constrained environments, but even they rely on human oversight and intervention when edge cases show up.
In short: good progress, but we're not at "human-equivalent driver" yet, and that gap is a lot bigger than people make it sound.