Bloomberg believes the Tesla Model 3 could dominate what the car industry calls the “compact executive” or “small luxury” class. Why? For the very same reasons the Model S is dominating the full size luxury car market in America — it offers better performance and a higher driving experience with greater safety for less money.

According to a report from Bloomberg, the Model S is one of the least expensive options among all luxury cars. The Model 3 will also be one of the least expensive options in the small luxury class though it would be a mistake to compare the Model 3 to the Chevy Bolt or the Nissan LEAF.

Yes, both the Bolt and LEAF will offer drivers about the same range as the Model 3, but those cars are aimed at people who buy Civics, Corollas, and Altimas. The Model 3 will compete with the BMW 3 Series, Mercedes C Class, and Audi A4. Compared to the price of those cars, the Model 3 may appear to be a bargain.

Bloomberg raves about the Model S, heaping accolades on it for being faster than almost any other production car on earth while offering an extraordinary level of safety to the people riding inside. Assuming the Model 3 blows away the competition the way the Model S does, it will outsell the BMW 3 Series and Mercedes C Class by a significant margin. “For the newest Tesla to dominate entry-level luxury by the same margin held by the Model S in large luxury, it would mean sales of almost 170,000 a year in the U.S.,” says Bloomberg.

Forget about gas prices, it says. People who buy a BMW 3 Series or a Mercedes C Class don’t care very much about what they are paying at the pump. They are focused on what their cars say about them and their lifestyle. Let the Bolt and LEAF owners of the world worry about pinching pennies. Tesla Model 3 buyers will operate on an entirely different plane, one that looks up to the Model S rather than down to the mass produced people movers of the world.

More Tesla Model 3 News

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• Tesla will livestream the Model 3 event
• JB Straubel talks Model 3 will have ‘next generation’ Tesla technology
• Analyst predicts Tesla Model 3 will see first deliveries in 2017
• Model 3 buyers may miss out on Federal tax credits