I don't understand the obsession with ‘luxury’ interiors and I think it's a symptom of what's wrong with the car industry.

No, I'm obviously not in the target demographic for an expensive BMW but I don't think everyone who can afford to buy an expensive car is simply looking for luxury. If the trade-off is between driving around in hihgh luxury in a smelly, polluting car or driving around in modest ‘luxury’ in a car that is a much more elegant technical solution to private transport than I know which side of the fence I fall.

Yes, an electric car should look good, have good performance and be elegant. But I don't think it needs to reach the high end of luxury, even in the present price bracket in which the model S sits.

A $40,000 3 series BMW has a nicer interior than a $130,000 Tesla. That's what people are referring to. Not comparing to equally priced cars, comparing to cars that are literally 6 figures cheaper.

People who are buying the S don't care. You're getting the third fastest production vehicle in existence (at the price point you quoted) with autopilot that runs on electricity.