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Tesla offers the supercharger, BMW offers an SUV

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Bad marketing. Advertising inadequacy of their own product

HAH! EXACTLY! What a crap solution... why don't they just say something like "We can't develop an EV that goes as far as a Tesla on a single charge, and we don't have any supercharging capabilities, so because our engineering teams SUCK, we're going to offer you the option of RENTING one of our SUVs whenever you want to go further than 100 miles." Much better.
 
NIH?

Really, offering it is actually a very good idea and Nissan and Ford has done something similar. Not for everybody, since some people make regular trips beyond range, but I can guarantee that for somebody who only goes beyond range occasionally, it'd be a damn sight cheaper to rent for the longer trips than pay for the extra battery. $28k buys a lot of rental and gas.

At the bottom end of the luxury market there should be space for it. If luxury hybrids like the CT, RX and MKZ can sell a couple of thousand per month together, I see space for the i3.
Right now, noone can beat Tesla on batteries, so unless they specifically want to take a loss leader to kill Tesla, and that's a dangerous thing to do, they cannot compete in that space.