> They can't really build a cheap enough crossover/suv to compete directly with ICE RAV4, and virtually anything they do at >$50k

Doesn't the Model Y start at 40K? That's more expensive than the base model RAV4, but the Tesla is probably aimed at a slightly different market segment too. My guess is they could compete head-to-head on price if they needed to, but they don't think the math works out better that direction yet.