The Model S already renders its competition irrelevant except for a few fringe cases. This new car could do the same in its own segment. Can't wait to see if it actually pans out.
Either way, it needs more range for sure. Maybe in its second generation, or with an update...
I wonder how much it'll weigh. Reducing the linear dimensions of an object by 20% while holding density and proportions constant would cut the weight in half. That'd put the Model III around 2200-2400 lbs. I'm sure it'll end up weighing a good deal more than that (e.g. because they'll be using more steel and less aluminum), but it could still be pretty darn light. Between that and the inherent advantages of the bottom-mounted battery pack and between-the-rear-wheels powertrain, the Model III's ICE-based competitors will likely have a tough time matching its handling...