It absolutely does take away from other models. Most automotive brands have a 50-60% loyalty rate and all sorts of general brand appeal/features that span models. Someone who wants an HR-V but can't get one is massively more likely to buy a Civic or CR-V than the average person. If the Model 3 didn't exist, most of those buyers would get a Y because they want the software, the supercharging, the range, the brand name, etc.
Having a large lineup is good for customer satisfaction and for attracting customers on the fence, but it definitely hurts you on this one very specific, mostly meaningless metric.
I do think regardless that even if you do have a smaller line up of cars, it is still an impressive metric that it is the most sold car in the world. That does mean that whilst Tesla has a smaller line up, that they hit the mark with meeting what people are looking for.
It is still a very in demand car for a reason and quite honestly I almost don't believe the metric.
Whilst I agree having a larger line up of cars would dilute your model sales, it is still impressive. Afterall, people wouldn't buy that model nor Tesla if they didn't like their cars.
I agree that if they did this by brand, Tesla would be much further down the list.