Everything I've seen on the Taycan compares it to the Model S, but I think the Model 3 Performance is the better comparison. It looks like Porsche will win on handling and Telsa on price with acceleration and range about even. If you want a track car (or a Porsche), you'll buy the Taycan. If you want supercar acceleration on a budget but keep it to the streets, you'll buy the Model 3.
As for the headline, I think Betteridge's Law applies here: no. The Taycan is a niche car that doesn't directly compete with the S or the 3 but increases interest in battery electric vehicles overall. That's a win for Tesla, in my opinion.
I thought that it was understood that Tesla has so far been better at innovating electric vehicles; while traditional car makers are better at mass production at high quality, and each is racing to get better at the other.
As for the headline, I think Betteridge's Law applies here: no. The Taycan is a niche car that doesn't directly compete with the S or the 3 but increases interest in battery electric vehicles overall. That's a win for Tesla, in my opinion.