Tesla runs a car business like a software company. They realize they need to get a product out (even if it is rushed) because their early adopter customer base will mostly forgive them later on when they send some UI updates, new horsepower “unlocks”, or new lower control arms because their wheels snapped off.
Lutz comes from the industry where every product is a 7 year life cycle, 3 year bumper refresh, or else.
Is it a distraction? Yeah definitely. They need cash to keep that baby running and keeping public excitement detracts from the fact that the Model 3 is months behind development.