BMW did bother. They started selling the i3 at the same time then Tesla. And I think it was even better sold then Tesla in the states for some time.
Tesla had more aggressive marketing that was hot air at the end of the day …
I don't think anyone who needs a car would trade their current family car for an i3. It's a nice extra car to use for commuting to the office or popping by the shop, but it can't exactly fit a family of four heading out for their summer holiday.
The i3 came out before the model 3. Before the model 3, Tesla only had the model S (and maybe X?), which is not meant for mass market like the 3 was. Until 2017, Tesla simply didn’t have a mass market vehicle.