Colt and whoever is making the guns for them has no intention of selling them for $500, or selling them as actual carry guns, or even selling them on an ongoing basis.
According to the article, they are planning to make 2,500 guns and to sell them for about $1,375, give or take $25 (at this time - I would bet it turns out higher by the time they go on sale).
2,500 times $1,360 gives gross revenue of $3.4 million. If they spend $500,000 tooling up and can build the guns for $600 each, that leaves $1.4 million for Colt, the maker, dealer profit, and marketing. With CNC and MIM technology, does that sound impossible?
What they are doing is selling a high priced product to a small market, presumably with modern technology getting the fixed (tooling) costs down to the point where they can make a useful profit on a batch of 2,500.
With middle class disposable income declining, aiming stuff at the top income brackets and keeping the price high by making it a limited edition is a sensible business strategy. The only problem I can see is keeping it up year after year with new limited editions of things. It is not hard to glut the market for them. That's what happened with "commemorative guns" 40-odd years ago..
Does anybody remember about 20 years ago, somebody made a batch of 50-100 .45acp Lugers and sold them for something like $15,000 apiece? (I think it actually happened, but it may have been just a proposal. I'll have to check Google.) This is the same thing on a larger scale and with better technology.
PS - Here is a link to an article from 1998 about the new-production 45acp Luger:
http://www.krausewerk.com/45luger.html
And this is a Youtube video of a guy firing SN 002:
https://www.youtube.com/watch?v=uDhQROCyX94