Everyone wants a Model S for a price less than a Bolt. Not going to happen.
I want a Model S for less than a Matchbox car, but it isn't going to happen.
You are correct you will not be able to get a Model S for less than a Bolt, but you will be able to get a Model 3 for less than a Bolt. Of course you may not want it as it might be missing a lot of things that are standard on the Bolt. So if you similarly equip them the Model 3 will cost more. But they aren't the same class of car.
I suspect very few people will buy a base, no-option Model 3. And if they do they aren't likely to get it for a while since optioned ones will likely be built first. (Or at least more of them will be, though they may throw some "stripper" ones in occasionally just so they can say they have sold some for $35k.)