Another possibility is that the model 3 will eventually hit its price point but miss its delivery date. If demand for the S remains strong enough to gobble up battery production, Tesla could just keep making those, while reduced battery prices increase profit, and/or reduce the selling price to extend demand even further, thus pushing back the Model 3.
.
The basic oddity of the Model 3 plan is Tesla's intention to jump all the way from the $80K S down to half of that on the next model. An electric car doesn't really need to be as cheap as $35K, since the S has demonstrated demand for a higher price if the car is good, and since the average price of a new car is already $28,400, and those cars will burn tens of thousands of dollars of gas over their lifetime.
One way or another there is going to be a financial incentive to feel their way down the price point more gradually, although I hope they remain committed to, and are able to pull off, the revolutionary approach.