As far as inflation goes, Dec 2019 to Dec 2022 is about a 15% increase, which would bring the equivalent of that $35000 car up to $40500. This $3k price drop still leaves a more than $3k gap in inflation-adjusted price.
Imagine if it had launched with inflation included. Here's your $35000 car, for only $38500. I don't think people would have been happy.
Why does the article above say "available now" February 28, 2019?
Oh, the model 3 in general launched in July 2017. But that didn't include the $35k version.