An article in the Wall Street Journal (April 2, 2014) titled “Does Tesla Need a $5 Billion Battery Factory” describes Tesla’s planned mass market electric cars (the GEN III) priced at $35,000 and the current $25,500 cost of the 85 Kwh battery pack for the Tesla Model S. The pressure to reduce battery costs by 30%, the plan to commit to purchases of primary metals such as cobalt are described as possible reasons for the plant. But the reasons for vertical integration by an auto OEM upstream continues to be a puzzle. Will Tesla plan to supply batteries to itself as well as competitors to manage costs ? Will the pressure to open the plant by 2017, and the corresponding downward pressure on battery prices, force current battery suppliers to partner with Tesla in this new plant ? Will the announced 30% cost reduction goal spur innovation by current battery makers who will be supplying other OEMs, thus increasing sales of electric vehicles ?