I think in the coming years Tesla will have several options for continued very high growth. I think it's easiest to see visibility in their growth in making their own vehicles, but at a minimum grid storage is another very large growth opportunity, even if not as easy to project what it will offer Tesla. When it comes to building and selling battery packs to other manufacturers, that idea is often dismissed as a low margin business Tesla would never be involved in. I'm not creating this thread to make the case that this will be the path Tesla follows (I really don't know ten years from now what path, or combination of paths Tesla will pursue), but rather to try to understand if there is a case for a possible opportunity of something of an "Intel Inside" like business for the packs or perhaps entire drivetrains as an opening Tesla might pursue. I wonder if identifying Tesla's packs with the 18650 cells that were the starting point for the cells in Tesla's battery pack is the reason the idea of selling battery packs is seen as a non starter. 18650 cells are widely understood to have been a low margin (I think about 5%) commodity product for quite some time. I think that is a case of reasoning by analogy rather than first principles. Due to differences in the scale of production needed for where vehicle battery pack demand seems to be headed vs. current demand for 18650s, and Tesla's proprietary adaption of the cells and proprietary design of the pack and software that runs them, it's an analogy that I suspect misses the reality. As we've all heard, the 1st Gigafactory Tesla makes will produce more lithium ion batteries than all the existing factories made last year... and that will be enough to make EVs for 0.5% of the global automarket. So, isn't a supply/demand situation that has 18650's selling basically as a commodity basically thrown out the window when you multiply current demand by the theoretical demand in vehicles, that is 200X more? In other words, if Tesla can build a plant that makes packs at $100 kWh in the next 10 years as Elon says, wouldn't it take massive investment (each GF costing $5 billion) and the will of other manufacturers to start building GFs by the dozen years in advance before global supply of $100 kWh packs was so ample in respect to demand that these packs were a commodity? What's more, there is Tesla's proprietary development of the cell and pack... though if Tesla continues with their open source policy on IP, it's not clear how much of a factor this would be. Looked at another way from first principles. If battery packs for grid storage are an attractive business for Tesla, and these packs are simpler than packs that get put into vehicles that are outside in weather on roads in varied condition traveling at 70+ mph all the time, why are the they not attractive in an auto application? That is why is an even simpler form of the core battery pack product, packs designed for grid storage (or consumer home use with their solar installation) seen as an attractive opportunity, but dismissed as a commodity in the auto industry? Why is the battery business a commodity industry when it comes to vehicles but not when it comes to grid storage/home&business installations? I think Tesla has a great opportunity in both because their kWh price is way ahead of the competition and the amount of supply compared to where it looks like demand is headed, suggest tremendous room to grow in two new industries in their infancy. To look at first principles one last time. Imagine it is 2025. You are the head of Honda. You've blown off EVs for years while talking about fuel cell vehicles. With pack costs as low as $100 kWh there are EVs being made that offer a far better experience for the same purchase price of an ICE , followed by fuel savings going forward, so, the public widely sees EVs are the future. Your old fuel cell pal Toyota has just committed $25 billion to build 5 GFs in the next 5 years. It's over for ICE, it never was for fuel cells, but you don't have anything like Toyota's reserve of cash to build 5 GFs so soon. Tesla wants to charge you $133 kWh to buy a pack (a 25% gross margin for Tesla). You can build an 50 kWh EV with a Tesla pack for $1650 more than it costs Tesla, or a 75 kWh pack for $2500 more. Do you want to buy from Tesla today and sell EVs, or just strictly pump out ICE that are a worse experience for the consumer and cost the consumer $15K more to own over their lifetime (based on the 2014 price of gas) as you hope to stay in business long enough to find the cash to build your own GFs over decades to convert your production to EVs with packs internally sourced. It could be that a lot of companies are in this position. And if for any reason the very small amount of companies that have enough money to make a big quick move into EVs do not take up Tesla's open source offer, buying packs from Tesla is very likely to allow you to sell your cars cheaper or at a better profit than the competition (assuming Tesla's packs continue to be at least $33 kWh cheaper than what others can do without using Tesla's technology). One last point, I don't think Tesla wants to let go of making vehicles, but as has been said before, they may shift to an energy storage company that also makes vehicles. If their focus and competitive advantage is developing energy storage technology, and becoming adept at the intense scaling up in production growing EV and grid storage markets demand, I think the "Intel Inside" mode will have even more of a case for itself as it would be aligned with the core competency of the company if they go that route. Tesla has lots of great possible routes ahead, and I think supplying packs to other manufacturers is a viable possibility.