If Musk is able to cut his
If Musk is able to cut his battery costs by 30% for Tesla Motors and Solar City, Musk will have a big advantage over competitors, either lower prices to take market share or higher profits or both. That will force competitors to react, perhaps by building their own GFs or demanding existing battery suppliers cut their prices and increase supplies.
Every new battery factory built will mean new refinements to battery making get incorporated based on experience with older factories. The pressure to innovate and the opportunity to roll out innovations increases the most when manufacturing capacity is expanding rapidly.