"They (UP) tried to extort Tesla by giving Tesla two options, either a) ship with and be switched by UP for a low rate, or b) ship with BNSF and be charged an outrageously high rate to switch the ramps".

There is more that went on and is going on than you know. Much more.

First off how is UP offering a low rate extortion?? That claim is pure bullcrap because it doesn't fit the definition. And UP's offered switching rate wasn't that high, it's Tesla that claimed it was because they said it wasn't low enough, so the Tesla contract negotiators went crying foul to Musk. I guess you only heard one side of the story.

Second UP is not shut out of the battery shipments from Reno. Trucking them is an expensive idea but some will be trucked depending on make and model on the Fremont production line. The majority of the batteries will be shipped by rail in containers. From what I know not all the details have been worked out.

Third, that 500+ production goal is pure fantasy. Tesla will never reach it, not even close. How can they when Elon wants to tighten the company belt?