A knitted component for an article of footwear having a vertically inlaid tensile element is described. The vertically inlaid tensile element extends along a direction that is vertical or at an angle to the direction of the knitting process of the knitted component. A method of knitting the knitted component includes placing a quantity of a tensile element into an auxiliary element of the knitted component and vertically inlaying a tensile element by using needles of a knitting machine to hold the tensile element by loops while the remaining portion of the knitted component is formed. As the knitted component is formed along a horizontal direction on the needles of the knitting machine, the tensile element spools out from within the auxiliary element to form the vertically inlaid tensile element.