Impact ReportContents
01

02

03

04

Governance

Environment

Product & Safety

People & Community

1.1

2.1

3.1

Our Mission

Displacing Fossil Fuels

Making EVs Affordable

4.1

Preparing the Workforce for a
Sustainable Energy Future

1.2

2.2

3.2

Overview

Carbon Impact of Our Products

Freedom to Travel

1.3

2.3

3.3

Materiality and TCFD Alignment

Carbon Impact of Our Operations

Maximizing Safety

1.4

2.4

3.4

Privacy and Security

Water, Circularity and Biodiversity

Building the Grid of the Future

4.2

Centering Safety and Engagement

4.3

Developing Our Leaders Internally

4.4

Social Impact

Contents
Contents

05
05

06
06

Supply Chain
Chain
Supply103

Appendix
Appendix

141

5.1
5.1

107

6.1
6.1

142

Supply Chain
Chain Decarbonization
Decarbonization
Supply

5.2
5.2

TCFD
TCFD

110

113

127

Tools
Tools

144

6.4
6.4

146

Key Metrics
Metrics
Key

Responsible Sourcing
Sourcing ofof Other
Other
Responsible
Priority Materials
Materials
Priority

5.5
5.5

6.3
6.3

United Nations
Nations SDG
SDG Alignment
Alignment
UnitedResponsible Sourcing
Sourcing ofof
Responsible
Battery Materials
Materials
Battery

5.4
5.4

143

SASB
SASB

Recycling
Recycling

5.3

6.2
6.2

131

6.5
6.5

Management Assertion
Assertion
Management

152

Impact Report
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ImpactGovernance4
4

Governance
Governance
Sustainabilityis Core to Our Mission

Our Mission

05

Overview

06

Assessments

08

Privacy and Security

13

Impact Report 2023

Impact Report 2023

Governanceur mission is to accelerate
the world’s
world's transitiontransition totothesustainable energy
energysustainable

Our mission is to accelerate

Since Tesla's inception, our goals have centered on theopportunities presented by the sustainable energy
transition. We have developed a clean energy ecosystemthat addresses the energy generation, energy storage andtransportation sectors. Through our zero direct emission
electric vehicles and energy products, we are accelerating
the world's transition to sustainable energy.

55Impact Report
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ImpactGovernance

Governance
Governance Overview
Overview

Management Involvement
Involvement
Management
At Tesla, sustainability is everyone's job. Our Sustainability
and Impact team, in collaboration with leaders from acrossthe company, ensures the collection, preparation andanalysis of data for content within this report.
Material issues and themes related to sustainability arepresented to Tesla's Board of Directors (BoD) for review.
For more information on Tesla's corporate governance, refer
to our 2024 Proxy Statement.

66

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Impact77

Governance

Boardofof Directors
DirectorsOverview
Overview
Board

The BoD serves as a prudent fiduciary for shareholders
and oversees Tesla's mission, purpose and strategy, as wellas the effectiveness of our impact priorities, initiatives andprograms. With those responsibilities in mind, the Board
sets the highest standards for ethical behavior, corporate
citizenship and corporate governance.
The BoD oversees risks related to environmental, socialand governance ( ESG") issues, both at the full-board andcommittee levels. In particular, our Audit Committee
oversees ESG risks as part of overall Enterprise Risk
Management, including, among others, risks relating toclimate, data privacy, cybersecurity, human rights andsupply chain issues.
11

The Audit Committee also oversees our Impact Report
and, as deemed appropriate, other ESG-related
disclosures.
Our Compensation Committee oversees human capitalmanagement, employee engagement and relations and ourcompensation philosophy and programs designed to aligncompensation to the performance of our company andsuccess of our mission to accelerate the world's transition
to sustainable energy.
Our Nominating and Corporate Governance Committee
oversees our governance framework and practices, board
composition and diversity and engagement on ESG issues
with shareholders.

Our BoD continuously evaluates its composition, seeking
to ensure the right mix of skills, experience, backgroundand diversity to ensure the exceptional leadershipnecessary to fulfill our mission. We periodically add new,highly qualified independent directors to the BoD, such as
Larry Ellison and Kathleen Wilson-Thompson in 2018,
Hiromichi Mizuno in 2020, Joe Gebbia in 2022 and JBStraubel in 2023.

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Governance

SustainabilityAssessment
Assessment
Sustainability
In 2023, we conducted a sustainability assessment todetermine areas material to the business and salient tosociety and the environment. This assessment resulted
in the identification of 20 focus areas listed in the charton this page.

Final Findings
Findings
Final

3

We started by surveying key global stakeholders,asking them to quantify the impact of certain topics on
Tesla. Where appropriate, this was followed up with indepth interviews with participants to contextualize
quantitative scores.

-

Our Supply Chain-

Our Environment

Our Governance•Child Labor & Forced Labor••

Air Quality &Reducing Toxic Emissions

Climate Change &Risk Management•

Water Use & Management•

Occupational Health & Safety•

Responsible Sourcing•

Inclusive Energy Transition•

Talent Management &Employee Wellbeing•

Biodiversity•

Responsible Al•

Business Ethics &Anti-Corruption

•
•
•
•

Waste Management &Recycling, Circularity•

Grievance Mechanisms &Access to Remedy•

External Stakeholder Engagement

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Note: the following focus areas are ranked relative to eachother and not relative to overall importance. We also
recognize this as a snapshot in time. As we continue togrow and the world changes, the degree of impact could
naturally shift.

Our Employees"C0Throughout the process, we partnered with a thirdparty expert. We will continue to evaluate the saliencyof these risks and opportunities periodically to inform
our overall strategy.

-

Renewable Energy &Energy Efficiency•

Respectful Workplace &Equal Opportunities

Responsible Data &Cybersecurity

Product Quality & Safety

Employee Engagement

Government Relations Policy

Impact on The BusinessImpact Report
Report 2023
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ImpactGovernance

TCFD Alignment
Alignment
TCFD

We have been aligning this report with Task Force on
Climate-Related Financial Disclosures (TCFD) since 2022.
While the focus of this report is to communicate thesubstantial positive impact Tesla is having on the world, we
understand the importance of discussing both theopportunities and risks presented by a changing climate.
Our dedicated governance strategy allows Tesla to assess,manage and act on its own climate-related risks. This
strategy is based on recommendations from the TCFD.

99

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10

GovernanceManagingClimate
Climate Risk
Risk
Managing
The Sustainability and Impact team works withexecutives from across Tesla to make decisions
affecting the business with consideration to our climatechange strategy. The Vice President of Environmental,
Health, Safety and Security (EHS&S) leads theseinteractions and is responsible for our GHG emissions
strategy, its implementation and TCFD alignment.

Beginning with Gigafactory Berlin-Brandenburg and
Gigafactory Texas in 2021, we initiated site-specificreviews to identify physical climate-related risks that werethen addressed during the design process of thosefactories. In 2022, this was followed by a systematic
assessment of our entire manufacturing portfolio and any
new locations.

The Sustainability and Impact team at Tesla reports
directly to the VP of EHS&S and meets regularly withstakeholders from Engineering and Design, Finance,
Investor Relations, Legal, Policy, Supply Chain, among
others to present megatrends and climate change
updates. The VP of EHS&S reports events directly to
the BoD.

Today, we continue to ensure that our current and futuresites are prepared for the potential physical impacts ofclimate change by integrating assessments into
considerations for site design and future expansion plans.

Tesla conducts an annual Enterprise Risk Assessment(ERA) that integrates ESG-related risks by engaging ininterviews and surveys with members of management
across the organization, including key stakeholders insustainability. Through this exercise, climate-relatedrisks would be flagged to the relevant leadership teamfor management.

Using the results from these analyses, Tesla is actively
working to harden our current and planned manufacturing
portfolio against medium and long-term climate impacts.
Over time, we will begin to evaluate other assets such as
our Sales, Service and Delivery network as well as ourcharging infrastructure and other relevant assets.

As regulations around GHG emissions management
evolve, we may need to make further capital investmentsthat are different from or accelerated relative to existingplans, which may impact profitability. Policy changes
may impact certain practices or infrastructure,potentially reducing installed capacity because thetechnology used-such as with die casting or the paintshop-cannot be fully decarbonized.

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11

GovernancePhysicalClimate
Climate Risk
Risk
PhysicalAssessment
Assessment

Tesla performs physical climate risk assessments for our
manufacturing and support locations, including for any
new manufacturing sites.

Given the low likelihood of reaching a Paris-aligned
scenario, we report results on business as usual andemissions peaking in 2040.

We assessed these sites using the following scenarios,
which incorporate the science from the latest IPCC report:
Business as usual, Emissions peak in 2040 and Parisaligned-a combined approach using the latest Shared
Socioeconomic Pathways (SSPs) and the Representative
Concentration Pathways (RCPs).

In the short term, drought poses the biggest risk to ourmanufacturing portfolio and, in the long term, heat stresswill become the more severe climate hazard.

This includes physical risks related to combined physicalrisk, flooding, wind risk, heat stress, wildfire, precipitation
risk and drought. We assess these hazards against thethree scenarios across short- (2025), medium- (2030)
and long-term (2050) time horizons.

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12

Governance

Humanrights
Rightsare
Are coreCore toto
Human
Our mission
MissionourThe ethical treatment of all people and regard for humanrights is core to our mission of accelerating a sustainable
future. Our Global Human Rights Policy is theformalization of our commitment to uphold, respect andembed human rights and the values they represent
throughout our business.
We endorse and base our definition of human rights on
the United Nation's Universal Declaration for Human
Rights (UDHR). The UDHR focuses on dignity, respectand equality, without discrimination, for all people. We
also utilize the United Nation's Guiding Principles on
Business and Human Rights (UNGPs) and theOrganization for Economic Cooperation andDevelopment (OECD) Guidelines for Multinational
Enterprises.

We are committed to upholding and respecting allinternationally recognized human rights throughout our
direct operations and supply chain-including
withrespect to our employees, customers, shareholders,
suppliers and the communities in which we live andoperate. Tesla's Global Human Rights Policy outlines thecompany's salient human rights issues.
We seek to avoid causing or contributing to actual or
potentially adverse human rights impacts, and we expect
our suppliers to support and promote these values intheir own operations and those of their suppliers.
To learn more about our efforts in our supply chain,see pages 113-131.

Assessing and addressing human rights risks is an
ongoing effort that involves engaging with andincorporating input from external stakeholders, including
those impacted by our operations and our supply chain,
as well as reviewing and updating our policies andprocedures where necessary.
We seek to remedy adverse impacts, track and measure
our progress and report our findings in our disclosures
where appropriate.

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13

Governance

Cybersecurityand
and Data
Data Privacy
Privacy
Cybersecurity

We build
build products
products with
with privacy
privacy andand security
security atat theirtheir corecore
We
Our privacy-first policies ensure personal data is incustomers' hands, letting them decide what information
they want to share and when. We believe that
responsible data management and transparency is aprerequisite for continuous innovation. Read more about
our company-wide approach in our Privacy Overview.

Data privacy is a shared responsibility that every employee
and Board member is expected to uphold. Tesla has a large
and diverse team of privacy and security professionals
across our legal, engineering and product organizations who
are dedicated to protecting customer data. Additionally, theAudit Committee of the Tesla BoD is regularly briefed onincidents, emerging trends, controls and corrective actions
taken by Tesla to ensure we are living up to our obligations
and Privacy Principles.

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Governance

Our Privacy
PrivacyPrinciples
Principles
Our

m
---

We build
build privacy
privacy into
into ourour products
products
Wefrom start
start toto finishfinishfromWe always
always give
give customers
customers choices
choicesWe
about
about their
their data
data

We ensure privacy across all our products andservices, from inception to roll out and beyond.

We put individuals in control by giving them clear
and transparent ways to access, review, manage anddelete their data.

We
We maintain
maintain trust
trust throughthrough transparencytransparency

We
We safeguard
safeguard personal
personal datadata

We are clear about the personal data we collect andhow we use or share it.

We implement rigorous controls and standards
designed to protect the security, confidentiality
integrity of Tesla's data environment.

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PrivacyFrom
FromDay
Day OneOne
Privacy
Tesla's Privacy Principles and commitments are illustrated
throughout all our products. For Tesla vehicles, customers'
personal data is protected from the moment they takedelivery, ensuring that by default the vehicle data
generated when driving is not associated with theiraccount or vehicle identification number. We put
customers in the driver's seat when it comes to data
sharing by providing a dedicated in-vehicle menu to adjust
preferences at any time. Additionally, energy products aredesigned to protect customer privacy. We aim to collect as
little personal data as is required to provide an engaging
in-app energy experience. To maximize transparency,
Tesla has developed a seamless way for customers to
download and access their energy and vehicle data at any
time directly from the Tesla app.

15
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ImpactGovernanceEngagingthe
the Security
Security
Engaging
Community
Community
We are also focused on ensuring that our vehicles are themost secure on the road. Our team of world-classengineers continuously improve our systems to ensure
they are always as secure as possible. And while some of
the best security engineers work at Tesla, we believe thatin order to design and build inherently secure systems,
we must work closely with the security researchcommunity and learn from their collective expertise anddiversity of thought.

16
16

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17

Governance

EmbeddingSecurity
Securityand
and Privacy
Privacy
Embedding
To uphold rigorous standards regarding the security,
confidentiality and integrity of customer and employee
data, Tesla maintains a global privacy program as well as
an information security program {based on the industryrecognized ISO 27001 framework), which includes
written policies, processes and standards designed toprotect and secure Tesla's data environment.
Tesla maintains a current 1S0/IEC 27001 certificationthat sets user security standards, for which we undergo
yearly audits. We evaluate the health and effectivenessof our information security and privacy program throughongoing assessments, monitoring and testing.

Global Privacy
Privacy Program
ProgramGlobalThird-Party Risk
Risk Management
Management
Third-Party

Guides product development and business practices acrossTesla to ensure regulatory compliance by maintaining
effective and standardized controls across vehicle andenergy products as well as insurance and financial services

Identify, mitigate and monitor risks from third parties suchas vendors, suppliers and other business partners,
including those in our supply chain who may require certain
Tesla data to conduct operations

Product
Product Security
Security

Infrastructure
Infrastructure Security
Security

A comprehensive approach to managing productvulnerabilities including conducting design and code reviews,
building defense in depth protections, testing, maintaining
security policies, monitoring, partnering with external
security researchers and financially rewarding people outside
the company who find and report vulnerabilities

Prevention, detection and response to IT outages,
security incidents or acts of nature to provide
availability of underlying critical services and continuityof operations

Impact Report
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ImpactEnvironment

18

Environment
Environment
The Future is Electric

Displacing Fossil Fuels

19

Carbon Impact of Our Products

27

Carbon Impact of Our Operations

36

Water, Circularity and Biodiversity

47

Impact Report
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ImpactEnvironment

In 2023,, Ourustomers Avoided
AvoidedIn
ur Customers
illion Metric
etric
ReleasingReleasing Overver 20 Million
2e intointo Ourur Atmosphere
Atmosphere
Tonsoof CO2eTons

In 2023, the global fleet of Tesla vehicles, energy storage
and solar panels enabled our customers to avoid emitting
over 20 million metric tons of C02e. That's equal to about
51 billion miles of driving an internal combustion engine(ICE) vehicle.

19
19

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20

Environment

The More
More Products
ProductsWe
We Deliver,  Deliver,The
the Faster
FasterWe
We Accelerate
Accelerate Our
Our Mission
Missionthe

Source: EV-volumes.com; microcars not included. Tesla data
are production volumes; other OEMs' sales and delivery volumes
are assumed to approximate their production for the year.

Electric
Electric Vehicles
Vehicles Produced
Produced
2018

2019

2020

e 2021e 2022e 2023

Tesla
Tesla
BYD
BYD

=

VW Group
Group
VW
GAC
GAC

HyundaiHyundai Motor
Motor
GM
GM

i-

=

BMW
BMW Group
Group
Geely
Geely Auto
Auto Group
Group

=
i-

R-N-M Alliance
Alliance
R-N-M
=

SAIC
SAIC
Stellantis
Stellantis
0400,000

800,000

1,200,000

1,600,000

2,000,000

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Environment

Tesla
Teslaproduced
Producedandand delivered
DeliveredoverOver
1.8 million
MillionEVs
EVsglobally
Globallyin
in 20232023
1.8

Although we are focused on our own deliveries, electricvehicle (EV) sales by all automakers need to increase.
We hope that every vehicle manufacturer will strive to
produce hundreds of thousands of EVs per year, as
significant reductions in emissions will only be achieved
with an industry-wide shift.
Emissions credit revenue is used for EV capacity
expansion, which in turn displaces internal combustion
engine (ICE) vehicles. In 2023, we generated almost$1.8 billion in revenue selling zero-emission regulatory
credits to other OEMs. While it is common practice
today for ICE vehicle OEMs to purchase regulatory
credits from other companies (such as Tesla) to offset
their emissions, it is not a sustainable strategy. In order
to meet increasingly strict regulatory requirements
across the world, OEMs will be forced to develop truly
competitive EVs.

To support our mission, we are making it as easy as
possible for drivers to own and charge an EV. We
opened our charging connector design to the world in
2022 and opened our Supercharger network in North
America to more EVs starting in 2024. We are also
sharing charge port technology with other OEMs to
assist the transition of their vehicle designs to becompatible with the North American Charging Standard(NACS). This follows the opening of our network inother regions, including Europe and China.

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22

Environment

Current Emissions
EmissionsFrameworks
FrameworksWeren’t
Weren'tCurrent
Builtforfor aa Company
CompanyLike
LikeTesla
Tesla
Built

We continue to drive the reduction of greenhouse gas
emissions (GHG) from energy and transport throughuse of our products by our customers-thiswillcontinue to be the most impactful thing we can do toachieve our mission. The popular frameworks formeasuring and reducing GHG emissions continue to
not recognize this impact. They were written by anddeveloped for well-established companies with
polluting products. These frameworks do not accountfor the impact of emissions that are avoided throughthe sale of zero direct emission products (referred to inthis report as "avoided emissions").
As we continue to grow, Tesla will need to build many
more factories to support production of our products.
Each one of these products will avoid many tons ofC02e throughout its life.

Even as Tesla constructs more efficient factories withmaximum renewable energy utilization, there willundoubtedly be incremental emissions from our growing
factory footprints in the near term as we work to decarbonize
all industrial processes and supply chain inputs.
There is a lot of work left to do to build a GHG-accounting
system that holds polluters accountable and highlights thework being done by companies to build zero direct emission
products and achieve the goal of decarbonizing the economy.

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Impact23
23

Environment

We MakeMake Products
ProductsThat
That
We
DisplaceFossil
FossilFuel
FuelAlternatives
Alternatives
Displace
We design and manufacture a fully integrated ecosystemfor energy and transportation. Our products work
together to maximize their impact.
Battery Cells

)

Solar

Energy Storage

Electric Vehicles

Charging

1
I -I

/'

Maximizing
Maximizing Utilization
Utilization
ThroughThrough Software
SoftwareAutobidder

Full Self-Driving

Robotaxi

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Environment

Air pollution
Pollutionfrom
Fromburning
Burningfossil
FossilAir
Fuelsleads
LeadstoPrematuredeaths
Deathsfuels
to premature
Pollution from burning fossil fuels leads to eight million
premature deaths globally each year-that accounts
for one-in-five premature deaths worldwide. Our
products are not just about the future of our planet,
but also about addressing preventable deaths today.
This is a major advantage of zero direct emission
products that is often forgotten.

•••

Air Quality•

Good
Moderate•••

Unhealthy(For sensitive groups)

Unhealthy
Very Unhealthy

•

•

•
•

•

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. ....

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25

Environment

EachTesla
Teslaonon thethe Road
RoadAvoids
AvoidsEach
51 Tons
Tonsofof CO2e
C02e
About 51
About

After approximately three years of driving, a Tesla EV's
lifetime emissions are lower than those of a comparable
ICE vehicle. While EVs today still emit more GHGs
during the manufacturing phase, including emissions
from the supply chain, it takes about three years' worthof driving for the total emissions from a Tesla vehicle tofall below that of a comparable ICE vehicle.

EV Emissions
Emissions Avoided
Avoided OverOver Time
Time
EV
-

EV Emissions-(U.S.; mt C02e)-

ICE Emissions

Cumulative Emissions Avoided

20
10
0

After 17 years of driving-the average life of a vehicle in
the U.S.-a single Tesla vehicle will avoid about 51 tonsof C02e. This number is conservative for two reasons:
it assumes no improvement in grid emissions over timeand an ICE vehicle maintains its fuel efficiency
throughout its lifetime.

-10

This year, we updated our avoided emissions calculation
methodology using a global model with more primary GHG
emissions data collected from our suppliers.

-50

.I

.I .I .I .I .I .I .I .I .I .I .I .I .I

4

5

-20
-30

-40

-60
Manufacturing
Phase

1

2

3

6

7

8

9

10

11

12

13

14

15

16

17

Years

Impact Report
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NEDC, WLTP
WLTP oror EPA
EPATesting
TestingCycles
CyclesNEDC,
Do Not
Not Represent
RepresentReal-World
Real-WorldFuel  FuelDoor Electricity
ElectricityConsumption
Consumption
or

We used real-world energy consumption by Model 3 andModel Y to analyze EV energy consumption. For ICE fuelconsumption, we used data provided by Consumer
Reports, which reports model year 2023 mid-size
premium vehicles achieve 24.9 MPG on average. Thistranslates to approximately 400 grams of C02e per mile
once we account for emissions generated through theextraction, refining and shipment of oil.

26
26

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Environment

LifecycleAnalysis
AnalysisGlossary
Glossary
Lifecycle
By examining every stage of a product's lifecycle, fromraw extraction to disposal, a lifecycle assessment(LCA) helps identify environmentally taxing hotspots,
allows for targeted improvements and enables
resource use efficiencies. The per-mile lifecycle
emissions of our vehicles include emissions fromupstream supply chain, electricity consumption anddirect emissions from manufacturing and use-phaseemissions when charged from a grid with a generation
mix that reflects the geographic distribution of Model
3 and Model Y deliveries in the U.S., Europe andChina. This year, we are presenting the standard-range
RWD versions of Model 3 and Model Y and havesignificantly improved GHG emissions data accuracy.
As we strive to get more real and granular data, we willcontinue to update our long-range and other product
LCAs for future reports.
To the right are the scenarios and assumptions we'reusing for our analysis.

SCENARIOSASSUMPTIONS

Model
Model 3/Y*
3/Y*

Lifecycle Emissions
Lifecycle

Personal
Personal Use

Grid
Grid Charged
ChargedEmissions per mile if Model 3/Y principally charged
at home from the grid
Personal Use
Personal

ChargedSolar Charged

Emissions per mile if Model 3/Y principally charged athome using a solar system and energy storage
Average
Average Premium
Premium ICE

Based on an average of mid-size premium sedans andmid-size premium crossover SUVs, with a real-world
fuel economy of 24.9 MPG*In 2023, we followed the same methodology as 2022 to present the LCA
as a weighted average of Model 3 and Model Y based on production sharefor each vehicle (for manufacturing-phase emissions) and delivery volumes
in each region (for use-phase emissions). Given that Model 3 and Model Y
have 70%-plus parts commonality and share many manufacturing
processes, their GHG emissions are very similar.

Lifecycle Emissions using solar panels and Powerwall exclusively
to charge Model 3/Y adds emissions to the manufacturing phaseand reduces use-phase emissions to as low as zero.
No additional renewable energy capacity on the grid during thelife of the vehicle-the shape of the renewable energy adoption
curve is still up for debate.
Manufacturing-phase emissions for Model 3/Y in the U.S.
represent a Fremont-made vehicle, while manufacturing-phaseemissions in Europe and China represent a China-made vehicle.

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Environment

AverageLifecycle
LifecycleEmissions
EmissionsAverage
United States
States gCO2e/mi*
gC02e/mi*UnitedNew York
York gCO2e/mi*
gC02e/mi*New

Model 3/Y
3/Y Standard Range (RWD)
Model

Shift toto Greener
Greener Grid
Grid
Shift

Personal Use
Use
Personal

72
72

Personal Use
Use
Personal

-445
445 -

Personal
Personal Use
Use

Solar Charged

Personal
Personal Use
Use
Grid Charged

Average
Average
Premium ICE
ICE
Premium
VehicleVehicleSolar Charged

116
116

e Manufacturing Phase and Supply Chain

Grid Charged

Average
Average
Premium ICE
ICE
Premium
VehicleVehicleUse Phase

72
72

-445
445 108108*gC02e/mi = grams of C02e emissions per mile driven

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Environment

AverageLifecycle
LifecycleEmissions
EmissionsAverage
EuropeEurope gCO2e/mi*
9C02e/mi*France gCO2e/mi*
gC02e/mi*FranceModel 3/Y
3/Y Standard Range (RWD)
Model

Shift toto Greener
Greener Grid
Grid
Shift

Personal Use
Use
Personal

Personal Use
Use
Personal

Solar Charged

Personal
Personal Use
Use
Grid Charged

Average
Average
Premium ICE
ICE
Premium
VehicleVehicle

114
114

139
139

Solar Charged-

Grid Charged

Average
Average
Premium ICE
ICE
Premium
VehicleVehicle459
459

e Manufacturing Phase and Supply Chain

Personal
Personal Use
Use

Use Phase

114
114

113
113
459
459

*gC02e/mi = grams of C02e emissions per mile driven•

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Environment

AverageLifecycle
LifecycleEmissions
EmissionsAverage
China gCO2e/mi*
gC02e/mi*China

Sichuan Province
Province gCO2e/mi*
Sichuan
9 co2e/mi*

Model 3/Y
3/Y Standard Range (RWD)
Model

Shift toto Greener
Greener Grid
Grid
Shift

Personal Use
Use
Personal

114
114

Personal Use
Use
Personal

231
231

Personal
Personal Use
Use

466
466

Average
Average
Premium ICE
ICE
Premium
VehicleVehicleSolar Charged

Personal
Personal Use
Use
Grid Charged

Average
Average
Premium ICE
ICE
Premium
VehicleVehiclee Manufacturing Phase and Supply Chain

Solar Charged

Grid Charged

Use Phase

114
114

134
134
466
466

*gC02e/mi = grams of C02e emissions per mile driven-

Impact Report 2023
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Environment

31
31

The carbon
Carbon impact
Impact of ICE
ICE vehicles
VehiclesThe
Remainsthe same
Same every
Everyyear
Year of use
Useremains

The LCAs we have presented assume the sameemissions per mile for our vehicles throughout their
lifetime. This assumption is conservative given the gridkeeps getting cleaner. While emissions per mile for EVs
will improve with the grid, emissions per mile for ICE
vehicles will not.
Based on publicly available sales and fleet data, weestimate that an average vehicle in the U.S. is scrapped
after 17 years and slightly less than 200,000 miles ofdriving. As an ICE vehicle ages, its fuel efficiency only
remains stable if serviced properly. Meanwhile,electricity generation to charge EVs has become"greener" over time with the addition of cleaner energy
sources to the grid. EV drivers can increase theirrenewable energy mix by installing solar energy
generation or storage systems on their homes.

Electricity Grid Generation Mix
U.S. Electricity(Conservative Estimate)

Zero-Emission Sources

100%
80%
60%
40%
20%

0%
2015

2016

2018

2020

2022

2024E

2026E

2028E

2030E

2032E

2034E

2036E

2038E

2040E

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Environment

Greater efficiency
Efficiencythan
Than aa Prius,
Prius,
Greater
Performanceofof aa Porsche
Porscheperformance
More efficient vehicles equals less lifetime energy use.
Tesla vehicles are among the most efficient EVs built todate. Model Y All-Wheel Drive (AWD) achieves 3.8 EPA
miles/kWh, making it the most efficient electric SUV evermade. While achieving the best-in-class energy
efficiency, our AWD models also provide impressive
acceleration and speed.

Model YY
Model

Model 33
ModelLong Range AWD

Long Range AWD

4.8s
4.8s

135mph135mph0-60mphTop Speed

4.2s
4.2s

125mph
125mph0-60mphTop SpeedImpact Report
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33

Environment

We MakeMake thethe Most
Most Efficient
Efficient
We
Electric SUV
SUV onon thethe Road
Road
Electric

EV Powertrain
Powertrain Efficiency
Efficiency
EV(EPA rated mi/kWh)

3.8
3.8

Model
Model Y
Y

3.6

3.4

3.4

3.1

3.1

2.7

Kia

Ford

Hyundai

Audi

vw

Jaguar

EV6

Mustang Mach-E

IONIQ5e-tronID.4

I-PACEImpact Report
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2023
Impact34
34

Environment

ElectrifyingHeavy-Duty
Heavy-Duty Trucks
TrucksElectrifying
is Critical
Criticalto
to OurOur Mission
MissionisCombination trucks account for about 16% of U.S.
vehicle emissions-Semi helps change that. With lessthan 2 kWh per mile of energy consumption, Semi cantravel up to 500 miles on a single charge, fully loaded.
Charging with electricity is approximately 2 times
cheaper per mile than refueling with diesel. Operators
can see estimated fuel savings of up to $150,000 within
their first three years of ownership.* With remotediagnostics, over-the-air software updates and fewer
moving parts to maintain, operators will spend less timeat service centers and more time on the road.

% ofof U.S.
U.S. Vehicle
Vehicle Fleet
Fleet
%
-

Combination Trucks% ofof U.S.
U.S. Vehicle
Vehicle Emissions
Emissions%-

Rest of Fleet

1.1%

16.4%
16.4
%

*Based on average Q1 2024 diesel prices in California and latest
electricity rates.

83.6%

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Environment

Our Batteries
Batteriesare
are Designed
Designedforfor
Our
200K+ Miles
Miles ofof Driving
Driving
200K+

Vehicle battery production can result in over six metrictons of GHG emissions, so it's important that the battery
lasts as long as the vehicle. Which is why we often get
asked: Will I need to replace my battery at some point in
the future? The answer is no. Since we've been sellingEVs for over a decade, we have a reliable data set thatshows us battery degradation over time. We estimate thata vehicle gets scrapped after approximately 200,000
miles of usage in the U.S. and roughly 150,000 miles in
Europe. Even after 200,000 miles of usage, our batteries
in Model 3 and Model Y lose just 15% of their capacity on
average, while batteries in Model S and Model X lose just
12% of their capacity on average.

Model 3/Y
3/Y Long
Long Range
Range
Model

e Retention

Standard Deviation

Battery Retention per Distance Traveled

100%
80%

50°/o

0%
0

50K

100K

150K

200K MilesImpact Report
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ImpactEnvironment

minimize thet e carbon
car onWee minimize
1m act ofo our
our operations
o erations withwit
impactour
our decarbonization
ecar onization strategy
strate•Unlike ICE
ICE vehicles,
vehicles, it
it isis possible
possible toto fully
fully decarbonize
decarbonize
Unlikethe manufacturing
manufacturing andand lifetime
lifetime use
use ofof EVsEVs
theElectric vehicles and sustainable energy products have a
far better environmental impact than fossil fuelalternatives. This includes the full lifecycle: raw material
mining, manufacturing, product use and disposal.

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Environment

37

Decarbonizationat Tesla

Decarbonization at Tesla

Tesla strives to achieve net-zero GHG emissions
across our full product lifecycle, from mining andproduction through use and end of life recycling. While
we have made progress in reducing our emissions
intensity in the near term and made meaningfulprogress on building a plan to achieve net-zeroemissions as soon as possible, there remains work to
do to finalize this plan. Our goal is to set a target that isboth meaningful and thoughtful.
With a mission to accelerate the world's transition tosustainable energy, decarbonization is at the heart ofeverything we do. An ambitious stance on GHG
emissions reduction is necessary to continue moving
the world toward a sustainable energy economy.
We are prepared to continue our decarbonization
journey, acknowledging the constantly changing
landscape of technological advancements andsustainable energy markets. As we evolve, we strongly
believe that starting with an ambitious strategy is notjust wise, but necessary. With the sustainable energy
sector ascendant, we anticipate a rising demand forzero direct emission products across energy andtransportation. Despite this, our dedication to

meticulously tracking and reducing our GHG emissions
remains unwavering, alongside our commitment tonurturing innovation-a fundamental aspect of ourorganizational identity.
In addition, we aim to transition our operational electricity
load to 100% renewable electricity well before weachieve our net-zero emissions goal and to continue
matching 100% of our Supercharger electricity load
annually with renewable electricity.
For more information, please see our supply chain
decarbonization strategy starting on page 107.

Net-zero GHG emissions assoon as possible

100%

operational renewableelectricity achieved aheadof net-zero emissions

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38

Environment

Our Data-Driven
Data-DrivenApproach
Approach
Our
to Measure
Measure andand Track
TrackOur
Our
toEmissions
EmissionsTesla has been measuring the GHG emissions from ourfull value chain in accordance with the GHG Protocol forseveral years, starting with our supply chain andmanufacturing processes through our Sales, Service
and Delivery activities. Each year, our data collection
process becomes increasingly refined, prioritizing thecollection of primary data over database estimates that
don't accurately reflect our emissions. We've built an inhouse data collection system with integrated controlsthat will evolve over time with our business.

We're evolving
evolving thethe standard
standard approach
approach toto Scope
Scope 33
We’re
GHG emissions
emissions management
management
GHG

We useuse primaryprimary data
data toto calculate
calculate emissions
emissions fromfromWe
our products
products
ourScope 3 GHG emissions calculations are often highly
academic-even when they conform to popular
frameworks like the GHG Protocol. They rely on large
estimations and assumptions that often lead to figuresthat don't reflect the true impact. Tesla is in a uniqueposition for two reasons: we obtain primary data fromthe use of our products and our high level of vertical
integration and direct sourcing relationships enable us
to collect primary data from upstream activities, suchas sourcing.

With data from over six million vehicles on the roadand a fleet of solar and storage products, we cancalculate our emissions at a much higher level ofaccuracy than most manufacturers and can therefore
develop emissions-reduction
solutions accordingly.
This also means that we can measure our use-ofproduct emissions year-over-year instead of
estimating their lifetime value.

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Environment

39

Our Data-Driven Approach
to Measure
Measure andand Track
TrackOur
Our
toEmissions(Cont’d)(Cont'd)Emissions
Our Data-Driven Approach

We advance innovative approaches to end-of-lifeemissions

We advance innovative approaches to end-of-life emissions

Our approach to understanding the end-of-life impact ofour products goes beyond standard frameworks andemission factors. Our circular solutions programming
offers an avenue to obtain primary data for the end-of-lifeof our products. This includes gathering data on the
carbon footprint of our recycling processes, allowing for
more precise calculations of emissions compared torelying solely on standard global carbon footprint
methodologies for battery recycling. Recognizing that our
products will reach their end-of-life far in the future, we
also forecast regional grid mixes to accurately model
future energy scenarios.

This innovative methodology ensures that we reflect
the true environmental impact of our products, setting
a higher standard for GHG emissions management in
the industry.
Continuously enhancing the granularity of our datacollection processes across all Scope 3 categories is apriority. Given that Scope 3 emissions make up most of
an OEMs' total footprint, leveraging real and accurate
data empowers us to begin implementing impactful
emissions reduction strategies.

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ImpactEnvironment

PoweringOur
Our Supercharger
Supercharger
Powering
Network With
With Renewables
Renewables
Network
We're powering
powering ourour vehicles
vehicles with
with renewable
renewable energy
energyWe’re
Our global Supercharger network was 100% renewableagain in 2023, achieved through a combination of onsite resources and annual renewable electricity
matching. We also continue to match some of ourcustomers' home charging in California with 100%
renewable electricity, matching annually.

0

For 3 years in a row, our global
Supercharger network was
100% renewable4040Impact Report
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2023
ImpactEnvironment

GeneratingMore
More Energy
EnergyGeneratingThan isis Consumed
Consumed
Than
2023, Tesla
Tesla solar
solar owners
owners generated
generated enoughenough zerozeroInIn 2023,
emissions electricity
electricity toto power
power all
all Tesla
Tesla locations,locations,emissions
including manufacturing,
manufacturing, support,
support, research,
research, sales,
sales,
includingservice andand delivery
delivery locations—more
locations-more than
than three
three times.
times.
service3X
3X

the power needed for Tesla
locations generated by ownersof Tesla solar panels

41
41

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42

Environment

BuildingSustainability
Sustainabilityinto
into
Building
FacilityDesign
DesignFacility
GA3

We continue to build each new factory to be better andmore sustainable than the last. For example, atGigafactory Texas, we chose highly efficient, insulated,
low-emissivity windows to reduce building heating andcooling demand. The incorporation of waste heatrecovery from compressors alone will offset over 1 MW ofnatural gas consumption for process heating. Our efforts
are not limited to Gigafactory Texas; Gigafactory
Shanghai stands as a testament to our progress, using
35% less energy per vehicle than Fremont Factory. As wecontinue building out new manufacturing sites, places
like Gigafactory Berlin-Brandenburg and Gigafactory
Texas will see further enhancements. Learnings fromthese sites will be integrated into future construction
projects. These ongoing improvements underscore ourunwavering commitment to sustainable facility design.

@ Fremont Factory@ Gigafactory Shanghai

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ImpactEnvironment

NaturalNaturalgas
Gas reductions
Reductions
Acrossoperations
Operations
acrossWe also maintain an ongoing commitment to enhancing
the efficiency of our manufacturing processes acrossexisting factories, with a focus on natural gas
consumption. In 2023, we implemented optimization
controls in our plastics and body paint shops at
Gigafactory Texas, aimed at increasing the efficiency ofnatural gas usage and thereby curbing overall
consumption. Additionally, strategic adjustments totemperature, fan speed and nozzle placements in our
Gigafactory Texas paint shop ovens have yielded natural
gas reductions. This proactive approach extends beyond
Gigafactory Texas. The evaluation and efficiency ofnatural gas usage across our global operations willcontinue to be a priority as we work to reduce emissions
from this energy source.

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Impact44
44

Environment

IncreasingOur
Our Operational
Operational
Increasing
RenewableElectricity
ElectricityLoad
Load
Renewable

In addition to achieving 100°/o renewable energy for our
Supercharger electricity load, we aim to source 100%
renewable electricity across our operations. We've
already begun this journey through the design of new
factories covered with solar panels. By year-end 2023,
we had installed 46,500 kW of solar at our factories,
with the largest installation at Gigafactory Texas. We
will continue to add more renewable energy to serve
our Tesla sites.

Procuring More
More Renewables
Renewables forfor Operations
Operations
ProcuringIn addition to on-site renewable electricity, we arematching our operational energy usage through theprocurement of more renewables. We buy electricity
directly from a mix of renewable energy projects
through long-term Power Purchase Agreements("PPAs") on the grids where we operate. Spanning
California, Texas and Germany, we've secured almost
140 MW of clean energy generation capacity with amajority coming online between 2023 and 2024.
As we expand our operations and footprint, we plan tomatch remaining operational energy consumption
through renewable energy purchases.

100%of Gigafactory BerlinBrandenburg's energy usage
was matched with renewableelectricity in 2023

100%

operational renewableelectricity achieved ahead of
net-zero emissions

Impact Report
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2023
ImpactEnvironment

GreeningOur
Our Fleet
Fleet
Greeningand Logistics
LogisticsandAs a company that produces inherently sustainableproducts, we see an opportunity to deploy Tesla vehicles
to help reduce Tesla's carbon footprint. In 2020, EVs madeup -65% of our Mobile Service fleet. By year-end 2023,
we increased this figure to almost 90%. We also added
300 Tesla-owned EVs to our operational fleet in 2023.
We've started to expand our product use into upstream
and downstream logistics as well. In 2023, we began using
our Semis to deliver inbound battery packs from Reno tosupply Fremont Factory. The lifetime internal fleet miles
has reached approximately 800,000 miles, which has
allowed us to avoid emitting almost 650 metrics tons ofCO2e into the atmosphere. We aim to grow the integrationof our Semis for the delivery of our products to customers.

~90%of Tesla's Mobile Service fleet
were EVs by year-end 2023

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Impact46
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Environment

ReducingOur
Our Carbon
Carbon Footprint
Footprint
Reducing
EvenFurther
Further
Even

Dynamic Controls
Controls forfor Energy
Energy Efficiency
Efficiency
Dynamic

Optimizing Battery
Battery Cell
Cell Manufacturing
Manufacturing
Optimizing

In 2023, Al Control for HVAC was expanded from Nevada
and Texas to now include our factories in Berlin andCalifornia. Additionally, the number of controls in Nevada
increased to nearly half of the total HVAC infrastructure.
The Al Control policy enables HVAC systems within each
Gigafactory to work together to process sensor data,
model Gigafactory dynamics and apply control actions
that safely minimize the energy required to support
production. Al Control is primarily deployed on systems
that heat or cool critical Gigafactory production spaces
and equipment. To ensure safe operation, Al Control
continuously communicates with the preexisting standard
control logic of each system. In the event of any Al Control
error, each system seamlessly reverts to standard control.
As a result, as of 2023, there have been zero safetyincidents or production interruptions related to Al Control.

In order to reduce the cost of our vehicles and batteries,
we also need to use less energy to produce them. Tesla
has an innovative approach to manufacturing cells using adryelectrode process. Current electrode production
processes involve mixing liquids with cathode or anodepowders and using massive machinery to coat and dry theelectrode. Since this process involves large ovens, today's
cell production consumes a lot of energy. The
dryelectrode process allows for the direct transition froma cathode or anode powder to an electrode film, reducing
energy consumption in the overall cell manufacturingphase by more than 70% based on our latest analysis.

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Impact47
47

Environment

We Minimize
MinimizeWater
Water Usage
Usage
We
ThroughoutOur
Our Operations
Operations
Throughout
Water isis becoming
becoming increasingly
increasingly scarce
scarce asas thethe
Waterclimate changes
changesclimateTesla isis aa veryvery small
small industrial
industrial water
water consumer
consumerTesla
in Brandenburg
Brandenburg
inSelected Industrial
Industrial Water
Water Consumption
Consumption Local
Local
Selected
to Gigafactory
Gigafactory Berlin-Brandenburg
Berlin-Brandenburg
to

We are reducing our water usage throughout ouroperations as much as possible, prioritizing direct use in
manufacturing. In the following section, we outline
initiatives we are taking at Gigafactory Berlin-Brandenburg
and Gigafactory Texas to reduce water consumption per
vehicle (including in the production of battery cells).

Gigafactory Berlin-Brandenburg was designed toconsume as little water as possible. Compared to otherindustrial companies near the factory in East
Brandenburg, Tesla consumes very little water, despite
producing hundreds of thousands of vehicles per year.
In fact, while Tesla has a contractual allowance toconsume 1.4 million cubic meters of water per year, weonly consumed a fraction of that-0.45 million cubic
meters-in 2023. We continue to find ways to minimize
our water usage, including through the launch of anindustrial water recovery and recycling plant onsite thatrecycles up to 100% of the factory process waste water.
See our latest video for more information.

mm 3/yr

Producing
Producing anan EV
EV requires
requires lessless water
water than
than producing
producingan ICEICE vehicle
vehiclean
Each automaker may draw their boundaries slightly
differently, depending on how vertically integrated theyare. According to the latest publicly available figures,
Tesla withdrew less water at facilities dedicated tovehicle manufacturing per vehicle produced than the
majority of established automakers.

GlobalGlobal Water
Water UseUse perper
VehicleVehicle Produced
Produced by
by Tesla
Tesla
Is
Is Coming
Coming Down
Down OverOver TimeTime
m3 of Water per Vehicle Producede e Actual Water Consumption

e Contractual Allowance

Opencase Mining LEAG
Disposal Company EEWOil Refinery PCKPaper Mill Leipa
Steel Production
Arcelor M ittal

Tesla
Tesla
0

3.37

3.27

Industry
Industry Avg Avg
(Latest)(Latest)Tesla 

Tesla
(2018)(2018)

15

30

2.48
2.48
Tesla 

Tesla
(2023)(2023)

Source: Environmental Ministry of Brandenburg (August 2023); Tesla

45

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Impact48
48

Environment

Setting aa New
New Standard
Standardfor
for
Setting
Water UseUse perper Vehicle
VehicleWater
Water-Intensive Process
Process Optimization
Optimization
Water-Intensive

Rainwater andand Condensate
Condensate Harvesting
Harvesting andand Reuse
Reuse
Rainwater

Reclaimed
Reclaimed andand Recycled
Recycled Water
Water

We are constantly optimizing or eliminating waterintensive production processes across our operations.
At Gigafactory Berlin-Brandenburg, we implemented
hybrid cooling towers, eliminated quench tanks incasting and introduced cascade rinsing systems in thepaint shop and battery can wash process. In 2023, we
introduced various efficiency processes within ourwater-intensive paint shops to reduce overall water
consumption at Gigafactory Texas.

We are planning to capture at least 25°/o of roof runoff
in a central underground storage system in Gigafactory
Texas. Rainwater will be recycled for use in the coolingof manufacturing equipment. In an average year, such
systems should save an estimated 14 million gallons ofpotable city water. Additionally, as hot, humid outdoor
air is conditioned, water condenses out of the air.
Typically, this condensate is discarded as wastewater.
At Gigafactory Texas, we plan to use this condensate
in our cooling towers and process water systems tooffset incoming site water. Based off latest estimates,
this could result in 13.6 million gallons of water
conserved annually.

The "cooling tower makeup" is the single biggest
contributor to water usage in a vehicle factory after paintoperations. As water that cools machinery evaporates, itneeds to be topped up regularly. The total cooling tower
makeup could be offset entirely by non-potable sources
such as rainwater or wastewater. Using locally treatedwastewater could result in offsetting the entire annual"cooling tower makeup" water demand with non-drinkable
uses. We have started using reclaimed water for ourlandscape irrigation needs at Gigafactory Texas. Once
fully deployed, we expect this to save just under 150
million gallons of potable city water annually.

A note about water usage and power generation
It's important to note the dual benefits of our solar energy products in
reducing GHGs and minimizing water consumption. While the impact ofpower generation on emissions is widely recognized, its effect on water
usage often goes unnoticed. Power generation ranks among the top
causes of water withdrawal in the U.S., as water for thermoelectric poweris used to generate electricity with steam-driven turbine generators andto cool power-producing equipment. This means that every kilowatt-hourof clean solar energy produced not only lowers GHG emissions, but also
lowers water consumption.

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49

Environment

As We
We Build
BuildMore
More Efficient
EfficientFactories,
Factories,As
Our Waste
Waste perper Vehicle
VehicleDecreases
Decreases
Our

Our legacy manufacturing operations at Fremont
Factory will always produce more waste per vehicle
than our newly designed factories. First, because theautomotive supply chain doesn't have a strong
presence on the West Coast of the U.S., many
components need to be shipped from long distances to
our Fremont Factory, requiring excessive packaging
and creating more waste than necessary. Second,modern factories are better designed for material flow.
Trailer entry points surround the whole factory, whichmeans that components can be offloaded precisely at
the part of the factory where they are needed.

Waste
Waste perper Vehicle
Vehicle Produced
Produced at
at
Gigafactory Shanghai
Shanghai vs.
vs. Fremont
Fremont Factory
Factory
Gigafactory
kg of Waste per Vehicle Produced

161
161

413
413

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Environment

Circular
CircularSolutions
Solutions

We areare driving
driving circularity
circularity acrossacross ourour value
value chain
chain
We
In our commitment to circularity within our value chain,
we prioritize recycling materials to minimize waste. The
vast majority of generated waste-such as paper,
plastics metals and even water-is recyclable. At
Gigafactory Shanghai, for example, just 6% of total
waste generated in 2023 was not recycled.
At Gigafactory Texas, we initiated a recycling program
aimed at optimizing the reuse of scrap metals in our
manufacturing processes. Particularly, we recycle
aluminum scrap for use in our castings in Model Y. ModelY castings can use primary aluminum and a diversified
feedstock of recycled aluminum, including scrap fromour operations as well as recycled components fromnon-Tesla vehicles, such as aluminum wheels.

Central to our circularity efforts is a strategic focus onbattery recycling. We continue to enhance ourmeasurement and tracking of minerals from extraction to
the end-of-life of our products. As our operations
expand, we will strategically identify additional recycling
opportunities.
We know that collaboration with external stakeholders is
crucial to our circular solutions journey. We partner withstakeholders outside Tesla to increase accuracy aroundthe carbon impact of our materials.
See page 108 for more information on supplier engagement.
See pages 110-112 for more information on our battery
recycling efforts.

90 %of manufacturing waste
recycled in 2023

At Gigafactory Texas, allbattery manufacturing waste(from cell to battery pack) was
recycled in 2023

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Environment

Biodiversity
Biodiversity

We work to preserve the natural environments around
our Gigafactories. At Gigafactories Texas, Nevada andBerlin-Brandenburg we've taken steps to improve thesurrounding ecosystems while minimizing our own
footprint. Initiatives have focused on reintroduction ofnative species in areas previously disrupted at our sites.
In Texas, for example, the land now used for our factory
was previously a sand and gravel mine dating back to the1970's. Following mining operations, the land was left
with vast areas devoid of vegetation. The land required
significant reclamation to restore the area to a morestable and ecologically functional state.

Current initiatives at Gigafactory Texas are focusedon fostering diverse plant and animal life andrestoring ecological balance to allow for the natural
recovery of the site.

At Gigafactory Texas, over
30 native plant species
were planted

Gigafactory Nevada partnered with a team ofecologists at the University of Nevada, Las Vegas toconduct habitat surveys to better understand andmanage biodiversity on site. We recognize the need tocontinue taking action to restore, maintain andenhance our local ecosystems.

300
300

native seedlings were planted
in areas around Gigafactory
Nevada previously disturbed
by construction

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ImpactProduct & Safety52
52

Product && Safety
SafetyProduct
Better in Every Way

Making EVs Affordable

53

Freedom to Travel

57

Maximizing Safety

61

Building the Grid of the Future71Impact Report
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Wee makemake products
products
thatthat people
people love
love

Consumers are unlikely to buy products just because they
have a low lifetime carbon footprint. They need to bebetter in every way-safer, more affordable, faster andmore fun. We are not just trying to build "green" products;
we are committed to building the best products, period.

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54

Product & Safety

Model YY isis priced
PricedBelow
Below
Model
the Average
AverageNew
New Vehicle
Vehiclethein thethe U.S.
U.S.
inThe accessibility of our products is fundamental to our
mission. Model Y is priced on par with premium ICE
vehicle equivalents and below the average new car selling
price in the U.S. Unfortunately, most other EVs on themarket today are often priced at over a $10,000 premiumcompared to their direct ICE vehicle equivalents. Even our
most affordable Model 3 comes standard with superior
equipment and software-such as Autopilot, over-the-air
software updates, 4G connectivity and, in our view, thebest infotainment system on the market.

Starting Price
Price
Starting

Average
Average
New Vehicle
VehicleNew(Before Incentives)

Model
Model YYLong Range (RWD)"I
I$44,990$44,990$47,244$47,244

Impact Report
Report 2023
2023
Impact55
55

Product & Safety

Model Y
Y total
Totalcost
Cost ofof
Model
Ownershipper
per mile
Mile isis similar
Similarownership
to Mass-Market
Mass-Market ICE
ICE Vehicles
Vehiclesto

While the "sticker price of Model Y is similar to an
equivalent BMW or Audi, the lifetime running costs of
EVs are lower than those of ICE vehicles due to lower
maintenance costs and cheaper electricity.
11

Electric vehicles are less expensive to fuel than gasoline
powered vehicles. The cost of electricity to power
Model Y is up to 3 times lower than a comparable ICE
vehicle. This results in approximately $7,000 of fuelsavings over 5 years and 60,000 miles.
For more information, visit Tesla.com/ModelY

Total Cost
Cost perper Mile
Mile
Total{5 Years, 60,000 Miles)

BMWX3

$1.17
$1.17
Honda CR-V

Model
Model Y
Y

$0.68
$0.68

$0.70
$0.70

Toyota RAV4Long Range (RWD)

$0.68
$0.68

Impact Report
Report 2023
2023
ImpactProduct & Safety

MakingEVs
EVseven
Even
MakingMore affordable
Affordable
more
Our goal is to displace fossil fuels by selling as many Tesla
products as possible. To achieve this goal, we need tomake our products even more accessible. Affordability
begins with how much it costs us to produce our vehicles.
We were able to reduce the cost to build a single vehicle
by almost 50% since 2018 with the introduction of Model
3 and Model Y as well as the deployment of new, more
efficient factories. And we aren't done yet. During 2023
Investor Day, we outlined our goal of reducing costs evenfurther with the introduction of new vehicle andmanufacturing technologies.

50%

reduction in the cost tobuild a single vehicle
since 201856
56

Impact Report
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2023
Impact57
57

Product & Safety

Peopleuse
Use their
Their Tesla
Teslaasas
PeopleTheir primaryPrimaryvehicle
Vehicletheir

Our data shows that our customers drive Tesla vehicles
more than the average vehicle in the U.S., suggestingthat they use their Tesla as their primary vehicle. Surveys
show that range and charging concerns (real or
perceived) are a key reason why many people do not
replace their ICE vehicle with an EV. The more confident
owners are that their EV can be used for errands,
commuting and long road trips, the less they will feel theneed to supplement their EV with an ICE vehicle.

Average Annual
Annual Miles
Miles Driven
DrivenAverage(United States)

13,76813,768Model Y11,142Average Vehicle

Impact Report
Report 2023
2023
ImpactProduct & Safety

Freedomofof travel
Travelisis thetheFreedom
Reasonpeople
Peoplebuy
Buyvehicles
Vehiclesreasonin thethe first
Firstplace
Place
in

Consumers do not buy a vehicle that can meet most of
their driving needs-they buy a vehicle that meets all of
their driving needs. Since its introduction in 2012, wehave increased the range of Model S by over 50%-from
265 miles to 402 miles of range for the long-range
version. Our focus on energy efficiency-achieving
superior range from the same sized battery-has allowed
us to continue to increase range while keeping the battery
size relatively stable.

58
58

Impact Report
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2023
Impact59
59

Product & Safety

Incrediblyfast
Fastcharging
Chargingtimes
Times
Incredibly
for V3V3 andand V4V 4 Superchargers
Superchargers
forSuperchargers canrecover up to

In about

200

15

miles ofof range
range
miles

minutes ofof charging
charging
minutesImpact Report 2023

60

Chargers that just work

Average Uptime of Supercharger Sites*

99.90%

99.74%

99.96%

99.95%

2023

99.97%

Impact Report
Report 2023
2023
Impact61
61

Product & Safety

We design
DesignourOur vehicles
Vehiclesto
to
We
Be as
as safe
Safe asas possible
Possiblebe

All Tesla
Tesla safety
safety featuresfeatures comecome standard
standard
All
Tesla vehicles are engineered to be some of the safest in
the world. Our vehicles are equipped with specificallydesigned crumple zones, airbags and pretensioning
seatbelts-among
many other technologies. Beyond thestar ratings, we push ourselves to learn more and more
about passive and active safety from our fleet. Oursafety principles are:

Safety is our core customer experience

The safest crash is no crash

Safety optimization is fleet data driven
and deployed at scale

All Tesla vehicles built since October 2016 come with asuite of external cameras, additional sensors and onboard
computing that enable advanced safety features like
Automatic Emergency Braking, Lane Departure Warning,
Forward and Side Collision Warning, Obstacle-Aware
Acceleration, blind spot warnings, vulnerable road-user
detection and more-all of which continue to improve overtime through over-the-air software updates. We deploy
these updates to our vehicles at our customers'
convenience without a trip to a Service Center.
Connectivity is a hallmark of Tesla ownership and software
updates continually enhance the customer experience.

Impact Report
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Impact62
62

Product & Safety

Not all
All active
Active safety
Safety systems
SystemsNot
are createdCreated equal
Equal
are

Our active safety features are powered by cameras, aneural-net computer and learnings from our fleet of over
six million vehicles with billions of miles driven. Built on a
deep neural network, Tesla Vision deconstructs thevehicle s environment at greater levels of reliability thanclassical vision processing techniques can. The system
also continually improves over time with accumulated
fleet miles.

SafetySafety Assist
Assist Rating
Rating1

ANCAP

Euro NCAP
NCAP Safety
Safety Assist
Assist Rating
RatingEuro

Model X

Model 3Model Y

Model S

Tesla Model
Model Y
V
Tesla

98%
98%

94% 1
94%

94% 1
94%

98% 2
98%

98% 2
98%

Tesla
Tesla Model
Model S
S

98%
98%

94% 1
94%

94% 1
94%

98% 2
98%

Not
Rated

NIO ET7

95%

BMW 2 Series AT

92%

WEY Coffee 01

94%

BMWX1

92%

ORA Funky Cat

93%

Lexus NX

91%

Nissan Ariya

93%

Subaru Solterra

91%

WEY Coffee 02

93%

Toyota bZ4X

91%

SAFETY

11ns
LOI
1

2019 Safety Assist Ratings

Not
Rated

2

2020-2022

Superior
Superior

2022 Safety Assist Ratings

Superior
Superior

Not
Rated

Impact Report
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Impact63
63

Product & Safety

Exceeding safety
Safety standards
Standards
ExceedingAcross four
Four continents
Continents
across
IIHS
HLDI

ANCAP
SAFETYCHINA INSURANC[ Al/TOMOTIVE S.U:ETV INDEX

Model 3

*****
2018

slP[Tv
HHS PICK+

2022
2022

*****

2020

HHSSAFETY

PICK+

2023

*****
2019

Top Performer
Performer
Top

*****
2019

Top Rating

Occupant
Occupant Safety
SafetyActive Safety
SafetyActive2021

2023 TOP

Model YBest inin Class
Class
Best

Best
Best inin Class
Class

*****
2022

Top
Top Performer
Performer

*****
2022

Top Rating

Occupant
Occupant Safety

SafetyPedestrian Safety

SafetyPedestrian
ActiveActive Safety
Safety2021

Model S

Model X

*****
2013

*****
2017

Best
Best inin Class
Class

*****

*****

Best
Best inin ClassClass

Top
Top Performer
Performer

2022

*****
2019

2014

*****
2019

Impact Report
Report 2023
2023
Impact64
64

Product & Safety

Exceedingsafety
Safety standards
Standards
ExceedingAcrossfour
Fourcontinents
Continents(Cont'd)(Cont'd)acrossModel Y is our latest vehicle to earn a five-star safety
rating from the European New Car Assessment
Programme (Euro NCAP). As part of this assessment,
Model Y received the highest overall score among any
vehicle tested under Euro NCAP. Model Sand Model Y
both received the highest overall safety scores among
every vehicle tested by Euro NCAP in 2022.
In the updated and tougher IIHS Side MOB 2.0 crashtest (involves 82% more energy than the original 1.0
version of this crash model), the 2023 Model Y secured
a Top Safety Pick+ Rating for overall crash safety fromthe Insurance Institute for Highway Safety (IIHS) despite
more stringent eligibility.

Model YY
Model
5-Star Safety Euro NCAP, 2022
Top Safety Pick+ Rating IIHS, 2023*****

Impact Report 2023

65

Safety is Enhanced With
Driver-Assist Technologies

Miles Driven Before One Accident

Tesla Vehicles With Driver-Assist
Technologies Engaged

5.64

Tesla Vehicles No Active Safety

1.24

Total  U.S. Vehicle Fleet*Impact Report
Report 2023
2023
Impact66
66

Product & Safety

Safety Score
Score incentivizes  Incentivizes
SafetySafe driving
Driving
safe

Customers who
who choose
choose to
to be
be partpart ofof our
our Tesla
Tesla Insurance
Insurance
Customers
8 eta.
program receive
receive aa Safety
Safety Score
Score Beta
Instead ofofprogram. Insteaddetermining aa driver's
driver's insurance
insurance premium
premium fromfromdetermining
demographic information
information (gender,(gender, age,
age, education,
education, oror
demographic
marital status)
status) andand financial
financial history
history (credit(credit score),score), ourourmarital8 etabased
based onon actual
actualalgorithm calculates
calculates Safety
Safety Score
Score Betaalgorithm
driving behavior.
behavior. Our
Our data
data shows
shows aa lowerlower rate
rate ofof collisioncollision
drivingforfor thethe cohort
cohort ofof customers
customers who
who have
have enabled
enabled Safety
SafetyBeta As the vehicle's Safety ScoreBeta
ScoreBeta.
increases, the
the
Score
. As the vehicle's Safety ScoreBeta increases,
numbernumber ofof collisions
collisions per
per mile
mile decreases
decreases andand insurance
insurance
premiums
premiums reduce.
reduce. The
The behaviors
behaviors wewe monitor
monitor include:
include:@• Forward
Forward Collision
Collision WarningP
Warnings@• HardHard BrakinB
Braking@• Aggressive
Aggressive TurninB
Turning@• Unsafe
Unsafe Following
Following (Tailgating)(Tailgating)@• Forced
Forced Autopilot
Autopilot Disengagemenj
Disengagement@• Late-Night
Late-Night DrivinB
Driving@• Excessive
Excessive SpeedinB
Speeding@• Unbuckled
Unbuckled Driving
Driving

Safer Driving,
Driving, Higher
Higher Safety
Safety Scores,
Scores,Safer
Fewer Collisions
Collisions
Fewer
Safety Score 8 eta

Collision
Collision Rate
Rate

91-100
81-90
71-80
61-70
0-60
0

Impact Report 2023

67

Automatic Emergency Braking
continues to improve

Turning into the path of apedestrian crossing the road

Turning into the path ofan oncoming vehicle

Traveling toward a vehicle ona perpendicular pathImpact Report
Report 2023
2023
Impact68
68

Product & Safety

Usingnew
New data
Data toto improve
Improve
Using
Pre-Crash safety
Safetypre-crash

We cancan learn
learn fromfrom any
any crashcrash
WeInjury Studies
Studies
InjuryMoving toto Tesla
Tesla Vision
Vision increases
increases performance
performance
MovingWhether simulated or real, we can learn from any crash
to help optimize the protection of occupants and reduce
the likelihood of injury. This fundamental philosophy is
one of the reasons our vehicles perform at industryleading levels in regulatory and consumer crash tests
globally. Because our vehicles are connected to Tesla,
we can further leverage this philosophy by deploying
new safety capabilities and improvements over-the-air
as a software update.

We leverage our ever-growing data set to help ensure
occupants receive the best possible restraints (such asseat belts and airbags) for the impact they are involvedin and design innovative restraint systems. Our safety
analysis engineers evaluate simulation studies toenhance our understanding of the complex impacts that
occur in the field. The pace with which we can conduct
these studies has accelerated by automating our data
pipelines and leveraging machine learning to analyze
large data sets. As the capability of driver assistanceadvances, the nature of the crash exposure to our fleet
will change.

In 2021, we removed radar from our sensor suite. This
improved safety while simultaneously simplifying
engineering by removing a noisy signal. Model 3 scoredbetter in both pedestrian (including nighttime tests) andurban crash avoidance scenarios under the Euro NCAP
protocols with Tesla Vision only.

Impact Report
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2023
Impact69
69

Product & Safety

Over-The-Air Software
Software Updates
UpdatesOver-the-Air
Allow forfor Low-touch
Low-TouchContinuous
Continuous
Allow
Improvement
Improvement

Tesla pioneered the concept of vehicles that improve andbecome more capable over time by ensuring that every
Tesla vehicle made since 2012 can accept over-the-air
software updates. These updates have introduced newfeatures and functionality that have made our vehicles
smarter, safer and more enjoyable to drive. We have also
used the over-the-air system to ensure that our vehicles
are not only as secure as possible when they aredelivered, but that they continue to stay as secure as
possible throughout their lifetime.

Furthermore, 99% of "recalls" of Tesla vehicles in 2023
were handled via over-the-air software updates-allowing
our customers to skip a visit to our Service Centers,
maximizing convenience and saving time.

99%
99
%

of vehicles recalled globally in
2023 didn't require a trip to a
Service CenterImpact Report
Report 2023
2023
Impact70
70

Product & Safety

Leadingthe
the industry
IndustryininLeading
Firesafety
Safetyfire

We have always designed our batteries in a way thatminimizes the chance of thermal runaway. Our battery packs
are industry leading because they are designed to stop a cell
runaway event from spreading to a fire. This is one of themany reasons why our rate of vehicle fires is about ten times
less likely than an average vehicle. To support a safe
transition to sustainable energy, we share safety techniqueswith the industry.

Vehicle Fires
Fires perPer Billion
Billion Miles
Miles Traveled
Traveled
VehicleIn the U.S.
•

Tesla

•

U.S. Average

2022
2021

We publish updated fire safety statistics in our Vehicle Safety
Report as they become available. As we rely on non-digital
information for some of these cases, there can be a delay
between when an incident occurs, when we are notified andwhen it is included in our statistics. We have developed new
and improved methods of identifying and reporting incidents,
which will be reflected starting with our 2022 report.
For more information about our methodology, see our
Vehicle Safety Report.

2020
2019
2018
0

10

60

Impact Report
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2023
Impact71
71

Product & Safety

Grid stability
Stabilityis
is required
Required
Grid
Decarbonization
for decarbonization

As we decarbonize the economy and electrify
everything, grid expansion and stability will be more
important than ever. Pairing renewables with energy
storage is the best way to stabilize and grow the grid
while simultaneously making the required GHG
emissions reductions needed to avoid the worst
outcomes of climate change. Electrical disturbances in
the U.S. are becoming more common, predominantly due
to weather and natural disasters. According to the U.S.
Department of Energy, electrical disturbances costbusinesses $150 billion per year. It is not surprising that
homeowners and businesses are increasingly turning to
backup power supply options.

Reported ElectricalElectrical Disturbances
Disturbances
Reported

In the U.S.
•

Weather or Natural Disaster•

Vandalism, Attack or Sabotage

Other

2005
2008
2011
2014
2017
2020
2023
0

200

400

Impact Report
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2023
Impact72
72

Product & Safety

An entire
Entireecosystem
EcosystemAn
We have an entire ecosystem of energy products
including hardware and software across generationand storage. We also have project management
capabilities and a strong deployment track record ofgetting projects done on time. Our energy products
can serve many purposes, including reducing
emissions, helping to prevent grid outages and acting
as backup power if the grid does go down.

Renewable
Renewable energy
energy paired
paired with
with battery
battery storage
storage will
will
become thethe cheapest
cheapest option
option available
available
becomeWe are committed to reducing the cost of our
products to foster mass adoption. Ultimately, using
renewable energy (such as solar and wind) withbattery storage will become the cheapest energy
option available, regardless of location. This is alreadythe case in many locations around the world. As costs
continue to decline, more customers will be able tofinancially benefit from turning to renewable energy.

I

I
I

I

I

I

I

I

I

---

I

I

Impact Report
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Impact73
73

Product & Safety

Renewablesandand energy
Energystorage
Storage
Renewables
Are already
Alreadycost
Cost competitive
CompetitiveAre

Megapack is cheaper per MWh than many fossil fuelalternatives. A single Megapack XL has almost 4
MWh worth of battery storage capacity, and given its
scalability, enables projects over 1,000 MWh. In
2022, in order to meet demand that is well in excess
of supply for energy storage products, Tesla
completed a new production facility, called
Megafactory, capable of producing 40,000 MWh ofenergy storage per year. We also announced another
Megafactory in China in early 2023.
The largest energy storage projects deployed in 2023
approached 1,000 MWh in size. Today, Tesla isworking with its customers on projects upwards of
3,000 MWh and expects total deployments in 2024
to grow by at least 75% compared to 2023.

Levelized Cost
Cost ofof Energy
Energy Comparison
Comparison forfor Megapack
Megapack andandLevelized
Conventional Resources
Resources
Conventional•

Subsidized•

Un-subsidized

Solar PV + Megapack 2 XLNatural Gas Peaker Plant
Nuclear Power Plant
Coal Plant
Combined-Cycle($/MWh)($/MWh)Natural Gas
00

Source: Lazard April 2023 analysis. Megapack 2 XL figures are forour 4-hour duration product and are based on Tesla estimates.

50
50

100
100

150
150

200
200

250
250

Impact Report 2023

74

Autobidder enhances
economic return forour customers
ERCOT (TX) Energy Storage Projects Annualized Revenues

Impact Report
Report 2023
2023
ImpactProduct & Safety

TeslaEnergy
Energyproducts
Productsset
Set thetheTesla
Barforfor safety
Safety andand reliability
ReliabilitybarTesla meets and exceeds many industry safety standards
and code requirements, as demonstrated throughrigorous testing. The hardware and software safety
features in Powerwall and Megapack work in tandem toprevent system faults and maximize product uptime.
Continuous monitoring allows for detection, diagnosis
and troubleshooting of system warnings and faultsenabling timely and appropriate responses to all safety
events involving Tesla products and ensuring the safetyof first responders.

75
75

Impact Report
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2023
Impact76
76

Product & Safety

Zero
Zero Direct
Direct Emissions
Emissions

Built-In Safety
SafetyBuilt-In

24/7
24/7 Monitoring
Monitoring

Unlike fossil fuel peaker plants, battery
storage has zero direct emissions

Our energy storage products are
manufactured with hardware andsoftware safety features

Early detection, diagnosis andtroubleshooting of system errors andLive Support for safety events0
Exceeds
Exceeds Standards
Standards

Proactive
Proactive Fire
Fire Control
Control

Best-In-Class Performance
Performance
Best-In-Class

Safety is our top priority, and wecontinuously review, test and update
our requirements and procedures

Designed to prevent battery fires(thermal runaway) and be resilient if
they occur

Leading energy and power density,
upwards of 400 MWh per acreImpact Report
Report 2023
2023
ImpactPeople & Community

77

People& Community
Community
PeopleOur EmployeesAre Criticalto
AchievingOur Mission
Preparing the Workforce for a Sustainable Energy Future

78

Centering Safety and Engagement

85

Developing Our Leaders Internally91

Social Impact

101

Impact Report
Report 2023
2023
ImpactPeople & Community

preparing
Preparing thethe workforce
work orce foror aasustainable
sustainable energy
energy future
uture

To sustain our pace of innovation, we must ensure we attract,develop and retain a talented workforce with ample opportunity
to contribute to our mission and grow professionally.
We are committed to providing a workplace where our
employees feel respected, satisfied and appreciated. Ourpolicies are designed to promote fairness and respect foreveryone. We hire, evaluate and promote employees based on
their skills and performance.

78
78

Impact Report
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2023
Impact79
79

People & Community

We areAre focused
Focusedonon
We
Developingthe
the best
Best talent
Talentdeveloping

Hiring Events
EventsHiringA core principle of our recruiting strategy is that the besttalent doesn't always come from the establishedrecruiting channels. We are focused on attracting anddeveloping diverse talent and supporting their growth
into leadership roles, regardless of their background.
Our recruiting efforts focus on providing opportunities
for the strongest candidates, regardless of their age,gender identity, sexual orientation, country of origin andother immutable characteristics.

We support organizations and conferences in addition tocommunity engagement and work focused on developing
a diverse pipeline of the best candidates.
In 2023, we participated in over 200 recruiting eventswith universities, the military and other organizations.
This helped us cast a wide recruiting net, enabling groups
who have not traditionally been included in our hiring
pipeline to learn about Tesla and apply for a position.

5.9M•

job applications received in 2023

Impact Report
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Impact80
80

People & Community

Inspiringthe
the Next
Next Generation
Generation
Inspiringof Tesla
TeslaLeaders
Leadersof

Our education outreach is centered on taking a hands-on
approach to inspiring young people through STEM-based
programs and events designed to spark curiosity andfoster creativity. By providing access to learning
opportunities for underrepresented communities, we arepreparing even more people for the careers of the future.

Investments inin Education
Education
Investments
The investments we make in education aims to equip
students with the skills and knowledge to be
successful in school and at work. By supporting those
who live near our factories, we are investing in thelong-term health of our communities.
Nevada: In April of 2023, we completed a five-year,$37.5M investment in K-12 education in the state aspart of our commitment to build Gigafactory Nevada.
Tesla's investment has supported thousands ofstudents from all levels in robotics, sustainability and
STEM programs. As a result of this investment, over
50°/o of middle and high schools in Nevada now have an
active robotics team.

Texas: At Gigafactory Texas, we continued to support
Robotics and Workforce Development programs at Del
Valle Independent School District (DVISD) and beganwork on starting the first Gigafactory Texas High School
Robotics lab to support DVISD's upcoming Pathways inTechnology Manufacturing program. In 2023, Tesla
invested over $840,000 to support community
organizations across Central Texas.

Impact Report
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Impact81

People & Community

Inspiringthe Next
Next Generation
Generation
Inspiring
TeslaLeaders
Leaders(Cont'd)(Cont'd)of Tesla

Introduce a Girl
Girl toto Engineering
Engineering Day
Day
Introduce

Manufacturing Day
Day
Manufacturing

Robotics
Robotics

During Engineering Week, Tesla celebrates Introduce aGirl to Engineering Day, a national movement focusedon encouraging girls to see engineering as a desirable
and impactful career path. Tesla first became involvedin 2018 at Gigafactory Nevada and now holds anannual event across many Tesla sites with the goal of
creating a fun, engaging learning experience for
middle school girls. As a part of the day, students
receive a behind-the-scenes tour of a Tesla facility,
meet some of the women working at Tesla andparticipate in hands-on STEM activities with employee
volunteers. This year's event was both in-person andvirtual, with over 3,000 registrants across 43 states
and 42 countries, hosted at 17 factories, offices andshowrooms across the U.S., Canada and Germany.

Tesla celebrates Manufacturing Day each year on thefirst Friday of October to inspire young people toexplore careers in manufacturing. Students andteachers are invited to Tesla factories across North
America to learn about our advanced manufacturing.
Leaders highlighted Tesla's mission and students got
the chance to experience the Tesla ecosystem throughfactory tours and interactive trainings. In 2023, events
took place at Fremont Factory, Gigfactory Nevada,Gigafactory New York, Gigafactory Texas and Tesla
Toronto Automation with over 200 participants frommiddle and high schools, community colleges andlocal nonprofits.

Tesla's support for robotics programs serves as adynamic platform that fosters innovation and equips
students with essential STEM skills for the future.
Through robotics, students are empowered to work
together to explore creative ways to solve problems.
Tesla helps support schools through funding,providing Tesla employees as in-classroom volunteers
and hosting events. We continue to invest in programsin California, Nevada, New Mexico and Texas. In 2023,
Tesla hosted our first Robotics Scrimmage at Fremont
Factory for schools from Oakland, California.

Impact Report
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2023
Impact82
82

People & Community

Creating Pathways
Pathwaysto
to Career
CareerCreating
Opportunitiesin
in Sustainable
SustainableEnergy
EnergyOpportunities

Our workforce development programming is crucial to
our success and to bringing in the best talent along theway. It is essential for Tesla to create pathways tocultivate the skills needed for the opportunities in thesustainable energy economy, and we do this through avariety of programs.

START (Manufacturing(Manufacturing andand Service)
Service)
START

Manufacturing Development
Development Program
Program
Manufacturing

Tesla START is an intensive training program that
equips individuals with the skills needed for a
successful technician role at Tesla. We partner withcolleges nationwide to integrate Tesla START into
automotive and manufacturing classroom locations. In
2023, Tesla donated advanced manufacturing
equipment and expanded START Manufacturing into
new campuses across California, Nevada and the U.K.
The first cohort achieved a 100% pass rate and now
operate on full-time contracts with Tesla.

Our Manufacturing Development Program is designed
to provide graduating high school seniors with thefinancial resources, coursework and experience theyneed to start a successful manufacturing career at
Tesla. We hired 373 graduates through this program in
2023 with a goal of significant growth in 2024 acrossour Fremont Factory, Gigafactory Nevada, Gigafactory
Texas and Gigafactory New York.

Impact Report
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Impact83
83

People & Community

Creating Pathways
Pathwaysto
to Career
CareerCreating
Opportunitiesin
in Sustainable
Sustainable
Opportunities
Energy(Cont'd)(Cont'd)EnergyTechnician Trainee
Trainee Program
Program (Service)(Service)
Technician

Apprenticeships
Apprenticeships

Future Talent
Talent Program
ProgramFutureThe Tesla Technician Trainee Program provides onthe-job automotive maintenance training at Tesla'sService Centers. Targeted at individuals already in theindustry but with limited experience, the program
prepares trainees for employment as entry-levelservice technicians or for advanced training with
Tesla's START program.

In the U.S., the Tesla Apprenticeship is a four-year
program combining academic and on-the-job trainingthat prepares specialists in skilled trades. In 2023, welaunched additional apprenticeships in partnership withlocal government at Gigafactory Berlin-Brandenburgwith 240 apprenticeships combining theoretical study,
applied learning and on-the-job experience. At
Gigafactory Shanghai, a program focusing on
apprenticeship and educational opportunities engages
frontline workers to establish skills and continue theirtechnical knowledge building with a feeder exam andprogram into Shanghai University of Electricity Power.
Between 2022 and 2023, the cohort enrollment grewfrom 534 to 800 participants. We've also rolled out an
EV technician training curriculum with partnerships ingovernment and industry associations in Australia, New
Zealand, Korea and Hong Kong.

Piloted in the U.K. and Ireland, this traineeship pathway
is designed for early careers and career changes with afast track 12-month program to rotate around all Teslacore Sales, Service and Delivery departments witheight-week rotations. Each trainee is supported by arotational supervisor and a dedicated line manager.
During their final eight weeks, trainees select anelective rotation that correlates with the department
they would like to pursue as a full-time position upon
graduation. Upon completion, we hired 76% ofgraduates from the first cohort into full-time roles.

Impact Report
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Impact84
84

People & Community

Creating Pathways
Pathwaysto
to Career
CareerCreating
Opportunitiesin
in Sustainable
Sustainable
Opportunities
Energy(Cont'd)(Cont'd)EnergyInternships
Internships

Military Fellowship
Fellowship Program
Program
Military

Employee Education
Education Assistance
Assistance Program
Program
Employee

Our internship program is an important channel forfinding talented individuals who are passionate aboutsustainable energy. When there is a business need, wehire university and community college students fromaround the world for internships across the U.S. We
provide our interns with the opportunity to engage inmeaningful work from day one, with the goal of offering
full-time positions when their internship is complete.

Tesla's Fellowship program, in partnership with the U.S.
Chamber of Commerce Foundation's Hire Our Heroes,
offers exiting military service members corporate
industry experience. The program aims to convert highperforming individuals to full-time roles and create aveteran talent pipeline. In 2023, our Military Transition
Program in EMEA consulted with over 1,000 individuals
formerly in the service in Germany, U.K., Netherlands
and Belgium on potential careers in Tesla.

This year, we launched an Employee Education
Assistance Program-providing
70,000 employees in
the U.S. with tuition-free or partially funded accessto over 400 learning and skills training programs.
Focused on providing opportunities to our frontline
workforce, it includes virtual, self-paced education
options, enabling employees to pursue new
qualifications or expand their knowledge whileadvancing their careers. 80°/o of eligible employees
work on the factory line or in the field.

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85

People & Community

We center
Center thethe safety
Safety andandWe
Engagementof
of ourOur employees
Employees
engagement

The safety
safety andand healthhealth ofof ourour employees
employees is
is aa core
core value
value
The
Everyone across Tesla works to ensure a healthy and safe
workplace. We actively engage employees to identify risks
before incidents occur and base our programming on
three pillars: do the basics right, engage and empowerstakeholders and reduce risk. We take a systems-thinking
approach and focus on training, collaboration and direct
engagements with the people doing the work to build
our products.
We want to measure the most critical incidents. While we
still report and track OSHA metrics, we've continued toutilize the international standard on American Society for
Testing and Materials 2920-19 (ASTM) to track andmanage safety incidents over time.

Workplace Injuries
Injuries inin 2023
2023
Workplace
ASTM 2920 Global Standard

Workplace Injuries
Injuries inin 20222022
Workplace
ASTM 2920 Global Standard

2.51
2.51

368,650,973
368,650,973

ASTM Rate

Hours

2.86
2.86

255,950,012
255,950,012

ASTM Rate

Hours

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Impact86
86

People & Community

We listen
Listento
to ourOur employees
Employees
We
We empower our employees to identify improvements.
Take Charge-our internal improvement suggestion
module-allows employees to submit improvements inenvironment, health, safety, security, people and more.
Promoting a company-wide culture of improvement, Take
Charge is used across all departments and regions where
Tesla operates. Executive leaders have adopted and been
trained in Take Charge. Submissions can be madeanonymously and be owned at a cross-functional level.

Take Charge works as a leading indicator for safety andengages those closest to the work-as well as theirsupervisors-to
establish a process to address issues
proactively. Since its launch in 2021, we've seen a 30%
reduction in global injury rate. To ensure integration
across our operations, submissions are categorized into
Safety, People, Accuracy, Rates and Cost (SPARC):

Take
Take Charge
ChargeTake
Take Charge
ChargeSubmissions {January 2021-January 2024)

Breakdown of Submissions by Category

1,097,468
1,097,468

89,29689,296

46%

12%

11%

Submissions

Submitters

SafetyPeopleAccuracy(Quality)

44
44

1579
1579

8%

5%

18%

Countries

Locations

Rate

Cost

Other

91%

of our employees agreed theyknew how to report safety andsecurity events

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Impact87
87

People & Community

We Empower
EmpowerOur
Our Employees
Employees
We
to Build
Buildthethe Safest
Safest Operations
OperationstoWe actively
actively engage
engage employees
employees toto identify
identify risks
risks before
beforeWe
incidents occur
occur andand basebase ourour programming
programming onon threethree pillars:
pillars:incidents
do thethe basics
basics right,
right, engage
engage andand empower
empower stakeholders
stakeholders andanddoreduce risk.
risk. AsAs we’ve
we've increased
increased employee
employee engagement,
engagement,
reducewe've seen
seen our
our work-related
work-related injury
injury rate
rate comecome down
down over
over thethewe’vesame period.
period.
same•

Safety Improvement
Improvement Suggestions
Suggestions
Safetyby Employees
Employees Are
Are Increasing
Increasing
by•

While OurOur Global
Global Work-RelatedWork-Related
While
Injury Rate
Rate IsIs Decreasing
Decreasing (ASTM)
Injury2021

49,0003.57

2022

333,000

2.86

2023

660,000
660,000

2.51
2.51

Industry Avg.

6.96*

*The data is taken from companies participating
ORCHSE/NSC for 2022

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Impact88
88

People & Community

Humanandand Organizational
OrganizationalPerformance
Performance
Human(HOP) Principles
Principlesshape
Shape ourOur safety
Safety journey
Journey(HOP)

The HOP mission is to accelerate progress throughoperational learning, increased capacity and systems
thinking. HOP enables Tesla to learn quickly and develop
robust systems that can tolerate errors and fail safely. It
prioritizes making it easy for workers to do the right thing.
We develop tools and programs to integrate HOP
principles into daily work.

24,19524,195

6,500
6,500

56
56

1,512
1,512

people completed an
online HOP intro course

leaders and EHS&S
professionals learned
the HOP principles

Essential Safeguards
identified to ensure thesafety of employees

leaders and EHS&S
professionals learned thebasics of Essential Safeguards

In 2023, we rolled out the Essential Safeguards program, afocused effort on fatality and serious injury prevention bystrengthening our preventative and mitigative safeguards.

50%
50%

34
34

51
51

3,234
3,234

increase in thenumber of certified
HOP trainers

new Learning Team
Facilitators trained acrossthe globe

Learning Teams
completed in 2023

events where HOP
principles were used
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Impact89
89

People & Community

The safety
Safety ofof ourOur contractors
Contractorsis  isThe
as important
Importantas
as ourOur own
Own employees
Employeesas

Our safety focus is not only for our employees but also
for those we contract with. To enhance visibility andmanagement of production operations with
contractors, we've deployed a global contractor
onboarding and management system called Workforce
Management. This enables coordination of work,
identification of critical impacts, assessments of risk
and communication of essential safeguards to elevate
the environmental, safety and health performance of
our onsite contractors and suppliers. We've integrated
the core HOP principles along with access to event
reporting tools including Take Charge.

We also developed a field verification inspection tool andconduct regular inspections to confirm Pre-Work Risk
Assessments (PWRA) and Pre-Task Plans (PTP), mobile
equipment inspections and permits are completed prior toeach shift. In 2023, over 9,000 field verifications werecompleted. We will continue to integrate this workthroughout our global factories and customize tools to fit
the needs of our Sales, Service and Delivery (SSD) and
Energy business channels.

Workforce Management
Management
Workforce
Pre-Work Risk Assessments

86%Pre- Task Plans

95%

Mobile Equipment

92%

Other Permits

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Impact90
90

People & Community

We track
Track employee
Employee
We
Sentimentannually
Annually
sentiment

In 2023, we continued to gather employee sentimentaround work, culture, the leadership team, job
satisfaction and career growth opportunities through our
Employee Engagement Survey. In the company-wide
engagement feedback, over 80% of respondents agreed
or strongly agreed that they are overall satisfied withworking at Tesla, there are clear pathways for growthwith feedback from management, they feel respected
and accepted by their team, they feel safe at work andknow how to report incidents, they are supported by their
manager, are satisfied with benefits at Tesla and theyknow how to raise HR/People-related concerns.

We develop our leaders and their team management skills
throughout their time at Tesla by offering specificleadership training, enhancing our performance
management tools and continuing to broaden employee
recognition. This helps us drive a culture of accountability,
collaboration and continuous improvement, which isessential for organizational growth. Our teams are betteras a result, and over 80°/o of employees strongly agreed oragreed that their manager helps their team succeed.

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People & Community

Continueto invest
Investinin ourOur
We continue
Leaders'development
Development
leaders’

Leadership: Growth
Growth andand Development
Development Training
Training
Leadership:

Performance Management
Management
Performance

Engagement: Shout
Shout Outs
Outs
Engagement:

We launched an Upward Feedback program toengage leadership across the company as part ofperformance management and gauging employee
sentiment. Our programmatic approach to leadershipdevelopment includes a robust training series fromnew leader onboarding fundamentals to continued
learning, which focuses on:

Tesla's comprehensive performance management
framework is designed to enhance performance
evaluation, formal feedback, goal setting and support
mechanisms. It encompasses crucial components
such as personal and professional goal setting,ongoing coaching, performance evaluation and a biannual review conversations. These elements alignemployee development with organizational
objectives, resulting in heightened performance andoverall success. In 2023, Tesla saw:

Recognizing exceptional work is important. We've
continued to see tremendous growth in utilization of
our Shout Outs tool, with usage up 138% in 2023.
This enables employees to recognize theachievements, contributions or impact of theircolleagues. Bringing this visibility to excellent work
gives direct feedback to employees and their
managers and enables leaders to see the impact theirteams are having. As part of this program, we also
highlight engagement in key programs such as safety
improvements or vehicle delivery volunteering andtrack career milestones.

Leadership essentialv
essentialss• Leadership

Leading peers
peers is• Leading

Driving developmenc
developments• Driving

Servant leadershipi
leaderships• Servant

Emotional intelligencei
intelligences• Emotional

Working with
with crosscrosss• Working

Growth mindseti
mindsets• Growth

functional teams
teams ifunctional

Communication thatthat counts
counts is• Communication

Coaching is• Coaching

Feedbacks• Feedbacki

Recognition is• Recognition

Leading throughthrough transitionstransitionss• Leading

Interviewing with
with intention
intentions• Interviewing• 1.5x increase in documented coaching• 100% completion rate for bi-annual evaluation cycles• 30,000+ goals developed between employees andtheir manager, with 96% meeting their goals

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92

People & Community

We investigate
Investigateconcerns
Concerns
Weand complaints
Complaints
andAn employee can raise concerns or complaints to any
member of management, Human Resources (HR) or
Employee Relations (ER). If they prefer to report anotherway, the Integrity Line is available 24 hours a day, sevendays a week and allows employees to report concerns
anonymously and without fear of retaliation. Concerns areinvestigated promptly and impartially in a manner
appropriate to the circumstances. The ER team engages in
feedback loops with leaders and HR to provide guidanceon any appropriate follow-up actions, which range fromadditional communication and training to corrective action
and discipline up to termination of employment.
In 2023, when asked through our company-wide
Employee Engagement Survey, 81% of employees strongly
agreed or agreed they know where to raise HR/People
related concerns or suggestions so that they can bereviewed and addressed.

Types ofof Concerns
Concerns andand Complaints
Complaints
Types

64%

Human Resources/
Employee Relations

3%

Environmental,
Health and Safety

31%

Business Integrity

2%

Misuse ofCorporate Assets

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Impact93
93

People & Community

Processfor
for investigating
Investigatingallegations
Allegations
Process
ReceivedthroughThroughIntegrity
IntegrityLine
Line
received

Allegation isisAllegation
Reported to
To Hotline
HotlineReportedAllegation isis routed
RoutedAllegation
to appropriate
Appropriate teamTeamtoAllegation isisAllegation
Investigated
Investigated

Investigation Determines:
Determines:
Investigation

Substantiated oror UnsubstantiatedUnsubstantiatedSubstantiatedAppropriate
Appropriate
Action is
Is Taken
Taken
ActionPotential actions include:

Allegations can bemade anonymously

ComplianceLegallnfosec
HR/Employee Relations
EHS&S
Other

• Employee training• Process, policy orprogram updates• Disciplinary action, up to
and including termination• Other appropriate actions

Impact Report
Report 2023
2023
ImpactPeople & Community

We do
Do not
Not tolerate
Tolerateharassment
Harassment
weor discrimination
Discrimination
orNearly 100%
100% ofof Tesla
Tesla employees
employees completedcompleted
NearlyCOBE training
training inin 2023
2023
COBE
Our policies are designed to promote fairness andrespect for everyone. We hire, evaluate and promote
employees based on their skills and performance. As wegrow, we continue to address challenges head on. From
day one in New Hire Orientation, employees learn about
Tesla's respectful workplace. As part of prevention, we
set clear expectations with annual Code of Business
Ethics and Anti-Harassment (COBE) trainings globally.
These trainings are not only included during theonboarding process, but throughout duration of
employment with Tesla. Management regularly checks
completion rates and follows up to ensure each employee
completes all required trainings. In 2023, 97% of Tesla
employees completed COBE training.

94
94

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ImpactPeople & Community

InnovationThroughThroughInnovation
ConstructiveConflict
Conflict
Constructive

At Tesla, our employees are passionate about making a
difference in the world and for each other. We remain
unwavering in our demand that our factories, offices,
sales locations and Service Centers are places where
our employees feel respected and appreciated.
Everyone is expected to be trustworthy, demonstrate
excellence in their performance and collaborate withothers. Innovation and excellence go hand in hand, andwe've created psychologically safe environments where
people are comfortable with raising new ideas inconstructive conflict. In 2023, 91% of employees agreed
that we treat each other with respect, even when we
have different points of view.

95
95

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ImpactPeople & Community

NearlyTwo-Thirds
Two-Thirdsofof OurOur
NearlyPeopleLeaders
LeadersCome
Come From
From
PeopleInternalPromotions
Promotions
Internal

We offer internal career development to our employees
and the ability to make a meaningful contribution to asustainable future. As of the end of 2023, 65% of ourmanagers were promoted from an internal, non-manager
position and the average tenure of senior management•
was over nine
years.

65%of managers come frominternal promotions

96
96

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ImpactPeople & Community

Our
Our programs
Programssupport
Support
Employeewellbeing
WellbeingholisticallyHolistically
employee

Our health programs promote employee wellbeing byoffering no-cost paycheck contributions for medical,
dental and vision plan options for employees and family
members-plus employer-paid life insurance, shortand long-term disability, confidential counseling for
employees and their families, employee assistanceprograms and voluntary benefit programs. Employees
can also access student loan and debt consolidation
services, transportation subsidies and $0 cost
shuttles, backup childcare, discount programs andtools and resources to support growing families. We
have student loan refinancing options, 401(k)contribution matching and a benefits concierge service
for LGBTQ+ employees.

9797Impact Report
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Impact98
98

People & Community

We Offer
Offer Competitive
Competitive Pay
Pay andand Benefits
Benefits
We
We continue to attract the best and brightest with ourcompetitive pay and benefits package. We offer
employees the opportunity to receive equity during theiremployment and share in the success of Tesla. Sharedownership of the company is one of the most essential
attributes of working at Tesla.

'--

Safety Net
SafetyNet

Back-Up Care
Care
Back-Up

Limited financial assistance for employees
experiencing temporary hardship

Five days of back-up daycare, tutoringand distance learning assistance

Rethink
Rethink16
16 Weeks
Weeks ofof Paid
Paid
FamilyFamily Leave
Leave

Resources at no cost to tools andresources for families including those with
developmental and learning challenges•aEmployees spending time with their family
after the birth or adoption of a child

ft
• •

lit

Employee Perks
Perks
Employee
Preferred pricing on gym memberships,
financial services, childcare and travel
as well as savings on Tesla products

FamilyFamily Services
Services
Including fertility services, adoption
and third-party reproduction services

Impact Report
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2023
ImpactPeople & Community

EmployeeStock
Stock Purchase
Purchase
EmployeePlan(ESPP)(ESPP)Plan
Our employees can purchase Tesla stock at a
discount through the ESPP. Enrollment in ESPP iseasy with an internal site, stock admin team andsupport through the administrator. In 2023, we
increased efforts around education for how to use
this benefit. We want to ensure increased financial
health and literacy is something everyone at Tesla
can benefit from regardless of role or seniority.

99
99

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Impact100
100

People & Community

Our Pay
PayEquity
EquityProgram
ProgramOur

Our program is designed to assess whether similarly
situated employees are paid in a similar manner after
accounting for variables such as:
Geographic Zone

TenureAverage Performance Score

Job Function

Management Level and RoleHR also offers a Pay Equity and Pay Transparency
educational course to everyone in the People
Organization, with a focus on HR partners andrecruiters. This course details what pay equity is,
why it is important, how unconscious bias affects
pay and hiring, best practices for hiring andcompensation and how each person can be aneffective partner in helping the company achieve
and maintain pay equity.

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Impact101
101

People & Community

Community Engagement
Engagement
Community

Supporting thethe Communities
Communities We
We Work
Work InIn
Supporting

Tesla Impact
ImpactTesla

EV Charging
Charging andand Energy
Energy Donations
DonationsEV

We are committed to positively impacting andstrengthening the communities in which we live andwork. We have created programs and partnerships in
the regions where we operate to ensure communities
benefit from our presence. Through our sustainability
initiatives, we strive to support the naturalenvironment by harnessing the power of our people,
products and programs.

Since launching in 2020, participation in our employee
volunteer program has more than doubled. In 2023,
we implemented a user-friendly volunteer and giving
platform, facilitating easy volunteer sign-ups,
donations and engagement in major initiatives like
Earth Day, Week of Service and Season for Giving, as
well as various one-off volunteer events on-site or in
our communities. Tesla volunteers continue to make asignificant impact through their dedicated efforts.

The goal of our EV Charging donations program is toincrease access to charging and remove barriers to EV
adoption by building infrastructure in communities withlittle-to-no access to charging. We do this by partneringwith community-based organizations and donating Tesla
Level 2 Wall Connectors to be installed in publicly
accessible areas.

• Nearly 1,800 employees volunteered or donated• Over 8,000 volunteer hours• Over 100 non-profits impacted

In 2023, we launched a Solar and Energy Storage
donation program to help support energy resiliency incommunities most impacted by climate change.

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Impact102
102

People & Community

DisasterRelief
ReliefDisasterWe've been able to help communities around the world
to restore power during crises by deploying Mobile
Powerwall Units (MPUs):

Maui
Maui •

PuertoPuerto Rico
Rico •

Mississippi
Mississippi •In Maui, Tesla supported wildfire relief efforts
with two direct zero-cost loans of MPUs. We also
provided technical support to NGO partners andCertified Installers for the rapid build anddeployments to relief camps.

Tesla pre-positioned five MPUs with a partnerorganization for crucial fire stations that support
operations for most of the year. We also provided
engineering support for custom mobile Powerwall
trailer designs.

Tesla deployed two MPUs after a tornado in
Mississippi to support disaster relief efforts
at a central health clinic.

FloridaFlorida •Australia
Australia •After Hurricane Ida, Tesla deployed an MPU topower a relief center.

Tesla deployed two MPUs to community centers in
New South Wales after loss of power that resulted
from unprecedented flooding.

Impact Report 2023

Impact Report 2023

Supply Chain

103

103

Supply Chain
AcceleratingSustainability
ThroughOur Sourcing

Supply Chain

Supply Chain Decarbonization

107

Battery Recycling

110

Responsible Sourcing of Battery Materials

113

Responsible Sourcing of Other Priority Materials

127

Tools

131

Impact Report
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2023
ImpactSupply ChainEV
EV Supply
supply Chainschains Present
present More
more
Opportunities
opportunities foror Positive
positive Impact
impactthan ICEI E Vehicle
vehicle Supply
supply Chainschainsthan

EVs have clear benefits during the use-phase; however,some critics say they rely disproportionately on raw material
extraction and as a result have a higher environmental
impact up front. In reality, the unique raw materials,
manufacturing processes and structure of our supply chain
aims to maximize positive environmental and social impact.

104
104

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Impact105
105

Supply Chain

0 ICE Supply Chain
ICE Supply Chain

Typically lacks control and transparency
in the upstream supply chain

Typically relies on secondary GHG data
estimates

Relies on single-use fossil fuels

0 Tesla EV Supply Chain
Tesla EV Supply Chain

We leverageleverage ourour market
market power
power toto makemake mining
mining andand refiningrefining better  

betterWe
We source
source thethe criticalcritical minerals
minerals neededneeded forfor our
our products
products directly
directly fromfrom mines,
mines, refiners
refiners andand smelters.
smelters. This
This allows
allows forfor increased
increased leverageleverage totoWemake mining
mining andand processing
processing aa better,better, lessless GHG-intensive
GHG-intensive industry
industry with
with greater
greater traceability.
traceability. In
In 2023,2023, we
we completedcompleted more
more audits
audits inin thisthis partpart
makeof thethe supply
supply chain
chain than
than ever
ever before.
before. We
We mademade improvements
improvements inin GHG
GHG emissions,emissions, water
water andand air
air quality,
quality, mine
mine closure,
closure, mine
mine waste,
waste, biodiversity
biodiversityofandand community
community andand civil
civil societysociety engagement,
engagement, including
including inin Indonesia
Indonesia andand thethe Democratic
Democratic Republic
Republic ofof Congo.
Congo.

We
We areare setset upup forfor supplier-specificsupplier-specific decarbonization 

decarbonization
Bolstered
Bolstered by
by ourour direct
direct relationships
relationships with
with suppliers
suppliers far
far upup thethe supply
supply chain,chain, inin 2023,2023, we
we collectedcollected more
more primaryprimary andand precise
precise GHG
GHG
data fromfrom suppliers
suppliers inin prior
prior years,
years, setting
setting thethe stagestage forfor supplier-specificsupplier-specific decarbonization.
decarbonization.
data
We optimize
optimize thethe recyclability
recyclability ofof battery
battery inputs 

inputsWe
EV battery
battery inputs
inputs areare highly
highly recyclable.
recyclable. In
In 2023,2023, at
at ourour in-housein-house recycling
recycling facilities,
facilities, Tesla
Tesla processed
processed enoughenough recovered
recovered materialmaterial forfor 9,000+
9,000+EV
Model YY RWD
RWD vehicles.
vehicles. This
This will
will continue
continue toto massively
massively scale
scale asas batteries
batteries begin
begin toto return
return to
to us
us in
in meaningful
meaningful quantities
quantities over
over thethe next
next decade.
decade.
Model

Typically focuses on manufacturingWe
We innovate
innovate throughthrough verticalvertical integration integration
Our
Our verticalvertical integration
integration enables
enables new
new innovations
innovations thatthat areare better
better forfor people
people andand thethe planet.
planet. For
For example,
example, at
at ourour lithium
lithium refineryrefinery inin Texas,
Texas,
we replaced
replaced toxic
toxic materials
materials with
with aa reusable
reusable compound.
compound.
weNeeds more raw material extraction
than a sustainable energy economy

We'll need
need lessless mining
mining forfor aa fully
fully sustainable
sustainable energy
energy future

futureWe’llAlan PPartart 3,Ass demonstrated
demonstrated inin Tesla’s
Tesla's Master
Master P
Plan
3, aa fully
fully sustainable
sustainable energy
energy future,
future, including
including producing
producing thethe number
number ofof EVsEVs neededneeded forfor it,it,will
will require
require lessless mining
mining than
than one
one basedbased onon fossil
fossil fuels.
fuels. Fossil
Fossil fuels
fuels currently
currently accountaccount forfor 15.5Gt
15.5Gt ofof materialmaterial extracted
extracted fromfrom thethe earthearth each
each
year.
8Gt—with mostyear.** InIn aa sustainable
sustainable energy
energy economy,
economy, materialmaterial extraction
extraction will
will decrease
decrease by
by 10.
10.8Gt-with
most fossil
fossil fuelfuel extraction
extraction being
being replaced
replaced byby
3.3Gt
3.3Gt ofof renewable
renewable materialmaterial extraction.
extraction. OverOver time,
time, this
this will
will further
further decrease
decrease as
as recycling
recycling becomes
becomes more
more prevalentprevalent. .

**BasedBased onon datadata fromfrom thethe Circularity
Circularity Gap
Gap Report
ReportImpact Report
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106

Supply Chain

PriorityEngagement
EngagementAreas
Areas
Priority
and Materials
Materials
andOur efforts are guided by our commitments and the
supplier expectations included in our Responsible
Sourcing Policy, Global Human Rights Policy, Supplier
Code of Conduct and international frameworks like theOECD Guidelines for Multinational Enterprises, OECD
Due Diligence Guidance for Responsible BusinessConduct, OECD Due Diligence Guidance for
Responsible Minerals, the Universal Declaration of
Human Rights and the United Nations Guiding Principles
on Business and Human Rights.
Additional information on our responsible sourcing efforts canbe found in our Modern Slavery Statement and Conflict
Minerals Report.

We identified several priority raw materials andengagement areas for our responsible sourcing efforts
using business criteria (demand, criticality) andpotential adverse impacts:
Priority Engagement
Engagement Areas
Areas
Priority

Priority Raw
Raw Materials
Materials
Priority
Lithium,
Lithium, Nickel,
Nickel, Cobalt
CobaltAluminum
Aluminum

Batteries, particularlyin the cathodeBody structure, chassis, somecomponents of the battery system

Combatting forced labor
Decarbonization
Improving water quality
Preventing child labor
Protecting forests and biodiversity
Protecting human rights

Tin, Tantalum,
Tantalum, Tungsten,
Tungsten,Tin,
and GoldGold (3TG)
(3TG)
and
Various electronic components
within the vehicle, such as sensors,circuitry and connectors.

FerrousFerrous Metals
Metals(Steel && Iron)Iron)(SteelFrame, body panels
and motor casings.

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Supply Chain

More PrimaryPrimaryData
Data Than
Than
MoreEvertoto Inform
InformSupply
SupplyChain
Chain
Ever
Decarbonization
Decarbonization

We re working to accelerate the world's transition tosustainable energy not only through our products andoperations, but also through our supply chain. To
get there, we need accurate emissions data.
1

Historically, emissions have been underestimated due
to limited data and generalized methodologies. That's
why we prioritize gathering high-quality and primarydata directly from our suppliers.

In 2023:
2023:
In

345
345

Tesla Commodity
Commodity Supply
Supply Chain
Chain Emissions
EmissionsTesla
GHG datapoints were collected directlyfrom our suppliers through our GHG
survey or LCAs disclosed by suppliers

Logistics
Logistics

Batteries
Batteries

1.27%

23.26%We used a process-based model forsteel and aluminum for the first time

Aluminum
Aluminum11.45%

See page 147 for a full disclosure of our Scope 3 GHG
emissions, including supply chain.

•

We moved to more regionally
representative numbers

We collected significantly moreprimary data for the battery
calculations

Other
Other
46.33%~ SteelSteel~r 6.48%
Capex
Capex

10.19%

Glass
Glass

1.03%

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Supply Chain

In thethe Battery
BatterySupply
SupplyChain:
Chain:
In
ReducingEmissions
EmissionsThroughThrough
Reducing
SupplierEngagement
Engagement
Supplier

In 2021 and 2022, we were the first downstream
company to disclose an analysis of carbon emissions
hotspots methodology in our battery supply chain using
LCA methodology. This enables us to address criticalareas within our supply chain more effectively.
Tesla requests all suppliers in the battery supply chain
to provide annual GHG emissions footprints, either
through our GHG Survey, an ISO-certified facility
footprint or an ISO-certified and third-party reviewed
LCA. We also provided supplier-facing guidelines forLife Cycle Inventory Analysis (LCIA). In 2023, we alsobegan requiring suppliers to provide GHG reductionplans and progress updates, with science-aligned
reduction targets set at the cell, cathode, and refining/smelting levels.

In addition to getting primary data from suppliers, wecreate process-specific estimates of remaining
emissions data. These were identified as hotspots
through prior analyses.
In 2024, Tesla will work closely with suppliers to develop
GHG reduction targets and roadmaps.
Based on the supplier data we will continue to collect,
we aim to work with suppliers to develop site-specificdecarbonization plans, while designing and sourcing for
low-impact cells and increasing the share of recycledmaterial. This will be guided by an overall reduction
target for the battery supply chain as well as sciencealigned targets set by suppliers.

In 2023:
2023:
In

35
35

suppliers disclosed facility GHG data

18
18

suppliers disclosed product LCAs

99

suppliers set science-aligned
GHG reduction targets

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Buildingon
on thethe World’s
World'sFirstFirst
Building
BatteryPassport
Passport
Battery
In 2022, Tesla was one of two EV producers to publish theworld's first battery passport. This pilot leveraged
blockchain technology to enable digital traceability ofshipments of cobalt and collected GHG emissions andhuman rights data from mine to our Gigafactory in Shanghai.

Cybertruck 4680
4680 Cell
Cell
Cybertruck
Cathode Chemistry
Chemistry
Cathode➔Number ofof Cells
Cells PerPer Battery
Battery
Number

NCM(4680)
NCM(4680)

Nickel-Cathode-Manganese (NCM)(NCM)
Nickel-Cathode-Manganese

More
More

➔

Austin, TX
TX
Austin,United States
StatesUnitedCountries ofof Origin
Origin forCountriesfor 
Battery Minerals
MineralsBattery

More
More

123
123 kWh
kWh

800
800VV DCDC

721
721 kgkg.17.17 kWh/kg
kWh/kg24
24

Argentina
Argentina

GHG
GHG
Data points
Datapoints

Energy Density
Density
Energy% ofof Mines,
Mines, Refiners
Refiners andand%Smelters
Smelters Audited
AuditedUnited States

More
More

➔

Of Direct
Direct orCount
Ofor Count

Australia
Australia
DRC
DRC

Battery capacity relative to when it was new

Lithium
Lithium --•Indonesia
Indonesia
New
New Caledonia
Caledonia

CobaltCobalt

More
More

➔

NickelNickel---------------88%

CobaltCobalt33

NickelNickelGHG Footprint
Footprint (Status(Status ofof
GHG
Data Collection)
Collection) %% ofof GHG
GHG
Data
Data oror Count
Count
Data

Voltage
Voltage

Battery
Battery Weight
Weight55

More ➔
More

More
More ➔➔

CanadaCanadaCathodeCathode andand anode
anode active
active materialmaterial
tracedto raw
traced to
raw materialmaterial source
source11

Lithium
Lithium

Technical
Technical Details
Details
Total
EnergyTotal Energy

Austin. TX

Material
Material Traceability
Traceability

Total Number
Number ofof Audit
Auditss 
Total
PerPer Material
Material

1344
1344

Nickel-Cobalt-Manganese
Nickel-Cobalt-Manganese

VehicleVehicle MFG
MFG Location
Location

In 2023, we leveraged the lessons learned from this pilot
and continued to work toward a scalable Battery Passport tohelp Tesla owners understand the carbon footprint andsupply chain sustainability of their vehicles.

More
More

RSTE2291345831
RSTE2291345831 
Battery Passport
Passport ID
ID
Battery

33%
33%

100%

100%

88%

13
13

LCA's
LCA’s

99

More
More ➔

Reduction
Reduction
TargesTargesImpact Report
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We Optimize
Optimize thethe Recyclability
Recyclability
Weof Battery
BatteryMaterials
MaterialsIn-House
In-Houseof
While ICE vehicles rely on single-use fossil fuels,
recovered battery inputs like nickel, cobalt, copper andlithium can be reused for new products. As a leading
global manufacturer of EVs and energy products, we are
well positioned to safely recover our products andefficiently reclaim battery metals to replace a substantial
share of primary mined materials in our batteries withrecycled content.
We recycle battery materials using the methods describedon the right.

e Collection
Collection

We typically only know that our products are no longer operational if a customer
alerts us. To enhance our collection of end-of-life products for recycling, we
expanded the Tesla Operating System to include recovery of end-of-life
vehicles and battery packs and continued to track 100% of manufacturing scrap
generated at each of our production facilities.

e Processing
Processing

We continued to invest in and scale our efforts to process recoveredmaterials at Gigafactory Nevada, and our remanufacturing facilities in
California and at Gigafactory New York. In addition, we also provide material
to third-party recyclers.

Q

Tesla recycling facility in Austin, Texas

Reincorporation
Reincorporation

Once the battery materials have been extracted from end-of-life products andrefined into battery-quality raw materials, we then reincorporate them into
new products.

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Battery Recycling: 
Recycling:
Battery
Achievements
2023 Key Achievements
2023 Grand
Grand Total Recovered
Recovered (mt)
(mt)
2023

2,4
2,431

117
117

860
860

329
329

NickelCobaltCopperLithium

For more information about our operational
decarbonization strategy, see pages 36-45 and 50.

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BatteryRecycling: 
Recycling:
Battery
Key 2023
2023 Achievements
Achievements
Key

>90%

of materials recovered from returnedor end-of-life products andmanufacturing scrap are recycled

5Q0+MT
500+MT

per month battery recycling
throughput at Gigafactory Nevada
in Q4650MWh650
MWhof battery materials processed atour battery shredding facility,
which is enough for 9,000+
Model Y RWD vehicles

33GWh
GWh

of battery materials sent to ourrecycling partners, which is enoughfor 43,000+ Model Y RWD vehicles

Wet shredded cell material at Tesla's
Gigafactory Nevada

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CombattingForced
ForcedLabor
Labor
Combattingin OurOur Supply
SupplyChain
Chain
in

Forced labor is a complex issue that affects supply chainsin all industries and regions and requires both global andtargeted local responses. In 2023, we committed morehuman and legal resources to combat forced labor risk inour supply chain. Our efforts are informed by International
Labor Organization (ILO) guidance, including principles tocease harm and provide remedy, and regulatory
frameworks relevant to our global operations.
Our Process:Process:
Our
Require suppliers to acknowledge our Supplier
CD Codeof Conduct at onboarding, which includes
forced labor provisions, and make commitments
to avoid forced labor in supplier contracts
Prioritize mapping high-risk supply chains to
raw materials

Screen our partners using a combination of
resources, including reputable third-party tools andexperts, including legal advisors

0

Conduct audits that assess the following indicators:• Supplier sites where working hours exceed the
60-hour weekly threshold• Share of foreign migrant workers• Supplier sites with dispatch/contract workers• Worker accommodation• Use of third-party labor agencies• Evidence of working hours document
falsification, passport withholding, withheld
wages, recruitment fees and inhumane
treatment
Incorporation of NGO and other stakeholder
reports (including feedback) to assess risk andinform business decisions®

Where violations are identified, work with suppliers
to review root causes, approve plans to improve andremediate issues and monitor evidence ofimprovement and worker engagement. We maypause sourcing from a supplier until identified
issues are remediated or transition away from a
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Supply Chain

CombattingForced
ForcedLabor
Labor
Combattingin OurOur Supply
SupplyChain: 

Chain:
in2023 KeyKey Achievements
Achievements
2023•

13,01813,018

5,400
5,400

suppliers screened using industry
leading third-party tools

workers reimbursed over $150,000
after we identified instances where
workers were charged recruitment
or other fees for employment• 984 supplier facilities surveyed on ILO forced labor
indicators through Tesla's Self-Assessment
Questionnaire• 156 suppliers completed audits (covering indicators
listed on prior page), including 3,645 worker interviews• 96% of audited suppliers demonstrate effective
grievance mechanisms with the remainder working on
corrective actions• Launched ability to restrict purchasing on our supply
chain management portal if potential risks are
identified and not mitigated• Over 1,000 staff covered in monthly trainings for entire
procurement team on how to identify potential forcedlabor risks when visiting suppliers and a December
Human Rights Day training-honoring
the 75th
anniversary of the Universal Declaration of Human
Rights-on how Tesla's mission is linked to humanrights in the supply chain. Requested suppliers tocomplete similar trainings for their staff

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CombattingForced
ForcedLabor
Labor
Combattingin OurOur Supply
SupplyChain: 

Chain:
in2023 Case
Case Studies
Studies2023

Tesla actively combats forced labor in our supply chain
to address risks and remedy any potential harm. The
following cases highlight the importance of continuallyengaging and collaborating with suppliers to foster aculture of accountability:

0Interiors
Interiors

We became aware of a potential violation of our
Supplier Code of Conduct in our interiors supply chain
related to recruitment practices of a labor broker. We
quickly commissioned and participated in-person in
two independent audits, and, upon confirmation of therisk, the supplier terminated the relationship with its
labor broker, while giving contract workers the option
to continue working for the supplier under new
management. For mitigating future risks, our supplierestablished new due diligence processes forcontracting partners and upstream suppliers,
reimbursed all identified recruitment-related healthexam fees to workers, established processes toeliminate fees paid by workers in future recruitment
paths and created a new sustainability function withdedicated staff.

0Battery
Battery

In 2023, we conducted detailed chain of custody pilot
exercises to verify material traceability for high-risk
inputs from battery cell to mine site. We worked handin-hand with cross-functional supplier teams toensure management systems and documentation logs
were updated to meet regulatory requirements. As aresult of our engagement, suppliers increased material
traceability and are strengthening their documentation
processes to improve chain of custody.

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CombattingForced
ForcedLabor
Labor
Combattingin OurOur Supply
SupplyChain: 

Chain:
in2023 Case
Case Studies
Studies
2023•

Interiors
Interiors Accessories
Accessories

During a supplier's first audit, worker interviews crosschecked against the supplier's records confirmed thatworkers paid fees to obtain employment, faced
involuntary wage deductions and were unable to accesspassports held by the employer-all of which are
violations of Tesla's Supplier Code of Conduct. Tesla
worked with the supplier to formulate a comprehensive
corrective action plan covering immediate and longterm actions, resulting in the immediate return of all 10
workers' passports to enable freedom of movement, acompany-wide investigation to understand root causesof fees paid by workers, fee repayment, an end to
involuntary wage deduction and management andemployee trainings. The case highlighted theimportance of continually engaging and collaboratingwith suppliers to foster a culture of accountability.

0

Aluminum
Aluminum

We continue to comprehensively map our aluminum
supply chain in more detail-with thorough coverage of
all manufacturers, traders, transportation providers
and other key entities-and completed chain ofcustody exercises to work toward full material
traceability. For example, in one supply line, we wereable to map completely upstream and determine that
two mines in that supply chain are certified by the
Aluminum Stewardship Initiative (ASI) Certification
Performance Standard, which includes criteria onforced labor, with one mine also certified by the ASI
Chain of Custody Standard, which evaluates a
supplier's traceability management systemsultimately enabling the assessment of forced labor riskin the most upstream part of this supply chain.

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New Levels
Levelsofof Transparency
Transparency
New
for ChildChild Labor-Free
Labor-FreeCobalt
Cobaltfor
At large-scalelarge-scale mines:
mines:
At
To build our batteries, we use several different
cathode chemistries. Our nickel-based cathodes(NMC and NCA) contain cobalt, but others, like ouriron-based cathodes (LFP), do not. While our nickelbased cathodes will continue to need cobalt, they
contain less cobalt than similar cathode chemistries in
the industry, and we are increasing our use of cobaltfree iron-based batteries, particularly for energy
storage and standard range products.
By mapping our supply chain, we know where ourcobalt comes from-and we only purchase cobalt fromlarge-scale mines. Our direct suppliers undergo thirdparty audits to ensure no child labor happens at thesemines and no material from unauthorized sources
enters our supply chain. Four audits were conducted
in 2023* and found no instances of child labor at our
direct suppliers' sites. Our suppliers took action on all
the social performance findings of the audits andeither completed the corrective action plan or have adetailed plan in progress.

In addition, we worked with our supplier Glencore tolaunch a publicly available satellite monitoring system of
its Kamoto Copper Company (KCC) operation located in
the DRC. High-resolution images are updated monthly
and allow for anyone to see what the operations look likedown to 0.5 meters of resolution, thus providing a good
picture of what is happening at the mine. Users can also
compare these images with images of artisanal
operations, which are typically at higher risk of child labor,
to identify differences in production methods. This is thefirst time this level of transparency was achieved as aresult of a collaboration between supplier and customer inthe battery minerals supply chain.
*Including against the International Council on Mining and Metals (ICMM)
Performance Expectations and the Responsible Minerals Initiative (RMI)
Responsible Minerals Assurance Process (RMAP). Both include
provisions on child labor.

Screenshot from satellite monitoring system launchedin collaboration with Tesla supplier GlencoreImpact Report
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New Levels
Levelsofof Transparency
Transparency
New
for ChildChild Labor-Free
Labor-FreeCobalt
Cobaltfor

In artisanalartisanal mining
mining communities:
communities:
In
While all of Tesla's sources are industrial mines, we
continue to co-fund the Fair Cobalt Alliance (FCA)
working with artisanal and small-scale mining (ASM)
communities in the DRC. We remain committed to
staying engaged in the DRC to improve conditions forstakeholders impacted by cobalt mining.

In 2023,2023, thethe FCAFCA accomplishedaccomplished thethe following:
following:
In

18
18

children who were found working in
ASM enrolled in a comprehensive
remediation program that includes reintegration to education, living stipends,
and health and psycho-social support

21
21

local community savings andloans groups deployed

5,206
5,206

artisanal miners trained onsafety standards

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Cobalt: Risk
RiskIdentification
Identification
Cobalt:and Mitigation
MitigationSummary
Summary
andRisk Identification
Identification
Risk
11cobalt
cobalt suppliers
suppliers completedcompleted an
an audit
audit against
against aaM• 11Tesla-preferred international
international standard
standard covering
covering
Tesla-preferredenvironmental
environmental andand socialsocial risk_
risksM• 100%100% ofof ourour direct
direct cobalt
cobalt suppliers
suppliers (mines(mines andandrefiners) completedcompleted an
an audidaudit
refiners)
M• 33 cobalt
cobalt suppliers
suppliers completedcompleted an
an LClLCA
Regular engagement
engagement with
with NGOs
NGOs
M• Regular
Tesla staff during a visit to an industrial cobalt
mine and processing site in the DRC in late 2023

>55%

of cobalt sourced directlyfrom mines and refiners
in 2023

For materials that we do not direct source, we apply the same
supply chain mapping and due diligence requirements.

Examples ofof Risk
Risk Mitigation
Mitigation Actions
Actions Completed
Completed
Examplesbyby Suppliers
Suppliers• Developed air quality management and water
quality management plans• Conducted a comprehensive third-party humanrights risk assessment• Developed a closure plan that meets international
requirements• Developed a procedure to gather, review andrespond to community requests• Assessed grievance mechanisms against
expectations laid out in the United Nations Guiding
Principles for Business and Human Rights

Direct SupplierSupplier Status
StatusDirect•Complete
Complete•

In
In Progress
Progress

Commitment

Supplier
Supplier

Tier
Tier

Locations
LocationsKamoto Copper
Company (Glencore)Mine

DR Congo

Mutanda Mining(Glencore)Mine

DR Congo

HuayouRefiner

China

CNGR

Refiner

China

No
No Commitment
Commitment

•

Audit
Audit Status*
Status*•(1) (2)e (1) (2)

•

(2}

•

(2}

LCA
LCA Status
Status••••(1) International Council on Mining and Metals (ICMM) Performance Expectations; (2)Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP)
Committed = written commitment to complete an asset-specific, 3rd party verified LCA within
the calendar year. Completed= 3rd party verified LCA published within the past 2 years.

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Nickel:Reducing
Reducingthe
the Environmental
Environmental
Nickel:and Social
SocialImpacts
Impactsinin Indonesia
Indonesia
andIn 2023, 13% of Tesla's nickel came from Indonesia. We
understand that Indonesian production is scaling
significantly and the share of Indonesian nickel in global
EV supply chains will increase. The transition to EVs will
not be possible by only relying on non-Indonesian nickel.
Key risks in this context relate to GHG emissions,deforestation, water pollution, indigenous and community
rights and worker health and safety in the country. We
invested significant resources to address these head-on
with our suppliers, NGOs and the Indonesian and U.S.
governments. In December 2023, a Tesla delegation
focused on environmental and social impact visited mines,
smelters and industrial parks in Indonesia and met withgovernment stakeholders (this is the second Tesla visit
focusing on these topics after a first visit in 2022).

Tesla staff during visit to nickel mines andsmelters in Indonesia in 2023

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Nickel:Reducing
Reducingthe
the Environmental
Environmental
Nickel:and Social
SocialImpacts
Impactsinin Indonesia
Indonesia
and
GHG Emissions
Emissions
GHG

Indigenous Rights
RightsIndigenous

AuditsAudits• Requested and received four facility andproduction specific LCAs and GHG footprints,
covering mines and smelters, with more expected
in 2024• Asked suppliers to set decarbonization targets
and move away from captive coal
• Pursuing lower-carbon processing options like
High-Pressure Acid Leaching (HPAL) (as opposed
to higher-emitting pyrometallurgical processes)• Engaged with NGOs, government and suppliers to
explore the need for the establishment of a no-gozone for mining to protect indigenous and humanrights, particularly those of uncontacted
communities, in addition to supplier engagement
to reinforce our commitment to protect the rightof Indigenous People to grant or withhold Free,
Prior and Informed Consent (FPIC)• Three identified mine sites were audited againstinternational mining standards, with three smelters
scheduled to undergo the Responsible Minerals
Initiative (RMl)'s Responsible Minerals Assurance
Process (RMAP) in early 2024; Tesla's expectationis that all Indonesian suppliers are audited tointernational standards

Environmental Protection
Protection
Environmental• Engaged with NGOs, government and suppliers topromote safer mine waste practices such as dry
stack tailings; we have a zero tolerance for tailings
disposal into oceans

Traceability
Traceability• One supplier built a pipeline for full traceability ofnickel ore directly from a mine to a smelterImpact Report
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Nickel:Risk
RiskIdentification
Identification
Nickel:and Mitigation
MitigationSummary
Summary
and

>50%
>50
%

of nickel sourced directlyfrom mines and refiners
in 2023

For materials that we do not direct source, we apply the same
supply chain mapping and due diligence requirements.

Risk Identification
Identification
Risk

L• 18
18 nickel
nickel suppliers
suppliers completedcompleted an
an audit
audit against
against aaTesla-preferred international
international standard
standard covering
covering
Tesla-preferredenvironmental
environmental andand socialsocial risks
risks a70% ofof ourour direct
direct nickel
nickel suppliers
suppliers (mines(mines andandL• 70%
refiners) completedcompleted an
an audita
audit
refiners)L• 55 nickel
nickel suppliers
suppliers oror facilities
facilities completedcompleted ororscheduledscheduled an
an LCAa
LCA
L• NGONGO engagement
engagement

Examples ofof Risk
Risk Mitigation
Mitigation Actions
Actions Completed
Completed
Examplesby Suppliers
Suppliersby• Established detailed stakeholder mapping(communities of interest identification under someframeworks)• Published robust human rights policies andsupplier code of conduct• Invested considerable resources to improving
tailings storage facilities to bring them into
conformance with international standards• Evaluated dewatering tailings storage to reducewater withdrawals
Industry Groups
GroupsIndustry• Tesla chairs the Nickel Working Group in the
Responsible Minerals Initiative (RMI)

Direct SupplierSupplier Status
StatusDirect•Complete
Complete•

In
In Progress
Progress

Commitment

Supplier
Supplier

Tier
Tier

Locations
LocationsSudbury (Vale)

Mine + Refiner

CanadaProny
Resources

Mine

New Caledonia

Nickel West
(BHP}

Mine

Australia

Murrin Murrin(Glencore)

Mine

Australia

CNGR

RefinerChina

RefinerIndonesia

RefinerChina

RefinerIndonesia

Huayou•No
No Commitment
Commitment

Audit
Audit Status*
Status*LCA
LCA Status
Status

•

(3)

•

(4)

•

(1)

•
•
•

•
•

(2)

•

(2)

(2)
(2)

(2)

•
•

•
•
•

(1) International Council on Mining and Metals (ICMM} Performance Expectations; (2) Responsible
Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP); (3) Towards
Sustainable Mining (TSM); (4) International Finance Corporation (IFC) Performance Standard
Committed = written commitment to complete an asset-specific, 3rd party verified LCA within thecalendar year. Completed = 3rd party verified LCA published within the past 2 years.

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Innovationsinin Lithium
LithiumSourcing
Sourcing
Innovations
Lithium is a critical input to all our batteries andanother priority for responsible sourcing. Our supply
chain team works closely with our own lithiumrefinery in Corpus Christi, Texas:
Plant Design
DesignPlant• Use of low-toxicity industrial reagents instead ofsulfuric acid and sodium hydroxide, generating a
byproduct that can be used in construction
materials, instead of a hazardous byproduct withresidual acid that must be disposed of• Alkaline reagent leach process uses -35% lessnatural gas compared to the traditional processes• Additional energy optimization and heat integration
reduces the plant heating load by >14 MW

Community Engagement
Engagement
Community• Active engagement with regional educational andworkforce development institutions in advisoryboard capacities to inform and equip the local
labor market to meet the demands oftechnologically intensive industries• Investments in municipal improvements and close
partnerships with the regional economic
development corporation to seed further
economic development and growth in the region
For more information on our circular solutions programming
within our own operations, please see page 50.

Tesla's lithium refinery in Corpus Christi, Texas,
currently under construction

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AcrossOur
Our Lithium
LithiumSupply
SupplyChain
Chain
AcrossIn 2023, our responsible sourcing teams participated in
on-site visits with current and prospective Lithium
suppliers in Chile and Australia. These visits helped theteam better understand suppliers' current
environmental and human rights practices, as well as
decarbonization roadmaps.
Two of our direct lithium suppliers also completed or
are in the process of completing an independent thirdparty audit against the Initiative for Responsible Mining
Assurance (IRMA) Standard, Tesla's preferred mining
standard. IRMA is a multi-stakeholder led organization
with the most comprehensive mining certification
system and transparent reporting of results available.
Its focus on continuous improvement allows suppliers
to improve their results over time. Tesla has been an
IRMA member since late 2021. Our goal is to encourage
the uptake of IRMA across our supply chain.

55

mines completed or committed todate to an IRMA audit across ourlithium, nickel and graphite
supply chains

Tesla staff during a visit to a lithium processing
facility in Australia in 2023

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Lithium:Risk
RiskIdentification
IdentificationSummary
Summary
Lithium:>75%

of lithium sourced directlyfrom mines and refiners
in 2023

For materials that we do not direct source, we apply the same
supply chain mapping and due diligence requirements.

Risk Identification
Identification
Risk
100% ofof ourour direct
direct lithium
lithium suppliers
suppliers (mines(mines andandL• 100%refiners) completedcompleted oror committedcommitted toto anan audit
audit
refiners)
againstagainst aa Tesla-preferred
Tesla-preferred international
international standard
standard
covering environmental
environmental andand socialsocial risks
risks acovering
L• 44 lithium
lithium suppliers
suppliers completedcompleted an
an LCAa
LCA
Reviewed NGO
NGO reports
reports
L• Reviewed

Tesla staff during a visit to a lithium processing
facility in Australia in 2023

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Lithium:Risk
RiskMitigation
MitigationSummary
Summary
Lithium:
Examples ofof Risk
Risk Mitigation
Mitigation Actions
Actions Completed
Completed
Examplesbyby Suppliers
Suppliers

Examples ofof Risk
Risk Mitigation
Mitigation Actions
Actions Completed
Completed by
by
ExamplesSuppliers as
as aa Result
Result ofof an
an IRMA
IRMA Audit
Audit
Suppliers• Established effective engagement with local
indigenous groups and responded to allegations oflack of FPIC regarding their operations• Tesla provided technical feedback and comment to
supplier's decarbonization plan and LCA roadmap• Thorough limnological study completed by groupof experts to evaluate local aquatic ecosystems,
including biological, chemical and physicalproperties• Considering options to install solar energy on topof old tailings storage facilities• Suppliers substantially or fully met all criticalrequirements• Suppliers currently closing gaps identified during
audits, including: (1)Develop a differential approachfor engaging with women and children, (2)Establish
a process for a community grievance mechanismand monitor trends, (3) Establish a target for hiring
local residents and (4)0perationalize a biodiversity
management plan
Industry Groups
GroupsIndustry
Tesla chairs the Lithium Working Group in the
Responsible Minerals Initiative (RMI)

Direct SupplierSupplier Status
StatusDirect•Complete
Complete•

In
In Progress
Progress

Commitment
Commitment

Supplier
Supplier

Tier
Tier

Locations
Locations

Albemarle

Mine
Mine
RefineryRefinery

Chile
Australia
Chile
China

Arcadium

Mine
RefineryRefineryArgentina
China
USA

Ganfeng

Refinery

China

Yahua

Refinery

China

•

No
No Commitment
Commitment

Audit
Audit Status*
Status*• (5)(5)(2) (6)(2) (6)(5)• (2) (6)(2) (6)(2) (6)e (2) (6)LCA Status
Status
LCA

••
•

•
••
•
•
•

(2) Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP); (5)Initiative for Responsible Mining Assurance (IRMA) Standard; (6) Responsible Minerals Initiative(RMI) ESG Standard
Committed = written commitment to complete an asset-specific, 3rd party verified LCA within thecalendar year.
Completed = 3rd party verified LCA published within the past 2 years.

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Aluminum:PushingPushingfor
for thethe Industry
IndustrytotoAluminum:
RespectRights
Rightsandand Lower
LowerEmissions
Emissions
Respect
We prioritize aluminum because of the high prevalenceof human rights and environmental impacts across thealuminum supply chain-including
bauxite mining andthe carbon emissions linked to aluminum refining andsmelting. We buy aluminum in the form of sheet, ingot,
castings, extrusions, forgings and foil. It shows up in
many systems in the car-from Tesla's body
Gigacastings to the batteries. Most of our aluminum isalloyed - meaning it is mixed with other elements tooptimize engineering properties. The rising total
demand for aluminum means that increased recycling
is not enough to reach a truly sustainable aluminum
sector. Therefore, we engage with producers of bothrecycled and primary material.
Direct Sourcing
Sourcing andand Supply
Supply Chain
Chain Mapping
Mapping
DirectWe source much of the aluminum used in our vehicles
directly from smelters/secondary aluminum producers-sending the material to Tesla plants or to our Tier 1
suppliers. This, combined with our efforts of mapping
upstream material sources where we don't directly
source the raw material, enables increased visibility
and ability to conduct due diligence.

Confirmed Upstream
Upstream SupplierSupplier Locations
Locations
Confirmed

8

In 2024, Tesla committed to the ASI for
our aluminum foundry in Lathrop, CA

Certification
Certification
As a pre-requisite for being awarded new business,
Tesla continues to ask its suppliers to certify to the
Aluminium Stewardship Initiative's (ASI) PerformanceStandard. As of the first quarter of 2024, 92% of
Cybertruck aluminum suppliers are certified or
working towards this certification. Over 80% of allaluminum Tier 1 suppliers are similarly certified or
working towards this certification.
ASI is one of the key industry organizations developing
credible decarbonization roadmaps for the aluminum
industry. We appreciate that no certification replaces
due diligence. We continue to work with ASI,
suppliers, and stakeholders to address and reducerisks in our aluminum supply chain in recognition of its
outsized impact.

• Bauxite Mining: Australia, China, Guinea, Iceland,
Indonesia, Solomon Islands*• Smelting: Australia, Canada, China, Germany,
Norway, Malaysia, UAE, U.S.
*The purchase of bauxite from the Solomon Islands occurred before 2020.
We include it in this list for transparency, but our strategy is to not further
procure bauxite from the Solomon Islands.

Other Risk
Risk Mitigation
Mitigation Efforts
Efforts
Other
In 2023, we directly engaged key mid-tier, directsourced smelters, including visits of senior leadershiprepresentatives to two of the world's largest smelters,
during which we evaluated the decarbonization
roadmaps of all smelters in our European supply baseand aligned on strategies to decarbonize. Tesla also
participated in a data pilot as part of RMl's Horizon
Zero working group on aluminum which focused on
capturing embedded emissions data for aluminum,
automating data transfer processes of environmental
data, and capturing additional pertinent data such as
percentage of post-industrial and post-consumer
scrap percentages.

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FerrousMetals
Metals (Steel(Steel andand Iron):  Iron):
Ferrous
RiskIdentification
Identificationandand Mitigation
MitigationSummary
Summary
Risk

We prioritize identifying and addressing risks in our
ferrous materials supply chain because of the highprevalence of environmental impacts across the steel andiron supply chains-steel is a significant factor of Tesla's
supply chain GHG emissions. We buy ferrous materials in
the form of sheet, castings and forgings. Steel is a
primary component of many systems of the car, butshows up prominently in the body, chassis and powertrainof the vehicle as well as the structure of our energy
products. Most of our ferrous materials are alloyedmeaning iron is mixed with other elements to optimize
engineering properties. The rising total demand for ironand steel means that increased recycling is not enoughfor a truly sustainable steel sector. Therefore, we engage
with producers of both recycled and primary material.

Direct Sourcing
Sourcing andand Supply
Supply Chain
Chain Mapping
Mapping
DirectOther Risk
Risk Mitigation
Mitigation Efforts
EffortsOther• We source much of the steel used in our vehicles
directly from mills-sending the material to Tesla
plants or to our Tier 1 suppliers. This direct sourcing
strategy, combined with our efforts of mapping
upstream material sources where we don't directly
source the raw material, enables increased visibility
and ability to conduct due diligence.
• Sourcing country breakdown, based on identified
sources:• In order to understand the carbon footprint of steel
suppliers inside our supply chain, as well as those we
don't work with, we continued to work with Climate
TRACE, a coalition of researchers and NGOs, with a
mission to have an open-source global emissions
inventory. Tesla worked with Climate TRACE
members on how to make industrial data sets mostuseful for large steel purchasers. This innovative
data-stream enables Tesla not only account moreaccurately for our current emissions, but also to
perform scenarios of future sourcing strategies.
• This year, Tesla engaged with more than a dozen steel
producers across multiple continents on theirdecarbonization strategies.

Mill Country Locations: Austria, Belgium, China, France,
Germany, Sweden, U.S.

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3TG (Tin,(Tin,Tantalum,
Tantalum,Tungsten
Tungstenandand Gold):Gold):
3TG
RiskIdentification
Identificationandand Mitigation
MitigationSummary
Summary
Risk
Mining communities in the Democratic Republic of theCongo (DRC) and other upstream 3TG sourcing regions
are essential to the production of Tesla products. Mining
in conflict-affected
contexts has a history of negative
impacts on communities, including human rights abuses.
Our due diligence process includes supplier engagement,
visiting 3TG production regions with the purpose ofobserving on-the-ground conditions, meeting with local
stakeholders and exploring opportunities for positive
impact. Through these efforts, we aim to avoid
contributing to human rights abuses, conflict, andinstability through our sourcing, with the ultimate aim to
improve on-the-ground conditions in and around 3TG
mining communities.

Tesla staff at a 3TG mine visit in Peru

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3TG:
3TG:  
2023 KeyKey Achievements
Achievements
2023
RobustRobust Requirements
Requirements

AuditsAudits

Impact (Continued)(Continued)
Impact• Communicated enhanced requirements to tier-1
suppliers and smelters/refiners (SORs)• Surveyed tier-1 suppliers to identify SORs thatprocess 3TG in products supplied to Tesla andcountry of origin of minerals• Encouraged removal of certain actors from supply
chain due to infeasibility of improvements• Funded three Responsible Minerals Assurance
Program (RMAP) assessments to increase compliant
SORs in Tesla's supply chain via contributions to the
RMI Audit Fund
• Proposed concrete suggested improvements toindustry audit program• Supported the expansion of the Better Mining
Supply Chain Due Diligence Monitoring, Corrective
Action Plans and 3T minerals traceability program in
the DRC and Rwanda to two additional 3T mine sites,
enabling on one hand a substantial increase involume of Better Mining-assured 3T minerals, and on
the other hand, an increase of the number ofimpacted workers by 44.5% in these most upstream
positions of the global minerals supply chain.

Stakeholder Engagement
Engagement
Stakeholder• Solicited program feedback from NGOs, such as
actors in the DRC and groups seeking to advancethe rights of indigenous peoples• Chaired the Responsible Minerals Initiative (RMI)
Gold Team Working Group"The assessment provided me an opportunity to confirm that ourinternal procedures and policies are aligned with the standards,
and the assessment will allow us to improve more quickly."- Oscar, Compliance Officer

Upstream Engagement
Engagement
Upstream• Visited two artisanal mines and two processing
facilities in a gold production region in Peru
• Engaged one gold aggregator to become Peru's 1st
RMAP-audited gold aggregator
ImpactImpact• Initiated "Tesla Tech for Good" product donation
project aimed at mitigating adverse human rights
impacts of mining while simultaneously driving
GHG reductions
More information is available in our Conflict Minerals Reportand our Responsible Sourcing Policies.

"Through constant on-site presence and the development ofinnovative technology, Better Mining brings necessarytransparency to conditions on artisanal- and small-scale minesites, supporting continual improvements and bridging the ethicaland accountability gap from consumers towards the ASM
operators and their local communities, which are vital for theachievement of the downstream's sustainability goals. I am very
proud of the proven replicability and continued impact and growthof our program over the years, and I am grateful for thecommitment of our supporters in this journey."- Emmanuel Ngueyanouba, Director of RCS Global Better
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TeslaTech
Tech forfor Good:  
Good:
Tesla
A CaseCase Study
Study inin Applying
ApplyingTechnology
Technology
A
to Remedy
RemedyHarm
Harm Associated
AssociatedWith
WithtoSupplyChain
ChainActivities
Activities
SupplyAlthough critical to the EV transition, mining operations
can cause a range of potential adverse impacts, forexample related to health and safety and the environment.
Tesla believes that accelerating the world's transition tosustainable energy should not cause additional harm. The
Democratic Republic of the Congo (DRC), a country ofparticular relevance to the mineral trade, has been in
conflict for almost three decades, sustained through thetrade of minerals. Too often the minerals leave the country
but don't come back-a one way street. In acknowledging
the consequences of mining operations, we initiated ourTesla Tech for Good product donation project, aimed at
mitigating adverse human rights impacts of mining while
simultaneously driving GHG reductions. During a 2022 trip
to East Africa, Tesla pursued opportunities to apply ourtechnology to mitigate adverse impacts of supply chain
operations, provide remedy for harm caused, andmaximize positive impact for people and the planet.

We met with Panzi Hospital & Foundation, a center of
excellence in the DRC that provides holistic treatment forsurvivors of sexual violence-a tactic used by armed actors
to perpetuate conflict, gain greater access to resources
and control smuggling routes.
Panzi has touched the lives of more than 80,000 survivorsof sexual violence, including those affected by wartime,and another 25,000 women with serious gynecologicalinjuries. In collaboration with Panzi and based on theirrenewable energy strategy, in early 2024 Tesla donated ten
Powerwalls and hardware accessories to be installed at one
of Panzi's clinics in the DRC.
Tesla and Panzi share the belief that everyone should haveaccess to sustainable, modern, and clean energy to meettheir decarbonization goals and address energy insecurity-especially those who are providing life-saving healthcare.

The Powerwalls will enable Panzi to work even in times ofenergy loss and avoid costs associated with running
diesel-fuel generators. In recognition that many social
impact initiatives fail to provide long-term solutions, tosupport sustaining impact of the project, we havecommitted to fund maintenance costs on the equipment
for the next ten years.
Tesla continues to seek opportunities to collaborate withorganizations close to mining communities to findtransformative solutions and address harm associatedwith supply chain activities. A sustainable future is one inwhich the rights of everyone are respected and included
in a just energy transition.

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ProactiveSupplierSupplier
Proactive
Engagement&& Risk
RiskAnalysis
AnalysisEngagement
GlobalGlobal Standard
Standard
In alignment with the Organization for Economic Cooperation and Development (OECD) Due Diligence
Guidance for Responsible Business Conduct, risk
analysis and identification is a foundational pillar of
Tesla's Responsible Sourcing framework tounderstand human rights and environment-relatedrisks and violations in its supply chain.
Responsible Sourcing
Sourcing Teams
Teams
Responsible
Tesla's Responsible Sourcing teams lead risk analysis
efforts globally across all sourcing scopes whiledeveloping and implementing fit-for-purpose plans toprevent or mitigate actual or potential adverse impacts.
Teams are strategically embedded within the supply
chain organization, ensuring that environmental andsocial impacts of our suppliers are monitored andaddressed in collaboration with supply chain
leadership and buyers directly responsible for sourcing
parts, materials and services along with managing
supplier relationships and performance.

Collaboration with legal and compliance teams
ensures cross-functional alignment. This overall
structure encourages a proactive approach to identify
and act on both supply chain risks and opportunities
to have a positive impact globally as our operational
footprint grows.
Risk-Based Approach
ApproachRisk-Based
Tesla teams leverage the Supplier Self-Assessment
Questionnaire (SAQ), Corporate Social Responsibility(CSR) audits and the Tesla Integrity Line to monitor
alignment with our Supplier Code of Conduct as well as
our Global Human Rights and Responsible Sourcing
policies, driving a risk-based due diligence approachthat informs when and where to allocate additional
resources to prevent, mitigate and report adverse
impacts on people, the environment and society. Whenthe likelihood and severity of an adverse impact is high,then due diligence is more extensive.

Supplier
Supplier Selection
Selection Guidelines
Guidelines
In 2023, we added responsible sourcing due diligence toTesla's internal Global Procurement Policy supplierselection guidelines to include social and environmental
criteria in sourcing decisions before awarding business toany supplier, including but not limited to, CSR auditscores, SAQ results, complaints submitted via Tesla's
Integrity Line and greenhouse gas (GHG) emissions.

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SupplierSelf-Assessment
Self-Assessment
Supplier
Questionnaire(SAQ)(SAQ)
Questionnaire

The Supplier Self-Assessment Questionnaire (SAQ)
pushes Tesla sourcing efforts beyond generalizedrisk associated with certain commodities andcountries by requiring each unique location providing
production parts, materials or services to Tesla tosubmit a response to the SAQ. Suppliers affirm thatthey have policies, processes and controls at the
manufacturing site level consistent with all Supplier
Code of Conduct topic areas: labor, health andsafety, environment, ethics and supply chain
responsibility. This systematic process to identify risk
at scale based on actual practices enables Tesla
teams to proactively prioritize more extensive due
diligence for high-risk suppliers based on the extent
of potential impact on workers' health, safety or
fundamental human rights and number of workers/
employees impacted at the supplier site.

In 2023, we scaled our SAQ program from pilots to fulllaunch reaching nearly 1,000 supplier sites and willcontinue our outreach in 2024. Follow-up with suppliers
includes communication of risks identified and bestpractices along with development of supplier specificimprovement plans, such as guidance on how to close
policy gaps and building supply chain mapping
capabilities. Additionally, we will communicate results to
supply chain leadership and buyers.

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Supplier Self-Assessment
Self-Assessment
Supplier
Questionnaire (SAQ)(SAQ)
QuestionnaireYear initiated

2022
2022

Response rate

68%
68%

Total number of supplier
manufacturing site submissions
Number of impacted
workers/employees
Number of countries represented% of suppliers with a social
responsibility policy

984
984

1.5 million
million
1.5

40
40
85%
85%

% of suppliers with anenvironmental policy% of suppliers with a healthand safety policy% of suppliers with a Supplier
Code of Conduct% of suppliers that have conducteda supply chain mapping exercise to
identify upstream (e.g., Tier 2, Tier
3, Tier 4) suppliers

87%
87%

Supply Chains
Chains Assessed
Assessed
Supply93%
93%

All direct
direct suppliersupplier categories,
categories,All
including batteries,
batteries, aluminum,
aluminum,
includingchemicals, etc.
etc.
chemicals,

81%
81%

61%
61%

Indirect materials/services materials/services
Indirect
Service centers,
centers, construction
construction andandServiceon-site contractors
contractors
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Grievance Mechanisms
Mechanisms
Grievance

We receive concerns related to responsible sourcing
through a variety of grievance channels. 2023 was thefirst full year the Tesla Integrity Line was available toexternal parties to raise a potential concern. There is aclear process, detailed and publicly available here. Tesla
Integrity Line was added to the Tesla Supplier Portal in2023 to make it more accessible to supply chain workers
with access to the Portal.

Grievance Channel
ChannelGrievance

Number ofof Concerns
Concerns Related
Related toto Responsible
Responsible Sourcing
Sourcing
NumberTesla Integrity Line

1

Responsible Business Alliance1

Responsible Minerals Initiative's Minerals Grievance Platform

2

Total
Total

44

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Grievance Mechanisms
Mechanisms
Grievance
Below are three examples of concerns received and how
we acted on them:

Supply Chain
Chain
SupplyCategory ofof Concern
Concern
Category

Process toto Address
Address
Process
Concern
Concern

Outcome
OutcomeBattery

Alleged improperuse of funds

Engaged with involved parties, launchedinvestigation with compliance team andexternal counsel, reviewed documents
and process

Found no breach of contract
and worked with the partner
to improve processes

Gold

Alleged deforestation,
forced labor, humanrights concerns

Engaged with audit programs, engaged
directly with gold refiners, sought tounderstand concerns of impacted
stakeholders by engaging directly with anorganization that seeks to advance therights of Indigenous peoples

Encouraged removal ofcertain actors from Tesla's
upstream supply chain

Tier 2 interior lighting

Alleged worker-paid
recruitment fees

Engaged directly with Tier 1 supplier tolaunch investigation

Engaged Tier 1 supplier withaudit programs

In addition to promoting supply chain use of the Tesla
Integrity Line, as part of our CSR Audit Program, we
assess suppliers' conformance with our Supplier Code of
Conduct expectation to maintain a grievance mechanismof their own. This is assessed through site observation,
records review and interviews of management andworkers. In 2023, 96% of supplier facilities demonstrated
conformance with this expectation.*
We also act on concerns raised through avenues such as
via NGOs, investors, customers and employees, among
others. For continual improvement we are exploring
opportunities to improve supplier awareness of Tesla's
Integrity Line. In the future, we seek to incorporate input
from affected-stakeholders on our grievance-handlingprocess, including representatives from vulnerable groups
and human rights defenders with the goal to ensure that
our mechanism is responsive to the needs of affectedstakeholders.
*Based on Initial Audits conducted during 2023 against Tesla's Supplier
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Sourcingfor
for Social
SocialImpact
ImpactSourcing
We invest in communities where we operate-not just in
our direct operations but in our supply chain as well toensure that investments in a sustainable future are
equitable. Sourcing for Social Impact programs promote
purchasing policies, programs and processes that
contribute to socio-economic benefits where Tesla
suppliers operate. We operate and source from all types ofcommunities and want to make sure that everyone hasaccess to economic development opportunities in thesustainable energy future.
Programs
Programs
Specific programs promote inclusive sourcing fromsuppliers that traditionally would not have access to
procurement opportunities.
We established a Gigafactory Texas Historically
Underutilized Business (HUB) program in 2020 as part ofour Economic Agreement with Travis County with afocus on identifying suppliers in construction materials
and services to support ongoing factory expansion.

More broadly, the purpose of the agreement is to stimulate
and encourage business and commercial activity inTravis County as Tesla invests in new construction of
Gigafactory Texas operating facilities. Since 2020, Tesla
has spent over $100 million with qualified HUB programsuppliers, supporting the growth of small-, minority- andwomen-owned businesses in Texas.
External Stakeholder
Stakeholder Engagement
Engagement
External
Held face-to-face meetings with six different Austinarea minority supplier and small business chambers ofcommerce/councils for in-depth learning sessions on
their capabilities and how to leverage them to increase
HUB supplier participation.
Became a corporate member of the Southwest
Minority Supplier Development Council (SMSDC).
SMSDC is a multi-stakeholder organization
headquartered in Austin focused on minority-owned
business (M BE) advocacy, development, certificationand connection. Joining SMSDC as a corporate
member supports ongoing efforts to identify andincrease spend with HUB suppliers.

Moreover, ongoing corporate member training
services will further strengthen Tesla's Sourcing forSocial Impact program to be in alignment with bestpractices while building relationships with Austinarea stakeholders.
Internal Stakeholder
Stakeholder Engagement
Engagement
Internal
Led sourcing organization wide training on Sourcing
for Social Impact-covering
three learning
objectives: 1) explain why sourcing for impact
matters, 2) identify resources to search for suppliers
and track spend and 3) commit to at least one action
which contributes to Tesla's Sourcing for Social
Impact program.
Launched Sourcing for Social Impact Steering
Committee comprised of buyers, supply chain
leadership and global sustainability teams to provide
stakeholder advisory support, guidance andstrategic oversight of the program to ensure its
success by embedding initiative objectives acrosssourcing teams.

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Sourcingfor
for Social
SocialImpact
ImpactSourcing

$1.4B
•

32%

45%%

inclusive spend
since 2021

of year-over-yearinclusive spend increaseof year-over-year increase in
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Corporate Social
SocialCorporate
ResponsibilityAudits
AuditsResponsibility
In 2023, our Corporate Social Responsibility (CSR) audit
program continued to be a key component of how we
identify and mitigate risks at our suppliers' sites. It
provides us with the ability to have an independent
assessment of our direct supplier's performance to our
Supplier Code of Conduct. Our requirement of Corrective
Action Plans for non-conformances identified during theaudit also means we are contributing to tangible
improvements in the lives of workers at our suppliers'
facilities, regardless of being employees or contract
workers, as well the processes and management systems
at supplier facilities. Our own audit team continued toattend a large portion of on-site audits, including 50% of
initial audits, to stress the importance of the program andensure Tesla's quality expectations were met.

As part of our quality assurance process, Tesla
implemented an auditor training program, reviewing
Tesla's process and requirements with auditors approved
to conduct audits for Tesla. These trainings involved 134
auditors and included a comprehension test at its
conclusion.

We strengthened our already stringent expectations ofsuppliers for what is considered sufficient to pass an audit.
Until 2023, this included only the requirement of zeropriority non-conformances to avoid a closure audit. In
2023 we added the expectation that suppliers have ascore of 60% or higher, otherwise they must undergo acomplete re-audit of their facility within one year.

Initial Audits
Audits
Initial156

ClosureClosure Audits
Audits73

We also began incorporating upstream supplier audit
results into our CSR audit program, a recognition that our
responsibility does not stop at tier 1 suppliers and that wemust continue to promote best practices throughout the
supply chain. We hold these audits to the same standard:
audits conducted to the RBA's audit checklist and by anindependent firm approved by the RBA.

Workers
Workers Impacted
Impacted byby Audits
AuditsCountries
Countries included
included inin audits
audits73,06511

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Corporate Social
SocialCorporate
ResponsibilityAudits
AuditsResponsibility

Tesla bases its selection of tier-1 suppliers for
CSR audit on the following criteria:

Risk Component
Component
Risk

Supplier Audit Findings(2019-2023)

Weighting
Weighting

2019
2019

2020
2020

2021
2021

2022
2022

2023
2023

Audits Conducted
Conducted (Initial+Closure)(lnitial+Closure)
Audits

109

79

55

170

229

24

20

15

20

19

Country

30%

Average Non-Conformance per Audit*

Spend

25°/o

Labor

30.5%

30.2%

37.6%

33.0%

SAQ

20%

Health & Safety

29.1°/o

35.5%

31.3%

31.5%

33.9%

Product

15%

Environment

13.2%

14.6%

13.0%

14.2%

13.0%

Supplier Impact

10%

Ethics

3.8%

0.6%

0.5%

1.8%

1.4%

Management Systems

23.5%

19.0%

17.7%

19.5%

19.8%

* Breakdown for initial audits only

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141

Appendix
Appendix
Supporting Materials

TCFD

142

SASB

143

United Nations SDG Alignment

144

Key Metrics

146

Management Assertion152

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Appendix

TCFD
TCFD
Topic
Topic

Accounting Metric
MetricAccounting

Governance

Describe the Board's oversight of climate-related

Response
Responserisks and opportunities.

Describe management's role in assessing and managing climate-related
and opportunities.

Strategy

Risk Management

Metrics & Targets

Describe the climate-related risks and opportunities
identified over the short, medium, and long term.

Please see "Governance: Overview" and "Managing Climate Risk" on pages 6 and 10 of this report.

risks

the organization has

Risks: Please see "TCFD: Physical Climate Risk Assessment" on page 11of this report. Please see "Sustainability
Assessment" on page 8 of this report.
Opportunities: Please see "Our Mission" on page 5 of this report. Please see "Sustainability Assessment" on page 8 ofthis report.
Opportunity: Please see "Our Mission" on page 5 of this report.
Transition Risk: Please see "Governance: Managing Climate Risk" on page 10 of this report for climate-related
procurement risks. Please see "Governance: Managing Climate Risk" on page 10 of this report for other climate-relatedtransition risks. Please see "Sustainability Assessment" on page 8 of this report.
Physical Risk: Please see "TCFD: Physical Climate Risk Assessment" on page 11of this report.

Describe the impact of climate-related risks and opportunities on theorganization's businesses, strategy and financial planning.

Analysis of financial-related impacts from climate-related risks is ongoing.
Opportunities: Please see "Our Mission" on page 5 of this report.

Describe the resilience of the organization's strategy, taking into considerationdifferent climate-related scenarios, including a 2°C or lower scenario.

Please see "TCFD: Physical Climate Risk Assessment" on page 11of this report. Additionally, Tesla's Responsible Sourcing
Team works closely with critical suppliers to ensure they are hardening their operations against future climate risk. See
Supply Chain section, pages 113-130.

Describe the organization's processes for identifying and assessing climaterelated risks.

Please see "Governance: Overview" and "Managing Climate Risk" on pages 6 and 10 of this report, and "TCFD: Physical
Climate Risk Assessment" on page 11of this report.

Describe the organization's processes for managing climate-related

Tesla's Responsible Sourcing Team works closely with our suppliers to ensure they are operating in a way that mitigates
future climate risk. For further discussion of these efforts, please see page 113 of this report.

risks.

Describe how processes for identifying, assessing and managing climaterelated risks are integrated into the organization's overall risk management.

Please see "Governance: Managing Climate Risk" on page 10 of this report.

Disclose the metrics used by the organization to assess climate-related risks
and opportunities in line with its strategy and risk management process.

Please see more information on our GHG emissions on page 10 and "TCFD: Physical Climate Risk Assessment" on page 11of this report.

Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks.

Please see "Key Metrics: GHG Emissions" on pages 146-147 of this report.

Describe the targets used by the organization to manage climate-related
and opportunities and performance against targets.

risks

Please see "Decarbonization at Tesla" on pages 37-46 of this report. Please see "TCFD: Physical Climate Risk Assessment"on page 11of this report.

Impact Report
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Impact143
143

Appendix

SASB
SASB
Topic
Topic

Accounting Metric
MetricAccounting

Response
Response

Product Safety

Percentage of models rated by NCAP programs with overall 5-star safety
ratings, by region.

Please see pages 61-70 for our discussion of vehicle safety. Please see page 63 for specifics related to our 5-starsafety ratings.

Number of safety-related

Tesla reviews 100% of NHTSA VOQ complaints filed for any and all Tesla vehicles produced.

defect complaints, percentage investigated.

Number of vehicles recalled (percentage conducted with OTA software update*).

Number of U.S. recalls in 2023 (how many of those were software only): 13 (46%)
Number of U.S. vehicles affected in 2023 (how many of those were software only): 2,590,571 (99%)
Number of Global recalls in 2023 (how many of those were software only): 17 (41%)
Number of Global vehicles affected in 2023 (how many of those were software only): 5,729,212 (99%)

Percentage of active workforce covered under collective bargaining agreements.

No Tesla employees in the U.S. are covered by a collective bargaining agreement. Some Tesla employees outside of the
U.S. are covered by collective bargaining agreements only to the extent required by law.

(1) Number of work stoppages and (2) total days idle.

0/0

Sales-weighted average passenger fleet fuel economy, by region.

Please see pages 28-30 for discussion/data.

Number of {1) zero emission vehicles (ZEV), (2) hybrid vehicles and {3) plug-in
hybrid vehicles sold.

Tesla only sells zero-emission vehicles. In 2023, we delivered 1,808,581 vehicles.

Discussion of strategy for managing fleet fuel economy and emissions risks
and opportunities.

Please see page 27 for a discussion on fleet fuel economy. Please see Sustainability Assessment on page 8 for a
discussion on climate-related risks and opportunities.

Materials Sourcing

Description of the management of risks associated with the use of criticalmaterials.

Please see Supply Chain section, pages 113-130.

Materials Efficiency and Recycling

Total amount of waste from manufacturing, percentage recycled.

Please see Key Metrics on page 148.

Weight of end-of-life

We make the best effort to recycle every battery pack we can. Please see pages 50 for a discussion on our circularsolutions programming. Please see page 39 for a discussion on our end-of-life methodology. Please see Key Metrics on
page 149 for our 2022 and 2023 end of life emissions.

Labor Practices

Fuel Economy and Use-Phase
Emissionsmaterial recovered, percentage recycled.

Average recyclability of vehicles sold.

Please see page 50 for a discussion on our circular solutions programming.

Number of Vehicles Manufactured

1,845,985

Number of Vehicles Sold

1,808,581

Impact Report
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2023
Impact144
144

Appendix

United Nations
NationsSDG
SDG Alignment
Alignment
UnitedThe United Nations defined a blueprint of 17 sustainable
development goals to meet the urgent environmental,social, political and economic challenges facing ourworld. We understand that companies can play a criticalrole in providing solutions to these challenges. Our
mission to accelerate the world's transition tosustainable energy directly addresses some of thesechallenges-our products and services have helped tocreate industry demand for sustainable energy products.

In 2023, we conducted a sustainability assessment todetermine strategic focus areas both material to thebusiness and salient to the society and the environment(please see page 8 for more information). On the next page,
we've mapped our focus areas to the most relevant
Sustainable Development Goals (UN SDGs).

Impact Report
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Appendix

UnitedUnited Nations
Nations SDG
SDG Alignment
Alignment Goals
Goals
UN SDGs
SDGs
UN

Focus Areas
Areas
Focus

UN SDGs
SDGs
UN

No Poverty
PovertyNo

Responsible Sourcing

Reduced Inequalities
Inequalities
ReducedZero
Zero Hunger
HungerChild Labor & Forced Labor

Good Health
Health andand Well-Being
Well-Being
Good

Waste Management & Recycling, Circularity
Product Quality & Safety
Responsible Sourcing

Quality Education
Education
Quality

External Stakeholder Engagement

Gender Equality
Equality
GenderRespectful Workplace & Equal Opportunities

Clean Water
Water andand Sanitation
Sanitation
Clean

Water Use & Management

Affordable andand Clean
Clean Energy
EnergyAffordable
Decent WorkWork and
and
DecentEconomic Growth
GrowthEconomic

Industry, Innovation
Innovation
Industry,and Infrastructure
InfrastructureandSustainable Cities
Cities andandSustainable
Communities
Communities
Responsible Consumption
Consumption
Responsible
and Production
Production
andClimate Action
ActionClimateInclusive Energy Transition
Product Quality & Safety
Responsible Sourcing
Grievance Mechanisms & Access to Remedy
Responsible Data & Cybersecurity
Responsible Al
Inclusive Energy Transition
Occupational Health & Safety
Talent Management & Employee Wellbeing
Employee Engagement
External Stakeholder Engagement
Respectful Workplace & Equal Opportunities

Life Below
Below Water
Water
Life

Life onon LandLand
Life
Peace, JusticeJustice andand Strong
StrongPeace,
Institutions
Institutions

Areas
Focus Areas
Focus
Government Relations Policy
Inclusive Energy Transition
Talent Management and
Employee Wellbeing
Waste Management & Recycling, Circularity
Air Quality & Reducing Toxic Emissions
Product Quality & Safety
Responsible Data & Cybersecurity
Responsible Al
Occupational Health & Safety
Biodiversity
Climate Change & Risk Management
Renewable Energy & Energy Efficiency
Inclusive Energy Transition
Biodiversity
Waste Management & Recycling, Circularity
Waste Management & Recycling, Circularity
Business Ethics & Anti-Corruption
Government Relations Policy
Grievance Mechanisms & Access to Remedy
Child Labor & Forced Labor
Respectful Workplace & Equal Opportunities

Government Relations Policy
Partnerships forfor thethe Goals
Goals
Partnerships

Government Relations Policy

Impact Report
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Impact146
146

Appendix

Key Metrics
Metrics
Key
As we consistently monitor and refine our carbon
footprint reporting, it's inevitable that we'll need to
update emissions data from previous years. Our
methodologies have only gotten more precise as wehave been able to gather more real, granular, andregionalized data.
Please refer to the most recent Impact Report for
accurate GHG emission figures for historical years.

Scope 11 andand Scope
Scope 22 GHG
GHG Emissions
Emissions (mtCO2e)(mtC02e)
Scope

2021
2021

2022
2022

GHG Emissions
Emissions (mtCO2e)(mtCO2e)
GHG
Manufacturing ++ Support
SupportManufacturing
SSD
SSD
Other
Other
TotalsTotalsScope
Scope 11

Scope 22 (Location(Location Based)
Based)
Scope

124,000

342,000

31,00035,00030,00026,000185,000

403,000

GHG Emissions
Emissions (mtCO2e)(mtCO2e)
GHG
Manufacturing ++ Support
SupportManufacturing
SSD
SSD
Other
Other
TotalsTotalsScope 11
Scope

Scope 22 (Location(Location Based)
Based)
Scope

148,000

305,000

27,00074,00027,00029,000202,000

408,000

YoY Manufacturing
Manufacturing GHG
GHG Emissions
Emissions
YoY(mtC02e/vehicle)(mtCO
2e/vehicle) 
2023
2023

GHG Emissions
Emissions (mtCO2e)(mtCO2e)
GHG+ Support
SupportManufacturing +Manufacturing
SSD
SSD
Other
Other
TotalsTotalsYoY Manufacturing
Manufacturing GHG
GHG Emissions
Emissions
YoY(mtC02e/vehicle)(mtCO
2e/vehicle) 

588,000

610,000-29%

Scope 11
Scope

Scope 22 (Location(Location Based)
Based)
Scope

151,000

331,000

29,00098,00031,00037,000*211,000*466,000-10%*Third-party assurance provider performed an attest engagement on the Scope 1 and 2 GHG emission totals but did not evaluate emissions by site type.
Please see the assurance letter at the end of this report.

677,000

Impact Report
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Impact147
147

Appendix

Scope 33 GHG
GHG Emissions
Emissions(mtCO2e)(mtC02e)
Scope

Scope 33 Categories
Categories
Scope2023 GHG
GHG Emissions
Emissions (mtCO2e)(mtCO2e)2023

2022 GHG
GHG Emissions
Emissions (mtCO2e)(mtCO2e)2022

Category 11
Category

39,020,000

30,701,000*

Category 2
2
Category

4,490,000

4,267,000

Category 3
3Category

247,000

227,000

Category 44Category

558,000

557,000

Category 5
5Category

255,000

478,000

Category 6
6Category

53,00037,000Category 7
7
Category

369,000

608,000

Category 8
8Category

75,00077,000Category 99Category

314,000

389,000*

Category 11
11
Category

3,207,000

3,409,000

Category 12
12Category

766,000

421,000*Restated 2022 values are due to increase in data accuracy capability.

Impact Report
Report 2023
2023
Impact148
148

Appendix

Key Metrics
Metrics
Key
VehicleVehicle Safety
SafetyNumberNumber ofof Vehicular
Vehicular Accidents
Accidents
Per Million
Million Miles
Miles Driven
Driven (2022)(2022)
Per

2023
2023

2022

2021

Autopilot Engaged

0.18

0.18

FSD Engaged

0.21

0.31

No Active Safety

0.81

0.68

Total US Vehicle Fleet

1.49

1.53

Health && Safety
SafetyHealth

2023
2023

2022

2021

ASTM Level One Rate

2.51

2.86

3.57

Fatalities

1*

0

1

*Unfortunately, Tesla experienced an employee fatality in China in February of 2023.

Waste
Waste Generated
Generated inin
Manufacturing (metric{metric tons)
tons)
Manufacturing

2023
2023

2022*

2021

Recycled Hazardous Waste

6,273

6,641

13,092

Recycled Non-Hazardous Waste

347,304

286,518

230,916

Disposed Hazardous Waste

4,345

20,471

18,599

Disposed Non-Hazardous Waste

29,307

38,737

14,244

Incinerated Hazardous Waste

7,567

n/a

n/a

Incinerated Non-Hazardous Waste

2,415

n/a

n/a

Total
Total
YoY Reduction
Reduction Total
Total Waste/Vehicle
Waste/Vehicle
YoY

397,211397,211352,366

276,851

-6.3%
-6.3%

-5.42%

Waste num~ers have previously been reported in short tons-all
here on out in metric tons.

numbers have been stated (for 2021 and 2022, restated) in metric tons and will be reported*Restated 2022 values are due to increase in data accuracy capability.

Uptime ofof Tesla
Tesla Supercharger
Supercharger Sites
Sites
UptimeUptime ofof Supercharger
Supercharger Sites*
Sites*
Uptime

2023
2023

2022

Uptime99.97%

99.95%

2021

Energy Consumption
Consumption (kWh){kWh)
EnergyElectricity Consumption (non-renewable)

1,129,864,000

Electricity Consumption (renewable)

420,083,000

Fuel Consumption

1,029,221,000

2023
2023

2022

2021

Total Freshwater Withdrawal

3,871,927

3,363,398

2,874,904

YoY Reduction
Reduction Total
Total Water/Vehicle
Water/Vehicle
YoY

-2.4%
-2.4%

-15%

99.96%*Uptime of Supercharger sites reflects the average percentage of sites globally that had at least 50% of their daily capacity functional for the year.

2023
2023

Water Withdrawal
Withdrawal for
for
Water
Manufacturing (cubic{cubic meters)
meters)ManufacturingImpact Report
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Impact149
149

Appendix

AverageLifecycle
LifecycleEmissions
EmissionsAverage
United States
States (g(g CO2e/mi)
C02e/mi)UnitedModel
Model 3/Y 
3/Y

(Standard Range
Range RWD)
RWD)
(Standard

Manufacturing Phase
Phase &&
Manufacturing
Supply Chain
Chain
SupplyUse
Use Phase
Phase

Total
Total

Personal Use (solar charged)

720

Personal Use (grid charged)

62

ICE

48

EuropeEuropeNew York
York (g(g CO2e/mi)
C02e/mi)New

Model
Model 3/Y  
3/Y(Standard Range
Range RWD)
RWD)
(Standard

Manufacturing Phase
Phase &&
Manufacturing
Supply Chain
Chain
SupplyUse Phase
Phase
Use

Total
Total

72

Personal Use (solar charged)

72

0

72

54

116

Personal Use (grid charged)

62

46

108

397

445

ICE

48

397

445

Model
Model 3/Y  
3/Y(Standard Range
Range RWD)
RWD)
(Standard

Manufacturing Phase
Phase &&
Manufacturing
Supply Chain
Chain
SupplyUse Phase
Phase
Use

Total
Total

France (g(g CO2e/mi)
C02e/mi)FranceModel
Model 3/Y  
3/Y(Standard Range
Range RWD)
RWD)
(Standard

Manufacturing Phase
Phase
Manufacturing& Supply
Supply Chain
Chain&

Use Phase
Phase
Use

Total
Total

Personal Use (solar charged)

114

0

114

Personal Use (solar charged)

114

0

114

Personal Use (grid charged)

103

37

139

Personal Use (grid charged)

103

11

113

ICE

64

396

459

ICE

64

396

459

Model
Model 3/Y  
3/Y(Standard Range
Range RWD)
RWD}
(Standard

Manufacturing Phase
Phase &&
Manufacturing
Supply Chain
Chain
SupplyUse Phase
Phase
Use

Total
Total

China (g(g CO2e/mi)
C02e/mi)China

Sichuan Province
Province (g(g CO2e/mi)
C02e/mi)Sichuan

Model
Model 3/Y  
3/Y(Standard Range
Range RWD)
RWD)
(Standard

Manufacturing Phase
Phase &&
Manufacturing
Supply Chain
Chain
SupplyUse Phase
Phase
Use

Total
Total

Personal Use (solar charged)

114

0

114

Personal Use (solar charged)

114

0

114

Personal Use (grid charged)

103

129

231

Personal Use (grid charged)

103

32

134

ICE

65

400

466

ICE

65

400

466

United States
States (kgCO2e/kWh)(kgC02e/kWh)
UnitedManufacturing Phase &Supply Chain

Megapack 2XL*
2XL*
Megapack

114
114*Use phase emissions from our energy storage systems calculations are in progress, including development of methodologies
refining of real-time data

and theImpact Report
Report 2023
2023
Impact150
150

AppendixAwardsandand Certifications
Certifications
AwardsEHS Awards
AwardsEHS

Certifications
Certifications• Tesla Global Energy-The National Safety Council
Innovation Award Runner Up for the creation andimplementation of the leadership engagement tool used
to verify and validate essential safeguards• Gigafactory Texas-Austin Water Excellence inpretreatment Award• Fremont Factory-True CBCI Gold Certified zero waste• Gigafactory Shanghai-UL 2999 Zero Waste to Landfill
Platinum Award• Gigafactory Shanghai-China National Green
Factory Award• Fremont Factory-Certificate
of Merit Award-Union
Sanitary District for "exceeding USD's standards forcompliance, working in a collaborative relationship with
USD's Environmental Compliance team, and working
with USD in protecting our communities and SF Bay"• Gigafactory Nevada, Gigafactory New York, Gigafactory
Shanghai-ISO 14001 and ISO 45001 certified• Tesla, Inc. Information Security, Cybersecurity, and Privacy
Protection ISO/IEC 27001 certified• Australia Energy-EHS management system certificationfrom the OFSC, Office of the Federal Safety Commission

Impact Report
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2023
Impact151
151

Appendix

Diversity EEO-1
EE0-1 Table
Table
Diversity
Job Categories*Data only includes U.S. employees (Active/On Leave as of 12/31/2022) who
identified their Gender as Male or Female, and also identified Race in their profile

Total
Total

Male
Male

FemaleFemale

(/)

C

C

+"

ro

'+-

·-

I..

00

~

·:::c

33%

30°

ca
0

Q)

C

+-'

ro

CO<(

z

<(

14 %

3%

I..

Q)

~E

10

C

·->

~

a.
(/)

"'C
C

:::r:

ca

·0

ca

..c

Service Workers
Workers
Service

<( C

0
C

·-

·-

I..

0

ca

ca
·-ca
~
ca

0

I..

C

C

ca

_J

Q)
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(/)

Q)

0

ca

I...

Q)

E

(/)

<(

0

C

+""

c:::

-ca
Cl)

Q)
I..

I..

29%

44%

~
I-

4010

I

3%

13%

Q%

5%

6%
I

I

I

Operatives
Operatives

18%

38%
I

Craft Workers
Workers
Craft

39%

3%

22%

14%

8%

I

2%

7%

1%

0

%
1QQ%
100

I

%
1QQ%
100

42%
I

Sales Workers
Workers
Sales

10%

1%

1%

14%

I

I

28%
I

13%

1%

1%

13%

6%
I

I

0

·-

Q)

·->

I..

Q)

+-'

-C

I...

ca
0

0

~

Cl)

0

ca
~
ro

0
C

·-

·-

E

~

%
69%
69

Q)

ca

I...

-

0
0

z

<(

<(

24%

19%

8%

3%

11%

1%

3%

(/)

Q)
+""

·..c

+-'

120/o
I

26%

I

150/o

40%

00

ca

~

a.
(/)

0

ca

·I..

Q)

:::r:
Cl)

·->
+-'

·-

-C

Q)

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I..

ca

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C

~

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·-Cl)

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u..
ca

ca
0

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ca

·-

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-

~

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CO<(

z

<(

<(

~
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9%

12%

6%

Q%

2%

Q%

%
10/o 31
31%

ca

(/)

+-'

~

2%

4%

Q%

5%

%
92%
92

2%

2%

1%

Q%

1%

Q%

1%

%
88%

2%

1QO/o

1%

3%

%
71%
71

4%

11%

6%

1%

4%

Q%

2%

%
29%
29
I

I

I

8%

2%

6%

1%

3%

%
98%
98

1%

1%

Q%

Q%

Q%

Q%

Q%

%
22%

6%

1%

10%

Q%

3%

%
69%
69

13%

8%

3%

1%

5%

Q%

2%

%
31%
31

9%

1%

9%

1%

4%

%
71%
71

10%

9%

4%

Q%

4%

Q%

2%

%
29%
29

%
90%
90

2%

3%

1%

Q%

2%

Q%

Q%

%
10%
10

%
77%
77

8%

3%

1%

Q%

11%

Q%

1%

%
23%
23

I

20%
I

29%

<( C

ca

c:::

I

I

I

29%

'+-

0

I

42%

38%

I..

·-

I

13%

·I..

ca

·-ca
ca
~
ca

·-

0

I..

C

C

ca

_J

C

I..

C

+-'

Q)

~

ca

·-ro

I

100

%
100%
100

~

a.
(/)

I

%
1QQ%
100

5%

I

39%

ca

I

28%

00

:::c

ca

·-

c:::

"'C
C

C

ca

~
I-

I

Administrative Support
SupportAdministrative

·-

28%

%
1QQ%
100

3%

<( C
I..

ca

Q)

0

0

~E
·CO<(
:::c

I

%
1QQ%

5%

I

I

41%

2%

>

·..c

Q)

··-

'+-

0
C

Q)
+""

0

C

ca
ca
~
ca

I..

0

ca
I...

0
0

C

·-

I..

~

~

C

ca

_J

+-'

0

I

Laborers && Helpers
Helpers
Laborers

·-ca

ca

(/)

Q)

0

I

19%

I

I
I

Technicians
Technicians

32%
I

8%

36%

17010 1%

2%

%
1QQ%
100

4%

I

I

7%

32%

30%
I

2%

1%

14010

4%

I

I

I

Professionals
Professionals

40%

Q%

47%

7%

23%

2%

Q%

39%
I

I

I

First/Mid Officials
Officials && Mgrs
Mgrs
First/Mid

3%

13%

3%
I

I

1%

17%

Exec/Sr. Officials
Officials && Mgrs
Mgrs
Exec/Sr.
Total
Total

7%

55%
I

I

3%

Q%

I

1%

33%

3%

%
1QQ%
100

39%

I

1%

100

2%

I

I

19%

6%

2%

13%

1%

3%

%
82%
82

8%

4%

2%

Q%

4%

Q%

10/o 18
%
18%

44%

7%

2%

Q%

27%

1%

1%

%
82%
82

11%

Q¾

1%

Q%

6%

Q%

10/o 18
%
18%

1%

3%

%
77%
77

5%

7%

4%

Qo/o

5%

Qo/o

1%

I

%

Q%

29%

I

I

2%

Q%

2%

10%

I

I

I

I

32%
I

%
1QQ%
100

4%

j

I

%
1QQ%
100

I

I

24%

25%
I

2%

10%
I

I

14%

I

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Reportofof Independent
IndependentAccountants
Accountants
ReportTo the Board of Directors of Tesla Inc.
We have reviewed the accompanying management assertion of Tesla,Inc. (Tesla) that the greenhouse gas (GHG) emissions metrics for theyear ended December 31, 2023, in management's assertion arepresented in accordance with the assessment criteria set forth inmanagement's assertion. Tesla's management is responsible for its
assertion and for the selection of the criteria, which management
believes provide an objective basis for measuring and reporting on the
GHG emissions metrics. Our responsibility is to express a conclusion
on management's assertion based on our review.
Our review was conducted in accordance with attestation standards
established by the American Institute of Certified Public Accountants(AICPA) in AT-C section 105, Concepts Common to All Attestation
Engagements, and AT-C section 210, Review Engagements. Thosestandards require that we plan and perform the review to obtain
limited assurance about whether any material modifications should bemade to management's assertion in order for it to be fairly stated. The
procedures performed in a review vary in nature and timing from, andare substantially less in extent than, an examination, the objective of
which is to obtain reasonable assurance about whether management's
assertion is fairly stated, in all material respects, in order to express an
opinion. Accordingly, we do not express such an opinion.

Because of the limited nature of the engagement, the level ofassurance obtained in a review is substantially lower than theassurance that would have been obtained had an examination been
performed. We believe that the review evidence obtained is sufficientand appropriate to provide a reasonable basis for our conclusion.
We are required to be independent and to meet our other ethicalresponsibilities in accordance with relevant ethical requirements
related to the engagement.
The firm applies the Statements on Quality Control Standards
established by the AICPA.
The procedures we performed were based on our professional
judgment. In performing our review, we performed inquiries,
performed tests of mathematical accuracy of computations on asample basis, read relevant policies to understand terms related to
relevant information about the GHG emissions metrics, reviewed
supporting documentation in regard to the completeness andaccuracy of the data in the GHG emissions metrics on a sample basis,and performed analytical procedures.

pwc

GHG emissions quantification is subject to significant inherent
measurement uncertainty because of such things as GHG emissions
factors that are used in mathematical models to calculate GHG
emissions, and the inability of these models, due to incomplete
scientific knowledge and other factors, to accurately measure under
all circumstances the relationship between various inputs and theresultant GHG emissions. Environmental and energy use data used in
GHG emissions calculations are subject to inherent limitations, given
the nature and the methods used for measuring such data. The
selection by management of different but acceptable measurement
techniques could have resulted in materially different amounts or
metrics being reported.
As discussed in management's assertion, Tesla has estimated GHG
emissions for certain emissions sources for which no primary usage
data is available.
Based on our review, we are not aware of any material modifications
that should be made to Tesla's management assertion in order for it tobe fairly stated.

San Jose, California
April 25, 2024

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ManagementAssertion 
Assertion
Management
Scope 11 &&22 GHG
GHG Emissions
Emissions
Scope

Overview
Overview

Organizational Boundary
Boundary
Organizational

With respect to the greenhouse gas (GHG) emissions
metrics for the year ended December 31, 2023,
presented in table 2 below, which are also included inthis Tesla Impact Report 2023 as identified by the u*"
symbol, management of Tesla, Inc. (Tesla) asserts that
the GHG emissions metrics are presented in accordancewith the assessment criteria set forth below.

Tesla uses the operational control approach to account for
and report its global Scope 1 and Scope 2 GHG emissions.
This includes sites engaged in manufacturing; sales,
service, and delivery; and other activities described below.
Data Centers (leased locations that house Tesla computer
systems and associated components), Superchargers(electric vehicle fast charging stations), and beginning in
2023, malls (leased retail storefront within shopping mallsfor Tesla products) are not included in our boundary as
Tesla determined they do not have operational control overemissions from these sites. Data for new or acquired sites
are included once the site has been operating for at least ayear at the beginning of the reporting period. Conversely,sites that closed or ceased operations during the reporting
period are not included in Tesla's organizational boundary.

Management is responsible for the selection of thecriteria, which management believes provide an
objective basis for measuring and reporting on the GHG
emissions metrics, and for the completeness, accuracy,
and validity of the GHG emissions metrics. Tesla's GHG
emissions are rounded up to the nearest thousand.

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Scope 11 &&22 GHG
GHG Emissions
Emissions
Scope
Table 1:
1: Description
Description ofof Tesla
Tesla Sites
Sites
Table
Site Type
Type
Site

Site Activities
Activities
Site

Manufacturing• Manufacture Tesla products, including vehicles, Superchargers, solar tiles, and energy
storage products.
• Support manufacturing through the design and manufacture of equipment and tools used
at manufacturing sites or by storing manufacturing materials, parts, or finished products.

Sales, Service, and Delivery (SSD)• Sell products, provide vehicle service, store parts for vehicle service, and deliver vehicles.

Other• Conduct research & development, administration, energy product warehousing
and deployment, and other mixed-use warehousing.

2: Metrics
Metrics –- GHG
GHG Emissions
Emissions
Table 2:Table
1•2 •3GHG
GHG Emissions
Emissions andand Assessment
Assessment Criteria
Criteria 1,2,3

Quantity
Quantity

Scope 1 GHG Emissions 4

211,000 Metric Tons CO2e

Direct GHG emissions occurring from stationary combustion,
mobile combustion, refrigerant losses, and process emissions.
Scope 2 GHG Emissions (location-based)

5

Indirect GHG emissions from the generation of electricity anddistrict heating purchased by Tesla for site operations.

466,000

Metric Tons CO2e

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GHG Emissions
Emissions
Scope
GHG Emissions
Emissions Disclosure
Disclosure
GHG

1 Tesla considers the principles and guidance ofCD
the World Resources Institute (WRI) and theWorld Business Council for Sustainable
Development's (WBCSD) Greenhouse Gas
Protocol Initiative's A Corporate Accounting andReporting Standard, Revised Edition, and GHG
Protocol Scope 2 Guidance, An Amendment to
the GHG Protocol Corporate Standard (together
the "GHG Protocol") to guide the criteria toassess, calculate and report GHG emissions.

2

GHG emissions quantification is subject tosignificant inherent measurement uncertainty
because of such things as GHG emissions
factors that are used in mathematical models to
calculate GHG emissions, and the inability ofthese models, due to incomplete scientificknowledge and other factors, to accurately
measure under all circumstances the relationshipbetween various inputs and the resultant GHG
emissions. Environmental and energy use data
used in GHG emissions calculations are subject
to inherent limitations, given the nature and themethods used for measuring such data. The
selection by management of different but
acceptable measurement techniques could haveresulted in materially different amounts or
metrics being reported.

3

Carbon dioxide equivalent (CO2e) emissions areinclusive of carbon dioxide (CO2), nitrous oxide(N2O), methane (CH4), and industrial gases such ashydrofluorocarbons (HFCs) and sulfur hexafluoride(SFs). Perfluorocarbons (PFCs) and nitrogen
trifluoride (NF3) are not emitted by Tesla's sites.
Emissions data by individual gas is not disclosed
as a majority of CO2e in Table 1 relates to CO2.
These carbon dioxide equivalent emissions utilize
Global Warming Potentials (GWPs) defined by theIntergovernmental Panel on Climate Change's(IPCC) Fifth Assessment Report (AR5 -100 year),
unless a different Assessment Report is alreadyembedded in the emission factor source. Carbon
dioxide equivalent emissions are calculated bymultiplying actual or estimated energy and fuelusage, refrigerant gas loss or process emissions by
the relevant emission factor and GWP. All emission
factors are updated annually where applicable.

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Emissions
Scope
GHG Emissions
Emissions Disclosure
Disclosure
GHG

04 Related to Scope 1 GHG emissions:a. Stationary combustion (natural gas):• Combustion from stationary equipment andmachinery.
• Global natural gas usage data was collected frommonthly utility invoices obtained from third-party
providers.
• If usage data was not available, Tesla estimated thenatural gas usage by determining an annual natural
gas usage rate per square foot based on actual
2023 monthly natural gas usage data for sites in asimilar geographic location and type of site. Thisrate was then multiplied by the square footage ofthe site building space.
• Emission factors: United States (U.S.)
Environmental Protection Agency (EPA) Emission
Factors for Greenhouse Gas Inventories 2023.

b. Stationary and mobile combustion(propane, diesel, and gasoline):• Combustion from emergency and portable generators,
powered industrial vehicles (e.g., forklifts), temporary
space heaters, and other portable equipment (e.g.,landscaping equipment).
• Propane, diesel, and gasoline usage data was collectedfrom invoices and fuel reports obtained from third-party
providers.
• Emission factors: U.S. EPA Emission Factors forGreenhouse Gas Inventories 2023.
c. Emissions from refrigerant loss to the atmosphere:• Fugitive emissions from refrigeration, air conditioning,or similar equipment resulting from leakage and service
over the operational life of the equipment.
• Loss data was collected from invoices and vendor
reports for refrigerant refills purchased and/or installed.
• Emission factors from refrigerant loss:
U.S. EPA Emission Factors for Greenhouse Gas
Inventories 2023; United Kingdom (UK): UK databasepublished by the Department for Environment Food &Rural Affairs (DEFRA) 2023; IPCC Fifth Assessment
Report 2013.

d. Fleet mobile combustion (diesel and gasoline):• Combustion from the operation of Tesla's on-roadand non-road vehicles.
• Diesel and gasoline usage (volume) was collectedfrom fuel cards issued by Tesla's fleet management
partner. Vehicle miles driven by Tesla on-roadvehicles was collected from odometer readings andreal time telemetries on each vehicle.
• Tesla classified vehicles by type: diesel medium andheavy-duty vehicles, gasoline passenger cars,
gasoline light-duty trucks, gasoline heavy-duty
vehicles, and non-road• industrial/commercial equipment. Temporary light
duty fleet additions for operational use werecategorized as 'other', for which only CO2 emissions
are calculated, because Tesla does not have detailed
information on what type of vehicles were rented
and miles driven.
• CO2 emissions were calculated by multiplying therelevant emission factor by the volume of diesel andgasoline used by Tesla's on-road and non-roadvehicles for the year ended December 31, 2023.

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Scope 11 &&22 GHG
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Emissions
Scope
GHG Emissions
Emissions Disclosure
Disclosure
GHG• CH4 and N20 emissions were calculated bymultiplying the relevant emission factor(depending on vehicle type and age) by the miles
driven by Tesla's on-road vehicles, and by thevolume of diesel and gasoline used by Tesla's nonroad vehicles for the year ended December 31,
2023.
• Emission factors: U.S. EPA Emission Factors forGreenhouse Gas Inventories 2023.
e. Process emissions:• Lithium-ion battery cell recycling:• Emissions from processing manufacturing
scrap lithium-ion cells at the Gigafactory
Nevada cell recycling site.
• The concentration of CO2 and CH4 in emissions(emission rates) were measured during twoemissions source tests. GHG emissions were
calculated by multiplying the quantity of
manufacturing scrap processed, as recordedby the recycling plant operations team, by theCO2 and CH4 emission rates developed basedon the emissions source tests.

• Emission of CO2 resulting from cleaning plastic
parts with liquid CO2:
• CO2 emissions were assumed to equal the massof liquid CO2 used in the cleaning process asmeasured by liquid CO2 sensors on the tank.
• Combustion of volatile organic compounds (VOCs)
emitted to thermal oxidizers at manufacturing sites:• The quantity of VOCs emitted to thermaloxidizers were estimated by calculating thepotential to emit or by a continuous emissions
monitoring system.
• The CO2 equivalent emissions were calculatedusing the number of carbon atoms in the VOCs,
the molecular weight and the mass of the VOC
exhausted to the thermal oxidizers andmultiplied by the destruction efficiency of thethermal oxidizer.

f. Estimated emissions from the sources above accountfor approximately 3.8% of Scope 1 GHG emissions.
g. Excluded Scope 1 GHG emissions: Tesla excluded thefollowing sources of GHG emissions, which are
estimated to represent less than 1 percent of Tesla's
reported Scope 1 GHG emissions:• GHG emissions from emergency stabilization ofdamaged and potentially damaged lithium-ion cells.
• GHG emissions resulting from the chemical reactionof two-part polyurethane foam adhesives.
• GHG emissions resulting from oxy-acetylene welding
used to maintain sites and equipment.

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Scope
GHG Emissions
Emissions Disclosure
Disclosure
GHG
to Scope 2 GHG emissions®5 Related(location-based):• GHG emissions from the generation ofelectricity purchased by Tesla for site
operations. For sites that include
Superchargers, Tesla did not include
electricity procured for customer use throughthe Supercharger stations as those emissions
are included in Scope 3, Category 11Use of
Sold Products. For purchased electricity
relative to Data Centers, those emissions areincluded in Scope 3, Category 8 Upstream
Leased Assets.
• Global electricity usage data was collectedfrom monthly utility invoices obtained fromthird-party providers.

• If monthly usage data was not available:• For sites with less than 12 months of usage
data, Tesla estimated the electricity usage by
extrapolating the average consumption for theavailable months in the reporting period.
• Tesla estimated the electricity usage bydetermining an annual electricity usage rate per
area based on 2023 monthly electricity usage
data for sites in a similar geographic locationand type of site. This rate was then multipliedby the area of the site building space.
• If cost data was available without theassociated usage, Tesla used local unit costs tocalculate usage.
• District Heating usage data was collected frominvoices obtained from third-party providers.
If usage data was not available, Tesla estimated theusage by extrapolating the average consumption
for the available months. If no data was reported,
usage was based on sites in a similar geographic
location and type of site.

• The WRI and WBCSD issued additional guidance
for Scope 2 emissions in 2015 (in GHG Protocol
Scope 2 Guidance, An Amendment to the GHG
Protocol Corporate Standard), which sets forthreporting under both location-based andmarket-based methodologies, where the priorversion of the GHG Protocol only addressed alocation-based methodology. The locationbased method applies average emission factorsthat correspond to the grid where theconsumption occurs, whereas the market-based
method applies emission factors that correspondto energy purchased through contractual
instruments. Where contractual instruments
were not purchased, the market-based emission
factors represent either the residual mix, whereavailable, or the location grid-average factors.
This management assertion only includes Tesla's
location-based Scope 2 GHG emissions as Tesla
is continuing to implement its processes tomeasure and report its market-based Scope 2
GHG emissions.

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Scope 11 &&22 GHG
GHG Emissions
Emissions
Scope
GHG Emissions
Emissions Disclosure
Disclosure
GHG• Emission factors:• Electricity:• Canada: Environment Canada. 2023 National
inventory report: greenhouse gas sources
and sinks in Canada.
• U.S.: U.S. EPA Emission Factors forGreenhouse Gas Inventories 2023.
• Shanghai: Shanghai Municipal Bureau of
Ecology and Environment 2022.
• China: China Regional Power Grids 2022.
• All other countries: International Energy
Agency (IEA) Emissions Factors 2023.
• District Heating: U.S. EPA Emission Factors forGreenhouse Gas Inventories 2023.
• Estimated emissions from the source above accountfor approximately 8.8% of Scope 2 GHG emissions.

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Tesla aspires to do the right thing, and we areconstantly looking for ways to do better. If you havesuggestions about how our company can improve inany way, feel free to send your ideas toimpactreport@tesla.com.

The statements made in this report speak only as of the date on which they
are made. We do not assume any obligation to update or revise any
statements, whether as a result of new information, future events orotherwise, except as required by law.

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