Q1 2023 Update1

Highlights

03

Financial Summary

04

Operational Summary

06

Vehicle Capacity

07

Core Technology

08

Other Highlights

09

Outlook

10

Photos & Charts

11

Key Metrics

19

Financial Statements

22

Additional Information

28

HIGHLIGHTSSUMMARY

Profitability

In the current macroeconomic environment, we see this year as a unique
opportunity for Tesla. As many carmakers are working through challenges with theunit economics of their EV programs, we aim to leverage our position as a costleader. We are focused on rapidly growing production, investments in autonomy
and vehicle software, and remaining on track with our growth investments.

11.4% operating margin in Q1$2.7B GAAP operating income in Q1$2.5B GAAP net income in Q1

Cash$2.9B non-GAAP net income1 in Q1

Our near-term pricing strategy considers a long-term view on per vehicle
profitability given the potential lifetime value of a Tesla vehicle through autonomy,
supercharging, connectivity and service. We expect that our product pricing willcontinue to evolve, upwards or downwards, depending on a number of factors.

Operating cash flow of $2.5B

Although we implemented price reductions on many vehicle models across regionsin the first quarter, our operating margins reduced at a manageable rate. We
expect ongoing cost reduction of our vehicles, including improved production
efficiency at our newest factories and lower logistics costs, and remain focused on
operating leverage as we scale.

Free cash flow2 of $0.4B in Q1$0.2B increase in our cash and investments3 in Q1 to $22.4B

We are rapidly growing energy storage production capacity at our Megafactory inLathrop and we recently announced a new Megafactory in Shanghai. We are also
continuing to execute on our product roadmap, including Cybertruck, our next
generation vehicle platform, autonomy and other AI enabled products.
Operations

Cybertruck factory tooling on track; producing Alpha versions
Model Y was the best-selling vehicle in Europe in Q1
Model Y was the best-selling vehicle in the US in Q1 (ex-pickups)

Our balance sheet and net income enable us to continue to make these capital
expenditures in line with our future growth. In this environment, we believe it
makes sense to push forward to ensure we lay a proper foundation for the best
possible future.

(1) Excludes SBC (stock-based compensation).

(2) Free cash flow = operating cash flow less capex.

(3) Includes cash, cash equivalents and investments.

FINANCIAL SUMMARY(Unaudited)($ in millions, except percentages and per share data)
Total automotive revenues

Q2-2022

Q3-2022

Q4-2022

Q1-2023

YoY

16,861

14,602

18,692

21,307

19,963

18%

616

866

1,117

1,310

1,529

148%

Services and other revenue

1,279

1,466

1,645

1,701

1,837

44%

Total revenues

18,756

16,934

21,45424,31823,32924%

Total gross profit

5,460

4,234

5,382

5,777

4,511

-17%

Total GAAP gross margin

29.1%

25.0%

25.1%

23.8%

19.3%

-977 bp

Operating expenses

1,857

1,770

1,694

1,876

1,847

-1%

Income from operations

3,603

2,464

3,688

3,901

2,664

-26%

Operating margin

19.2%

14.6%

17.2%

16.0%

11.4%

-779 bp

Adjusted EBITDA

5,023

3,791

4,968

5,404

4,267

-15%

Adjusted EBITDA margin

26.8%

22.4%

23.2%

22.2%

18.3%

-849 bp

Net income attributable to common stockholders (GAAP)

3,318

2,259

3,292

3,687

2,513

-24%

Net income attributable to common stockholders (non-GAAP)

3,736

2,620

3,654

4,106

2,931

-22%

EPS attributable to common stockholders, diluted (GAAP)(1)

0.95

0.65

0.95

1.07

0.73

-23%

EPS attributable to common stockholders, diluted (non-GAAP)(1)

1.07

0.76

1.05

1.19

0.85

-21%

Net cash provided by operating activities

3,995

2,351

5,100

3,278

2,513

-37%

Capital expenditures(1,767)(1,730)(1,803)(1,858)(2,072)

17%

Free cash flow

2,228

621

3,297

1,420

441

-80%

Cash, cash equivalents and investments

18,013

18,915

21,10722,18522,402

24%

Energy generation and storage revenue

4

Q1-2022(1)EPS = earnings per share. Prior period results have been retroactively adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in August 2022.

FINANCIAL SUMMARY

Revenue

Total revenue grew 24% YoY in Q1 to $23.3B. YoY, revenue was impacted by the following items:+ growth in vehicle deliveries+ growth in other parts of the business- reduced ASP YoY (excluding FX impact)- negative FX impact of $0.8B1

Profitability

Our operating income decreased YoY to $2.7B in Q1, resulting in a 11.4% operating margin. YoY, operating income wasprimarily impacted by the following items:+ growth in vehicle deliveries (despite margin headwind from underutilization of new factories)+ gross profit growth in Energy business as well as Services & Other- reduced ASP YoY- higher raw material, commodity, logistics and warranty costs- cost of production ramp of 4680 cells- lower credit revenue

Cash

Quarter-end cash, cash equivalents and investments increased sequentially by $217M to $22.4B in Q1, driven mainly by free
cash flow of $441M, partially offset by other financing activities, including debt repayments.

(1) Impact is calculated on a constant currency basis. Actuals are compared against current results converted into USD using average exchange rates from Q1’22.

5

OPERATIONAL SUMMARY(Unaudited)

Q1-2022

Q3-2022

Q4-2022

Q1-2023

YoY

Model S/X production

14,21816,411

19,935

20,613

19,43737%

Model 3/Y production

291,189

242,169

345,988

419,088421,37145%

305,407258,580

365,923439,701

440,80844%

Model S/X deliveries

14,724

16,162

18,672

17,147

10,695-27%

Model 3/Y deliveries

295,324

238,533

325,158

388,131

412,18040%

Total deliveries

310,048

254,695

343,830

405,278

422,875

36%

of which subject to operating lease accounting

12,167

9,227

11,004

15,18422,357

84%

Total end of quarter operating lease vehicle count128,402131,756

135,054

140,667

153,988

20%

3

4

8

13

15

400%

Solar deployed (MW)

48

106

94

100

67

40%

Storage deployed (MWh)

846

1,133

2,100

2,462

3,889

360%

Tesla locations(2)

787

831

903

963

1,000

27%

Mobile service fleet

1,372

1,453

1,532

1,584

1,692

23%

Supercharger stations

3,724

3,971

4,283

4,678

4,947

33%

Supercharger connectors

33,65736,16538,88342,41945,16934%

Total production

Global vehicle inventory (days of supply)(1)6

Q2-2022(1)Days of supply is calculated by dividing new car ending inventory by the relevant quarter’s deliveries and using 75 trading days (aligned with Automotive News definition).

(2)Starting in Q1-2023, we revised our methodology for reporting Tesla’s physical footprint. This count now includes all sales, delivery, body shop and service locations globally.

VEHICLE CAPACITY

Installed Annual Vehicle Capacity
In Q1, we produced a record number of vehicles, thanks to ongoing ramps at ourfactories in Austin and Berlin. We remain committed to reducing the percentage ofvehicles delivered in the 3rd month and smoothing deliveries throughout the quarter,
which will help to reduce cost per vehicle, while increasing in-transit inventory at theend of each quarter.

US: California, Nevada and Texas
The Model Y was the best-selling non-pickup vehicle in the US in Q1. We showcased
4680 cell production at our March-2023 Investor Day; production rate continued to
improve sequentially in Q1. Equipment installation for Cybertruck production at
Gigafactory Texas continued in Q1 and remains on track.

China: Shanghai
Since our Shanghai factory has been successfully running near full capacity forseveral months, we do not expect meaningful increase of weekly production run
rate. We launched sales in Thailand, a new market supplied out of Shanghai. Thus far,the reception has been very positive. Giga Shanghai remains our main export hub.

RegionModel

Capacity

StatusCalifornia

Model S / Model X

100,000

Production

Model 3 / Model Y

550,000

Production

Shanghai

Model 3 / Model Y>750,000

Production

BerlinModel Y

>350,000

Production

Texas

Model Y

>250,000

Production

Cybertruck-

Tooling

NevadaTesla Semi-

Pilot production

TBD

Roadster-

In development

Robotaxi & Others-

In development

Installed capacity ≠ current production rate and there may be limitations discovered as production rates
approach capacity. Production rates depend on a variety of factors, including equipment uptime,component supply, downtime related to factory upgrades, regulatory considerations and other factors.

4%

US/Canada

Europe

China

3%
2%

Europe: Berlin-Brandenburg
The Model Y production line in Germany produced over 5,000 vehicles in a week
towards the end of Q1. In Q1-2023, Tesla Model Y became the best-selling vehicle, of
any kind, in Europe (EU + EFTA + UK)*.

1%0%

Market share of Tesla vehicles by region (TTM)
7 *Based on HIS and other latest available data

Source: Tesla estimates based on ACEA; Autonews.com; CAAM – light-duty vehicles only
TTM = Trailing twelve months

CORE TECHNOLOGY

Autopilot and Full Self-Driving (FSD)

140
120

Our growing fleet of FSD Beta users has an exponential impact on total FSD Beta
miles driven – with over 150 million miles to date and counting. This level of datacollection is unprecedented in the industry. Mass collection of diverse datasets isessential for AI-based approach – the only approach we believe can work for scalable
autonomy. In Q1, we enabled the latest FSD Beta software stack for highway driving.

Vehicle and Other Software
While our various vehicles provide different range, acceleration or vehicle size, we
believe the Tesla software experience is the best-in-class across all vehicles. Even thebase Model 3 offers seamless integration of vehicle controls, safety and security
features (sentry mode, dog mode) and a full suite of connectivity and entertainment
features (Spotify, other music streaming services, video streaming, 4G, etc.), andongoing software updates bring yet more functionality over time. Recently, we
launched home-grown Recruitment and Employee Health & Safety platforms as part ofthe broader Tesla OS ecosystem. More details on page 12.

100
80
60
40
20
0

Cumulative miles driven with FSD Beta (millions)2018

Battery, Powertrain & Manufacturing
Producing electric vehicles profitably is a challenging endeavor. It requires rethinking
how vehicles are designed and produced from the ground up. Our cost journey is
nowhere near finished, which is why we recently announced transition to 48 Voltarchitecture for vehicle electronics (starting with Cybertruck), higher penetration of
in-house designed controllers, cheaper, more scalable drive units and further
innovations in the manufacturing process. Cost reduction remains the main enabler ofdelivering on our mission.
82022~30% decline

Global Model 3 cost normalized**Includes material costs, manufacturing costs, inbound and outbound logistics, warranty.
Based on actual results inclusive of trim/region/production mix, normalized to 2018 for changes
in market rates of lithium, nickel, steel and aluminumOTHER HIGHLIGHTS

Energy Storage

4

Energy storage deployments increased by 360% YoY in Q1 to 3.9 GWh, the highest
level of deployments we have achieved due to ongoing Megafactory ramp. The rampof our 40 GWh Megapack factory in Lathrop, California has been successful with still
more room to reach full capacity. This Megapack factory will be the first of many. We
recently announced our second 40 GWh Megafactory, this time in Shanghai, withconstruction starting later this year.

3

Solar
Solar deployments increased by 40% YoY in Q1 to 67 MW, but declined sequentially inthe quarter, predominantly due to volatile weather and other factors. In addition, thesolar industry has been impacted by supply chain challenges.

2

1

0

Energy Storage deployments (GWh)8%6%Services and Other
4%

Both revenue and gross profit from Services and Other reached an all-time high in Q1
2023. Within this business division, growth of used vehicle sales remained strong YoY
and had healthy margins. Supercharging, while still a relatively small part of thebusiness, continued to grow as we gradually open up the network to non-Tesla
vehicles.

2%
0%
-2%
-4%

Q3'21

Q4'21

Q1'22

Q2'22

Q3'22

Services & Other gross margin
9

Q4'22

Q1'23

OUTLOOK

10

VolumeWe are planning to grow production as quickly as possible in alignment with the 50% CAGR target we began guiding
to in early 2021. In some years we may grow faster and some we may grow slower, depending on a number of factors.
For 2023, we expect to remain ahead of the long-term 50% CAGR with around 1.8 million cars for the year.

Cash

We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses.
Furthermore, we will manage the business such that we maintain a strong balance sheet during this uncertain period.

ProfitWhile we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we
expect our hardware-related profits to be accompanied with an acceleration of software-related profits. We continue
to believe that our operating margin will remain among the highest in the industry.

Product

Cybertruck remains on track to begin production later this year at Gigafactory Texas. In addition, we continue to makeprogress on our next generation platform.

PHOTOS & CHARTSTESLA OPERATING SYSTEM
Our custom-built software replaces enterprise software provided solutions like CRM, ERP, HCM, MES, SCM, WMS & other platforms.
Enables unprecedented vertical integration, cost control and agility.

ImpactEliminates the need for expensive 3rd party
software & cloud subscription fees resulting
in low SG&A costs

Ability to scale product and headcountgrowth without excessive incremental cost

Exceptionally low lead time and improved
agility in decision making

Ability to effectively manage information
security risks, customer data and experiences

12

CYBERTRUCK PILOT LINE

13

CYBERTRUCK PILOT LINE

14

GIGAFACTORY TEXAS — TOOLING FOR CYBERTRUCK PRODUCTION LINE

15

CYBERTRUCK WINTER TESTING

16

MEGAFACTORY LATHROP, CA — MEGAPACK

17

BODY LINE

GIGAFACTORY TEXAS — 4680 CELL PRODUCTION

18

19

Vehicle Deliveries(millions of units)
Operating Cash Flow ($B)
Free Cash Flow ($B)

100

Net Income ($B)
Adjusted EBITDA ($B)

1Q-2023

1

4Q-20222

3Q-20222

2Q-20223

1Q-20223

4Q-2021

4

3Q-2021

4

2Q-2021

5

1Q-2021

5

4Q-2020

0.2
6

3Q-2020

0.3
6

2Q-2020

1Q-2023

4Q-2022

3Q-2022

2Q-2022

1Q-2022

4Q-2021

3Q-2021

2Q-2021

0.0
1Q-2021

0.1

4Q-2020

0.4

3Q-2020

0.5

2Q-2020

1Q-2023

4Q-2022

3Q-2022

2Q-2022

1Q-2022

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

3Q-2020

2Q-2020

KEY METRICS QUARTERLY(Unaudited)20

Vehicle Deliveries(millions of units)
Operating Cash Flow ($B)
Free Cash Flow ($B)

10

8
8

6
6

4
4

2
2

0
0

Net Income ($B)
Adjusted EBITDA ($B)

1Q-202310

4Q-202212

3Q-202212

2Q-202214

1Q-202214

4Q-2021

16

3Q-2021

16

2Q-202118

1Q-202118

4Q-202020

3Q-202020

2Q-2020

1Q-2023

4Q-2022

3Q-20220.0
2Q-20220.2

1Q-20220.4

4Q-2021

0.6

3Q-2021

0.8

2Q-2021

1.0

1Q-2021

1.2

4Q-2020

1.4

3Q-2020

1.6

2Q-2020

1Q-2023

4Q-2022

3Q-2022

2Q-2022

1Q-2022

4Q-2021

3Q-2021

2Q-2021

1Q-2021

4Q-2020

3Q-2020

2Q-2020

KEY METRICS TRAILING 12 MONTHS (TTM)(Unaudited)KEY METRICS TRAILING 12 MONTHS (TTM)(Unaudited)

Auto Industry

S&P 500

Tesla

Auto Industry

S&P 500

Source: OEM financial disclosures, Bloomberg
Autos Industry includes: Tesla, BMW, Mercedes-Benz, Ford, GM, Honda, Hyundai, Nissan, Toyota and VW. Stellantis is excluded given limited historical disclosures due to the recent merger between FCA and PSA.
Autos Industry operating margin is calculated by dividing the sum of USD equivalent operating profits for the entire industry by the USD equivalent revenues for respective periods.

Q1-2023

Q4-2022

Q3-2022

Q2-2022

Q1-2022

Q4-2021

Q3-2021

Q2-2021

Q1-2021

Q4-2020-4%
Q3-2020-20%

Q2-2020-2%
Q1-2020-10%

Q4-20190%Q3-20190%Q2-2019

2%

Q1-202310%

Q4-2022

4%

Q3-202220%

Q2-2022

6%

Q1-202230%

Q4-2021

8%

Q3-202140%

Q2-202110%

Q1-202150%

Q4-2020

12%

Q3-202060%

Q2-2020

14%

Q1-202070%

Q4-2019

16%

Q3-201980%

Q2-2019

18%

Q1-2019

90%

Tesla

21

Operating Margin

Q1-2019

YoY Revenue Growth

FINANCIAL

STATEMENTSSTATEMENT OF OPERATIONS(Unaudited)
In millions of USD or shares as applicable, except per share data
REVENUES
Automotive sales
Automotive regulatory credits
Automotive leasing
Total automotive revenues
Energy generation and storage
Services and otherTotal revenues
COST OF REVENUES
Automotive sales
Automotive leasing
Total automotive cost of revenues
Energy generation and storage
Services and otherTotal cost of revenues
Gross profit
OPERATING EXPENSES
Research and development
Selling, general and administrative
Restructuring and otherTotal operating expenses
INCOME FROM OPERATIONSInterest income
Interest expense
Other income (expense), net
INCOME BEFORE INCOME TAXES
Provision for income taxes
NET INCOME
Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests in
subsidiaries
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
Net income per share of common stock attributable to common stockholders(1)BasicDilutedWeighted average shares used in computing net income per share of common stock(1)BasicDiluted23$$

Q1-2022

Q2-2022

Q3-2022

Q4-2022

Q1-2023

15,514679
668
16,861616
1,279
18,756

13,670344
588
14,602866
1,466
16,934

17,785286
621
18,692
1,117
1,645
21,454

20,241467
599
21,3071,310
1,701
24,31818,878521
564
19,963
1,529
1,837
23,32910,914408
11,322688
1,286
13,296
5,460

10,153368
10,521769
1,410
12,7004,234

13,099381
13,4801,013
1,579
16,072
5,382

15,433352
15,785
1,151
1,605
18,541
5,777

15,422333
15,7551,361
1,702
18,818
4,511

865
992
—
1,857
3,603
28
(61)
56
3,626
346
3,280

667
961
142
1,770
2,464
26
(44)
28
2,474
205
2,269

733
961
—
1,694
3,688
86
(53)
(85)
3,636
305
3,331

810
1,032
34
1,876
3,901
157
(33)
(42)
3,983
276
3,707

771
1,076
—
1,847
2,664
213
(29)
(48)
2,800
261
2,539

(38)

10

39

20

26

3,318

2,259

3,292

3,687

2,513

1.07
0.95
3,103
3,472

(1) Prior period results have been retroactively adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in August 2022.

$
$

0.73
0.65
3,111
3,464

$
$

1.05
0.95
3,146
3,468

$
$

1.18
1.07
3,160
3,471

$
$

0.80
0.73
3,166
3,468

BALANCE SHEET(Unaudited)
In millions of USD
ASSETS
Current assets
Cash, cash equivalents and investments
Accounts receivable, net
Inventory
Prepaid expenses and other current assets
Total current assets
Operating lease vehicles, net
Solar energy systems, net
Property, plant and equipment, net
Operating lease right-of-use assets
Digital assets, net
Goodwill and intangible assets, net
Other non-current assets
Total assets
LIABILITIES AND EQUITYCurrent liabilities
Accounts payable
Accrued liabilities and other
Deferred revenue
Customer deposits
Current portion of debt and finance leases (1)Total current liabilities
Debt and finance leases, net of current portion (1)Deferred revenue, net of current portion
Other long-term liabilities
Total liabilities
Redeemable noncontrolling interests in subsidiaries
Total stockholders' equity
Noncontrolling interests in subsidiaries
Total liabilities and equity

31-Mar-22

30-Jun-22

30-Sep-22

31-Dec-22

31-Mar-23

18,013
2,311
6,691
2,035
29,0504,745
5,686
20,027
2,181
1,261
454
2,634
66,03818,915
2,081
8,108
2,118
31,222
4,782
5,624
21,093
2,185
218
437
2,952
68,513

21,107
2,192
10,3272,364
35,9904,824
5,562
21,926
2,251
218
419
3,236
74,42622,185
2,952
12,8392,941
40,917
5,035
5,489
23,548
2,563
184
409
4,193
82,33822,402
2,993
14,3753,227
42,997
5,473
5,427
24,969
2,800
184
399
4,584
86,833

11,171
5,906
1,594
1,125
1,659
21,455
3,153
2,185
3,839
30,632459
34,085862
66,038

11,212
6,037
1,858
1,182
1,532
21,821
2,898
2,210
3,926
30,855421
36,376861
68,513

13,897
6,246
1,928
1,083
1,457
24,611
2,096
2,265
4,330
33,302421
39,851
852
74,426

15,255
7,142
1,747
1,063
1,502
26,709
1,597
2,804
5,330
36,440409
44,704785
82,33815,904
7,321
1,750
1,057
1,404
27,436
1,272
2,911
5,979
37,598407
48,054774
86,833

3,333

3,086

2,335

2,001

1,708

Other non-recourse debt
Recourse debt
Total debt excluding vehicle and energy product financing

14
74
88

13
53
66

11
51
62

—
44
44

—
44
44

Days sales outstanding
Days payable outstanding

10
72

12
80

9
72

10
72

11
75

(1) Breakdown of our debt is as follows:
Vehicle and energy product financing (non-recourse)

24

STATEMENT OF CASH FLOWS(Unaudited)
In millions of USD
CASH FLOWS FROM OPERATING ACTIVITIES

Q1-2022

Q2-2022

Q3-2022

Q4-2022

Q1-2023

3,280

2,269

3,331

3,707

2,539

Depreciation, amortization and impairment

880

922

956

989

1,046

Stock-based compensation

418

361

362

419

418

Other

19

145

220

354

40

Changes in operating assets and liabilities, net of effect of business combinations(602)(1,346)231(2,191)(1,530)Net cash provided by operating activities

3,995

2,351

5,100

3,278

2,513

(1,767)(1,730)(1,803)(1,858)(2,072)

Purchases of solar energy systems, net of sales

(5)

(0)

0

(0)

(1)

Proceeds from sales of digital assets

—

936

—

—

—

(386)

(90)

(991)

(4,368)(2,015)

Proceeds from maturities of investments

—

—

3

19

1,604

Receipt of government grants

—

—

—

76

—

Purchase of intangible assets(9)(2,167)—(884)—(2,791)—(6,131)—(2,484)(1,436)

(154)

(133)

(162)

(127)

Net repayments under vehicle and energy product financing

(632)

(248)

(766)

(335)

(294)

Net cash flows from noncontrolling interests – Solar

(48)

(47)

(42)

(65)

(43)

Other

202

43

229

231

(1,914)

(406)

(712)

67
(495)

(233)

(18)

(214)

(335)

123

50

Net (decrease) increase in cash and cash equivalents and restricted cash

(104)

847

1,262

(3,225)(154)

Cash and cash equivalents and restricted cash at beginning of period

18,14418,04018,887

20,14916,924

Cash and cash equivalents and restricted cash at end of period

18,04018,887

20,14916,924

16,770Net income
Adjustments to reconcile net income to net cash provided by operating activities:

CASH FLOWS FROM INVESTING ACTIVITIESCapital expenditures

Purchases of investments

Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIESNet cash flows from other debt activities

Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents and restricted cash

25

RECONCILIATION OF GAAP TO NON–GAAP FINANCIAL INFORMATION(Unaudited)
In millions of USD or shares as applicable, except per share data

Q1-2022

Q2-2022

Q3-2022

Q4-2022

Q1-2023

3,318

2,259

3,292

3,687

2,513

418

361

362

419

418

3,736

2,620

3,654

4,106

2,931

5
(0)

3
(0)

—
(0)

(35)
(0)

(5)
(0)

3,731

2,617

3,654

4,141

2,936

0.95

0.65

0.95

1.07

0.73

0.12

0.11

0.10

0.12

0.12

1.07

0.76

1.05

1.19

0.85

3,472

3,464

3,468

3,471

3,468

3,318

2,259

3,292

3,687

2,513

61

44

53

33

29

Provision for income taxes

346

205

305

276

261

Depreciation, amortization and impairment

880

922

956

989

1,046

Stock-based compensation expense

418

361

362

419

418

Adjusted EBITDA (non-GAAP)

5,023

3,791

4,968

5,404

4,267

Total revenues

18,756

16,934

21,45424,31823,329Adjusted EBITDA margin (non-GAAP)

26.8%

22.4%

23.2%

22.2%

18.3%

Net income attributable to common stockholders (GAAP)
Stock-based compensation expense
Net income attributable to common stockholders (non-GAAP)
Less: Buy-out of noncontrolling interest
Less: Dilutive convertible debt
Net income used in computing diluted EPS attributable to common stockholders (non-GAAP)EPS attributable to common stockholders, diluted (GAAP)

(1)

(1)

Stock-based compensation expense per share

EPS attributable to common stockholders, diluted (non-GAAP)
Shares used in EPS calculation, diluted (GAAP and non-GAAP)Net income attributable to common stockholders (GAAP)Interest expense

26

(1)

(1)

(1) Prior period results have been retroactively adjusted to reflect the three-for-one stock split effected in the form of a stock dividend in August 2022.

RECONCILIATION OF GAAP TO NON–GAAP FINANCIAL INFORMATION(Unaudited)
In millions of USD
Net cash provided by (used in) operating activities (GAAP)
Capital expenditures
Free cash flow (non-GAAP)
In millions of USD

3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023
756

1,425

(440)

964

2,400

3,019

1,641

2,124

3,147

4,585

3,995

2,351

5,100

3,278

2,513

(385)

(412)

(455)

(546)

(1,005)(1,151)(1,348)(1,505)(1,819)(1,810)(1,767)(1,730)(1,803)(1,858)(2,072)

371

1,013

(895)

418

1,395

1,868

293

619

1,328

2,775

2,228

621

3,297

1,420

441

3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023

Net income attributable to common stockholders (GAAP)

143

105

16

104

331

270

438

1,142

1,618

2,321

3,318

2,259

3,292

3,687

2,513

Interest expense

185

170

169

170

163

246

99

75

126

71

61

44

53

33

29

Provision for income taxes

26

42

2

21

186

83

69

115

223

292

346

205

305

276

261

Depreciation, amortization and impairment

530

577

553

567

584

618

621

681

761

848

880

922

956

989

1,046

Stock-based compensation expense

199

281

211

347

543

633

614

474

475

558

418

361

362

419

418

1,083

1,175

951

1,209

1,807

1,850

1,841

2,487

3,203

4,090

5,023

3,791

4,968

5,404

4,267

Adjusted EBITDA (non-GAAP)

In millions of USD

2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023

Net cash provided by operating activities – TTM (GAAP)

2,705

4,349

5,943

8,024

9,184

9,931

11,497

13,851

14,07816,031

14,724

13,242

Capital expenditures – TTM(1,798)(2,418)(3,157)(4,050)(5,009)(5,823)(6,482)(6,901)(7,126)(7,110)(7,158)(7,463)

907

1,931

2,786

3,974

4,175

4,108

5,015

6,950

6,952

8,921

7,566

5,779

Free cash flow – TTM (non-GAAP)
In millions of USD
Net income attributable to common stockholders – TTM (GAAP)

2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023
368

556

721

1,143

2,181

3,468

5,519

8,399

9,516

11,19012,556

11,751

694

672

748

678

583

546

371

333

302

229

191

159

91

251

292

359

453

490

699

976

1,066

1,148

1,132

1,047

Depreciation, amortization and impairment – TTM

2,227

2,281

2,322

2,390

2,504

2,681

2,911

3,170

3,411

3,606

3,747

3,913

Stock-based compensation expense – TTM

1,038

1,382

1,734

2,137

2,264

2,196

2,121

1,925

1,812

1,699

1,560

1,560

Adjusted EBITDA – TTM (non-GAAP)

4,418

5,142

5,817

6,707

7,985

9,381

11,62114,803

16,107

17,872

19,186

18,430Interest expense – TTM
Provision for income taxes – TTM

27 TTM = Trailing twelve months

ADDITIONAL INFORMATIONWEBCAST INFORMATION
Tesla will provide a live webcast of its first quarter 2023 financial results conference call beginning at 4:30 p.m. CT on April 19, 2023 at ir.tesla.com. This webcast will also be available for replay for approximately one year
thereafter.
CERTAIN TERMS
When used in this update, certain terms have the following meanings. Our vehicle deliveries include only vehicles that have been transferred to end customers with all paperwork correctly completed. Our energy productdeployment volume includes both customer units installed and equipment sales; we report installations at time of commissioning for storage projects or inspection for solar projects, and equipment sales at time of delivery.
"Adjusted EBITDA" is equal to (i) net income (loss) attributable to common stockholders before (ii)(a) interest expense, (b) provision for income taxes, (c) depreciation, amortization and impairment and (d) stock-based
compensation expense, which is the same measurement for this term pursuant to the performance-based stock option award granted to our CEO in 2018. "Free cash flow" is operating cash flow less capital expenditures. Average
cost per vehicle is cost of automotive sales divided by new vehicle deliveries (excluding leases). “Days sales outstanding” is equal to (i) average accounts receivable, net for the period divided by (ii) total revenues and multipliedby (iii) the number of days in the period. “Days payable outstanding” is equal to (i) average accounts payable for the period divided by (ii) total cost of revenues and multiplied by (iii) the number of days in the period. “Days ofsupply” is calculated by dividing new car ending inventory by the relevant quarter’s deliveries and using 75 trading days. Constant currency impacts are calculated by comparing actuals against current results converted into USD
using average exchange rates from the prior period.
NON-GAAP FINANCIAL INFORMATION
Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP net income(loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a diluted per share basis (calculated using weighted average shares for GAAP diluted net income (loss)
attributable to common stockholders), Adjusted EBITDA, Adjusted EBITDA margin and free cash flow. These non-GAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance aswell as comparisons to the operating results of other companies. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such informationinternally for its operating, budgeting and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial
condition and results of operations, so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla uses to run the business and allowing investors to better understand Tesla’s
performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding
Tesla’s operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above.
FORWARD-LOOKING STATEMENTS
Certain statements in this update, including statements in the “Outlook” section; statements relating to the future development, ramp, production capacity, efficiency and output rates, supply chain, demand and market growth,cost, pricing and profitability, deliveries, deployment, availability and other features and improvements and timing of existing and future Tesla products and technologies such as Model 3, Model Y, Model X, Model S, Cybertruck,
Tesla Semi, our next generation vehicle platform, our Autopilot, Full Self-Driving and other vehicle software and AI enabled products, our battery cells, our Supercharging network and our energy storage and solar products;
statements regarding operating margin, operating profits, spending and liquidity; and statements regarding expansion, improvements and/or ramp and related timing at our factories are “forward-looking statements” that are
subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected.
The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: uncertainties in future macroeconomic and regulatory conditions arising from thecurrent global pandemic; the risk of delays in launching and manufacturing our products and features cost-effectively; our ability to grow our sales, delivery, installation, servicing and charging capabilities and effectively manage
this growth; consumers’ demand for electric vehicles generally and our vehicles specifically; the ability of suppliers to deliver components according to schedules, prices, quality and volumes acceptable to us, and our ability to
manage such components effectively; any issues with lithium-ion cells or other components manufactured at our factories; our ability to ramp our factories in accordance with our plans; our ability to procure supply of battery
cells, including through our own manufacturing; risks relating to international expansion; any failures by Tesla products to perform as expected or if product recalls occur; the risk of product liability claims; competition in theautomotive and energy product markets; our ability to maintain public credibility and confidence in our long-term business prospects; our ability to manage risks relating to our various product financing programs; the status ofgovernment and economic incentives for electric vehicles and energy products; our ability to attract, hire and retain key employees and qualified personnel and ramp our installation teams; our ability to maintain the security of
our information and production and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time to time; risks relating to our indebtedness andfinancing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings andreports, including the risks identified under the section captioned “Risk Factors” in our annual report on Form 10-K filed with the SEC on January 31, 2023. Tesla disclaims any obligation to update information contained in theseforward-looking statements whether as a result of new information, future events or otherwise.

28