Certain statements in this presentation, including, but not limited to, statements relating to the future development, ramp, production capacity 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, Robotaxi, our next generation vehicle platform, our Autopilot, Full Self-Driving and other vehicle software 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 existing or new 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 infuture macroeconomic and regulatory conditions arising from the current global pandemic; the risk of delays in launching and manufacturing our products and features cost-effectively; our ability to growour 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 Gigafactory Nevada and Gigafactory Shanghai; our ability to ramp Gigafactory Shanghai, Gigafactory Berlin-Brandenburg, Gigafactory Texas and new factories in accordance with ourplans; 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 productrecalls occur; the risk of product liability claims; competition in the automotive and energy product markets; our ability to maintain public credibility and confidence in our long-term business prospects; ourability to manage risks relating to our various product financing programs; the status of government 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 and financing strategies; and adverse foreign exchange movements. Moreinformation on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under thesection 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 these forward-looking
statements whether as a result of new information, future events or otherwise.

Sustainable Energy For All of EarthOur Energy Economy Is Dirty & WastefulPrimary Energy
Consumption
Current StateSUSTAINABLE

FOSSI L F UE LS

Over 80% of Global Energy Comes From Fossil Fuels
Only 1/3 of Global Energy Delivers Useful Work or Heat

165 PWh/yr

But there’s a better way

A Sustainable Energy Economy Is Within Reach & We Should Accelerate It

Primary Energy
Consumption
Current State

Sustainable
Energy Economy

SUSTAINABLE

FOSSI L F UE LS

165 PWh/yr

SUSTAINABLE SOURCES

82 PWh/yr
End Use Efficiency

A Sustainable Energy Economy Is Within Reach & We Should Accelerate It
HOW THE MASTER PLAN WORKS

240TWh

30TW

$10T

1/2

<0.2%

10%

ZERO

Storage

Renewable
Power

Manufacturing
Investment

The Energy
RequiredLand Area
Required

2022
World GDP

Insurmountable
Resource Challenges

The Plan To Eliminate Fossil Fuels

Reduction In
Fossil Fuel Use

35%

21%

22%

17%

5%

`

Displaced
Fossil Fuels

Renewably PowerThe Existing Grid

Switch toElectric Vehicles

Switch toHeat Pumps

High Temp Heat
Delivery & Hydrogen

Sustainably Fuel
Planes & Boats

46 PWh/yr

28 PWh/yr

29 PWh/yr

22 PWh/yr

7 PWh/yr1. Repower the Existing Grid With Renewables

35%

Full
Sustainability

Reduction In
Fossil Fuel Use

24TWh

10TW

$0.8T

Stationary
Storage

Solar + Wind

Manufacturing
Investment

2. Switch to Electric Vehicles

21%

Full
Sustainability

Reduction In
Fossil Fuel Use

115TWh

4TW$7.0T

Vehicle Batteries& Stationary Storage

Solar + Wind

Manufacturing
Investment Needs

2. Switch to Electric Vehicles

21%

Full
Sustainability

Reduction In
Fossil Fuel Use

Global Electric Fleet
40M

380M

20M

300M

115TWh

4TW$7.0T

Vehicle Batteries& Stationary Storage

Solar + Wind

Manufacturing
Investment

700M

EVs Use Energy Far More Efficiently

21%
Reduction In
Fossil Fuel Use

Full
Sustainability

Tesla Model 3

4xMore Efficient
Oil Well to Wheel

Toyota Corolla3. Switch To Heat Pumps in Homes, Businesses & Industry

22%

Full
Sustainability

Reduction In
Fossil Fuel Use

6TWh

5TW

$0.3T

Stationary
Storage

Solar + Wind

Manufacturing
Investment

Heat Pumps Move Heat, They Don’t Create It

22%

Full
Sustainability

Reduction In
Fossil Fuel Use

1.4

Primary Energy / Heat Delivered

1.2

1.0

3x
Reduction

0.8

0.6

0.4

0
Gas Furnace

Heat Pump

4. Electrify High Temp Heat Delivery & Hydrogen

17%

Full
Sustainability

Reduction In
Fossil Fuel Use

48TWh

6TW

$0.8T

Stationary
Storage

Solar + Wind

Manufacturing
Investment

4. Electrify High Temp Heat Delivery & Hydrogen

17%

Full
Sustainability

Reduction In
Fossil Fuel Use

48TWh

6TW

$1.0T

Stationary
Storage

Solar + Wind

Manufacturing
Investment

5. Sustainably Fuel Planes & Boats

5%

Full
Sustainability

Reduction In
Fossil Fuel Use

44TWh

4TW

$0.8T

Vehicle Batteries& Stationary Storage

Solar + Wind

Manufacturing
Investment

Stacking Up the Investments in Our Sustainable Future

Solar & Wind Farms

Vehicle & Stationary Batteries

30TW

Manufacturing Capex

240TWh

1.0

$10T
0.8

Planesand Ships

44
4

7.0
48

6
6

5

115

High Temp
Thermal4Heat Pumps
Planes and
Ships

Planes and
Ships

Heat Pumps

High Temp
ThermalHeat Pumps

10
Switch toEVs

2
Renewable
Energy Grid
Today

0.8

24
1
Today

Switch to
EVs

Switch to
EVs
Renewable
Energy Grid

0.3

Renewable
Energy Grid

High Temp
ThermalIt’s Entirely Feasible

If We Grow our Production Capacity as Shown by 2030
We Can Be 100% Sustainable by 2050
Solar & Wind Deployment (TW/Yr)

Vehicle, Stationary, & Thermal
Battery Production TWh/Yr

Electric Vehicle Production Millions/Yr

85
16
1.0

11x

29x

3x

.36
8

.54

2022 Deployment

Required Deployment
Per Year2022 Deployment

Required Deployment
Per Year2022 Deployment

Required Deployment
Per YearA Sustainable Energy Economy Is 60%
The Cost of Continuing Fossil Fuel Investments

Dollars of Capital Investment [Trillions]

$16

$14T

$14
$12

$10T

$10
$8
$6
$4
$2
$20 Years of Investment
In Fossil Fuels at 2022 RateCoal

20 Years Investment in
Sustainable Energy Economy

Natural Gas

Oil

More Than Enough Renewable Resources Available

Solar Direct Land Area
0.14% of Land

Wind Direct Land Area
0.03% of Land

More Than Enough Renewable Resources Available

Solar Direct Land Area
0.14% of Land

Wind Direct Land Area
0.03% of Land

Total Earth Land Area = 32,111,167,147 Acres
12.5% of Land Use for Agriculture = 4B Acres= 2x Contiguous US

A Sustainable Energy Economy Involves Less Mineral Extraction
EACH TRUCK IS 1 GIGATON

Everything Else

Fossil Fuel Extraction

A Sustainable Energy Economy Involves Less Mineral Extraction
EACH TRUCK IS 1 GIGATON

Everything Else

Sustainable Economy Materials

The Resources Are There To Support the Transition
Cumulative Demand Until 2050,
Relative to 2023 USGS Estimated Resources
NICKELLITHIUM
ZINC
COPPERCOBALTIRON
MANGANESE
ALUMINUM
GRAPHITE
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

And History Teaches: The More We Look, The More We Find

What People Think Happens

What Actually Happens

Reserves, Normalized To 2000 Reserves

98Reserves

7
6
5
4
3
2
1
0

9
8
7
6
5
4
3
2
1
0

‘02

‘06

‘10

‘14

‘18

‘22

‘02

‘06
Ni

‘10
Li

‘14

‘18
Co

‘22
Cu

Recycling Will Further Reduce Mineral Demand

MiningRecycling

Refining

Lifetime Usage
Cathode Production

Cell Production

A Sustainable Energy Economy Is Within Reach & We Should Accelerate It
HOW THE MASTER PLAN WORKS

240TWh

30TW

$10T

1/2

<0.2%

10%

ZERO

Storage

Renewable
Power

Manufacturing
Investment

The Energy
RequiredLand Area
Required

2022
World GDP

Insurmountable
Resource Challenges

01

Vehicle Design
Franz von Holzhausen, Lars Moravy

The Early Days
MODEL S

2012 Model S

1

DESIGN2

ENGINEERING3

MANUFACTURING

Model 3

1

DESIGNENGINEERINGMANUFACTURING

2

AUTOMATIONModel 3 Production Hell

Cybertruck
STEEL EXOSKELETON

Combining the Processes for the Future

1
D E SI G N

E N G I N E E R I NG

MA N UFACTUR I NG

AUTOMATI O NCurrent Way of Assembling a Vehicle

Stamp

Body

Paint

Final AssemblyCurrent Way of Assembling a Vehicle

Current Way of Assembling a Vehicle

Structural Pack Sub-AssemblyMore People Can Work Simultaneously on Next Generation Vehicle

Model 3

Next Gen Vehicle

44%

30%

Operator Density
Improvement

Space Time
Efficiency
Improvement

Parallel & Serial Assembly

Left Side

Right Side

Floor

Stamp & Paint

Vehicle AssemblyCasting
Front

Rear

Other

Unboxed Process

Unboxed Process

Next Generation Vehicle Manufacturing Efficiencies

LEGACY FOOTPRINT
Cost of Goods Sold / Car

50%

>40%
Reduction In
Manufacturing
Footprint

Reduction in Cost

Innovation &Size

NEW FOOTPRINT

Model 3/Y

Next Gen02

Powertrain
Colin Campbell

Faster Than a Porsche, More Efficient Than a Prius

Relentless Focus on Efficiency

Small SUVs (AWD)EPA Range in Miles/kWh

5

4

3

2

1

0
Model Y

VW
1D.4

Ford
Mach-E

Jaguar
iPace

Source: OEM Websites & Other Publicly Available Sources

Audi
e-tronEfficiency Helps Us Scale
MODEL 3 POWERTRAIN FROM 2017-2022

20%

25%

75%

65%

LighterDrive Unit

Less Rare
Earth Materials

Smaller Powertrain
Factory

Cheaper Powertrain
Factory

The Key: Holistic Thinking

Custom Designed
Custom Microprocessor
Packages & Microprocessors
for High-Powerfor
Electronics
Power Electronics

BEFOREAFTERPowerful In-House Software
KEY SIMULATION TOOLS DEVELOPED BY TESLAPowerful In-House Software
KEY SIMULATION TOOLS DEVELOPED BY TESLASTATORROTORPowerful In-House Software
KEY SIMULATION TOOLS DEVELOPED BY TESLAIn-House Manufacturing Line & Automation Design

Our Next Drive Unit Will Be Even More Scalable

75%

ANY

50%

~$1,000

Reduction In
Silicon Carbide

Battery Chemistry
Accepted

Reduction In
Factory Footprint

All-In Cost

Rare Earths Required
MODEL Y

~500g

~10g

~10g

Rare Earth 1

Rare Earth 2

Rare Earth 3

Rare Earths Required
NEXT GENERATION PERMANENT MAGNET MOTOR

0g

0g

0g

Rare Earth 1

Rare Earth 2

Rare Earth 3

Lower Cost & Higher Efficiency Drive Units Using Zero Rare Earths

03Electronic Architecture
Pete Bannon

Model S 2012COMPLEX LOW VOLTAGE ARCHITECTURE

It’s Been Messy

Progress So FarFrom Model S to Model 3
IMPROVED LOW VOLTAGE ARCHITECTURE

MODEL SMODEL 3

Designed Our Own Controllers, With More To Come

Switched From Fuse & Relay to Electronic Fuses

Replaced Lead Acid With Lithium Ion Batteries

LEAD-ACID BATTERYLITHIUM ION BATTERY

87%
Mass Reduction

4-YEAR REPLACEMENTLIFETIME

Reduced Costs of Model 3/Y Center Display

What’s Next

The Future of Low Voltage Architecture
CYBERTRUCK, OPTIMUS, & FUTURE VEHICLES ALL 48VCybertruck
FURTHER IMPROVING LOW VOLTAGE ARCHITECTURE

Future of Tesla Low Voltage

2012 MODEL SCYBERTRUCKNEXT GENERATION VEHICLE

Simpler & Cheaper Electronic Architecture, With 100% of Controllers Designed In-House

04

SoftwareDavid Lau

Relentless Improvement Via Updates & Data Insights

Real World Crash Tests: Fewer Dummies, More Smarts
FRONTAL IMPACTS

LEFT HAND IMPACTS

RIGHT HAND IMPACTS

REAR IMPACTS

Enabling Plaid-Speed Product Development
123M MILES DRIVEN PER DAY | 1.9M CHARGE SESSIONS EVERY DAY

Total Vehicle Miles, All Platforms
100B
90B
80B
70B
60B
50B
40B
30B
20B
10B

2
-0

2

23
20

20

22

-0

6
-0
21
20

20

20

-1
0

2
20

20

-0

6
20

19

-0

-1
0
18
20

20

18

-0

2

6
17
-0
20

-1
0
16
20

20

16

-0

2

6
20

15

-0

-1
0
14
20

20

14

-0

6
20

13

-0

-1
0
12
20

2

0

Software That Spans the Entire System

Leveraging Vertical Integration
PREDICTIVE AIR SUSPENSION

Rougher Road

Vehicle Software as an Integral Part of the Assembly Line

Building the Foundations of Autonomous Fleet Management
TESLA PROFILES | SHARED PHONE KEY | LOGISTICS APPSoftware Enables Efficiency, Cost Reduction & Speed

Enabling Robotaxi Fleet

Reducing Service at Mass Scale

Empowering Manufacturing

05

Full Self-Driving
Ashok Elluswamy

Architecture for a Generalized Vision System

Using State-of-the-Art AI for Modeling

Main
CameraLeft Pillar
CameraRegNetRegNetFPN

FPN

Backup
Camera…

Navigation
Map

RegNetFPN

Lanes
Instances

Transformer
Video Module

VISION COMPONENT

Lane
Guidance
ModuleMAP COMPONENT

Autoregressive
Decoder(Dense World
Tensor)LANGUAGE COMPONENT

Adjacency
Matrix(Sparse Lane
Outputs)Also Solve Complex Planning Problems Using AI

10ms
Joint Planning for Each Configuration

50ms
Desired Planner Execution Time

Automated Labeling by Multi-Trip Reconstruction

Automatically Produce Challenging Simulations

Data Alone Can Improve Corner Cases

Vehicle Movement Accuracy
Training set

Evaluation Set

100

95

90

+14K VIDEOS
85

80

Sep

Jan

Mar

Apr

Oct

Training Set
Tesla Fleet

Train Online
Model

Train Offline
Model

DeployTriage Shadow
Testing

DATA ENGINE

Simulation Auto Label
Human Label

Mine Fleet

SIMULATION AUTOLABEL HUMAN LABEL

Corrrect
Inaccuracy

Evaluation Set

Large Networks Need Large Clusters
Trained With Large Dataset

14K GPUs
4K For Auto Labeling
10K for Training

30PB DISTRIBUTED VIDEO CACHE
160B Frames
500K Videos Rotating Through Cache/Day
400K Video Instantiations per Second:

OCCUPANCY NETWORK RECIPE
Pick 1.44B frames
Train for 100.000 GPU-hours at 90 C

Scalable FSD = AI + Data + Compute

Higher Utilization

Higher Safety

Miles Driven Per 1 Collision

Tesla Vehicles
Using FSD Beta

US Average

3.2M

0.5M

06

Charging
Rebecca Tinucci

Holistic Charging Experience
9 TWh OF CHARGING PROVIDED IN 2022

99%

1.5M

99.9%

Roadtrips
Possible

Weekly Supercharging
Sessions

Site-Level
UptimeHow We Got Here

Industry’s Lowest Deployment Costs

Supercharger Hardware & Installation Cost

Residential AC Retail Hardware Cost

$200K
$1,200$180K$160K$1,000

-75%

$140K

$800

-55%

$120K
$100K
$80K

-20%

-50%

$600

-35%

$60K

$400

$40K
$200

$20K
0

0
Australia

California

Competitor Average

New York

North America

Tesla

Competitor Average

EuropeTesla

Pre-Built Superchargers Save Weeks of Install Time & Cost

40% Improvement in Per kWh Costs
Per kWh Supercharger Cost
(Not Including Energy Costs)

Trip Planner Powers Efficient Routing

Wait Time Is Down & Site Utilization Is Up
2.0%

200

1.0%

100

50

0.0%

0
2019

2020

2021

2022

Daily kWh per post

% Of Customer Waiting150

30% Quicker Charge Times

Average Supercharging Time- Transition to V3- Efficient Routing With Trip Planner- Vehicle Efficiency- Battery Pre-Heating- Customer Education(Min)- Supercharger Density Increasing

Ready To Serve All Vehicles

Maximize Convenient, Renewably-Powered Daytime Charging

Match Vehicle Charging With Renewable Generation
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2

Wind + Solar Generation
Vehicle Charging

0
0

5

10
Hour of Day

15

20

Few Vehicles
Parked During Day

Lots of Vehicles
Parked During Day

What It Takes To Get There

Scale Capacity

Open Up to Non-Teslas

More Renewable Charging

Can’t Forget To Do Cool S***

07

Supply Chain
Karn Budhiraj, Roshan Thomas

Tesla Supply Chain

TIER 1 PARTSTIER 2 PARTS

3.4K

21K

2.1K

19K

2.8K

7K

The Most Powerful In-Vehicle Computer

7K+

1.4ms

95%

Components

Between Each
Component Assembled
Into a Car Computer

Reduction in Labor

Inbound Complexity

IMG TBD

16M

1B

685

45

Pallets & Racks
Received in 2022

Electronic Components
Shipped Each Week

Global Service Locations

CountriesSupply Chain Hell

Scaling Against the Odds

THOUSANDS OF VEHICLES TTM

1400

1200

1000

800

600

400

200

0
Q1 ’18

Q1 ’19Q1 ’20Q1 ’21

Q1 ’22

Q4 ’22

Semiconductor Industry Can Support Our Growth

RELATIVE USAGE

Tesla with FSD Hardware Uses More
Semiconductors Than an ICE Vehicle

2023

FUTUREVEHICLES

1.8M+

20M

S I L I C O N WA F E R S U S E D 1 2 ” E Q U I VA L E N T

0.7M

8M

G LO B A L WA F E R C A PAC I T Y

~135M

200M

TESLA SHARE

0.5%

<5%

Before Heat Pump

Legacy Model S/X

Legacy Model 3

Next Generation Thermal Architecture
HEAT PUMP

100+
SUBCOMPONENTS

Numerous Manufacturing Processes:

Forging, Stamping, Injection Molding,
Brazing, Heat Treatment, Plastic Welding,
Water Jetting, Machining, Ultrasonic
Cleaning, Air Flushing, Soldering, Leak
Testing, Complex AssemblyEvolution of the Heat Pump LineW H E R E W E S TA R T E D

MANUALS E M I -A U TO M AT E D

S I M U L AT E D

A U TO M AT E D

W H E R E W E A R E N OW

Doing More With Less

99%
Reduction in labor

99.995%
Of heat pumps received at
Tesla are of high quality

7 sec
Between each heat pumprolling off a supplier line

Efficiency, Automation & Cost

Fewer Parts, Fewer Components

Do More With Less

Deep Involvement With Suppliers

08

Manufacturing
Tom Zhu, Drew Baglino

We Build Ultra High Volume Factories

4

65K

~2M

VehicleFactories

Manufacturing
Employees

Total Annual
Build Capacity

Completed Gigafactory Shanghai in 9.5 Months

Hitting New Milestones in 2023
FOR TOTAL VEHICLE PRODUCTIONFirst Million

Fourth Million

12 Years

7 Months

What It Takes To Ramp a Gigafactory
90% OVERALL EQUIPMENT EFFECTIVENESS & 45 SECOND CYCLE TIME

Labor Hours

OutputOutputFremont MY Output

Labor Hours

Shanghai MY Output

Fremont MY Labor Hours

Shanghai MY Labor Hours

21’ Q321’ Q422’ Q1

22’ Q222’ Q322’ Q421’ Q321’ Q422’ Q1

22’ Q222’ Q322’ Q4

Question

DeleteSimplify

Accelerate

Automate

Strengthened Feedback Loop Between Manufacturing & Service(Last 6 Months)

11%

16%

9%

Time in Service
Reduction

Early Service
Reduction

Service Appointment
Wait Time Reduction

Remove the minus sign from in front of each number since it says reduction in the unitTesla Vehicle Footprint& MORE TO COME ;)AustinBerlinShanghaiFremont

FutureThere
Cell
IsFactories,
No SpoonToo
THERE IS NO SPOON

FutureThere
Cell
IsFactories,
No SpoonToo
THERE IS NO SPOON

Simplicity Up, Investment Down, Scale Up

Typical 2170 CylindricalFremont 4680

GFTX 4680

GFNV Future 4680

Parts

17

16

15

15

Processes

33

23

21

21

And Upstream Materials Where Necessary

50 GWh/Year Corpus Christi Lithium Refinery
STARTS COMMISSIONING END OF 2023

Manufacturing is the Cornerstone of a Sustainable Future

Build Production Lines Faster

Ramp Faster Through Learnings

New Waves of Production Lines Incoming

09

EnergyDrew Baglino, Mike Snyder

Building Mission-Aligned Projects Globally for 10 Years

Growth Is Accelerating
65% CAGR SINCE 2016

How Did We Get Here
MANIACAL FOCUS ON ALL ASPECTS OF DELIVERING STATIONARY STORAGE VALUE

Not Just a Big Box of Batteries14 Years of in-House Power Electronics Expertise
1.4+ TW DEPLOYED

Retiring Fossil Fueled Power Plants With Software

How Did We Get Here
RELENTLESS FOCUS ON SPEED OF EXECUTION

Build Megafactories Faster
FIRST MEGAFACTORY BUILT IN LESS THAN ONE YEAR

Install Projects Faster
4X INSTALLATION & COMMISSIONING SPEED SINCE 2019

Tesla Electric Unlocks the Full Value of Distributed Energy & Storage
ENABLING OUR CUSTOMERS TO BECOME THEIR OWN UTILITY$142/monthDefault Utility Service$69/month
Add Solar andPowerwall, without
Grid Interaction$130
Cost of Providing
Electricity to the
Average Retail

Tesla Electric
Value Creation

Customer$61/monthTesla Electric Real-Time
Dispatch of Solar andPowerwall to Benefit the Grid
Based on 5,000 Australia
Customers in 2022

Tesla Electric Rollout Plan

Tesla Electric Rollout Plan

ing

This Is Just the Beginning

Cumulative Tesla Storage Deployed

We are here

Focus on Building Capacity & Ramping Fast

Tesla Is an Electricity Retailer

Impact at Tesla

01

ImpactLaurie Shelby, Brandon Ehrhart

Who We Are

The Team is Growing Rapidly
1/2 WORK IN MANUFACTURING

129k
120,000

100,000

80,00060,00040,00020,000

0
2010

2011

2012

2013

2014

2015

2016

2017

Tesla Global Employee Count

2018

2019

2020

2021

2022

Engineers Want to Work Here

Total Applicants

US Engineering Students’ Rankings

3,000,000

Employer

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0
2019

2020

2021

2022 Ranking

SpaceX

1

Tesla

2

NASA

3

Lockheed Martin

4

Boeing

5

Apple

6

Google7

Microsoft

8

Northrop Grumman

9Raytheon Technologies

10

As Employee Engagement Increases, Safety Improves

7,000

3.1

6,000

2.9

5,000

2.7

4,000

2.5

3,000

2.3

2,000

2.1

1,000

1.9

0

1.7
Q1

Q2
Employee Suggestions From GFNV

Q3Q4Work related injuries Rate From GFNVWork Related Injuries Rate

Employee Suggestions2022

Sustainability & Impact is Everything We Do

Tesla Cells

Tesla Solar

Energy Storage

Tesla Vehicles

Maximizing Utilization
Through Software
Autobidder

FSD

Our Products Generate More Energy Than Our Products & Factories Consume

Tesla Cumulative Net Energy Impact: 2012-2021

Energy Produced
Tesla Solar Panels

25.39

(TWh)

25.27

(TWh)

Energy Consumed
Tesla Factories & Other Facilities

Energy Used at Tesla
Factories & Other Facilities

Energy Used to charge
all Tesla vehicles

Our Vehicles Emit Less Emissons Than Gas Vehicles
INCLUDING BOTH MANUFACTURING & USE

Average Lifecycle Emissions in U.S.
500

gCO2e/mi

400

300

200

100

0

Model 3Y
Personal Use(US Avg Grid)
Manufacturing Phase

Average
Premium ICE

Use Phase

02

Financials
Zach Kirkhorn

We Continue To Reduce Cost of Our Existing Products
Model 3 Cost Per Car - Normalized

30%
Reduction

2018

2022

Includes material costs, manufacturing costs, inbound and outbound logistics, warranty Normalized for changes in market rates of lithium, nickel, steel and aluminumCost Reductions Come From Everywhere

Volume Growth

Productivity

Engineering
Changes

Localization

Overhead
Efficiency

Product
Improvements

Supplier
Scale

New Gen Vehicle Will Enable Step Change in Cost & Volume

50%
TargetCost

Current Volume
Product

VehicleBattery &Powertrain

Manufacturing &Other

Next Gen
VehicleTotal Cost of Ownership per Mile Over 5 Years

Toyota Corolla

Model 3 Base

Next Gen

Tight Operating Expense Control To Enable Operating Cash Flow
Operating Expenses as a % of Revenue (Non-GAAP)
20.0%
18.0%

17.7%

16.0%
13.7%

14.0%
12.0%

10.1%
10.0%

9.4%
7.5%

8.0%

6.6%

6.0%
4.0%
2.0%
0.0%
2018

2019

2020

2021

2022

Excludes digital assets gain/loss, stock-based compensation, material one-time items
2021 figure excludes $340M payroll tax on CEO award option exercise

Q4 2022

Industry Leading SG&A per Car Enabling Improved Affordability
Selling, General & Administrative Expenses per Vehicles

60-70%
Lower Than
Traditional

Traditional

Tesla

Benchmark: GAAP Operating Expenses, publicly traded OEM SG&A per vehicle + dealer SG&A per vehicle
Publicly traded OEM SG&A includes average of GM, Ford, BMW, Toyota, Volkswagen, Mercedes Benz
Dealer SG&A per car includes average of Autonation, Lithia, Group 1 Automotive, Sonic Automotive, Asbury AutomotiveEfficiency Improvements
FINANCE CASE STUDY

Tesla Operating System

Factory

Warehousing

Service

Customer

MobileApp

Finance

Recruiting

Data
Analytics

Human
Resources

Continued Improvement in Internal Process Efficiency

Efficiency Improvement

Performance & Capabilities

4x

Order Modification

North American Sales

4x

Captive Lease /Loan Servicing

Order Operations

5x

Captive Insurance

Financial Services

6xReal Time Data Visibility

Accounts Payable

7xDocument Generation

10Q & 10K Timeline

We Expect our Pace of Investment to Scale With Operating Cash Flow Growth

20M Annual
Vehicle Production

1 TWh Annual Energy
Storage Production~$150-175B~$28B

Estimated
Total Investment

Investment to Date

Expand Cell Production,
Service and Charging

Funded by Operating
Cash FlowCapital Allocation

1. Daily Operations

Working Capital

2. Growth

R&D
Capital Expenditures(Growth)Captive Financing(Market Gaps)
Downside Protection

3. Opportunistic

Capital Expenditures(Elective)
Captive Financing(Elective)
Acquisitions
Debt Reduction

4. ExcessBuyback / Dividend

Achieving the Master Plan

Innovation Driven
Cost & Efficiency

Improved
Affordability

Reinvest to Achieve
Unprecedented Scale

Accelerate theWorld’s Transition to
Sustainable Energy

Gigafactory Mexico
MANUFACTURING NEXT GEN VEHICLEQ&A