Tesla Motors, Inc. – Second Quarter 2011 Shareholder Letter
Strong Quarterly Revenue Growth Driven by Roadster Demand
Model S Program on Track for mid-2012 Deliveries
Successful Stock Offering of $231 million

August 3, 2011

Dear Fellow Shareholders,
We are pleased to announce a quarter of exceptional performance on all aspects of our business. Total revenue inthe second quarter was $58 million, more than double the revenue we earned in Q2 of last year and the highest
quarterly revenue in our history. Gross margin was again over 30% for the third quarter in a row.
Our engineering, manufacturing and supply chain teams continue to make excellent progress on the Model S
program. As a result, the development of Model S remains on schedule for first customer deliveries in mid-2012.
In addition, we continue to have confidence in our long term target gross margin of 25% for Model S when wereach an annualized sales run rate of 20,000 units.
Our non-GAAP loss of $0.53 per share this quarter ($0.60 per share on a GAAP basis) reflects our continued
investments in R&D and our corporate infrastructure to support the launch of Model S. As we have mentioned
before, we anticipate that our product related spending will produce losses until we reach volume sales of Model S.
We are excited about the investments we are making, but also remain vigilant on the bottom line.
In this, our first Quarterly Shareholder Letter, we will discuss our second quarter results, update you on key
aspects of our business, and discuss the outlook for our future. Our preliminary unaudited financial results for thequarter ended June 30, 2011 and information about forward-looking statements are included at the end of thisletter for your reference.

Strong Roadster Demand
We continue to experience strong customer demand for theRoadster globally. During the quarter, we delivered 190
Roadsters, representing unit growth of almost 35% from thesame quarter last year and 31% growth from the priorquarter. We generated over $27 million in Roadster-related
revenue in this quarter, up 44% from the same quarter lastyear, as the larger unit volumes were coupled with a slightly
lower lease mix and higher service revenue. Roadster
sales in Europe and Asia continued to grow andinternational represented roughly half of our total Roadster
deliveries. As of June 30, we have delivered about 1,840
Roadsters worldwide. Automotive gross margin was at a
Tesla Roadster in Japan
record 22%, primarily due to slightly higher average selling
prices and ongoing cost improvement programs on the Roadster as compared to the prior quarter.
Given the strong demand for our Roadsters, we increased the program size to 2,500 Roadsters, up from 2,400.
We expect to build all remaining Roadsters by January 2012. We plan to sell the last of the North American
Roadsters by early next year and continue selling in Europe and Asia until inventory is fully depleted in 2012. Thistransition is planned to mirror the geographic roll-out of deliveries for Model S, which will begin in North America,followed by Europe and then Asia. As we wind down our selling efforts on the Roadster in the United States
through the balance of this year, we plan to transition our sales team to more active support of Model S.
Our Roadster owners have now driven over 13 million electrically-powered miles, the equivalent of driving aroundthe circumference of the Earth over 500 times. Such remarkable distances are a testament to the durability of theRoadster – as well as to the sheer joy of driving electric. We have used this real-world experience to improve theRoadster and, importantly, to refine the Model S electric powertrain.

Model S Development on Plan
We continue to make excellent progress on the development of Model S and on our manufacturing facility in
Fremont. The program remains on track for the mid-2012 target date for first customer deliveries.
As its development progresses, we feel confident that Model S will not only redefine the EV but will set a new
standard for premium sedans. Our revolutionary packaging of the electric powertrain has created a vehicle withexceptional structural rigidity, handling and safety. As a result, it has also enabled more functional storage spacethan any sedan on the market and given the Model S customer the option of seating seven passengers. The
speed, power and styling of Model S will deliver a driving experience like no other.
The Model S development program has three major phases of pre-production – Alpha, Beta and Release
Candidate. Throughout the phases, we produce cars for extensive testing and evaluation purposes. The cars
produced in each phase have an increasing maturation of design, tooling and manufacturing process, leading
ultimately to the first customer vehicle rolling off our production line. The various activities in each stage are
outlined in the table below:

Phase

Alpha

Beta

Release Candidate

Build Timing

Q4 10 – Q2 11

Q3 11 – Q4 11

Q1 12 – Q2 12

DesignPrototype

Production

Production

Tooling

Prototype

Prototype / Production

Production

Process

Prototype

Prototype / Production

Production

Integration
Reliability
Safety Testing
Performance Tuning

Factory Readiness
Quality Refinement
Safety Testing
Performance Tuning
Marketing Cars

Homologation
Fine Tuning
Factory Ramp Up

Activities

We started the Alpha phase in Q4 2010 with the production of the first of 15 vehicles. We have subjected thesevehicles to a full battery of initial tests over the past several months, including cold weather braking, suspension,
steering, performance, reliability and safety testing, all of which are ongoing. As an example, one vehicle haslogged in excess of 150,000 equivalent miles through our ongoing durability testing. The Alpha cars have beentested in all types of conditions, and whenever possible, we have upgraded these vehicles with the latest
components to incorporate the lessons learned from testing. We’ve used the results gathered in these tests tofurther refine the overall design of Model S and many of its constituent parts. Overall, we are especially pleased

that we have retained all the key design elements of theconcept car and further refined the exterior and interior – which
we hope will delight future Model S owners.
While testing of the Alpha vehicles continues, we also initiatedin June – and on schedule – our Beta phase of development.
In the Beta phase, we are taking the learnings and design
enhancements of the Alpha phase and rolling them into thisnew phase of vehicles. Almost all of the critical parts havebeen sourced, resulting in further visibility of material costs andsupplier availability of production parts. During the Beta
Model S
phase, we are using a growing number of production parts andtooling in the build of the vehicles. We are also using a manufacturing process that will increasingly represent the
production manufacturing process. We plan to produce about 50 Beta vehicles in this phase for more testing,validation, systems integration and marketing efforts. We are looking forward to unveiling the Beta vehicles to the
public in the next few months.
The Beta phase will be followed by the production of Release Candidate cars during the first half of 2012. During
this phase of the program, we will fine-tune production and assembly processes to build high quality cars for sales
to our customers.

Model X Advanced Engineering on Plan
As we complete the various stages of development of Model S, we are beginning the design and advanced
engineering of our next vehicle, the Model X crossover. Model X is intended to provide the functionality of aminivan with a design as cool as an SUV, which we expect will redefine these market segments. Our growing
confidence in Model S, and the funds raised in our recent follow-on offering, have allowed us to accelerate thedevelopment of Model X. Our designers and engineers are now hard at work on the Model X prototype, which weare on plan for revealing late this year. Since we are leveraging the Model S architecture and powertrain for Model
X, we anticipate that Model X can be brought to production quickly for first customer deliveries in late 2013, withvolumes ramping to 10,000 - 15,000 units per year beginning in 2014. With pricing similar to that of Model S,
Model X has the potential to significantly increase our revenues.
With the acceleration of Model X, we are adding headcount to enhance our ability to execute multiple productdevelopment programs simultaneously. Since we’ve been able
to continue to hire outstanding engineers, the time is right for us
to build this capability now.

Manufacturing Preparedness on Plan
We continue to make substantial progress preparing the Tesla
Factory in Fremont, California, where we will manufacture ModelS, followed by Model X. Detailed manufacturing readiness plansin each shop are being executed by our growing manufacturing
team, all with the goal of being able to commence first customer
deliveries of Model S in mid-2012.
Almost all of the Model S vehicle manufacturing equipment has
now been specified and ordered. Some equipment has alreadyarrived and is being installed, especially in the stamping, plastics
and paint shops. The Schuler press, one of the largest hydraulicpresses in the United States, is now operational in manual mode,
Schuler Press Lineand robots have now been installed to move the stampings between each individual press station. Two other presslines are already fully operational in automatic dry-run mode. In plastics, several of the injection molding machines
are up and running and can already make sample parts in automatic mode. In paint, the primer robots havearrived and are being installed while the entire facility is being retrofitted for Model S.
Our Assembly shop is also beginning to receive equipment including automated guided vehicles, overheadassembly line equipment, alignment tables and final testing dynamometers. Our body shop and welding robots
are undergoing initial validation and integration at a vendor’s facility where we can easily program and debug theiroperations. We are also nearing completion of our indoor assembly quality test track. This will allow us to quickly
test each vehicle right next to the assembly line.

Compelling Customer Experiences
We launched our new, interactive retail strategy during the quarter, with store openings on Santana Row in San
Jose, California, and in Park Meadows near Denver, Colorado. One of our goals with the new store concept is to
educate future electric vehicle buyers. The response tothis new strategy has surpassed our expectations. The
foot traffic at these stores, for example, continues toamaze us. Weekly foot traffic for Santana Row has
settled in at double our initial expectations, at 5,000 to
6,000 visitors per week. Park Meadows is double the
Santana Row traffic at 10,000 to 12,000 visitors per
week.

Park Meadows Store

Given the success of these stores, we plan to introduce
this retail strategy into many of our most important
markets. We plan to open a few more stores by year
end, mostly in the United States. Some of these stores
will be introduced in the same area as existing stores, inwhich case some of the old locations may be converted
into service facilities.

We continue to see strong reservations growth for Model S. At the end of June, we had over 5,300 reservations,and through July, this number has grown to over 5,600. The reservations rate has increased substantially in thelast couple of quarters. These reservations require a minimum $5,000, refundable deposit, and thus far, we haveundertaken minimal marketing activities focused on selling Model S.

Cumulative Model S Reservations
6,000
5,000
4,000
3,000
2,000
1,000
‐
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11

Solid Powertrain Execution
We executed well on our existing powertrain contracts during
the second quarter. Both our production agreements with
Daimler and our development services agreement with Toyota
produced combined revenue of approximately $31 million in the
period, the highest figure to date. Powertrain component related
sales accounted for just over $11 million this quarter, as unit
sales of the components for both the Smart fortwo and the AClass were delivered according to Daimler’s demand schedule.
We expect to complete all deliveries to Daimler by the end of
this year.
RAV4 EV

We continue to make excellent progress on the development of
the RAV4 EV with Toyota. Once again, we met all of the milestones planned for the quarter in the development
contract for the RAV4 EV’s full powertrain system. This drove record development services revenue ofapproximately $19 million for the second quarter.
We expect that the RAV4 EV development program, and the associated development services revenues, will becompleted by early 2012. Thereafter, as we have announced, we plan to begin shipping RAV4 EV production
parts to Toyota. This multi-year contract, which we just recently signed, is for approximately $100 million. Under
this contract, we plan to deliver the entire powertrain system to Toyota to install into the RAV4 EV. Toyota hasannounced that the RAV4 EV will be available in 2012. Further details on the RAV4 EV will be provided directly by
Toyota in the coming weeks. It is exciting for us to participate with Toyota in the revival of the electric RAV4!

Strong Financial Performance & Improved Outlook
Given the strong demand we are seeing for our Tesla Roadsters and continued execution in our powertrain
activities, we now project that full year revenue will be between $180-190 million, up from our prior guidance of$170-185 million. We expect that gross margin will continue to fluctuate based on the mix of automotive sales anddevelopment services revenue. Also, as we have indicated previously, timing differences between recognition ofrevenue and the underlying costs can cause the gross margin of development service contracts to vary fromquarter to quarter.
Our operating expenses continue to reflect our investments in new vehicle development and the build-out of ourinfrastructure. Our total operating expenses were $77 million on a GAAP basis and $71 million on a non-GAAP
basis, which excludes stock-based compensation expense. A full reconciliation between the non-GAAP and
GAAP information is included at the end of this Shareholder Letter.
Almost two thirds of our operating expenses relate to our investments in research and development. This quarter,
we had very significant R&D activities related to the validation and testing of the Alpha fleet, the start of the Betabuild, and development work related to our manufacturing facility. The entire increase in our operating expenses
was due to our growth in R&D spending, as our SG&A expenses remained flat for the second quarter in a row. We
are continuing to keep a watchful eye on spending, as reflected in our flat SG&A expenses from the prior quarter.
R&D spending is expected to rise moderately from the Q2 level in the second half of 2011 as we continue with theengineering, and testing of Model S, prepare our manufacturing facility for production next year, accelerate theadvanced engineering work on Model X, and pursue additional strategic projects. Capital expenditures increased
as expected to about $54 million this quarter as we continued to build out our Fremont manufacturing facility andinvest in tooling for the Model S components. We now anticipate capital expenditures for 2011 to be between$220 and $245 million, up from our previous guidance of $190 to $215 million, as we continue to execute on our
various projects.

As we have indicated before, most of the spending for Model S and its manufacturing, including capital
expenditures, are reimburseable under our $465 million loan facility with the United States Department of Energy(DoE).
In total, our net non-GAAP loss for the quarter was $52 million, or $0.53 per share. Our increased weighted
average basic share count of 97.8 million shares reflects only one month of the incremental 8.1 million sharesissued in our follow-on offering. We would therefore expect that our share count will be approximately 104 million
next quarter when the 8.1 million shares get a full quarter’s weighting.

Sufficient Capital Resources for Model S and Model X
At the beginning of June, we successfully raised $231 million through a follow-on offering and concurrent private
placements. This financing included a $41 million investment by our CEO, and $18 million investment fromBlackstar, the investment arm of our strategic partner, Daimler AG. This quarter, we also drew down $32 million
from our DoE loan facility.
This new capital increased our cash resources on hand to $331 million. Combining this cash with the additional$331 million we have left to draw on our loan facility with the DoE, we now have approximately $662 million inavailable capital resources. We believe that these funds will be sufficient to develop Model S and Model X, basedon our current plans.

In Closing
We are exceptionally proud of the progress our teams continue to make throughout our business. Over 150
extraordinary people joined us during the quarter, bringing our total team to over 1,400. We’re staying focused on
delighting our customers by delivering vehicles and powertrains that are nothing less than exceptional.
Thanks for your interest in Tesla Motors.

Sincerely,

Elon Musk, Chairman, Product Architect and CEO

Deepak Ahuja, Chief Financial OfficerWebcast Information
Tesla will provide a live webcast of its second quarter 2011 financial results conference call beginning at 2:30 p.m. PDT
on August 3, 2011 at ir.teslamotors.com. This webcast will also be available for replay for approximately two weeks
thereafter.
Forward-Looking Statements
Certain statements in this shareholder letter, including statements relating to the progress Tesla is making with respect
to the development, testing, performance, attributes, schedule of development and launch, and volume expectations ofModel S; the schedule, development, volume expectations and pricing of, and the ability of Tesla to leverage the Model
S platform for, Model X; the ability to achieve revenue, gross margin and spending targets; the ability of Tesla to produce
vehicles at the Tesla Factory in Fremont, California as well as the plans and schedule for the Tesla Factory and theequipment there; the schedules related to, and the financial results expected from,Tesla’s development programs with
Daimler and Toyota; our ability to execute multiple product development programs simultaneously; the sufficiency of
current available funds to develop Model S and Model X; and the ability of Tesla to execute on its new interactive retailstrategy and future store opening plans 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 anduncertainties 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: Tesla’s future successdepends on its ability to design and achieve market acceptance of new vehicle models, specifically Model S and Model
X; the risk of delays in the design, manufacture, launch and financing of Model S, including the build-out of its planned
Model S manufacturing facility; the risk of a decline in revenues prior to the launch of Model S; consumers’ willingness toadopt electric vehicles and electric cars in particular; Tesla’s ability to fully draw down on its facility from the U.S.
Department of Energy; risks associated with the ability to achieve the expected financial results from the production of
powertrain systems for the Toyota RAV4 EV; risks associated with sales and anticipated delivery schedule of the Tesla
Roadster; competition in the automotive market generally and the alternative fuel vehicle market in particular; Tesla’s
ability to establish, maintain and strengthen the Tesla brand; the unavailability, reduction or elimination of governmental
and economic incentives for electric vehicles; Tesla’s ability to establish, maintain and strengthen its relationships withstrategic partners such as Daimler, Toyota and Panasonic; and Tesla’s ability to execute on its plans for its newinteractive retail strategy and for new store openings. More information on potential factors that could affect theCompany’s financial results is included from time to time in Tesla’s Securities and Exchange Commission filings andreports, including the risks identified under the section captioned “Risk Factors” in its annual report on Form 10-K filed on
March 3, 2011 and its registration statement on Form S-1 filed on June 2, 2011. Tesla disclaims any obligation to update
information contained in these forward-looking statements whether as a result of new information, future events, orotherwise.
Non-GAAP Financial Information
Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a
non-GAAP basis, financial measures exclude non-cash items such as stock-based compensation as well as the change
in fair value related to Tesla’s warrant liability. Management believes that it is useful to supplement its GAAP financial
statements with this non-GAAP information because management uses such information internally for its operating,budgeting and financial planning purposes. These non-GAAP financial measures also facilitate management’s internal
comparisons to Tesla’s historical performance as well as comparisons to the operating results of other companies. In
addition, Tesla believes these non-GAAP financial measures are useful to investors because they allow for greatertransparency into the indicators used by management as a basis for its financial and operational decision making. NonGAAP 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 below.
Investor Relations Contact:
Jeff Evanson
650-681-5050
ir@teslamotors.com

Press Contact:
Khobi Brooklyn
Tesla Motors
kbrooklyn@teslamotors.com

For additional information, please visit ir.teslamotors.com.

Tesla Motors, Inc.
Condensed Consolidated Statements of Operations(Unaudited)(In thousands, except per share data)
Three Months Ended
June 30,
2011
Revenues
Automotive sales
Development services
Total revenues$

39,02819,14358,171Six Months Ended

Mar 31,
2011$

33,62815,402
49,030June 30,
2010$

23,971
4,434
28,405June 30,
2011$

72,65634,545
107,201

June 30,
2010$

44,556
4,661
49,217

Cost of revenues
Automotive sales
Development services
Total cost of revenues (1)Gross profit
Operating expenses
Research and development (1)Selling, general and administrative (1)Total operating expenses
Loss from operations
Interest income
Interest expense
Other expense, net
Loss before income taxes
Provision for income taxes
Net loss$(58,903)$(48,941)$(38,517)$(107,844)$(68,036)

Net loss per common share, basic anddiluted (2)(3)$(0.60)$(0.51)$(5.04)$(1.12)$(9.10)

Shares used in per share calculation, basic
and diluted (2)(3)30,5289,135
39,66318,50826,961
4,041
31,002
18,02820,266
1,878
22,144
6,261

57,48913,17670,66536,53637,124
1,980
39,104
10,11352,531
24,716
77,247(58,739)46(71)(58,764)
139

41,162
24,21265,374(47,346)40(1,485)(48,791)150

15,41622,207
37,623(31,362)47(464)(6,729)(38,508)9

93,69348,928142,621(106,085)
86(1,556)(107,555)
289

28,68138,792
67,473(57,360)95(694)(9,950)(67,909)127

97,757

95,187

7,643

96,478

7,474

Notes:(1) Includes stock-based compensation expense of the following for the periods presented:
Cost of revenues
Research and development
Selling, general and administrative
Total stock-based compensation
expense
(2)

$

181
3,018
3,727

$

154
2,299
3,473

$

36
551
5,528

$

335
5,317
7,200

$

78
832
8,592

$

6,926

$

5,926

$

6,115

$

12,852$9,502

On July 2, 2010, the Company completed its initial public offering (IPO), pursuant to which the Company sold 11,880,600 shares ofcommon stock. Concurrent with the closing of the IPO, the Company issued 2,941,176 shares of common stock to Toyota Motor
Corporation in a private placement.
Upon the completion of the IPO, all convertible preferred stock automatically converted into 70,226,844 shares of common stock.
Additionally, 445,047 shares of common stock were issued upon the net exercise of all outstanding warrants, excluding the Department ofEnergy warrant.

(3)

On June 8, 2011, the Company completed its follow-on public offering, pursuant to which the Company sold 6,095,000 shares of common
stock. Concurrent with the closing of the offering, the Company issued 1,416,000 shares of common stock to Elon Musk and 637,475
shares of common stock to an affiliate of Daimler AG in a private placement at the public offering price.

Tesla Motors, Inc.
Condensed Consolidated Balance Sheets(Unaudited)(In thousands)
June 30,
2011
AssetsCash and cash equivalents
Restricted cash - current
Accounts receivable
Inventory
Prepaid expenses and other current assets
Operating lease vehicles, net
Property and equipment, net
Restricted cash - noncurrent
Other assets
Total assets
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities
Deferred revenue
Reservation payments
Common stock warrant liability
Capital lease obligations
Long-term debt
Other long-term liabilities
Total liabilities
Stockholders' equity
Total liabilities and stockholders' equity

December 31,2010$

319,380
11,251
23,30854,312
9,507
10,533
189,647
5,433
22,784$99,55873,597
6,710
45,182
10,839
7,963
114,636
4,867
22,730$646,155$

386,082$

82,192
6,295
53,1877,849
646
134,177
13,357
297,703
348,452$

49,896
7,418
30,755
6,088
775
71,82812,274179,034
207,048$

646,155$

386,082Tesla Motors, Inc.
Supplemental Consolidated Financial Information(Unaudited)(In thousands)
Three Months Ended
June 30,
2011
Selected Cash Flow Information
Cash flows used in operating activities
Cash flows provided by (used in) investing
activities
Cash flows provided by financing activities
Other Selected Financial Information
Capital expenditures
Depreciation and amortization$

22,488$(23,122)
264,335$

54,314
4,317

Restricted cash - noncurrent$

319,380
11,251
5,433

43,297

June 30,
2010$

10,111
34,283$June 30,
2011
Cash
Cash and cash equivalents
Restricted cash - current

Six Months Ended

Mar 31,
2011

20,476
3,517
Mar 31,
2011$

100,655
42,943
4,934

20,247

June 30,
2011$(7,689)13,694

$

9,815
2,483

65,785June 30,
2010$(13,011)
298,618$

74,7907,835

47,576(17,068)
42,321$

15,2874,624

Tesla Motors, Inc.
Reconciliation of GAAP to Non-GAAP Financial Information(Unaudited)(In thousands, except per share data)
Three Months Ended
June 30,
2011
Research and development expenses(GAAP)
Stock-based compensation expense
Research and development expenses(Non-GAAP)
Selling, general and administrative
expenses (GAAP)
Stock-based compensation expense
Selling, general and administrative
expenses (Non-GAAP)Net loss (GAAP)
Stock-based compensation expense
Change in fair value of warrant liabilities
Net loss (Non-GAAP)Net loss per common share, basic anddiluted (GAAP)
Stock-based compensation expense
Change in fair value of warrant liabilities
Net loss per common share, basic anddiluted (Non-GAAP)

Shares used in per share calculation,
basic and diluted (GAAP and NonGAAP)

Six Months Ended

Mar 31,
2011

June 30,
2010

June 30,
2011

June 30,
2010$

52,531(3,018)$41,162(2,299)$15,416(551)$

93,693(5,317)$

28,681(832)$

49,513$38,863$

14,865$88,376$

27,849$24,716(3,727)$

24,212(3,473)$

22,207(5,528)$48,928(7,200)$38,792(8,592)$

20,989$20,739$16,679$41,728$30,200$(58,903)
6,926
340

$

(48,941)
5,926
1,421

$

(38,517)
6,115
6,349

$

(107,844)
12,852
1,761$(68,036)
9,502
8,681

$

(51,637)$(41,594)$(26,053)$(93,231)$(49,853)$(0.60)
0.07
0.00

$

(0.51)
0.06
0.01

$

(5.04)
0.80
0.83

$

(1.12)
0.13
0.02

$

(9.10)
1.27
1.16

$

(0.53)$(0.44)$(3.41)$(0.97)$(6.67)

97,757

95,187

7,643

96,478

7,474

Non-GAAP Financial Information
Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis. On a non-GAAP basis,
financial measures exclude non-cash items such as stock-based compensation as well as the change in fair value related to Tesla’s warrant
liabilities. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because
management uses such information internally for its operating, budgeting and financial planning purposes. These non-GAAP financial measures
also facilitate management’s internal comparisons to Tesla’s historical performance as well as comparisons to the operating results of othercompanies. 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.