Tesla Motors, Inc. – Second Quarter 2013 Shareholder Letter
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Net income (non-GAAP) increased 70% from Q1 to $26M
Record sales of 5,150 Model S vehicles in North America
Gross margin of 22% (non-GAAP), despite significant reduction in ZEV credits
On track to achieve Q4 gross margin of 25%, excluding ZEV credits
Strong balance sheet with almost $750 million in cash and no government debt
Primary focus is on expanding production to meet worldwide demand

August 7, 2013
Dear Fellow Shareholders:
While profits were still modest in absolute terms and not our primary mission, net income increased by 70% fromlast quarter, driven by record Model S deliveries and a significant improvement in automotive gross margin. NonGAAP net income in Q2 was $26 million or $0.20 per share, excluding one-time & non-cash items, and the effect oflease accounting. This compares to $15 million or $0.12 per share of non-GAAP net income last quarter. Since
consensus estimates reflect non-GAAP results with lease accounting, our comparable Q2 non-GAAP net income
was $7 million or $0.05 per share.
In this letter and going forward, we will report our results on a GAAP basis as well as on a non-GAAP basis,
excluding lease accounting. We believe these non-GAAP financials are useful as they align with the underlying
cash flow activity and timing of vehicle deliveries, and because we use such information internally for operational
management and financial planning purposes.
Over 13,000 Model S customer vehicles are now on North American roads and have logged nearly 60 million miles.
This week we started our international expansion by delivering the first Model S vehicles to customers in Europe.
As demand for Model S grows, we are continuing to expand our manufacturing capacity as well as our global
footprint of service center, retail and Supercharger networks.
With our recent $1 billion capital raise and subsequent repayment of the $440 million outstanding loan from the
Department of Energy, our cash balance grew to almost $750 million during the quarter. Our financial position andbalance sheet have never been stronger.

Strong Operational Improvements Drive Record Deliveries and Model S MarginDuring Q2, we improved our production rate by 25% from 400
to almost 500 vehicles per week. 5,150 cars were delivered
during the quarter, significantly surpassing our expectation of
4,500 deliveries. In the quarter, we produced several hundred
more Model S vehicles for use as service loaners, forcustomer test drives and for deliveries to European customers
in Q3. We are now doing final assembly and testing ofvehicles at our European manufacturing facility in Tilburg,
Netherlands.
Total non-GAAP gross margin improved to 22%, up from 17%
last quarter. Despite an expected unfavorable product mix in

European Manufacturing – Tilburg, Netherlands

Q2, non-GAAP automotive gross margin excluding zero emission vehicle (ZEV) credits improved by 8 percentage
points. This was in addition to the 9 percentage points of improvement last quarter.
Significant cost improvements were achieved as a result of execution of our roadmap including redesigning many
elements of Model S for greater ease of manufacturing, economies of scale and supply chain improvements.
Importantly, we were able to make nuanced improvements to the car at the same time, as reducing cost does notcount if it makes a product worse. Further execution on our cost reduction roadmap is expected to continue toimprove non-GAAP automotive gross margin to our target level of 25% (excluding ZEV credits) in Q4 this year. We
are cautiously optimistic that a number above that level may be achievable in future quarters.

Demand Growth Continues
Global Model S demand continues to grow, driven by our geographic expansion and enhancements to both the
product and ownership experience. Growth in our home state of California remains very strong. At the same time,
North American deliveries outside California grew at twice the rate of California deliveries this quarter.
Our new financing program with the resale value
guarantee is proving to be quite popular. Over 30% of
vehicles delivered in Q2 took advantage of our
financing program. We expect the penetration rate toincrease with the expansion of our financing programs
in additional states in the United States and ininternational markets.
Deliveries into Europe began this week, with the firstcars arriving in Norway, Switzerland and theNetherlands. In Norway alone, we expect to deliver
almost 800 vehicles this year based on current orders.
Orders from Europe have grown every month sinceFirst European Deliveries
February. If demonstrated demand in North America andEurope is matched by similar demand in Asia, annualized sales for Model S could exceed 40,000 units per year bylate 2014.
We also continue to expand the market appeal of Model S. Recently, we announced several new options, such asa sub-zero weather package, parking sensors, upgraded leather interior, several new wheel options and a yachtstyle floor center console. Xenon headlights and high definition backup camera were made standard equipment on
all cars. We also unbundled the performance package to enable a greater level of customization.
We opened seven new retail locations in Q2 for a total of 41 locations worldwide, with 30 in North America, 8 inEurope and 3 in Asia. We plan to open several more locations this year, including our first store in China. In thenear term, we will slightly curtail the rate of stores openings in favor of more service centers, as it appears that
simply increasing our service center coverage is sufficient to drive substantial Model S sales in any region that hasa critical mass of Model S customers. We only opened 6 service centers in Q2, for a total of 47 globally, but will
accelerate this dramatically in coming quarters and relentlessly focus on providing a level of service that is as close
to flawless as humanly possible. As a result, service expenditures in the short term will rise, but we believe that thisis the right thing to do for the long-term value of the company.

Faster or Free?: New Customer Charging Options
Our goal is to make recharging Model S as fast and as convenient as possible to enable worry-free long distancedriving. We are rolling out 120 kW Superchargers, which are 33% faster than our current version and can replenish
half a charge in just 20 minutes, for free.
Since our announcement, we have been installing Superchargers at an accelerating pace, and have now doubled
Supercharger coverage from just a few months ago.
Model S owners now have access to freeSupercharging between Portland and Vancouver,
between St. Louis and Chicago, and across a
substantial number of major inter-city routes in the
Northeast, California and Florida. Given the
popularity of the Superchargers, we are expanding
the size of some locations to enable charging of 10
to 12 Model S vehicles simultaneously. Over the
next several weeks, our first European
Superchargers will be placed in service with an
initial focus on Norway, where we will cover almost
80% of the population of that country.

Tesla Supercharger
For those customers that desire even faster fueling, we recently announced an automated battery pack swapping
capability. This option will allow a customer to swap in a fully charged battery pack in as little as 90 seconds, orabout half the time it takes to refill a traditional car with gasoline. We intend to pilot this technology at a few of our
Supercharger stations in California later this year, enabling travel between Los Angeles and San Francisco in lesstime, including stops, than a typical gasoline car. If you pull into one of these Tesla stations with a Model S, you
only have to answer one question: do you prefer faster (pack swap) or free (charging)?

Quarterly Results
At the start of Q2, we introduced the resale value
guarantee for customers who finance their Model S
through one of our specified banking partners. Even
though we receive full payment for these cars upfront,
GAAP requires us to account for these sales as leases
and spread the recognition of revenue and cost over
the term covered by the resale value guarantee, ofapproximately three years.
Q1 revenues reflect full sales accounting for all Model
S deliveries while Q2 revenues reflect some deliveries
with lease accounting. To facilitate comparability
between periods, we have presented non-GAAPPack Swap Beats Gas Pump By 2x
financials excluding the effect of lease accounting, byadding back all deferred revenues and related costs for our Q2 Model S deliveries.
Q2 revenues were $551 million on a non-GAAP basis and $405 million on a GAAP basis. While deliveries
increased by 5% from Q1, overall revenues were flat due to an expected drop in ZEV credit revenue. ZEV credit

revenue fell to $51 million this quarter from $68 million last quarter. Vehicle average selling prices (ASPs) also
declined slightly during the quarter since we sold 60 kWh range limited cars at a $10,000 lower price point to honororders for the now discontinued 40 kWh battery pack. This temporary unfavorable product mix impacted our
automotive non-GAAP gross margin in Q2 by about 1 percentage point.
In addition to record Model S deliveries, we continued to supply full electric powertrains to Toyota for the RAV4 EV.
We also completed various deliverables under the Mercedes Benz B-Class EV program which contributed todevelopment services revenue of almost $4 million.
Research and development (R&D) expenses were $44 million on a non-GAAP basis and $52 million on a GAAP
basis. R&D spending declined from Q1 on a non-GAAP basis, as Model S related development expenses
continued to decline.
Selling, general and administrative (SG&A) expenses
were $50 million on a non-GAAP basis and almost $60
million on a GAAP basis. This increase from Q1 wasdriven primarily by additional expenses related to the
expansion of our retail, service and Supercharger
infrastructure.

Tesla Store – Frankfurt, Germany

Q2 non-GAAP net income was $26 million, or $0.20
per share. This excludes lease accounting, certain
non-cash items, and one-time charges of $16 million
associated with the payoff of our DoE loan nine years
early. Including all these items, GAAP net loss was $31
million or $(0.26) per share.

Our total cash was $747 million at quarter end, an increase of $516 million from last quarter. During the quarter, weraised a little over $1 billion through the issuance of 4.5 million shares of common stock and $660 million of
convertible debt. About $450 million of the offering proceeds were used to pay off our DoE loan, including an $11
million fee for early payment.
To mitigate the potential dilution impact from the issuance of convertible debt to our common shareholders, we also
entered into a call spread to increase the effective conversion price from $125 to $184 per share. The call spreadallows us to avoid incremental dilution from the convertible debt until our common share price climbs past $184.
However until the convertible notes mature in five years, the calculation of diluted earnings per share would be
affected when the average stock price in the quarter is above $125. We will publish shortly a table at our investor
relations website that illustrates the potential earnings per share dilution.
Cash outflows from operations were $38 million in the quarter. However, this quarter was impacted by several
significant one-time items, including the $11 million DoE early payment fee and a $67 million increase in receivables
primarily from the timing of payments for ZEV credit sales. We have collected almost all of these receivables at thispoint. Excluding these one-time effects, we would have generated a significant level of cash from operations.

Outlook
While we expect production to increase from Q2, a considerable number of vehicles produced during the quarter
will be in transit to European markets at the end of Q3. As a result, we plan to deliver slightly over 5,000 Model S
vehicles in Q3, and remain on plan to deliver 21,000 vehicles worldwide for 2013. We expect that Q3 ASPs willrebound from the Q2 level as we deliver European Signature Series cars and demand for 85 kWh cars remains
strong.

We expect Q3 non-GAAP gross margin will remain in the low 20% range, with continuing improvements in Model S
vehicle margin, offset by significantly lower ZEV credit revenue. As previously mentioned, we expect our nonGAAP automotive gross margin will continue to rise in the second half of the year to our target of 25%, assuming nocontribution from ZEV credits.
R&D expenses are expected to increase significantly in Q3 as we accelerate product development efforts on Model
X, Model S right hand drive, and localization of Model S for international markets. SG&A expenses will also rise,
driven by the growth in our retail locations, service centers and Supercharger facilities.
Going forward, we expect to be non-GAAP profitable and generate positive cash flow from operations every quarter
this year excluding any benefit from ZEV credits.
We expect to spend about $150 million in the second half of this year on capital expenditures, including the recent
purchase of 31 acres of land adjacent to our factory for future expansion. The growing demand for Model S gives
us the confidence to invest in additional production capacity. There are still some bottle necks in our supply chainthat need to be resolved. While we are dealing with these bottlenecks, there remains some uncertainty in our ability
to increase production as rapidly as we would like. We are also continuing to invest in our sales and service
infrastructure. All these investments, funded in part by our profitable operations, position us for further expansion of
our product portfolio and growth globally.

Elon Musk, Chairman & CEO

Deepak Ahuja, Chief Financial OfficerWebcast Information
Tesla will provide a live webcast of its second quarter 2013 financial results conference call beginning at 2:30 p.m. PT on
August 7, 2013, at ir.teslamotors.com. This webcast will also be available for replay for approximately one year
thereafter.

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, the change in fairvalue related to Tesla’s warrant liability, non-cash interest expense related to Tesla's 1.5% convertible senior notes aswell as one-time expenses associated with the early repayment of the Department of Energy Loan. Non-GAAP financial
measures also exclude the impact of lease accounting on Model S related revenues and cost of revenues, as thisperspective is useful in understanding the underlying cash flow activity and timing of vehicle deliveries. 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 nonGAAP financial measures also facilitate management’s internal comparisons to Tesla’s historical performance as well ascomparisons to the operating results of other companies. Non-GAAP information is not prepared under acomprehensive 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.

Forward-Looking Statements
Certain statements in this shareholder letter, including statements in the “Outlook” section of this Shareholder Letter;statements regarding profitability in Q3 and Q4 2013 and cost reduction efforts; statements relating to the progress Tesla
is making with respect to product development, European and Asian launch expectations, schedule for the introductionof future options and variants, quality improvements, delivery and volume expectations of Model S; the ability of our
suppliers to supply quality parts at reduced costs; the ability to achieve vehicle demand, volume, revenue, gross margin,
spending, profitability and cash flow targets; the future success of our vehicle financing program, and future store,service center and Tesla Supercharger expected costs, openings and expansion 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 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 forwardlooking statements: Tesla’s future success depends on its ability to design and achieve market acceptance of Model S
and other new vehicle models, specifically Model X; the risk of delays in the manufacture, production and delivery rampof Model S vehicles; the ability of suppliers to meet quality and part delivery expectations at increasing volumes; Tesla’s
ability to continue to reduce or control manufacutring and other costs; consumers’ willingness to adopt electric vehicles;
competition in the automotive market generally and the alternative fuel vehicle market in particular; Tesla’s ability toestablish, maintain and strengthen the Tesla brand; the unavailability, reduction or elimination of governmental andeconomic 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 interactive
retail strategy and for new store, service center and Tesla Supercharger openings. More information on potential factorsthat could affect the Company’s financial results is included from time to time in Tesla’s Securities and Exchange
Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our quarterly
report on Form 10-Q filed with the SEC on May 10, 2013. Tesla disclaims any obligation to update information containedin these forward-looking statements whether as a result of new information, future events, or otherwise.

Investor Relations Contact:
Jeff Evanson
VP Investor Relations – Tesla Motors
ir@teslamotors.com

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

Press Contact:
Shanna Hendriks
Communications – Tesla Motors
shendriks@teslamotors.com

Tesla Motors, Inc.
Condensed Consolidated Statem ents of Operations(Unaudited)(In thousands, except per share data)
Three Months Ended
June 30,
Mar 31,
June 30,
2013
2013
2012
Revenues
Automotive sales (1A)
Development services
Total revenues
Cost of revenues
Automotive sales (1B)
Development services
Total cost of revenues (2)Gross profit
Operating expenses
Research and development (2)Selling, general and administrative (2)Total operating expenses
Loss from operations
Interest income
Interest expense
Other income (expense), net (3)Income (loss) before income taxes
Provision for income taxes
Net income (loss)
Net income (loss) per common share, basic (4)(5)$$555,203
6,589
561,792$

303,599
1,057
304,656
100,483

461,818
3,654
465,472
96,320$52,312
59,963112,275(11,792)
39(20,116)
1,668(30,201)301(30,502) $54,85947,045
101,904(5,584)10(118)
17,091
11,399151
11,248 $$(0.26) $0.10

Shares used in per share calculation, basic (4)(5)
Net income (loss) per common share, diluted (4)(5)

401,535
3,604
405,139

118,194$

Shares used in per share calculation, diluted (4)(5)(0.26) $0.00$

20,1501,741
21,891
4,762$

114,712118,194

22,054
4,599
26,653Six Months Ended
June 30,
June 30,
2013
2012

$

74,85436,083110,937(106,175)
74
(84)
691
(105,494)
109(105,603)$(1.00)$(1.00)$

765,417
4,711
770,128
196,803105,242

124,265

956,738
10,193966,931

34,082
7,766
41,848
14,972

107,171
107,008
214,179(17,376)49(20,234)
18,759(18,802)452(19,254) $(0.17) $116,462$

105,242

41,29915,521
56,820143,245
66,665
209,910(194,938)
164
(149)
(385)
(195,308)
168(195,476)(1.86)
105,013(0.17) $116,462(1.86)
105,013

Notes:(1) Due to the application of lease accounting for Model S vehicles w ith the residual value guarantee, the follow ing is supplemental information for
the three and six months ended June 30, 2013:(A) Deferred revenue related to deliveries of Model
S during the period not recognized in automotive
sales

$

146,812$

146,812(B) Costs related to deliveries of Model S during theperiod not recognized in automotive cost ofrevenues but recorded in operating leasevehicles, net$

123,919$

123,919$

2,599
16,20915,31934,127

Under lease accounting, w arranty costs are expensed as incurred instead of accrued at the time of sale.
(2) Includes stock-based compensation expense of the follow ing for the periods presented:
Cost of revenues
Research and development
Selling, general and administrative
Total stock-based compensation expense

$

$

1,063
8,565
9,631
19,259

$

$

1,536
7,644
5,688
14,868

$

$

78
7,133
5,332
12,543$$$85
13,065
10,10423,254(3) Other income (expense), net, for the three months ended March 31, 2013 and the six months ended June 30, 2013 include the gain from theelimination of the $10.7 million DoE common stock w arrant liability, and an $6.4 million and $8.0 million favorable foreign currency exchange
impact, respectively.
(4) In May 2013, the Company completed a public offering pursuant to w hich the Company sold 3,902,862 shares of common stock. Concurrent
w ith the closing of the offering, the Company sold 596,272 shares of common stock to Elon Musk in a private placement at the public offering
price.
(5) In October 2012, the Company completed a public offering pursuant to w hich the Company sold 7,964,601 shares of common stock.

Tesla Motors, Inc.
Condensed Consolidated Balance Sheets(Unaudited)(In thousands)
June 30,
2013
AssetsCash and cash equivalents
Restricted cash - current
Accounts receivable
Inventory
Prepaid expenses and other current assets
Operating lease vehicles, net (1)Property and equipment, net
Restricted cash - noncurrent
Other assets
Total assets
Liabilities and Stockholders' Equity
Accounts payable and accrued liabilities
Deferred revenue (2)Customer deposits
Common stock w arrant liability
Capital lease obligations
Long-term debt
Other long-term liabilities (3)Total liabilities
Stockholders' equity
Total liabilities and stockholders' equity$

746,057
1,362
113,544
254,891
13,688131,468
595,579
7,059
24,196
1,887,844$$$

317,352
98,075
133,716
14,944
578,740
115,591
1,258,418
629,426
1,887,844$

123,919$

74,455$72,357$$

Notes:(1) Includes the follow ing operating lease vehicle activity for Model S vehicles
subject to lease accounting for the follow ing period:
Increase in operating lease vehicles related to deliveries of Model S, net of
depreciation recognized in automotive cost of revenues during the threemonths ended June 30, 2013(2) Includes the follow ing deferred revenue activity for Model S vehicles
subject to lease accounting for the follow ing period:
Increase in deferred revenue related to deliveries of Model S, net ofrevenue recognized in automotive sales during the three months ended
June 30, 2013(3) Includes the follow ing residual value guarantee liability activity related toModel S vehicles subject to lease accounting for the follow ing period:
Increase in other long-term liabilities related to deliveries of Model S during
the three months ended June 30, 2013

Dec 31,
2012$$

201,890
19,094
26,842
268,504
8,438
10,071
552,229
5,159
21,963
1,114,190

343,180
4,964
138,817
10,692
14,330452,337
25,170989,490
124,700
1,114,190

Tesla Motors, Inc.
Supplem ental Consolidated Financial Inform ation(Unaudited)(In thousands)

June 30,
2013
Selected Cash Flow Inform ation
Cash flow s provided by (used in) operating activities
Cash flow s used in investing activities
Cash flow s provided by financing activities
Other Selected Financial Inform ation
Cash flow s provided by (used in) operating activities
Capital expenditures
Free cash flow (cash flow from operations plus capital
expenditures)
Depreciation and amortization

Three Months Ended
Mar 31,
June 30,
2013
2012

$

(38,194) $(27,173)
597,007

64,079 $(55,236)
3,684(64,264)(15,932)
72,180$25,886 $(82,410)600,691(127,564)(82,159)
165,011$(38,194) $(40,514)64,079 $(57,727)(64,264)(58,003)$

25,886 $(98,242)(127,564)(112,777)$(78,708) $

6,352

$

(122,267)$(72,356) $(240,341)$

22,19917,850

$

4,348

$

40,0488,511$

June 30,
2013
Cash and Investm ents
Cash and cash equivalents
Restricted cash - current
Restricted cash - noncurrent

Six Months Ended
June 30,
June 30,
2013
2012

$

746,057
1,362
7,059

Mar 31,
2013$

214,417
16,7195,044

June 30,2012$

210,554
21,9603,973$

Tesla Motors, Inc.
Reconciliation of GAAP to Non-GAAP Financial Inform ation(Unaudited)(In thousands, except per share data)

June 30,
2013
Revenues (GAAP)
Model S revenue deferred due to lease accounting
Revenues (Non-GAAP)$

Gross profit (GAAP)
Model S gross profit deferred due to lease accounting (1)Stock-based compensation expense
Gross profit (Non-GAAP)$$

405,139
146,812551,951$

100,483$

19,3491,063
120,896

Research and developm ent expenses (GAAP)
Stock-based compensation expense
Research and developm ent expenses (Non-GAAP)$

Selling, general and adm inistrative expenses (GAAP)
Stock-based compensation expense
Selling, general and adm inistrative expenses (Non-GAAP)$Net incom e (loss) (GAAP)
Stock-based compensation expense
Change in fair value of w arrant liability
Non-cash interest expense related to convertible notes
Early extinguishment of DoE loans
Net incom e (loss) (Non-GAAP) including lease accounting
Model S gross profit deferred due to lease accounting (1)$Net incom e (loss) (Non-GAAP)

$

$

$

Net incom e (loss) per com m on share, basic (GAAP)
Stock-based compensation expense
Change in fair value of w arrant liability
Non-cash interest expense related to convertible notes$$

561,792
561,792$

96,320$1,536
97,856

Shares used in per share calculation, basic (GAAP and Non-GAAP)$$

26,65326,653$$966,931
146,812
1,113,743$

56,82056,820

$

4,762

$

196,803$

14,972$

19,3492,599
218,752$

52,312 $(8,565)43,747 $54,859 $(7,644)47,215 $74,854(7,133)67,721$

59,963 $(9,631)50,332 $47,045 $(5,688)41,357 $36,083(5,332)30,751$(30,502) $19,2591,791
16,386
6,934

11,248 $14,868(10,692)
15,424(105,603)
12,543(154)(93,214)$

19,34926,284

15,424$(93,214)0.10 $
0.13(0.09)(1.00)
0.11(0.00)

$

0.02
0.14
$

Six Months Ended
June 30,
June 30,
2013
2012

78
4,840

(0.26) $0.16-

Early extinguishment of DoE loans
Model S gross profit deferred due to lease accounting (1)Net incom e (loss) per com m on share, basic (Non-GAAP)

Three Months Ended
Mar 31,
June 30,
2013
2012

0.16
0.22

$

0.13

$

$

$
$

$

(0.89)

118,194

114,712105,242$$85
15,057

107,171 $(16,209)90,962 $143,245(13,065)
130,180

107,008 $(15,319)
91,689 $66,665(10,104)
56,561(19,254) $34,127(10,692)
1,791
16,38622,358(195,476)
23,254(309)(172,531)

19,34941,708$(172,531)(0.17) $0.29(0.09)(1.86)
0.22(0.00)

0.02
0.14

-

0.17
0.36

$

(1.64)

116,462

105,013

Net incom e (loss) (GAAP)
Adjustment for change in fair value of w arrant liability
Net incom e (loss) used in calculation of diluted earnings (loss)
per share (GAAP)$(30,502) $-11,248 $(10,692)(105,603)-$(19,254) $-(195,476)-$(30,502) $556$(105,603)$(19,254) $(195,476)

Net incom e (loss) per share, diluted (GAAP)
Stock-based compensation expense
Change in fair value of w arrant liability
Non-cash interest expense related to convertible notes
Early extinguishment of DoE loans
Net incom e (loss) (Non-GAAP) including lease accounting
Model S gross profit deferred due to lease accounting (1)$(0.23) $
0.15
0.01
0.13
0.05

0.00
0.12
0.12

$

(1.00)
0.11(0.00)(0.89)$(0.15) $0.27(0.08)
0.01
0.13
0.18

(1.86)
0.22(0.00)(1.64)Net incom e (loss) per share, diluted (Non-GAAP)
Shares used in per share calculation, diluted (GAAP and NonGAAP)

$

0.15
0.20

0.12

0.15
0.33

(1.64)

130,503$124,265$(0.89)
105,242$$

127,035(1) Under GAAP, w arranty costs are expensed as incurred for Model S vehicle deliveries w ith lease accounting. For Non-GAAP purposes, an estimatedincremental w arranty reserve of $4.0 million is included. Additionally, stock-based compensation of $0.5 million is excluded for non-GAAP purposes.

105,013