Document:

2010 Employee Stock Purchase Plan

 Exhibit 10.7 

TESLA MOTORS, INC. 

2010 EMPLOYEE STOCK PURCHASE PLAN 

1. Purpose. The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to
purchase Common Stock through accumulated payroll deductions. The Company’s intention is to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. The provisions of the Plan, accordingly, will
be construed so as to extend and limit Plan participation in a uniform and nondiscriminatory basis consistent with the requirements of Section 423 of the Code. 

2. Definitions. 

(a) “Administrator” means the Board or any Committee designated by the Board to administer the Plan pursuant to
Section 14. 
 (b) “Applicable Laws” means the requirements relating to the administration of equity-based
awards under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where
Awards are, or will be, granted under the Plan. 
 (c) “Board” means the Board of Directors of the Company.

 (d) “Change in Control” means the occurrence of any of the following events: 

(i) A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group
(“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however,
that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in
Control; or 
 (ii) A change in the effective control of the Company which occurs on the date that a majority of members of the
Board is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. For purposes of this clause, if any
Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or 

(iii) A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires
(or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent
(50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection, the following

 
will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders
immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’ s stock, (2) an entity, fifty
percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all
the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this
subsection, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 

For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into
a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company. 
 (e)
“Code” means the Internal Revenue Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any
comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation. 

(f) “Committee” means a committee of the Board appointed in accordance with Section 14 hereof. 

(g) “Common Stock” means the common stock of the Company. 

(h) “Company” means Tesla Motors, Inc., a Delaware corporation. 

(i) “Compensation” means an Eligible Employee’s regular and recurring straight time gross earnings, payments for
overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other similar compensation. The Administrator, in its discretion, may, on a uniform and nondiscriminatory basis, establish a different definition of
Compensation for a subsequent Offering Period. 
 (j) “Designated Subsidiary” means any Subsidiary that has
been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan. 
 (k)
“Director” means a member of the Board. 
 (l) “Eligible Employee” means any individual who is
a common law employee of an Employer and is customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship will be
treated as continuing intact while the individual is on sick leave or other leave of absence that the Employer approves. Where the period of leave exceeds three (3) months and the individual’s right to reemployment is not guaranteed either
by statute or by contract, the employment relationship will be deemed to have terminated three (3) months and one (1) day following the commencement of such leave. The Administrator, in its discretion, from time to time may, prior to an
Offering Date for all options to be granted on such Offering Date, determine (on a uniform and 
  

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nondiscriminatory basis) that the definition of Eligible Employee will or will not include an individual if he or she: (i) has not completed at least two (2) years of service since his
or her last hire date (or such lesser period of time as may be determined by the Administrator in its discretion), (ii) customarily works not more than twenty (20) hours per week (or such lesser period of time as may be determined by the
Administrator in its discretion), (iii) customarily works not more than five (5) months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (iv) is an executive, officer or
other manager, or (v) is a highly compensated employee under Section 414(q) of the Code. 
 (m)
“Employer” means any one or all of the Company and its Designated Subsidiaries. With respect to a particular Eligible Employee, Employer means the Company or Designated Subsidiary, as the case may be, that directly employs the
Eligible Employee. 
 (n) “Exchange Act” means the Securities Exchange Act of 1934, as amended, including the
rules and regulations promulgated thereunder. 
 (o) “Exercise Date” means the first Trading Day on or after
May 20 and November 20 of each year. The first Exercise Date under the Plan will be November 22, 2010. 
 (p)
“Fair Market Value” means, as of any date and unless the Administrator determines otherwise, the value of Common Stock determined as follows: 

(i) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New
York Stock Exchange, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(ii) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market
Value will be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 

(iii) In the absence of an established market for the Common Stock, the Fair Market Value thereof will be determined in good faith by
the Administrator; or 
 (iv) For purposes of the Offering Date of the first Offering Period under the Plan, the Fair Market
Value will be the initial price to the public as set forth in the final prospectus included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock (the
“Registration Statement”). 
 (q) “Fiscal Year” means the fiscal year of the Company.

 (r) “New Exercise Date” means a new Exercise Date set by shortening any Offering Period then in progress.

  

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 (s) “Offering Date” means the first Trading Day of each Offering Period.

 (t) “Offering Periods” means the periods of approximately six (6) months during which an option granted
pursuant to the Plan may be exercised, (i) commencing on the first Trading Day on or after May 20 of each year and terminating on the first Trading Day on or following November 20, approximately six (6) months later, and
(ii) commencing on the first Trading Day on or after November 20 of each year and terminating on the first Trading Day on or following May 20, approximately six (6) months later; provided, however, that the first Offering Period
under the Plan will commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company’s Registration Statement effective and will end on November 22, 2010. The duration and timing
of Offering Periods may be changed pursuant to Sections 4 and 20. 
 (u) “Parent” means a “parent
corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
 (v)
“Participant” means an Eligible Employee who participates in the Plan. 
 (w) “Plan” means
this Tesla Motors, Inc. 2010 Employee Stock Purchase Plan. 
 (x) “Purchase Price” means an amount equal to
eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Offering Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be determined for subsequent Offering Periods by the
Administrator, in its discretion, subject to compliance with Section 423 of the Code or pursuant to Section 20. 
 (y)
“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 

(z) “Trading Day” means a day on which the national stock exchange upon which the Common Stock is listed is open for
trading. 
 3. Eligibility. 

(a) First Offering Period. Any individual who is an Eligible Employee immediately prior to the first Offering Period will be
automatically enrolled in the first Offering Period. 
 (b) Subsequent Offering Periods. Any Eligible Employee on a given
Offering Date subsequent to the first Offering Period will be eligible to participate in the Plan, subject to the requirements of Section 5. 

(c) Limitations. Any provisions of the Plan to the contrary notwithstanding, no Eligible Employee will be granted an option under
the Plan (i) to the extent that, immediately after the grant, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Section 424(d) of the Code) would own capital stock of the
Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of
any Parent or Subsidiary of the Company, or (ii) to the extent 
  

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that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at
a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 

4. Offering Periods. The Plan will be implemented by consecutive Offering Periods with a new Offering Period commencing on the
first Trading Day on or after May 20 and November 20 each year, or on such other date as the Administrator will determine; provided, however, that the first Offering Period under the Plan will commence with the first Trading Day on or
after the date upon which the Company’s Registration Statement is declared effective by the Securities and Exchange Commission and end on November 22, 2010. The Administrator will have the power to change the duration of Offering Periods
(including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter. 

5. Participation. 

(a) First Offering Period. An Eligible Employee will be entitled to continue to participate in the first Offering Period pursuant
to Section 3(a) only if such individual submits a subscription agreement authorizing payroll deductions in a form determined by the Administrator (which may be similar to the form attached hereto as Exhibit A) to the Company’s
designated plan administrator (i) no earlier than the effective date of the Form S-8 registration statement with respect to the issuance of Common Stock under this Plan and (ii) no later than ten (10) business days following the
effective date of such S-8 registration statement or such other period of time as the Administrator may determine (the “Enrollment Window”). An Eligible Employee’s failure to submit the subscription agreement during the
Enrollment Window will result in the automatic termination of such individual’s participation in the first Offering Period. 

(b) Subsequent Offering Periods. An Eligible Employee may participate in the Plan pursuant to Section 3(b) by
(i) submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Offering Date, a properly completed subscription agreement authorizing payroll deductions in the
form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator. 
  

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 6. Payroll Deductions. 

(a) At the time a Participant enrolls in the Plan pursuant to Section 5, he or she will elect to have payroll deductions made on each
pay day during the Offering Period in an amount not exceeding fifteen percent (15%) of the Compensation which he or she receives on each pay day during the Offering Period; provided, however, that should a pay day occur on an Exercise Date, a
Participant will have the payroll deductions made on such day applied to his or her account under the subsequent Offering Period. A Participant’s subscription agreement will remain in effect for successive Offering Periods unless terminated as
provided in Section 10 hereof. 
 (b) Payroll deductions for a Participant will commence on the first pay day following the
Offering Date and will end on the last pay day prior to the Exercise Date of such Offering Period to which such authorization is applicable, unless sooner terminated by the Participant as provided in Section 10 hereof; provided, however, that
for the first Offering Period, payroll deductions will commence on the first pay day on or following the end of the Enrollment Window. 

(c) All payroll deductions made for a Participant will be credited to his or her account under the Plan and will be withheld in whole
percentages only. A Participant may not make any additional payments into such account. 
 (d) A Participant may discontinue his
or her participation in the Plan as provided in Section 10. If permitted by the Administrator, as determined in its sole discretion, for an Offering Period, a Participant may increase or decrease the rate of his or her payroll deductions during
the Offering Period by (i) properly completing and submitting to the Company’s payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new subscription agreement
authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator. If a Participant has not followed such procedures
to change the rate of payroll deductions, the rate of his or her payroll deductions will continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The
Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction rate changes that may be made by Participants during any Offering Period. Any change in payroll deduction rate made pursuant to this Section 6(d)
will be effective as of the first full payroll period following five (5) business days after the date on which the change is made by the Participant (unless the Administrator, in its sole discretion, elects to process a given change in payroll
deduction rate more quickly). 
 (e) Notwithstanding the foregoing, to the extent necessary to comply with
Section 423(b)(8) of the Code and Section 3(c), a Participant’s payroll deductions may be decreased to zero percent (0%) at any time during an Offering Period. Subject to Section 423(b)(8) of the Code and Section 3(c)
hereof, payroll deductions will recommence at the rate originally elected by the Participant effective as of the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless terminated by the Participant as
provided in Section 10. 
 (f) At the time the option is exercised, in whole or in part, or at the time some or all of the
Common Stock issued under the Plan is disposed of, the Participant must make adequate 
  

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provision for the Company’s or Employer’s federal, state, or any other tax liability payable to any authority, national insurance, social security or other tax withholding obligations,
if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company or the Employer may, but will not be obligated to, withhold from the Participant’s compensation the amount necessary for the
Company or the Employer to meet applicable withholding obligations, including any withholding required to make available to the Company or the Employer any tax deductions or benefits attributable to sale or early disposition of Common Stock by the
Eligible Employee. 
 7. Grant of Option. On the Offering Date of each Offering Period, each Eligible Employee
participating in such Offering Period will be granted an option to purchase on each Exercise Date with respect to an Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such Eligible
Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the Eligible Employee’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event will an Eligible Employee be
permitted to purchase during each Offering Period more than 166 shares of the Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase will be subject to the limitations set forth in
Sections 3(c) and 13. The Eligible Employee may accept the grant of such option with respect to the first Offering Period by submitting a properly completed subscription agreement in accordance with the requirements of Section 5(a) on or
before the last day of the Enrollment Window, and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements of Section 5(b). The Administrator may, for future
Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that an Eligible Employee may purchase during each Offering Period. Exercise of the option will occur as provided in Section 8,
unless the Participant has withdrawn pursuant to Section 10. The option will expire on the last day of the Offering Period. 

8. Exercise of Option. 

(a) Unless a Participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common
Stock will be exercised automatically on the Exercise Date, and the maximum number of full shares subject to the option will be purchased for such Participant at the applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares of Common Stock will be purchased; any payroll deductions accumulated in a Participant’s account, which are not sufficient to purchase a full share will be retained in the Participant’s account for the
subsequent Offering Period, subject to earlier withdrawal by the Participant as provided in Section 10. Any other funds left over in a Participant’s account after the Exercise Date will be returned to the Participant. During a
Participant’s lifetime, a Participant’s option to purchase shares hereunder is exercisable only by him or her. 
 (b)
If the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the
Plan on the Offering Date of the applicable Offering Period, or (ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion provide that the Company will make a
pro rata allocation of the shares of Common Stock available for purchase on such Offering Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and 

 

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as it will determine in its sole discretion to be equitable among all Participants exercising options to purchase Common Stock on such Exercise Date, and continue all Offering Periods then in
effect or terminate all Offering Periods then in effect pursuant to Section 20. The Company may make a pro rata allocation of the shares available on the Offering Date of any applicable Offering Period pursuant to the preceding sentence,
notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s stockholders subsequent to such Offering Date. 

9. Delivery. As soon as reasonably practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the
Company will arrange the delivery to each Participant of the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator. The Company
may permit or require that shares be deposited directly with a broker designated by the Company or to a designated agent of the Company, and the Company may utilize electronic or automated methods of share transfer. The Company may require that
shares be retained with such broker or agent for a designated period of time and/or may establish other procedures to permit tracking of disqualifying dispositions of such shares. No Participant will have any voting, dividend, or other stockholder
rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the Participant as provided in this Section 9. 

10. Withdrawal. 

(a) A Participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to
exercise his or her option under the Plan at any time by (i) submitting to the Company’s payroll office (or its designee) a written notice of withdrawal in the form prescribed by the Administrator for such purpose (which may be similar to
the form attached hereto as Exhibit B), or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator. All of the Participant’s payroll deductions credited to his or her account will be paid to
such Participant promptly after receipt of notice of withdrawal and such Participant’s option for the Offering Period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made for such Offering
Period. If a Participant withdraws from an Offering Period, payroll deductions will not resume at the beginning of the succeeding Offering Period, unless the Participant re-enrolls in the Plan in accordance with the provisions of Section 5.

 (b) A Participant’s withdrawal from an Offering Period will not have any effect upon his or her eligibility to
participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods, which commence after the termination of the Offering Period from which the Participant withdraws. 

11. Termination of Employment. Upon a Participant’s ceasing to be an Eligible Employee, for any reason, he or she will be
deemed to have elected to withdraw from the Plan and the payroll deductions credited to such Participant’s account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan will be returned to such
Participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15, and such Participant’s option will be automatically terminated. 

 

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 12. Interest. No interest will accrue on the payroll deductions of a Participant in
the Plan. 
 13. Stock. 

(a) Subject to adjustment upon changes in capitalization of the Company as provided in Section 19 hereof, the maximum number of
shares of Common Stock which will be made available for sale under the Plan will be 1,666,666 shares, plus an annual increase to be added on the first day of each Fiscal Year beginning with the 2011 Fiscal Year, equal to the least of
(i) 1,000,000 shares of Common Stock, (ii) one percent (1%) of the outstanding shares of Common Stock on such date, or (iii) an amount determined by the Administrator. 

(b) Until the shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent
of the Company), a Participant will only have the rights of an unsecured creditor with respect to such shares, and no right to vote or receive dividends or any other rights as a stockholder will exist with respect to such shares. 

(c) Shares of Common Stock to be delivered to a Participant under the Plan will be registered in the name of the Participant or in the
name of the Participant and his or her spouse. 
 14. Administration. The Plan will be administered by the Board or a
Committee appointed by the Board, which Committee will be constituted to comply with Applicable Laws. The Administrator will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine
eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination made by the Administrator will, to the full extent permitted by law, be final and binding upon all parties. Notwithstanding any
provision to the contrary in this Plan, the Administrator may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures for jurisdictions outside of the
United States. Without limiting the generality of the foregoing, the Administrator is specifically authorized to adopt rules and procedures regarding eligibility to participate, the definition of Compensation, handling of payroll deductions, making
of contributions to the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to hold payroll deductions, payment of interest, conversion of local currency, obligations to pay payroll
tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates which vary with local requirements. 

15. Designation of Beneficiary. 

(a) A Participant may file a designation of a beneficiary who is to receive any shares of Common Stock and cash, if any, from the
Participant’s account under the Plan in the event of such Participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such Participant of such shares and cash. In addition, a Participant may
file a designation of a beneficiary who is to receive any cash from the Participant’s account under the Plan in the event of such Participant’s death prior to exercise of the option. If a Participant is married and the designated
beneficiary is not the spouse, spousal consent will be required for such designation to be effective. 
 (b) Such designation of
beneficiary may be changed by the Participant at any time by notice in a form determined by the Administrator. In the event of the death of a Participant and in 

 

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the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s death, the Company will deliver such shares and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more
dependents or relatives of the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

(c) All beneficiary designations will be in such form and manner as the Administrator may designate from time to time. 

16. Transferability. Neither payroll deductions credited to a Participant’s account nor any rights with regard to the
exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15 hereof)
by the Participant. Any such attempt at assignment, transfer, pledge or other disposition will be without effect, except that the Company may treat such act as an election to withdraw funds from an Offering Period in accordance with Section 10
hereof. 
 17. Use of Funds. The Company may use all payroll deductions received or held by it under the Plan for any
corporate purpose, and the Company will not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued, Participants will only have the rights of an unsecured creditor with respect to such shares. 

18. Reports. Individual accounts will be maintained for each Participant in the Plan. Statements of account will be given to
participating Eligible Employees at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any. 

19. Adjustments, Dissolution, Liquidation, Merger or Change in Control. 

(a) Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities,
or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the
corporate structure of the Company affecting the Common Stock occurs, the Administrator, in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will, in such manner as it may
deem equitable, adjust the number and class of Common Stock that may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, and the
numerical limits of Sections 7 and 13. 
 (b) Dissolution or Liquidation. In the event of the proposed dissolution
or liquidation of the Company, any Offering Period then in progress will be shortened by setting a New Exercise Date, and will terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by
the Administrator. The New Exercise Date will be before the date of the Company’s proposed dissolution or liquidation. The Administrator 

 

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will notify each Participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New
Exercise Date and that the Participant’s option will be exercised automatically on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

(c) Merger or Change in Control. In the event of a merger or Change in Control, each outstanding option will be assumed or an
equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option, the Offering Period with respect to which
such option relates will be shortened by setting a New Exercise Date and will end on the New Exercise Date. The New Exercise Date will occur before the date of the Company’s proposed merger or Change in Control. The Administrator will notify
each Participant in writing prior to the New Exercise Date, that the Exercise Date for the Participant’s option has been changed to the New Exercise Date and that the Participant’s option will be exercised automatically on the New Exercise
Date, unless prior to such date the Participant has withdrawn from the Offering Period as provided in Section 10 hereof. 

20. Amendment or Termination. 

(a) The Administrator, in its sole discretion, may amend, suspend, or terminate the Plan, or any part thereof, at any time and for any
reason. If the Plan is terminated, the Administrator, in its discretion, may elect to terminate all outstanding Offering Periods either immediately or upon completion of the purchase of shares of Common Stock on the next Exercise Date (which may be
sooner than originally scheduled, if determined by the Administrator in its discretion), or may elect to permit Offering Periods to expire in accordance with their terms (and subject to any adjustment pursuant to Section 19). If the Offering
Periods are terminated prior to expiration, all amounts then credited to Participants’ accounts which have not been used to purchase shares of Common Stock will be returned to the Participants (without interest thereon, except as otherwise
required under local laws) as soon as administratively practicable. 
 (b) Without stockholder consent and without limiting
Section 20(a), the Administrator will be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant properly correspond with amounts withheld from the Participant’s
Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan. 

(c) In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting
consequences, the Administrator may, in its discretion and, to the extent necessary or desirable, modify, amend or terminate the Plan to reduce or eliminate such accounting consequence including, but not limited to: 

(i) amending the Plan to conform with the safe harbor definition under Financial Accounting Standards Board Accounting Standards
Codification Topic 718, including with respect to an Offering Period underway at the time; 
  

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 (ii) altering the Purchase Price for any Offering Period including an Offering Period
underway at the time of the change in Purchase Price; 
 (iii) shortening any Offering Period by setting a New Exercise Date,
including an Offering Period underway at the time of the Administrator action; 
 (iv) reducing the maximum percentage of
Compensation a Participant may elect to set aside as payroll deductions; and 
 (v) reducing the maximum number of Shares a
Participant may purchase during any Offering Period. 
 Such modifications or amendments will not require stockholder approval
or the consent of any Plan Participants. 
 21. Notices. All notices or other communications by a Participant to the
Company under or in connection with the Plan will be deemed to have been duly given when received in the form and manner specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 

22. Conditions Upon Issuance of Shares. Shares of Common Stock will not be issued with respect to an option unless the exercise of
such option and the issuance and delivery of such shares pursuant thereto will comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and will be further subject to the approval of counsel for the Company with respect to such compliance. 

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the
time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law. 
 23. Term of Plan. The Plan will become effective upon the earlier to
occur of its adoption by the Board or its approval by the stockholders of the Company. It will continue in effect for a term of ten (10) years, unless sooner terminated under Section 20. 

24. Stockholder Approval. The Plan will be subject to approval by the stockholders of the Company within twelve (12) months
after the date the Plan is adopted by the Board. Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws. 
  

 -12- 

 EXHIBIT A 

TESLA MOTORS, INC. 

2010 EMPLOYEE STOCK PURCHASE PLAN 

SUBSCRIPTION AGREEMENT 

(To be filed by amendment.) 

 EXHIBIT B 

TESLA MOTORS, INC. 

2010 EMPLOYEE STOCK PURCHASE PLAN 

NOTICE OF WITHDRAWAL 

The undersigned Participant in the Offering Period of the Tesla Motors, Inc. 2010 Employee Stock Purchase Plan that began on
            ,         (the “Offering Date”) hereby notifies the Company that he or she hereby withdraws from the Offering Period. He
or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such Offering Period. The undersigned understands and agrees that his or her option for
such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current Offering Period and the undersigned will be eligible to participate
in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

	
	Name and Address of Participant:
	
	  

	
	  

	
	  

	
	Signature:
	
	  

			
		
	Date:ZEV Credits Agreement - dated February 12, 2009

 Exhibit 10.32 

Confidential Treatment Requested by Tesla Motors, Inc. 

ZEV Credits Agreement 

This ZEV Credits Agreement (“Agreement”) is made this 12th day of February 2009, between and American Honda Motor Co., Inc.,
with its principal offices at 1919 Torrance Boulevard, Torrance, California 90501-1486 (“Honda”) and Tesla Motors, Inc., with its principal offices at 1050 Bing Street, San Carlos, California 94070 (“Tesla”) (Honda and
Tesla are individually a “Party” and together the “Parties”). 
 BACKGROUND AND PURPOSE 

 

	1.	Under California’s Low-Emission Vehicle Regulations (13 California Code of Regulations (CCR) § 1900 et seq.), and similar laws in other states,
vehicle manufacturers are required to ensure that a portion of the vehicles delivered for sale in that state during each model year are zero-emission vehicles (or “ZEV”s, as defined below). States that have adopted ZEV regulations pursuant
to section 177 of the Clean Air Act, including ZEV Credit regulations, include New York, Massachusetts, Vermont, Maine, Connecticut, Rhode Island, New Jersey, Oregon, New Mexico, Maryland, Arizona and District of Columbia; other states have
indicated that they plan to adopt such regulations in the near future. Any state that adopts ZEV Credit regulations prior to or during the term of this Agreement is referred to herein as a “ZEV State.” ZEV Credit regulations provide that a
manufacturer may use its own earned credits or acquire credits from another party. If acquired, credits must be transferred via a credit bank set up by the California Air Resources Board (“ARB”) or another prescribed mechanism established
by an equivalent regulatory agency in a ZEV State. 

  

	2.	Honda desires that Tesla, for agreed-upon consideration, transfer to Honda all ZEV Credits that Tesla may earn and receive for the delivery for sale and placement into
service of at least 650 Tesla ZEVs in California or a ZEV State during the period set forth below. Tesla likewise desires to transfer to Honda all such ZEV Credits. 

 

	3.	 For purposes of this Agreement, “ZEV” means a zero emission vehicle as defined by 13 CCR Section 1962.1 , Zero Emission Vehicle
Standards for 2009 and Subsequent Model Year Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles; “ZEV Credit” means one regulatory-established credit, multiples of which may be issued for delivering for sale or placing in service
a ZEV in California1 or a ZEV State; and “Tesla
ZEV” means any model year 2009 vehicle produced by Tesla that is capable of earning a Type III ZEV Credit. 

  

 

	1
	 See, 13 CCR Section 1962.1 (d)(5)(C) indicating that Type III ZEVs earn 4 credits and 13 CCR Section 196.1, (d)(5)(D)
indicating that a Multiplier for Certain ZEVs allows for a multiplier of 1.25 - for a total of 5 credits. Although the ARB ZEV Credit Transfer Form, Exhibit A to this Agreement, also measures credits by g/mi NMOG, the Parties are not using that
measure when describing ZEV Credits, or setting the price of a ZEV Credit, in this Agreement. 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 1 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

 AGREEMENT 

NOW THEREFORE, in consideration of the mutual promises contained herein, and for other good and valuable consideration, the sufficiency
of which is hereby acknowledge, Honda and Tesla agree as follows: 
  

	I.	ZEV Credit Generation; Commitment to Sell and Buy ZEV Credits. 

  

	 	A.	Tesla will use reasonable commercial efforts to manufacture, deliver for sale, and place in service Tesla ZEVs in California and the ZEV States. Tesla estimates that it
may produce between five hundred (500) and six hundred fifty (650) Tesla ZEVs. 

  

	 	B.	Tesla agrees to offer to sell and transfer to Honda all ZEV Credits, including all associated rights and benefits, that Tesla earns from delivering for sale and/or
placing info service Tesla ZEVs in California or any ZEV State during the period from January 1, 2009 through June 30, 2010, and Honda agrees to buy all ZEV Credits that Tesla may earn and receive associated with the delivery for sale and
placement into service of at least 650 Tesla ZEVs in California or a ZEV State during the period set forth below; such credits shall be bought/sold on the terms set forth in this Agreement. (The Parties agree that Honda does not owe any money for,
and is not required to purchase, credits granted by one ZEV state, other than California, for the delivery for sale and/or placement into service of a Tesla ZEV in another ZEV state.) 

After Honda purchases all ZEV Credits that Tesla earns and received associated with the delivery for sale and placement into service of
650 Tesla ZEVs in California or a ZEV State, Tesla must continue to offer Honda the opportunity to purchase any further ZEV Credit earned by Tesla from delivering for sale and/or placing into service a Tesla ZEV in California or any ZEV State during
the period set forth above (the “Right of First Refusal”), and should Honda accept such offer, Tesla must sell and transfer such credits to Honda. In order to facilitate the Right of First Refusal, within one month of the complete
execution of this Agreement, Tesla shall begin providing Honda with a non-binding informal estimate updated monthly, of the number of Tesla ZEVs it believes it will deliver for sale and/or place into service in California or a ZEV State during the
ensuing three calendar months. Once Honda has been invoiced for all ZEV Credits associated with the delivery for sale and placement into service of 550 Tesla ZEVs and, for the first time, a subsequent rolling three month forecast indicates that
Tesla is likely to deliver for sale and place into service a cumulative total of 650 Tesla ZEVs in California or a ZEV State, the Parties shall undertake the following process: 

 

	 	(i)	First Quarterly Forecast. Tesla will give to Honda a forecast of the number of Tesla ZEVs that it expects to deliver for sale or place into service in the
calendar quarter immediately following the date in which it first forecast it will have sold and placed into service a cumulative total of 650 Tesla ZEVs in California or a ZEV State. 

 

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 2 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

	 	(ii)	Honda Decision. Within two weeks following receipt of the forecast referenced in subparagraph (i), Honda will indicate in writing whether it plans to
(a) purchase the ZEV Credits that Tesla may earn and receive associated with the delivery for sale and placement into service of Tesla ZEVs in California or a ZEV State during the forecast period; or (b) decline to purchase the ZEV Credits
that Tesla may earn and receive in the forecast period. 

  

	 	(iii)	Purchase Obligation Or Termination. In the event that Honda confirms its desire to purchase the ZEV Credits that Tesla may earn and receive during the forecast
period, then Honda will have an obligation to purchase such ZEV Credits. In the event that Honda declines to purchase the ZEV Credits, then this Agreement shall terminate, subject to the survival provisions in Section IV.A, below.

  

	 	(iv)	Second Quarterly Forecast and Process. The foregoing process will be repeated for the ZEV Credits that Tesla may earn and receive associated with the delivery
for sale and placement into service of Tesla ZEVs in California or a ZEV State during the calendar quarter following the period covered in the First Quarterly Forecast (subparagraph (i), above). Specifically, one month prior to the start of the
period to be covered by the Second Quarterly Forecast, Tesla will provide the Second Quarterly Forecast to Honda, and Honda will indicate in writing within two weeks of receipt of the Second Quarterly Forecast whether it plans to (a) purchase
the ZEV Credits that Tesla may earn and receive associated with the delivery for sale and placement into service of Tesla ZEVs in California or a ZEV State during the forecast period; or (b) decline to purchase the ZEV Credits that Tesla may
earn and receive in the forecast period. In the event that Honda confirms its desire to purchase the ZEV Credits that Tesla may earn and receive during the forecast period, then Honda will have an obligation to purchase such ZEV credits. In the
event that Honda declines to purchase the ZEV Credits, then this Agreement shall terminate (assuming it has not already expired), subject to the survival provisions in Section IV.A, below. 

In return for the transfer to Honda of all ZEV Credits Tesla earns and receives associated with the delivery and
placement into service of a Tesla ZEV in California or a ZEV State, Honda will pay Tesla $[***] for each Tesla ZEV sold or placed into service in California or a ZEV
State.2 Honda, however, is not obligated to purchase more
than the ZEV Credits that Tesla earns and receives associated with the delivery for sale and placement into service of 650 Tesla ZEVs in California or a ZEV State. 
  

 

	2
	 It is the Parties’ understanding that for each Tesla ZEV delivered for sale and placed into service in California or a ZEV State, Tesla will earn
[***] ZEV Credits. Based on that understanding, the price for each ZEV Credit that Tesla could earn and receive for the delivery for sale and placement into service of a Tesla ZEV in California or a ZEV State is $[***]. 

 

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 3 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

	 	C.	Tesla represents and warrants to Honda that (1) Tesla has full rights to the ZEV Credits to be sold and transferred to Honda hereunder, except to the extent that
such Credits are subject to any general liens on Tesla assets granted by Tesla to creditors in the normal course of business, (2) Tesla will not transfer, assign or sell any ZEV Credit generated by the delivery and/or placement of a Tesla ZEV
in California or any ZEV state during the period from January 1, 2009 through June 30, 2010 to any other party unless, once Honda has purchased all ZEV Credits that Tesla earns and receives associated with the delivery and placement to
service of 650 Tesla ZEVs in California or a ZEV State, Honda does not exercise its Right of First Refusal for any further credit, and (3) upon transfer of any ZEV Credit to Honda, Honda will own such ZEV Credit free and clear of all liens or
encumbrances of any kind or any other interests of any third party. Tesla further represents and warrants to Honda that Tesla has the full power, authority and rights to enter into this Agreement and to sell and transfer all ZEV credits contemplated
to be sold to Honda pursuant to this Agreement. 

  

	 	D.	Each party represents and warrants to the other Party that the execution and delivery of this Agreement by such Party and the performance by such Party of its
obligations hereunder have been duly and validly authorized and approved by all necessary corporate action. 

  

	II.	Transfer of ZEV Credits. 

The transfer of ZEV Credits from Tesla to Honda and Honda’s payment for such ZEV Credits shall be performed in accordance with the
process described in Exhibit B, attached hereto. 
  

	III.	Confidentiality; Publicity. 

  

	 	A.	The Parties agree that the terms of this Agreement, as well as all information submitted under a grant of confidentiality (whether express, implied, or pursuant to
statute or regulation) to ARB or any ZEV Agency pursuant to the terms of this Agreement, will remain confidential and will not be disclosed by either Party except only (1) to their respective employees, contractors, professional advisors and
consultants on a need-to-know basis; (2) to their prospective investors under appropriate non-disclosure agreements; (3) to the extent necessary to resolve disputes between the Parties, but only under a protective order protecting
confidentiality; (4) if required by law, regulation, or legal order if the disclosing Party uses reasonable efforts to have the recipient treat it as confidential and takes reasonable steps to give the other Party prior notice sufficient to
allow the other Party to contest disclosure; (5) to the SEC, if requested pursuant to regulations adopted under the Securities Act of 1933; and (6) as otherwise may be agreed in writing by the Parties; 

 

	 	B.	Tesla will use reasonable efforts to keep any information related to this Agreement that is submitted to ARB or any ZEV Agency confidential, and will designate its
submittals as confidential trade secrets of Tesla. The Parties acknowledge that, although ZEV Credit information meets the definition of “trade secret” in California Government Code section 6254.7(d), there can be no guarantee that
ARB or any ZEV Agency will keep the ZEV Credit information confidential. 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 4 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

	 	C.	The Parties will jointly coordinate any press conference, press release, public statement or any other publicity, if any, about this Agreement or its subject matter,
including without limitation, the existence or contents of this Agreement, and any such communication must be mutually agreed upon in writing by the Parties. 

 

	IV.	Other Terms 

  

	 	A.	Expiration and Termination; Survival. This Agreement will expire at 11:59 p.m. on December 31, 2009. In addition, this Agreement can be terminated by
either Party by providing written notice to the other Party of (1) a material breach of this Agreement by the other Party, or (2) the other Party’s default in the performance of or compliance with any material term or condition of
this Agreement, if such breach or default is not cured within 10 days of receipt of written notice. In addition, if at any time during the term of this Agreement there is any change in any law or regulation in California or any ZEV State so that
Tesla no longer can transfer ZEV Credits to Honda, this Agreement will automatically be terminated as to ZEV Credits generated in any such state; to the extent that such law or regulation has a retroactive effect to nullify any prior transfer of ZEV
Credits from Tesla to Honda, Tesla shall reimburse Honda all monies paid for such ZEV Credits and shall do so within 10 days of Honda’s written request for reimbursement. 

The provisions of Sections I.B, I.C, III, and IV.B will survive expiration or termination of this Agreement. In addition, the
provisions of Exhibit B to this Agreement will continue to apply to any ZEV Credits earned by Tesla as a result of its delivery for sale, or placing in service, a Tesla ZEV in California or a ZEV State between January 1, 2009 and
June 30, 2010 up to and until the time that the transfer and payment process specified in Exhibit B has been completed by the Parties for such ZEV Credits. 
  

	 	B.	Expenses. Each Party will bear its own expenses incurred in connection with this Agreement. 

 

	 	C.	Governing Law. This Agreement is governed by and is to be construed in accordance with the laws of the State of California and as if entirely performed therein.
The United Nations Convention on the International Sales of Goods does not apply to this Agreement or any of the transactions contemplated by it. 

  

	 	D.	Entire Agreement; Modifications. This Agreement constitutes the entire understanding between the Parties and supersedes and cancels all prior agreements, express
or implied, written or oral, with respect to its subject matter. This Agreement may be modified or extended, but only by a written agreement executed by the Parties. 

 

	 	E.	 Notices. Except for notices provided pursuant to Exhibit B, any notices required or permitted hereunder must be given in writing and
forwarded, charges prepaid, 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 5 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

	 	
(1) by certified mail, return receipt requested, (2) by postage prepaid overnight air express mail, or (3) by facsimile, with a confirmation copy dispatched promptly by certified
mail, return receipt requested, or postage prepaid overnight air express mail: 

 If to Honda: 

American Honda Motor Co., Inc. 

Product Regulatory Office 

1919 Torrance Blvd., M.S. 500-2C-10A 

Torrance, California 90501 

Attention: Managing Counsel 

Fax: 310-783-2999 

If to Tesla: 

Tesla Motors, Inc. 

1050 Bing Street 

San Carlos, California 94070 

Attention: Craig W. Harding 

                    Legal Department

 Fax: 650 701 2613 
  

	 	F.	Relationship of the Parties. Nothing contained in this Agreement will be construed to make any Party a partner, joint venturer, fiduciary or agent of the other
Party, nor will either Party have the authority to bind the other Party in any respect. Neither Party will hold itself out as a partner, joint venturer or fiduciary of the other Party in relation to this Agreement. 

 

	 	G.	Counterparts. This Agreement may be executed by each Party in separate counterparts, each of which, when so executed and delivered, will be deemed to be an
original and all counterparts of this Agreement, taken together, will constitute one and the same instrument. 

  

	 	H.	Assignment. Neither Party may assign this Agreement or delegate any duties hereunder without the prior written consent of the other Party; provided, however,
that a Party may assign this Agreement, without such consent, to any person or entity that acquires all or substantially all of such Party’s business or assets related to the performance of this Agreement, or assumes managerial contro1 of such
Party, or succeeds to such Party’s interest in this Agreement by sale, merger, consolidation, reorganization or similar transaction, provided that the assignee agrees to assume the assignor’s obligations hereunder with respect to the
business or assets transferred. 

  

	 	I.	 Dispute Resolution. In the event any disputes, differences or controversies arise between the Parties in connection with this Agreement, the
Parties will explore all possibilities for an amicable settlement. In case an amicable settlement is not reached within 90 days from the date a Party is first notified of the existence of a dispute in accordance with this Agreement, such disputes,
differences or controversies shall be referred to arbitration in San Francisco, California 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 6 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

	 	
conducted by the Judicial Arbitration and Mediation Services/Endispute, Inc. (“JAMS”), or its successors, provided that the arbitrator shall: (1) have the authority to compel
adequate discovery for the resolution of the dispute and to award such relief as would otherwise be permitted by law (but not in excess of, or contrary to, the law); and (2) issue a written arbitration decision including the arbitrator’s
essential findings and conclusions and a statement of the award. 

 The award of such arbitration shall be final
and binding upon the Parties. Each Party waives any right to adjudicate the dispute in any other court or forum, except that a Party may seek to enforce any decision in the arbitration in a court having jurisdiction. The Parties shall share the cost
of such arbitration equally, but the prevailing Party may be entitled to recover reasonable legal expenses from the non-prevailing Party, and such determination shall be in the discretion of the arbitrator. 

 

									
	 American Honda Co., Inc.
	 		 		 	
					
	By:	 	 /s/ Chester Hale
	 		 	 Date:
	 	 02/20/09

					
	 Name:
	 	 Chester Hale
	 		 		 	
					
	 Title:
	 	Executive Vice President, Product Regulatory Office	 		 		 	
				
	 Tesla Motors, Inc.
	 		 		 	
					
	By:	 	 /s/Craig W. Harding
	 		 	Date:	 	 Feb 12, 2009

					
	Name:	 	Craig W. Harding	 		 		 	
					
	Title:	 	General Counsel & Secretary	 		 		 	

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 7 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

					
		  	Attachment A	  	
	

	  	 Zero Emission Vehicle (ZEV) Credit Transfer Form

Complete and Submit to:

Program Manager, ZEV Bank

California Air Resources Board, MSCD/ZEV

P.O. Box 2815, Sacramento, California 95812
	  	 Transfer ID        

ARB Use Only

  

			
	  

Date of Transfer  
	  	  

This document certifies that pursuant to Section 1962, Title 13, California Code of Regulations, an agreement executed between Company A and Company B
on the Date of Transfer contains the following terms of transfer:
  

	  

/         /
	  

 I. TRANSFER OF ZERO-EMISSION VEHICLE
CREDITS FROM TRANSFEROR (A) TO TRANSFEREE (B) 
  

							
	Model Year Earned	 	
Type of Vehicle

(NEV, 0, I, II, IIICA, III177,

ATPZEV, PZEV)
	 	
Number of Credits

(g/mi NMOG)
	 	
Transportation System

Credits (Y/N)

	
1
  
	 	 	 	 	 	 
	
2
  
	 	 	 	 	 	 
	
3
  
	 	 	 	 	 	 
	
4
  
	 	 	 	 	 	 

I declare under penalty of perjury that all information provided herein are true and correct, to the best of my knowledge and belief. 

II. TRANSFEROR (A) 
  

			
	 Account Holder – Company
Name
  
	  	
*Account ID
  

	
Authorized Company Representative Name – First, Middle I., Last (please print)

 
	  	 Phone Number

 

	
Authorized Company Representative Signature (A)

 
	  	 Date

 

 III. TRANSFEREE 

 

			
	 Account Holder – Company
Name
  
	  	
*Account ID
  

	
Authorized Company Representative Name – First, Middle I., Last (please print)

 
	  	 Phone Number

 

	
Authorized Company Representative Signature (B)

 
	  	 Date

 

  

	*	Please refer to Attachment F for ZEV Account Holder Identification codes. If the code for your company is not listed, please contact the ZEV Bank Program Manager.

 FOR ARB USE ONLY: 
  

							
	 Entered By (Please print name and title)

  
	 	Initials    	 	Date Received    	 	Date Recorded    

			
	  STATE OF CALIFORNIA	 	AIR RESOURCES BOARD        
	   ENVIRONMENTAL PROTECTION AGENCY
	 	MSCD/ZEV MAC 2006-03        

 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

 Attachment E continued 

			
		
	

	  	Instructions and Definitions for the ZEV Credit Transfer Form

  

			
	Definitions	  	
		
	 Transferor
	  	Party giving credits.
		
	 Transferee
	  	Party receiving credits.
		
	 Account Holder/

Account ID
	  	Account Holder/Account ID – Company Name and Account Holder Identification from established list maintained by Air Resources Board. See Attachment F. If your company and
Account ID are not listed, please contact the ZEV Bank Program Manager.
		
	 Model Year
	  	Year in which credits were earned by manufacturer.
		
	 Type of Credit
	  	ZEV Tier – Tier type including: NEV, 0, II, IIICA, III177 (Type III indicate California or 177 State). Advanced Technology Partial ZEV (AT PZEV) Partial ZEV
(PZEV)
		
	 Number of Credits
	  	Total number of credits transferring in grams/mile Non-Methane Organic Gas (g/mi NMOG).
		
	 Transportation

System Credits
	  	Credits earned in a Transportation System Project. These credits are only available for ZEVs (non-NEV), ATPZEVs, and PZEVs.
		
	Example	  	

 I. TRANSFER OF ZERO-EMISSION VEHICLE CREDITS FROM TRANSFEROR (A) TO TRANSFEREE (B) 

 

							
	Model Year Earned	 	
Type of Vehicle

(NEV, I, II, IIICA, III177

ATPZEV, PZEV)
	 	
Number of Credits

(g/mi NMOG)
	 	
Transportation System

Credits (Y/N)

	
2002
  
	 	 ZEV

 
	 	 15.3

 
	 	 Y

 

	
2003
  
	 	 ZEV

 
	 	 .39

 
	 	 N

 

	
2002
  
	 	 NEV

 
	 	 3.4

 
	 	 N

 

	
2002
  
	 	 PZEV

 
	 	 6.8

 
	 	 N

 

  

			
	  STATE OF CALIFORNIA	 	AIR RESOURCES BOARD        
	   ENVIRONMENTAL PROTECTION AGENCY
	 	MSCD/ZEV MAC 2006-03        

 

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

 Exhibit B 

ZEV Credit Transfer Process 
  

	I.	General Credit Transfer Process. 

The Parties acknowledge that the ZEV Credits must be transferred via a credit bank set up by ARB. The process is as follows: 

 

	 	•	 	 To the extent not done so already, the Parties each will first apply for a ZEV Credit account and complete an “Application for Zero Emission
Vehicle (ZEV) Account with the ZEV Bank” for the State of California. Each such ZEV Credit account is registered in the appropriate ZEV accounting bank and shall be hereinafter referred to as a “ZEV Bank.”

  

	 	•	 	 The ARB will record Tesla ZEVs and the appropriate number of ZEV Credits in the ZEV Bank. 

 

	 	•	 	 Each transfer of ZEV Credits will be filed by Tesla with the ZEV Bank using California’s “Zero Emission Vehicle (ZEV) Credit Transfer
Form,” attached as Exhibit A, (each, a “ZEV Credit Transfer Form”). 

  

	 	•	 	 Tesla is eligible to receive a certain number of ZEV Credits for each Tesla ZEV produced and delivered for sale pursuant to 13 CCR 1962.1
(d)(5)(C) and the accompanying table as well as the multiplier set forth in 1962.1 (d)(5)(D). 

  

	II.	Initial Payment; Monthly Reporting and Payment. 

  

	 	A.	Initial Payment by Honda. Once Tesla has a minimum of [***] ZEV Credits in Tesla’s ZEV Bank generated by the delivery for sale or placement into service of
Tesla ZEVs, Tesla will send to Honda a copy of a statement(s) issued by ARB related to such ZEV Credits, along with all documents submitted by Tesla to ARB pursuant to MAC 2006-03 (or subsequent ARB guidance) in connection with such ZEV Credits.
Within 10 days thereafter, Honda will pay Tesla an amount equal to $[***] per ZEV Credit. Upon receipt of such payment, Tesla will immediately prepare, sign and deliver to Honda a partially completed ZEV Credit Transfer Form(s) (Tesla will complete
Sections I and II in California) to transfer those ZEV Credits to Honda. Honda will immediately complete the Transfer Form(s) and deliver them to Tesla, which shall then immediately submit the forms to ARB. The Parties will follow the process
set forth in Section II.B for the balance of Tesla’s ZEV Credits subject to the Agreement. 

  

	 	B.	Reporting of ZEVs; Monthly Transfer Reports; Monthly Payments. The ZEV Credit transfer process will be as follows: 

 

	 	•	 	 By or before the
15th day of each month following a month in which Tesla
has earned a ZEV Credit subject to the Agreement, Tesla will determine the number of ZEV Credits recorded in its ZEV Bank(s) and Tesla will prepare, sign and deliver to Honda a partially completed ZEV Credit Transfer Form(s)

  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 10 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

	 	 
(Tesla will complete Sections I and II in California), transferring all such ZEV Credits to Honda. Tesla will simultaneously provide to Honda all documents submitted to ARB pursuant to MAC
2006-03 (or subsequent ARB guidance) that pertain to the ZEV Credits being transferred to Honda per the ZEV Credit Transfer Form(s). 

  

	 	•	 	 Upon receipt from Tesla, Honda will verify and complete Section III and sign the ZEV Credit Transfer Form(s) and deliver such form to Tesla for
submission to ARB. 

  

	 	•	 	 Upon confirmation of each trade with ARB, Tesla will present Honda with an invoice (via email/pdf) for an amount equal to the number of ZEV Credits
transferred by Tesla to Honda multiplied by $[***]. 

  

	 	•	 	 Upon receipt of each invoice, Honda will request confirmation from ARB of the most recent transfers and pay Tesla the amount invoiced. Honda shall pay
each invoice within 10 business days of the date such invoice was presented to Honda. 

  

	 	•	 	 The point of contact for each Party to administer the transfer and payment processes is as follows: 

 

									
		 	 For Tesla:
	  	 Dan Myggen

dmyggen@teslamotors.com
	  		  	
					
		 	 For Honda:
	  	Brian Tinkler	  		  	
		 		  	Brian_Tinkler@ahm.honda.com	  	
					
		 	With a copy to:	  		  		  	
		 		  	Robert Bienenfeld	  		  	
		 		  	Robert_Bienenfeld@ahm.honda.com	  	

  

	 	•	 	 Either Party may change its point(s) of contact by written notice to the other Party. All documents and notices required pursuant to this
Exhibit B will be sent to these points of contact. The points of contact will be responsible for resolving all issues and discrepancies regarding the transfer of and payment for ZEV Credits hereunder. 

 

	 	C.	Final Reconciliation Process. 

Within 30 days following the last transfer of ZEV Credits from Tesla to Honda pursuant to the Agreement, Tesla wil1 invoice Honda for the
final amounts due (if any). Within 30 days following the date of Honda’s receipt of this final invoice, Tesla and Honda will work together to reconcile the final, total number of ZEV Credits invoiced and paid for pursuant to the Agreement
against the actual number of ZEV Credits that Tesla earned and transferred to Honda pursuant to the Agreement to confirm that the amounts paid by Honda were correct. To the extent that Honda either has over- or under-paid for the ZEV Credits
transferred to it by Tesla pursuant to the Agreement, the Party that owes money will pay such money to the other Party within 5 business days of the date of determination. 
  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 11 of 12	 	

 Confidential Treatment Requested by Tesla Motors, Inc. 

 

 In addition, if at any time, whether before or after expiration or termination of the
Agreement, ARB or any ZEV Agency disputes or declines to recognize any ZEV Credit reported by Tesla that was paid for by Honda, the Party that becomes aware of such disallowance will immediately notify the other Party. Tesla and Honda will work
together to reconcile the matter within 90 days. If the Parties do not persuade ARB or the applicable ZEV Agency to validate and recognize the ZEV Credit(s) at issue within this 90-day period, Tesla will refund to Honda the amount Honda paid for
such ZEV Credit(s) within 5 business days after expiration of the 90-day period. 
  

	 	D.	Cooperation. 

 The Parties
will cooperate to ensure that all ZEV Credits arising or resulting from Tesla ZEVs that are the subject of the Agreement are or will be transferred to Honda, subject to the terms and conditions of the Agreement. The Parties agree to take all
actions, including without limitation, executing and delivering upon request any document, and providing all reasonably requested information and documentation to ensure the legal transfer of ZEV Credits as provided under the Agreement 

 

	 	E.	Payment Obligation. 

 In
the event that, at any time, Honda does not pay the agreed-upon fees to Tesla in accordance with the Agreement for ZEV Credits transferred to Honda, Tesla may cease to provide partially completed ZEV Credit transfer Form(s) to Honda as otherwise
required by the Agreement. Once Honda pays any amounts then owing pursuant to the terms of the Agreement, Tesla shall resume providing partially completed ZEV Credit Transfer Form(s) to Honda as required by the Agreement. 

 

	III.	Other ZEV States’ Credit Transfer Process. 

The Parties agree that to the extent other ZEV States have adopted variations of the procedure set forth above, or new procedures which
are not set forth above, then the Parties will comply with the applicable procedures required in such other ZEV States. 
  

	[***]	Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted
portions. 

  

					
		 	Page 12 of 12

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