Tesla impact on sustainability 2023

Tesla impact on sustainability 2023

@environmentconcern
@environmentconcern
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Impact Report
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Contents
Governance Environment Product & Safety People & Community
01 02 03 04
2.1

Displacing…
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Contents
Supply Chain Appendix
05 06
6.1

TCFD
6.2

SASB
6.3

United Nations SDG Alignment
…
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Governance
Impact Report 2023 Impact Report 2023 Governance 4
Governance 
Sustainability is Core…
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Our mission is to accelerate 
the world’s transition to 
sustainable energy
Impact Report 2023 I…
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Governance Overview
Management Involvement
Impact Report 2023 Impact Report 2023 Governance 6
Go…
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Impact Report 2023 7
Board of Directors Overview
Impact Report 2023 Governance 
Board of Directo…
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Impact Report 2023 8
Sustainability Assessment
Final Findings
Impact Report 2023 Governance 
Su…
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Impact Report 2023
9
TCFD Alignment
Impact Report 2023 Governance 
TCFD Alignment 
We have bee…
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Managing Climate Risk
Impact Report 2023 Impact Report 2023 Governance 10
Managing Climate Risk 
…
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Physical Climate Risk 
Assessment
Impact Report 2023 Impact Report 2023 Governance 11
Physical C…
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Human rights are core to 
our mission
Impact Report 2023 Impact Report 2023 Governance 12
Human …
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Cybersecurity and Data Privacy
We build products with privacy and security at their core
Impact R…
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Our Privacy Principles
We build privacy into our products 
from start to finish
We maintain trus…
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Privacy From Day One
Impact Report 2023 Impact Report 2023 Governance 15
Privacy From Day One 
T…
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Engaging the Security 
Community
Impact Report 2023 Impact Report 2023 Governance 16
Engaging th…
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Embedding Security and Privacy
Impact Report 2023 17
Global Privacy Program
Product Security
Th…
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Environment
Impact Report 2023 Impact Report 2023 Environment 18
Environment 
The Future is Elec…
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In 2023, Our Customers Avoided 
Releasing Over 20 Million Metric 
Tons of CO2e into Our Atmospher…
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The More Products We Deliver, 

the Faster We Accelerate Our Mission
Impact Report 2023 20
Elect…
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21
Tesla produced and delivered over 
1.8 million EVs globally in 2023
Impact Report 2023 Impact…
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22
Current Emissions Frameworks Weren’t 
Built for a Company Like Tesla
Impact Report 2023 Impac…
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Impact Report 2023 23
We Make Products That 
Displace Fossil Fuel Alternatives
Maximizing Utiliz…
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24
Air pollution from burning fossil 
fuels leads to premature deaths
Impact Report 2023 Impact …
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Impact Report 2023 25
Each Tesla on the Road Avoids 
About 51 Tons of CO2e
EV Emissions Avoided …
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Impact Report 2023 26
NEDC, WLTP or EPA Testing Cycles 
Do Not Represent Real-World Fuel 

or El…
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Lifecycle Analysis Glossary
27
Model 3/Y*
Personal Use Grid Charged
Personal Use Solar Charged
…
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Average Lifecycle Emissions
Impact Report 2023 28
United States gCO2e/mi* New York gCO2e/mi*
Mod…
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Average Lifecycle Emissions
Impact Report 2023 29
Europe gCO2e/mi* France gCO2e/mi*
Model 3/Y
P…
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Average Lifecycle Emissions
Impact Report 2023 30
China gCO2e/mi* Sichuan Province gCO2e/mi*
Mod…
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31
The carbon impact of ICE vehicles 
remains the same every year of use
U.S. Electricity Grid G…
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32
Greater efficiency than a Prius, 
performance of a Porsche
Model 3
4.2s 125mph
Model Y
4.8…
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33
We Make the Most Efficient 
Electric SUV on the Road 
Impact Report 2023
Model Y
3.8
EV Po…
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34
Electrifying Heavy-Duty Trucks 
is Critical to Our Mission
Impact Report 2023
% of U.S. Vehi…
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Impact Report 2023 35
Our Batteries are Designed for 
200K+ Miles of Driving
Model 3/Y Long Rang…
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36
Unlike ICE vehicles, it is possible to fully decarbonize 
the manufacturing and lifetime use o…
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Decarbonization at Tesla
Impact Report 2023 37
100%
Impact Report 2023 Environment 
Decarboniza…
37/160
Our Data-Driven Approach 
to Measure and Track Our 
Emissions
38
We’re evolving the standard ap…
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Our Data-Driven Approach 
to Measure and Track Our 
Emissions (Cont’d)
39
We advance innovative…
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Powering Our Supercharger 
Network With Renewables
Impact Report 2023 40
We’re powering our vehi…
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Generating More Energy 
Than is Consumed
Impact Report 2023 41
In 2023, Tesla solar owners gener…
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Impact Report 2023 42
Building Sustainability into 
Facility Design
@ Fremont Factory
GA3
Pain…
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Impact Report 2023 43
Natural gas reductions 
across operations
Impact Report 2023 Environment 
…
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Impact Report 2023 44
Increasing Our Operational 
Renewable Electricity Load
Procuring More Rene…
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Impact Report 2023 45
Greening Our Fleet 
and Logistics
~90%
Impact Report 2023 Environment 
G…
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Impact Report 2023 46
Reducing Our Carbon Footprint 
Even Further
Dynamic Controls for Energy Ef…
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Impact Report 2023 47
We Minimize Water Usage 
Throughout Our Operations
Industry Avg 

(Latest…
47/160
Impact Report 2023 48
Setting a New Standard for 
Water Use per Vehicle
Water-Intensive Process …
48/160
Impact Report 2023 49
As We Build More Efficient Factories, 
Our Waste per Vehicle Decreases
161…
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Impact Report 2023 50
Circular Solutions
We are driving circularity across our value chain
90 %
…
50/160
Impact Report 2023 51
Biodiversity
300
Impact Report 2023 Environment 
Biodiversity 
We work t…
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Product & Safety
Impact Report 2023 Impact Report 2023 Product & Safety 52
Product & Safety 
Bet…
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53
We make products 
that people love
Impact Report 2023 Impact Report 2023 Product & Safety 
e…
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54
Model Y is priced Below 
the Average New Vehicle 
in the U.S.
Impact Report 2023
$47,244
A…
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55
Model Y total cost of 
ownership per mile is similar 
to Mass-Market ICE Vehicles
Impact Rep…
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56
Making EVs even 
more affordable
Impact Report 2023
50%
Impact Report 2023 Product & Safety…
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57
People use their Tesla as 
their primary vehicle
13,768
Average Annual Miles Driven
Impact …
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58
Freedom of travel is the 
reason people buy vehicles 
in the first place
Impact Report 2023 …
58/160
Incredibly fast charging times 
for V3 and V4 Superchargers
59
200 miles of range 15 minutes of …
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Average Uptime of Supercharger Sites*
Chargers that just work 
60
99.90% 99.74% 99.96% 99.95% 99…
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We design our vehicles to 
be as safe as possible
All Tesla safety features come standard
Impact…
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Not all active safety systems 
are created equal
62
94%
94%
94%
94%
Superior
98%
98%
Supe…
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63
Exceeding safety standards 
across four continents
Impact Report 2023
Best in Class
Occupan…
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64
Exceeding safety standards 
across four continents (Cont'd)
Impact Report 2023
Model Y
Impa…
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Safety is Enhanced With 
Driver-Assist Technologies
Impact Report 2023 65
5.64
Tesla Vehicles

…
65/160
Safety Score incentivizes 

safe driving
Customers who choose to be part of our Tesla Insurance 
…
66/160
Turning into the path of a 
pedestrian crossing the road
Turning into the path of 
an oncoming v…
67/160
Using new data to improve 
pre-crash safety
68
Injury Studies Moving to Tesla Vision increases p…
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Over-the-Air Software Updates 
Allow for Low-touch Continuous 
Improvement
Impact Report 2023 69…
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Leading the industry in 
fire safety
Impact Report 2023 70
Vehicle Fires per Billion Miles Trave…
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Grid stability is required 
for decarbonization
71
Reported Electrical Disturbances
Impact Repo…
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An entire ecosystem
Impact Report 2023 72
Renewable energy paired with battery storage will 
bec…
72/160
Renewables and energy storage 
Are already cost competitive
73
($/MWh) 0 50 100 150 200 250
Lev…
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Autobidder enhances 
economic return for 
our customers
ERCOT (TX) Energy Storage Projects Annua…
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Tesla Energy products set the 
bar for safety and reliability
Impact Report 2023 Impact Report 20…
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76
Zero Direct Emissions Built-In Safety 24/7 Monitoring 
Exceeds Standards Proactive Fire Contro…
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People & Community
Impact Report 2023 Impact Report 2023 People & Community 77
People & Community…
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preparing the workforce for a 
sustainable energy future 
Impact Report 2023 Impact Report 2023 P…
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79
We are focused on 
developing the best talent
Hiring Events
Impact Report 2023
5.9M 
Impac…
79/160
80
Inspiring the Next Generation 
of Tesla Leaders 
Investments in Education
Impact Report 2023…
80/160
81
Inspiring the Next Generation 
of Tesla Leaders (Cont'd)
Manufacturing Day Robotics
Impact R…
81/160
82
Creating Pathways to Career 
Opportunities in Sustainable Energy 
START (Manufacturing and Se…
82/160
83
Creating Pathways to Career 
Opportunities in Sustainable 
Energy (Cont'd)
Technician Traine…
83/160
84
Creating Pathways to Career 
Opportunities in Sustainable 
Energy (Cont'd)
Internships  Mili…
84/160
2.86 255,950,012 Workplace Injuries in 2022
Workplace Injuries in 2023 2.51 368,650,973
85
We ce…
85/160
86
We listen to our employees
Impact Report 2023
46% 12% 11%
8% 5% 18%
Take Charge Take Charge…
86/160
Impact Report 2023 87
We Empower Our Employees 
to Build the Safest Operations
We actively engag…
87/160
88
Human and Organizational Performance 
(HOP) Principles shape our safety journey
24,195 6,500 …
88/160
89
The safety of our contractors is 

as important as our own employees
Workforce Management
Im…
89/160
90
We track employee 
sentiment annually
Impact Report 2023 Impact Report 2023 People & Communit…
90/160
91
We continue to invest in our 
leaders’ development
Performance Management Engagement: Shout O…
91/160
92
We investigate concerns 
and complaints
64% 3%
31% 2%
Impact Report 2023
Types of Concerns…
92/160
93
Process for investigating allegations 
received through Integrity Line 
Impact Report 2023
A…
93/160
94
we do not tolerate harassment 
or discrimination 
Impact Report 2023
Nearly 100% of Tesla em…
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95
Innovation Through 
Constructive Conflict
Impact Report 2023 Impact Report 2023 People & Comm…
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96
Nearly Two-Thirds of Our 
People Leaders Come From 
Internal Promotions
Impact Report 2023
…
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Impact Report 2023 97
Our programs support 
employee wellbeing holistically
Impact Report 2023 P…
97/160
98
We Offer Competitive Pay and Benefits
Family Services 16 Weeks of Paid 
Family Leave
Rethink…
98/160
99
Employee Stock Purchase 
Plan (ESPP)
Impact Report 2023 Impact Report 2023 People & Community…
99/160
Impact Report 2023 100
Our Pay Equity Program
Impact Report 2023 People & Community 
Our Pay Equ…
100/160
101
Community Engagement
Supporting the Communities We Work In 
Impact Report 2023
Tesla Impact…
101/160
Impact Report 2023 102
Maui Puerto Rico Mississippi
Florida Australia
Disaster Relief
Impact Re…
102/160
Supply Chain
Impact Report 2023 Impact Report 2023 Supply Chain 103
Supply Chain 
Accelerating S…
103/160
EV Supply Chains Present More 
Opportunities for Positive Impact 
than ICE Vehicle Supply Chains
…
104/160
105
Tesla EV Supply Chain
We leverage our market power to make mining and refining better 


We …
105/160
106
Priority Engagement Areas 
and Materials
Impact Report 2023
Priority Engagement Areas
Prio…
106/160
345
107
More Primary Data Than 
Ever to Inform Supply Chain 
Decarbonization
Impact Report 202…
107/160
108
In the Battery Supply Chain: 
Reducing Emissions Through 
Supplier Engagement
Impact Report…
108/160
109
Building on the World’s First 
Battery Passport
Impact Report 2023
Cybertruck 4680 
RSTE22…
109/160
110
We Optimize the Recyclability 
of Battery Materials In-House
Impact Report 2023
Collection
…
110/160
111
Battery Recycling:

2023 Key Achievements
Impact Report 2023
2,431
2023 Grand Total Recove…
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112
Battery Recycling:

Key 2023 Achievements
Impact Report 2023
Wet shredded cell material at …
112/160
113
Combatting Forced Labor 
in Our Supply Chain
Impact Report 2023
Our Process:
Impact Report…
113/160
114
Combatting Forced Labor 
in Our Supply Chain: 

2023 Key Achievements 
Impact Report 2023
…
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115
Combatting Forced Labor 
in Our Supply Chain: 

2023 Case Studies
Impact Report 2023
Inter…
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116
Combatting Forced Labor 
in Our Supply Chain: 

2023 Case Studies
Impact Report 2023
Inter…
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117
New Levels of Transparency 
for Child Labor-Free Cobalt
Impact Report 2023
At large-scale m…
117/160
118
New Levels of Transparency 
for Child Labor-Free Cobalt
Impact Report 2023
In artisanal min…
118/160
119
Cobalt: Risk Identification 
and Mitigation Summary
Impact Report 2023
>55%
Risk Identific…
119/160
120
Nickel: Reducing the Environmental 
and Social Impacts in Indonesia
Impact Report 2023
Tesl…
120/160
121
Nickel: Reducing the Environmental 
and Social Impacts in Indonesia 
Impact Report 2023
GHG…
121/160
122
Nickel: Risk Identification 
and Mitigation Summary 
Impact Report 2023
Risk Identification…
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123
Innovations in Lithium Sourcing 
Impact Report 2023
Plant Design 
Community Engagement 
Te…
123/160
124
Across Our Lithium Supply Chain 
Impact Report 2023
5
Tesla staff during a visit to a lithi…
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125
Lithium: Risk Identification Summary
Impact Report 2023
>75%
Risk Identification
L 100% of…
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126
Lithium: Risk Mitigation Summary
Impact Report 2023
Examples of Risk Mitigation Actions Comp…
126/160
127
Aluminum: Pushing for the Industry to 
Respect Rights and Lower Emissions  
Impact Report 20…
127/160
128
Ferrous Metals (Steel and Iron): 

Risk Identification and Mitigation Summary 
Impact Report…
128/160
129
3TG (Tin, Tantalum, Tungsten and Gold): 
Risk Identification and Mitigation Summary 
Impact …
129/160
130
3TG: 

2023 Key Achievements 
Impact Report 2023
Robust Requirements 
Stakeholder Engageme…
130/160
131
Tesla Tech for Good: 

A Case Study in Applying Technology 
to Remedy Harm Associated With 
…
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132
Proactive Supplier 
Engagement & Risk Analysis 
Impact Report 2023
Global Standard 
Respon…
132/160
133
Supplier Self-Assessment 
Questionnaire (SAQ) 
Impact Report 2023 Impact Report 2023 Supply …
133/160
134
Supplier Self-Assessment 
Questionnaire (SAQ)
Impact Report 2023
2022 
68%
984 
1.5 mill…
134/160
135
Grievance Mechanisms 
Impact Report 2023
Grievance Channel  Number of Concerns Related to Re…
135/160
136
Grievance Mechanisms 
Impact Report 2023
Supply Chain  Category of Concern   Process to Addr…
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137
Sourcing for Social Impact 
Impact Report 2023
Programs 
External Stakeholder Engagement 
…
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138
Sourcing for Social Impact 
Impact Report 2023
$1.4B 32% 45%
Impact Report 2023 Supply Chai…
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139
Corporate Social 
Responsibility Audits
Impact Report 2023
Initial Audits 
Closure Audits …
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140
Corporate Social 
Responsibility Audits
Impact Report 2023
Risk Component  Weighting Audits…
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Appendix
Impact Report 2023 Impact Report 2023 Appendix 141
Appendix 
Supporting Materials 
TCF…
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Impact Report 2023 142
Topic
TCFD
Accounting Metric Response
Impact Report 2023 
TCFD 
Topic …
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Impact Report 2023 143
SASB
Topic Accounting Metric Response
Impact Report 2023 Appendix 
SASB …
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Impact Report 2023 144
United Nations SDG Alignment
Impact Report 2023 Appendix 
United Nations …
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Impact Report 2023 145
UN SDGs Focus Areas
Reduced Inequalities
Sustainable Cities and 
Communi…
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Impact Report 2023 146
Key Metrics Scope 1 and Scope 2 GHG Emissions (mtCO2e)
2021 GHG Emissions …
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Impact Report 2023 147
Scope 3 GHG Emissions (mtCO2e)
Scope 3 Categories 2023 GHG Emissions (mtCO…
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Impact Report 2023 148
Key Metrics
Uptime of Tesla Supercharger Sites
Uptime of Supercharger Sit…
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Impact Report 2023 149
Average Lifecycle Emissions
United States (g CO2e/mi)
Model 3/Y

(Standa…
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Impact Report 2023 150
Awards and Certifications
EHS Awards Certifications
Impact Report 2023 Ap…
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Impact Report 2023 151
Diversity EEO-1 Table
Total Male Female
Service Workers 100%
Laborers & …
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Report of Independent Accountants
Impact Report 2023 Impact Report 2023 Management Assertion 152
…
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Management Assertion

Scope 1 & 2 GHG Emissions
Overview Organizational Boundary
Impact Rep…
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Management Assertion

Scope 1 & 2 GHG Emissions
Impact Report 2023
Site Type Site Activitie…
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GHG Emissions Disclosure
1 
Impact Report 2023
2 3
Management Assertion

Scope 1 & 2 GHG …
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Impact Report 2023 156
GHG Emissions Disclosure
4
Management Assertion

Scope 1 & 2 GHG Emissio…
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Impact Report 2023 157
GHG Emissions Disclosure
Management Assertion

Scope 1 & 2 GHG Emissions
…
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Impact Report 2023 157
GHG Emissions Disclosure
5
Management Assertion

Scope 1 & 2 GHG Emissio…
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Impact Report 2023 158
GHG Emissions Disclosure
Management Assertion

Scope 1 & 2 GHG Emissions
…
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Impact Report 2023 159
Feedback on 
This Report
Impact Report 2023 Feedback 
Feedback on 
This…
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Tesla impact on sustainability 2023

  • 1. Impact Report
  • 2. Contents Governance Environment Product & Safety People & Community 01 02 03 04 2.1 Displacing Fossil Fuels 1.1 Our Mission 4.1 Preparing the Workforce for a Sustainable Energy Future 3.1 Making EVs Affordable 2.2 Carbon Impact of Our Products 1.2 Overview 3.2 Freedom to Travel 2.3 Carbon Impact of Our Operations 1.3 Materiality and TCFD Alignment 2.4 Water, Circularity and Biodiversity 1.4 Privacy and Security 4.2 Centering Safety and Engagement 4.3 Developing Our Leaders Internally 4.4 Social Impact 3.3 Maximizing Safety 3.4 Building the Grid of the Future
  • 3. Contents Supply Chain Appendix 05 06 6.1 TCFD 6.2 SASB 6.3 United Nations SDG Alignment 6.4 Key Metrics 5.1 Supply Chain Decarbonization 6.5 Management Assertion 5.2 Recycling 5.3 Responsible Sourcing of Battery Materials 5.4 Responsible Sourcing of Other Priority Materials 5.5 Tools Contents 05 Supply Chain 5.1 Supply Chain Decarbonization 5.2 Recycling 5.3 Responsible Sourcing of Battery Materials 5.4 Responsible Sourcing of Other Priority Materials 5.5 Tools 103 107 110 113 127 131 06 Appendix 6.1 TCFD 6.2 SASB 6.3 United Nations SDG Alignment 6.4 Key Metrics 6.5 Management Assertion 141 142 143 144 146 152
  • 4. Governance Impact Report 2023 Impact Report 2023 Governance 4 Governance Sustainability is Core to Our Mission Our Mission Overview Assessments Privacy and Security 4 05 06 08 13
  • 5. Our mission is to accelerate the world’s transition to sustainable energy Impact Report 2023 Impact Report 2023 Governance 5 ur mission is to accelerate the world's transition to sustainable energy Since Tesla's inception, our goals have centered on the opportunities presented by the sustainable energy transition. We have developed a clean energy ecosystem that addresses the energy generation, energy storage and transportation sectors. Through our zero direct emission electric vehicles and energy products, we are accelerating the world's transition to sustainable energy. 5
  • 6. Governance Overview Management Involvement Impact Report 2023 Impact Report 2023 Governance 6 Governance Overview Management Involvement At Tesla, sustainability is everyone's job. Our Sustainability and Impact team, in collaboration with leaders from across the company, ensures the collection, preparation and analysis of data for content within this report. Material issues and themes related to sustainability are presented to Tesla's Board of Directors (BoD) for review. For more information on Tesla's corporate governance, refer to our 2024 Proxy Statement. 6
  • 7. Impact Report 2023 7 Board of Directors Overview Impact Report 2023 Governance Board of Directors Overview The BoD serves as a prudent fiduciary for shareholders and oversees Tesla's mission, purpose and strategy, as well as the effectiveness of our impact priorities, initiatives and programs. With those responsibilities in mind, the Board sets the highest standards for ethical behavior, corporate citizenship and corporate governance. The BoD oversees risks related to environmental, social and governance (11ESG") issues, both at the full-board and committee levels. In particular, our Audit Committee oversees ESG risks as part of overall Enterprise Risk Management, including, among others, risks relating to climate, data privacy, cybersecurity, human rights and supply chain issues. The Audit Committee also oversees our Impact Report and, as deemed appropriate, other ESG-related disclosures. Our Compensation Committee oversees human capital management, employee engagement and relations and our compensation philosophy and programs designed to align compensation to the performance of our company and success of our mission to accelerate the world's transition to sustainable energy. Our Nominating and Corporate Governance Committee oversees our governance framework and practices, board composition and diversity and engagement on ESG issues with shareholders. Our BoD continuously evaluates its composition, seeking to ensure the right mix of skills, experience, background and diversity to ensure the exceptional leadership necessary to fulfill our mission. We periodically add new, highly qualified independent directors to the BoD, such as Larry Ellison and Kathleen Wilson-Thompson in 2018, Hiromichi Mizuno in 2020, Joe Gebbia in 2022 and JB Straubel in 2023. 7
  • 8. Impact Report 2023 8 Sustainability Assessment Final Findings Impact Report 2023 Governance Sustainability Assessment In 2023, we conducted a sustainability assessment to determine areas material to the business and salient to society and the environment. This assessment resulted in the identification of 20 focus areas listed in the chart on this page. We started by surveying key global stakeholders, asking them to quantify the impact of certain topics on Tesla. Where appropriate, this was followed up with indepth interviews with participants to contextualize quantitative scores. Throughout the process, we partnered with a thirdparty expert. We will continue to evaluate the saliency of these risks and opportunities periodically to inform our overall strategy. Note: the following focus areas are ranked relative to each other and not relative to overall importance. We also recognize this as a snapshot in time. As we continue to grow and the world changes, the degree of impact could naturally shift. Final Findings - Our Employees 3 "C 0,) 0 ,_.. 0 :::J -I ~ CD m :::J < -· ., 0 ::J 3 CD ::J ,_.. QC> (J) 0 0 (t) -· ,_.. < Air Quality & • Reducing Toxic Emissions • Water Use & Management • Inclusive Energy Transition • Biodiversity • Responsible Al • Business Ethics & Anti-Corruption • Grievance Mechanisms & Access to Remedy - Our Supply Chain - Our Environment Our Governance • Child Labor & Forced Labor • Occupational Health & Safety • Waste Management & Recycling, Circularity • Renewable Energy & Energy Efficiency • Responsible Data & Cybersecurity • Employee Engagement • External Stakeholder Engagement Impact on The Business • Climate Change & Risk Management • Responsible Sourcing Talent Management & • Employee Wellbeing • Respectful Workplace & Equal Opportunities Product Quality & Safety Government Relations Policy 8
  • 9. Impact Report 2023 9 TCFD Alignment Impact Report 2023 Governance TCFD Alignment We have been aligning this report with Task Force on Climate-Related Financial Disclosures (TCFD) since 2022. While the focus of this report is to communicate the substantial positive impact Tesla is having on the world, we understand the importance of discussing both the opportunities and risks presented by a changing climate. Our dedicated governance strategy allows Tesla to assess, manage and act on its own climate-related risks. This strategy is based on recommendations from the TCFD. 9
  • 10. Managing Climate Risk Impact Report 2023 Impact Report 2023 Governance 10 Managing Climate Risk The Sustainability and Impact team works with executives from across Tesla to make decisions affecting the business with consideration to our climate change strategy. The Vice President of Environmental, Health, Safety and Security (EHS&S) leads these interactions and is responsible for our GHG emissions strategy, its implementation and TCFD alignment. The Sustainability and Impact team at Tesla reports directly to the VP of EHS&S and meets regularly with stakeholders from Engineering and Design, Finance, Investor Relations, Legal, Policy, Supply Chain, among others to present megatrends and climate change updates. The VP of EHS&S reports events directly to the BoD. Tesla conducts an annual Enterprise Risk Assessment (ERA) that integrates ESG-related risks by engaging in interviews and surveys with members of management across the organization, including key stakeholders in sustainability. Through this exercise, climate-related risks would be flagged to the relevant leadership team for management. Beginning with Gigafactory Berlin-Brandenburg and Gigafactory Texas in 2021, we initiated site-specific reviews to identify physical climate-related risks that were then addressed during the design process of those factories. In 2022, this was followed by a systematic assessment of our entire manufacturing portfolio and any new locations. Today, we continue to ensure that our current and future sites are prepared for the potential physical impacts of climate change by integrating assessments into considerations for site design and future expansion plans. Using the results from these analyses, Tesla is actively working to harden our current and planned manufacturing portfolio against medium and long-term climate impacts. Over time, we will begin to evaluate other assets such as our Sales, Service and Delivery network as well as our charging infrastructure and other relevant assets. As regulations around GHG emissions management evolve, we may need to make further capital investments that are different from or accelerated relative to existing plans, which may impact profitability. Policy changes may impact certain practices or infrastructure, potentially reducing installed capacity because the technology used-such as with die casting or the paint shop-cannot be fully decarbonized. 10
  • 11. Physical Climate Risk Assessment Impact Report 2023 Impact Report 2023 Governance 11 Physical Climate Risk Assessment Tesla performs physical climate risk assessments for our manufacturing and support locations, including for any new manufacturing sites. We assessed these sites using the following scenarios, which incorporate the science from the latest IPCC report: Business as usual, Emissions peak in 2040 and Parisaligned-a combined approach using the latest Shared Socioeconomic Pathways (SSPs) and the Representative Concentration Pathways (RCPs). This includes physical risks related to combined physical risk, flooding, wind risk, heat stress, wildfire, precipitation risk and drought. We assess these hazards against the three scenarios across short- (2025), medium- (2030) and long-term (2050) time horizons. Given the low likelihood of reaching a Paris-aligned scenario, we report results on business as usual and emissions peaking in 2040. In the short term, drought poses the biggest risk to our manufacturing portfolio and, in the long term, heat stress will become the more severe climate hazard. 11
  • 12. Human rights are core to our mission Impact Report 2023 Impact Report 2023 Governance 12 Human Rights Are Core to Our Mission The ethical treatment of all people and regard for human rights is core to our mission of accelerating a sustainable future. Our Global Human Rights Policy is the formalization of our commitment to uphold, respect and embed human rights and the values they represent throughout our business. We endorse and base our definition of human rights on the United Nation's Universal Declaration for Human Rights (UDHR). The UDHR focuses on dignity, respect and equality, without discrimination, for all people. We also utilize the United Nation's Guiding Principles on Business and Human Rights (UNGPs) and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. We are committed to upholding and respecting all internationally recognized human rights throughout our direct operations and supply chain-including with respect to our employees, customers, shareholders, suppliers and the communities in which we live and operate. Tesla's Global Human Rights Policy outlines the company's salient human rights issues. We seek to avoid causing or contributing to actual or potentially adverse human rights impacts, and we expect our suppliers to support and promote these values in their own operations and those of their suppliers. To learn more about our efforts in our supply chain, see pages 113-131. Assessing and addressing human rights risks is an ongoing effort that involves engaging with and incorporating input from external stakeholders, including those impacted by our operations and our supply chain, as well as reviewing and updating our policies and procedures where necessary. We seek to remedy adverse impacts, track and measure our progress and report our findings in our disclosures where appropriate. 12
  • 13. Cybersecurity and Data Privacy We build products with privacy and security at their core Impact Report 2023 Impact Report 2023 Governance 13 Cybersecurity and Data Privacy We build products with privacy and security at their core Our privacy-first policies ensure personal data is in customers' hands, letting them decide what information they want to share and when. We believe that responsible data management and transparency is a prerequisite for continuous innovation. Read more about our company-wide approach in our Privacy Overview. Data privacy is a shared responsibility that every employee and Board member is expected to uphold. Tesla has a large and diverse team of privacy and security professionals across our legal, engineering and product organizations who are dedicated to protecting customer data. Additionally, the Audit Committee of the Tesla BoD is regularly briefed on incidents, emerging trends, controls and corrective actions taken by Tesla to ensure we are living up to our obligations and Privacy Principles. 13
  • 14. Our Privacy Principles We build privacy into our products from start to finish We maintain trust through transparency We always give customers choices about their data We safeguard personal data Impact Report 2023 Impact Report 2023 Governance 14 Our Privacy Principles m --- We build privacy into our products from start to finish We ensure privacy across all our products and services, from inception to roll out and beyond. We maintain trust through transparency We are clear about the personal data we collect and how we use or share it. We always give customers choices about their data We put individuals in control by giving them clear and transparent ways to access, review, manage and delete their data. We safeguard personal data We implement rigorous controls and standards designed to protect the security, confidentiality and integrity of Tesla's data environment. 14
  • 15. Privacy From Day One Impact Report 2023 Impact Report 2023 Governance 15 Privacy From Day One Tesla's Privacy Principles and commitments are illustrated throughout all our products. For Tesla vehicles, customers' personal data is protected from the moment they take delivery, ensuring that by default the vehicle data generated when driving is not associated with their account or vehicle identification number. We put customers in the driver's seat when it comes to data sharing by providing a dedicated in-vehicle menu to adjust preferences at any time. Additionally, energy products are designed to protect customer privacy. We aim to collect as little personal data as is required to provide an engaging in-app energy experience. To maximize transparency, Tesla has developed a seamless way for customers to download and access their energy and vehicle data at any time directly from the Tesla app. 15
  • 16. Engaging the Security Community Impact Report 2023 Impact Report 2023 Governance 16 Engaging the Security Community We are also focused on ensuring that our vehicles are the most secure on the road. Our team of world-class engineers continuously improve our systems to ensure they are always as secure as possible. And while some of the best security engineers work at Tesla, we believe that in order to design and build inherently secure systems, we must work closely with the security research community and learn from their collective expertise and diversity of thought. 16
  • 17. Embedding Security and Privacy Impact Report 2023 17 Global Privacy Program Product Security Third-Party Risk Management Infrastructure Security Impact Report 2023 Governance Embedding Security and Privacy To uphold rigorous standards regarding the security, confidentiality and integrity of customer and employee data, Tesla maintains a global privacy program as well as an information security program {based on the industryrecognized ISO 27001 framework), which includes written policies, processes and standards designed to protect and secure Tesla's data environment. Tesla maintains a current 1S0/IEC 27001 certification that sets user security standards, for which we undergo yearly audits. We evaluate the health and effectiveness of our information security and privacy program through ongoing assessments, monitoring and testing. Global Privacy Program Guides product development and business practices across Tesla to ensure regulatory compliance by maintaining effective and standardized controls across vehicle and energy products as well as insurance and financial services Product Security A comprehensive approach to managing product vulnerabilities including conducting design and code reviews, building defense in depth protections, testing, maintaining security policies, monitoring, partnering with external security researchers and financially rewarding people outside the company who find and report vulnerabilities Third-Party Risk Management Identify, mitigate and monitor risks from third parties such as vendors, suppliers and other business partners, including those in our supply chain who may require certain Tesla data to conduct operations Infrastructure Security Prevention, detection and response to IT outages, security incidents or acts of nature to provide availability of underlying critical services and continuity of operations 17
  • 18. Environment Impact Report 2023 Impact Report 2023 Environment 18 Environment The Future is Electric Displacing Fossil Fuels Carbon Impact of Our Products Carbon Impact of Our Operations Water, Circularity and Biodiversity 18 19 27 36 47
  • 19. In 2023, Our Customers Avoided Releasing Over 20 Million Metric Tons of CO2e into Our Atmosphere Impact Report 2023 Impact Report 2023 Environment 19 In , Releasing ur ustomers Avoided ver Tonso 2e into In 2023, the global fleet of Tesla vehicles, energy storage and solar panels enabled our customers to avoid emitting over 20 million metric tons of C02e. That's equal to about 51 billion miles of driving an internal combustion engine (ICE) vehicle. illion etric ur Atmosphere 19
  • 20. The More Products We Deliver, 
 the Faster We Accelerate Our Mission Impact Report 2023 20 Electric Vehicles Produced Tesla VW Group BYD Hyundai Motor R-N-M Alliance Stellantis BMW Group GAC GM Geely Auto Group SAIC Impact Report 2023 Environment The More Products We Deliver, the Faster We Accelerate Our Mission Electric Vehicles Produced 2018 2019 2020 e 2021 e 2022 e 2023 Tesla BYD = VW Group GAC Hyundai Motor iGM = BMW Group = Geely Auto Group iR-N-M Alliance = SAIC Stellantis 0 400,000 800,000 1,200,000 Source: EV-volumes.com; microcars not included. Tesla data are production volumes; other OEMs' sales and delivery volumes are assumed to approximate their production for the year. 1,600,000 20 2,000,000
  • 21. 21 Tesla produced and delivered over 1.8 million EVs globally in 2023 Impact Report 2023 Impact Report 2023 Environment Tesla Produced and Delivered Over 1.8 Million EVs Globally in 2023 Although we are focused on our own deliveries, electric vehicle (EV) sales by all automakers need to increase. We hope that every vehicle manufacturer will strive to produce hundreds of thousands of EVs per year, as significant reductions in emissions will only be achieved with an industry-wide shift. Emissions credit revenue is used for EV capacity expansion, which in turn displaces internal combustion engine (ICE) vehicles. In 2023, we generated almost $1.8 billion in revenue selling zero-emission regulatory credits to other OEMs. While it is common practice today for ICE vehicle OEMs to purchase regulatory credits from other companies (such as Tesla) to offset their emissions, it is not a sustainable strategy. In order to meet increasingly strict regulatory requirements across the world, OEMs will be forced to develop truly competitive EVs. To support our mission, we are making it as easy as possible for drivers to own and charge an EV. We opened our charging connector design to the world in 2022 and opened our Supercharger network in North America to more EVs starting in 2024. We are also sharing charge port technology with other OEMs to assist the transition of their vehicle designs to be compatible with the North American Charging Standard (NACS). This follows the opening of our network in other regions, including Europe and China. 21
  • 22. 22 Current Emissions Frameworks Weren’t Built for a Company Like Tesla Impact Report 2023 Impact Report 2023 Environment Current Emissions Frameworks Weren't Built for a Company Like Tesla We continue to drive the reduction of greenhouse gas emissions (GHG) from energy and transport through use of our products by our customers-this will continue to be the most impactful thing we can do to achieve our mission. The popular frameworks for measuring and reducing GHG emissions continue to not recognize this impact. They were written by and developed for well-established companies with polluting products. These frameworks do not account for the impact of emissions that are avoided through the sale of zero direct emission products (referred to in this report as "avoided emissions"). As we continue to grow, Tesla will need to build many more factories to support production of our products. Each one of these products will avoid many tons of C02e throughout its life. Even as Tesla constructs more efficient factories with maximum renewable energy utilization, there will undoubtedly be incremental emissions from our growing factory footprints in the near term as we work to decarbonize all industrial processes and supply chain inputs. There is a lot of work left to do to build a GHG-accounting system that holds polluters accountable and highlights the work being done by companies to build zero direct emission products and achieve the goal of decarbonizing the economy. 22
  • 23. Impact Report 2023 23 We Make Products That Displace Fossil Fuel Alternatives Maximizing Utilization Through Software Impact Report 2023 Environment We Make Products That Displace Fossil Fuel Alternatives We design and manufacture a fully integrated ecosystem for energy and transportation. Our products work together to maximize their impact. ) Solar Energy Storage Autobidder Battery Cells Charging Maximizing Utilization Through Software 23 Electric Vehicles Robotaxi 1 /' I I - Full Self-Driving
  • 24. 24 Air pollution from burning fossil fuels leads to premature deaths Impact Report 2023 Impact Report 2023 Environment Air Pollution From Burning Fossil Fuels Leads to Premature Deaths Pollution from burning fossil fuels leads to eight million premature deaths globally each year-that accounts for one-in-five premature deaths worldwide. Our products are not just about the future of our planet, but also about addressing preventable deaths today. This is a major advantage of zero direct emission products that is often forgotten. • • Air Quality • Good Moderate • Unhealthy (For sensitive groups) • Unhealthy • Very Unhealthy • • • • • • • • • • • • • • • • • • • • • •• •• • • •• • • • • • • •• • • • • • • • • •• • •• • •• •• • • • • • • • • • • • • • • • • ••• • • • • •• • • • • • • • • • • • • • • ••••• • • • • • • • • • • • • • • . .... • • : • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • 24 • • • • •• • • • • • • •
  • 25. Impact Report 2023 25 Each Tesla on the Road Avoids About 51 Tons of CO2e EV Emissions Avoided Over Time Impact Report 2023 Environment Each Tesla on the Road Avoids About 51 Tons of C02e After approximately three years of driving, a Tesla EV's lifetime emissions are lower than those of a comparable ICE vehicle. While EVs today still emit more GHGs during the manufacturing phase, including emissions from the supply chain, it takes about three years' worth of driving for the total emissions from a Tesla vehicle to fall below that of a comparable ICE vehicle. EV Emissions Avoided Over Time After 17 years of driving-the average life of a vehicle in the U.S.-a single Tesla vehicle will avoid about 51 tons of C02e. This number is conservative for two reasons: it assumes no improvement in grid emissions over time and an ICE vehicle maintains its fuel efficiency throughout its lifetime. This year, we updated our avoided emissions calculation methodology using a global model with more primary GHG emissions data collected from our suppliers. - EV Emissions 20 10 0 -10 -20 -30 -40 -50 -60 Manufacturing 1 Phase - ICE Emissions .I 2 3 4 25 (U.S.; mt C02e) - Cumulative Emissions Avoided .I .I .I .I .I .I .I .I .I .I .I .I .I 5 6 7 8 9 10 11 12 13 14 15 16 17 Years
  • 26. Impact Report 2023 26 NEDC, WLTP or EPA Testing Cycles Do Not Represent Real-World Fuel 
 or Electricity Consumption Impact Report 2023 Environment NEDC, WLTP or EPA Testing Cycles Do Not Represent Real-World Fuel or Electricity Consumption We used real-world energy consumption by Model 3 and Model Y to analyze EV energy consumption. For ICE fuel consumption, we used data provided by Consumer Reports, which reports model year 2023 mid-size premium vehicles achieve 24.9 MPG on average. This translates to approximately 400 grams of C02e per mile once we account for emissions generated through the extraction, refining and shipment of oil. 26
  • 27. Lifecycle Analysis Glossary 27 Model 3/Y* Personal Use Grid Charged Personal Use Solar Charged Average Premium ICE Lifecycle Emissions Impact Report 2023 Impact Report 2023 Environment Lifecycle Analysis Glossary By examining every stage of a product's lifecycle, from raw extraction to disposal, a lifecycle assessment (LCA) helps identify environmentally taxing hotspots, allows for targeted improvements and enables resource use efficiencies. The per-mile lifecycle emissions of our vehicles include emissions from upstream supply chain, electricity consumption and direct emissions from manufacturing and use-phase emissions when charged from a grid with a generation mix that reflects the geographic distribution of Model 3 and Model Y deliveries in the U.S., Europe and China. This year, we are presenting the standard-range RWD versions of Model 3 and Model Y and have significantly improved GHG emissions data accuracy. As we strive to get more real and granular data, we will continue to update our long-range and other product LCAs for future reports. To the right are the scenarios and assumptions we're using for our analysis. SCENARIOS Model 3/Y* Personal Use Grid Charged Emissions per mile if Model 3/Y principally charged at home from the grid Personal Use Solar Charged Emissions per mile if Model 3/Y principally charged at home using a solar system and energy storage Average Premium ICE Based on an average of mid-size premium sedans and mid-size premium crossover SUVs, with a real-world fuel economy of 24.9 MPG *In 2023, we followed the same methodology as 2022 to present the LCA as a weighted average of Model 3 and Model Y based on production share for each vehicle (for manufacturing-phase emissions) and delivery volumes in each region (for use-phase emissions). Given that Model 3 and Model Y have 70%-plus parts commonality and share many manufacturing processes, their GHG emissions are very similar. ASSUMPTIONS Lifecycle Emissions Lifecycle Emissions using solar panels and Powerwall exclusively to charge Model 3/Y adds emissions to the manufacturing phase and reduces use-phase emissions to as low as zero. No additional renewable energy capacity on the grid during the life of the vehicle-the shape of the renewable energy adoption curve is still up for debate. Manufacturing-phase emissions for Model 3/Y in the U.S. represent a Fremont-made vehicle, while manufacturing-phase emissions in Europe and China represent a China-made vehicle. 27
  • 28. Average Lifecycle Emissions Impact Report 2023 28 United States gCO2e/mi* New York gCO2e/mi* Model 3/Y Personal Use Personal Use 108 Personal Use 72 Personal Use Shift to Greener Grid 72 116 Average Premium ICE Vehicle Average Premium ICE Vehicle 445 445 Impact Report 2023 Environment Average Lifecycle Emissions United States gC02e/mi* Model 3/Y Standard Range (RWD) Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 72 116 -- 445 - e Manufacturing Phase and Supply Chain Use Phase New York gC02e/mi* Shift to Greener Grid Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 72 108 445 -- - *gC02e/mi = grams of C02e emissions per mile driven 28
  • 29. Average Lifecycle Emissions Impact Report 2023 29 Europe gCO2e/mi* France gCO2e/mi* Model 3/Y Personal Use Personal Use 113 Personal Use 114 Personal Use Shift to Greener Grid 114 139 Average Premium ICE Vehicle Average Premium ICE Vehicle 459 459 Impact Report 2023 Environment Average Lifecycle Emissions Eu rope 9C02e/mi* Model 3/Y Standard Range (RWD) Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 114 139 459 e Manufacturing Phase and Supply Chain - Use Phase France gC02e/mi* Shift to Greener Grid Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 114 113 459 *gC02e/mi = grams of C02e emissions per mile driven 29 •
  • 30. Average Lifecycle Emissions Impact Report 2023 30 China gCO2e/mi* Sichuan Province gCO2e/mi* Model 3/Y Personal Use Personal Use 134 Personal Use 114 Personal Use Shift to Greener Grid 114 231 Average Premium ICE Vehicle Average Premium ICE Vehicle 466 466 Impact Report 2023 Environment Average Lifecycle Emissions China gC02e/mi* Model 3/Y Standard Range (RWD) Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 114 231 466 e Manufacturing Phase and Supply Chain Use Phase Sichuan Province 9co2e/mi* Shift to Greener Grid Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 114 134 466 *gC02e/mi = grams of C02e emissions per mile driven - 30
  • 31. 31 The carbon impact of ICE vehicles remains the same every year of use U.S. Electricity Grid Generation Mix Impact Report 2023 Impact Report 2023 Environment The Carbon Impact of ICE Vehicles Remains the Same Every Year of Use The LCAs we have presented assume the same emissions per mile for our vehicles throughout their lifetime. This assumption is conservative given the grid keeps getting cleaner. While emissions per mile for EVs will improve with the grid, emissions per mile for ICE vehicles will not. U.S. Electricity Grid Generation Mix (Conservative Estimate) Based on publicly available sales and fleet data, we estimate that an average vehicle in the U.S. is scrapped after 17 years and slightly less than 200,000 miles of driving. As an ICE vehicle ages, its fuel efficiency only remains stable if serviced properly. Meanwhile, electricity generation to charge EVs has become "greener" over time with the addition of cleaner energy sources to the grid. EV drivers can increase their renewable energy mix by installing solar energy generation or storage systems on their homes. 100% 80% 60% 40% 20% 0% 2015 2016 2018 2020 2022 31 Zero-Emission Sources 2024E 2026E 2028E 2030E 2032E 2034E 2036E 2038E 2040E
  • 32. 32 Greater efficiency than a Prius, performance of a Porsche Model 3 4.2s 125mph Model Y 4.8s 135mph Impact Report 2023 Impact Report 2023 Environment Greater Efficiency Than a Prius, Performance of a Porsche More efficient vehicles equals less lifetime energy use. Tesla vehicles are among the most efficient EVs built to date. Model Y All-Wheel Drive (AWD) achieves 3.8 EPA miles/kWh, making it the most efficient electric SUV ever made. While achieving the best-in-class energy efficiency, our AWD models also provide impressive acceleration and speed. Model Y Long Range AWD 4.8s 135mph 0-60mph Top Speed 32 Model 3 Long Range AWD 4.2s 125mph 0-60mph Top Speed
  • 33. 33 We Make the Most Efficient Electric SUV on the Road Impact Report 2023 Model Y 3.8 EV Powertrain Efficiency Impact Report 2023 Environment We Make the Most Efficient Electric SUV on the Road EV Powertrain Efficiency (EPA rated mi/kWh) 3.8 Model Y 3.6 Kia EV6 3.4 Ford Mustang Mach-E 3.4 Hyundai IONIQ5 3.1 Audi e-tron 3.1 vw ID.4 2.7 Jaguar I-PACE 33
  • 34. 34 Electrifying Heavy-Duty Trucks is Critical to Our Mission Impact Report 2023 % of U.S. Vehicle Fleet % of U.S. Vehicle Emissions 1.1% 16.4% Impact Report 2023 Environment Electrifying Heavy-Duty Trucks is Critical to Our Mission Combination trucks account for about 16% of U.S. vehicle emissions-Semi helps change that. With less than 2 kWh per mile of energy consumption, Semi can travel up to 500 miles on a single charge, fully loaded. Charging with electricity is approximately 2 times cheaper per mile than refueling with diesel. Operators can see estimated fuel savings of up to $150,000 within their first three years of ownership.* With remote diagnostics, over-the-air software updates and fewer moving parts to maintain, operators will spend less time at service centers and more time on the road. *Based on average Q1 2024 diesel prices in California and latest electricity rates. % of U.S. Vehicle Fleet - Combination Trucks - Rest of Fleet 34 % of U.S. Vehicle Emissions 16.4% 83.6%
  • 35. Impact Report 2023 35 Our Batteries are Designed for 200K+ Miles of Driving Model 3/Y Long Range Impact Report 2023 Environment Our Batteries are Designed for 200K+ Miles of Driving Vehicle battery production can result in over six metric tons of GHG emissions, so it's important that the battery lasts as long as the vehicle. Which is why we often get asked: Will I need to replace my battery at some point in the future? The answer is no. Since we've been selling EVs for over a decade, we have a reliable data set that shows us battery degradation over time. We estimate that a vehicle gets scrapped after approximately 200,000 miles of usage in the U.S. and roughly 150,000 miles in Europe. Even after 200,000 miles of usage, our batteries in Model 3 and Model Y lose just 15% of their capacity on average, while batteries in Model S and Model X lose just 12% of their capacity on average. Model 3/Y Long Range Battery Retention per Distance Traveled 100% 80% 50°/o 0% 0 50K 35 e Retention Standard Deviation 100K 150K 200K Miles
  • 36. 36 Unlike ICE vehicles, it is possible to fully decarbonize the manufacturing and lifetime use of EVs Impact Report 2023 We minimize the carbon impact of our operations with our decarbonization strategy Impact Report 2023 Environment e minimize t e car on • 1m act o our o erations wit our ecar onization strate Unlike ICE vehicles, it is possible to fully decarbonize the manufacturing and lifetime use of EVs Electric vehicles and sustainable energy products have a far better environmental impact than fossil fuel alternatives. This includes the full lifecycle: raw material mining, manufacturing, product use and disposal. 36
  • 37. Decarbonization at Tesla Impact Report 2023 37 100% Impact Report 2023 Environment Decarbonization at Tesla Tesla strives to achieve net-zero GHG emissions across our full product lifecycle, from mining and production through use and end of life recycling. While we have made progress in reducing our emissions intensity in the near term and made meaningful progress on building a plan to achieve net-zero emissions as soon as possible, there remains work to do to finalize this plan. Our goal is to set a target that is both meaningful and thoughtful. With a mission to accelerate the world's transition to sustainable energy, decarbonization is at the heart of everything we do. An ambitious stance on GHG emissions reduction is necessary to continue moving the world toward a sustainable energy economy. We are prepared to continue our decarbonization journey, acknowledging the constantly changing landscape of technological advancements and sustainable energy markets. As we evolve, we strongly believe that starting with an ambitious strategy is not just wise, but necessary. With the sustainable energy sector ascendant, we anticipate a rising demand for zero direct emission products across energy and transportation. Despite this, our dedication to meticulously tracking and reducing our GHG emissions remains unwavering, alongside our commitment to nurturing innovation-a fundamental aspect of our organizational identity. In addition, we aim to transition our operational electricity load to 100% renewable electricity well before we achieve our net-zero emissions goal and to continue matching 100% of our Supercharger electricity load annually with renewable electricity. For more information, please see our supply chain decarbonization strategy starting on page 107. Net-zero GHG emissions as soon as possible operational renewable electricity achieved ahead of net-zero emissions 37
  • 38. Our Data-Driven Approach to Measure and Track Our Emissions 38 We’re evolving the standard approach to Scope 3 GHG emissions management We use primary data to calculate emissions from our products Impact Report 2023 Impact Report 2023 Environment Our Data-Driven Approach to Measure and Track Our Emissions Tesla has been measuring the GHG emissions from our full value chain in accordance with the GHG Protocol for several years, starting with our supply chain and manufacturing processes through our Sales, Service and Delivery activities. Each year, our data collection process becomes increasingly refined, prioritizing the collection of primary data over database estimates that don't accurately reflect our emissions. We've built an inhouse data collection system with integrated controls that will evolve over time with our business. We're evolving the standard approach to Scope 3 GHG emissions management Scope 3 GHG emissions calculations are often highly academic-even when they conform to popular frameworks like the GHG Protocol. They rely on large estimations and assumptions that often lead to figures that don't reflect the true impact. Tesla is in a unique position for two reasons: we obtain primary data from the use of our products and our high level of vertical integration and direct sourcing relationships enable us to collect primary data from upstream activities, such as sourcing. We use primary data to calculate emissions from our products With data from over six million vehicles on the road and a fleet of solar and storage products, we can calculate our emissions at a much higher level of accuracy than most manufacturers and can therefore develop emissions-reduction solutions accordingly. This also means that we can measure our use-ofproduct emissions year-over-year instead of estimating their lifetime value. 38
  • 39. Our Data-Driven Approach to Measure and Track Our Emissions (Cont’d) 39 We advance innovative approaches to end-of-life emissions Impact Report 2023 Impact Report 2023 Environment Our Data-Driven Approach to Measure and Track Our Emissions (Cont'd) We advance innovative approaches to end-of-life emissions Our approach to understanding the end-of-life impact of our products goes beyond standard frameworks and emission factors. Our circular solutions programming offers an avenue to obtain primary data for the end-of-life of our products. This includes gathering data on the carbon footprint of our recycling processes, allowing for more precise calculations of emissions compared to relying solely on standard global carbon footprint methodologies for battery recycling. Recognizing that our products will reach their end-of-life far in the future, we also forecast regional grid mixes to accurately model future energy scenarios. This innovative methodology ensures that we reflect the true environmental impact of our products, setting a higher standard for GHG emissions management in the industry. Continuously enhancing the granularity of our data collection processes across all Scope 3 categories is a priority. Given that Scope 3 emissions make up most of an OEMs' total footprint, leveraging real and accurate data empowers us to begin implementing impactful emissions reduction strategies. 39
  • 40. Powering Our Supercharger Network With Renewables Impact Report 2023 40 We’re powering our vehicles with renewable energy Impact Report 2023 Environment Powering Our Supercharger Network With Renewables We're powering our vehicles with renewable energy Our global Supercharger network was 100% renewable again in 2023, achieved through a combination of onsite resources and annual renewable electricity matching. We also continue to match some of our customers' home charging in California with 100% renewable electricity, matching annually. 0 For 3 years in a row, our global Supercharger network was 100% renewable 40
  • 41. Generating More Energy Than is Consumed Impact Report 2023 41 In 2023, Tesla solar owners generated enough zeroemissions electricity to power all Tesla locations, including manufacturing, support, research, sales, service and delivery locations—more than three times. 3X Impact Report 2023 Environment Generating More Energy Than is Consumed In 2023, Tesla solar owners generated enough zeroemissions electricity to power all Tesla locations, including manufacturing, support, research, sales, service and delivery locations-more than three times. 3X the power needed for Tesla locations generated by owners of Tesla solar panels 41
  • 42. Impact Report 2023 42 Building Sustainability into Facility Design @ Fremont Factory GA3 Paint Shop @ Gigafactory Shanghai Stamping Body in White (Welding) General Assembly Paint Shop Stamping Body in White (Welding) General Assembly GA3
  • 43. Impact Report 2023 43 Natural gas reductions across operations Impact Report 2023 Environment Natural Gas Reductions Across Operations We also maintain an ongoing commitment to enhancing the efficiency of our manufacturing processes across existing factories, with a focus on natural gas consumption. In 2023, we implemented optimization controls in our plastics and body paint shops at Gigafactory Texas, aimed at increasing the efficiency of natural gas usage and thereby curbing overall consumption. Additionally, strategic adjustments to temperature, fan speed and nozzle placements in our Gigafactory Texas paint shop ovens have yielded natural gas reductions. This proactive approach extends beyond Gigafactory Texas. The evaluation and efficiency of natural gas usage across our global operations will continue to be a priority as we work to reduce emissions from this energy source. 43
  • 44. Impact Report 2023 44 Increasing Our Operational Renewable Electricity Load Procuring More Renewables for Operations 100% 100% Impact Report 2023 Environment Increasing Our Operational Renewable Electricity Load In addition to achieving 100°/o renewable energy for our Supercharger electricity load, we aim to source 100% renewable electricity across our operations. We've already begun this journey through the design of new factories covered with solar panels. By year-end 2023, we had installed 46,500 kW of solar at our factories, with the largest installation at Gigafactory Texas. We will continue to add more renewable energy to serve our Tesla sites. Procuring More Renewables for Operations In addition to on-site renewable electricity, we are matching our operational energy usage through the procurement of more renewables. We buy electricity directly from a mix of renewable energy projects through long-term Power Purchase Agreements ("PPAs") on the grids where we operate. Spanning California, Texas and Germany, we've secured almost 140 MW of clean energy generation capacity with a majority coming online between 2023 and 2024. As we expand our operations and footprint, we plan to match remaining operational energy consumption through renewable energy purchases. of Gigafactory BerlinBrandenburg's energy usage was matched with renewable electricity in 2023 operational renewable electricity achieved ahead of net-zero emissions 44
  • 45. Impact Report 2023 45 Greening Our Fleet and Logistics ~90% Impact Report 2023 Environment Greening Our Fleet and Logistics As a company that produces inherently sustainable products, we see an opportunity to deploy Tesla vehicles to help reduce Tesla's carbon footprint. In 2020, EVs made up -65% of our Mobile Service fleet. By year-end 2023, we increased this figure to almost 90%. We also added 300 Tesla-owned EVs to our operational fleet in 2023. We've started to expand our product use into upstream and downstream logistics as well. In 2023, we began using our Semis to deliver inbound battery packs from Reno to supply Fremont Factory. The lifetime internal fleet miles has reached approximately 800,000 miles, which has allowed us to avoid emitting almost 650 metrics tons of CO2e into the atmosphere. We aim to grow the integration of our Semis for the delivery of our products to customers. of Tesla's Mobile Service fleet were EVs by year-end 2023 45
  • 46. Impact Report 2023 46 Reducing Our Carbon Footprint Even Further Dynamic Controls for Energy Efficiency Optimizing Battery Cell Manufacturing Impact Report 2023 Environment Reducing Our Carbon Footprint Even Further Dynamic Controls for Energy Efficiency In 2023, Al Control for HVAC was expanded from Nevada and Texas to now include our factories in Berlin and California. Additionally, the number of controls in Nevada increased to nearly half of the total HVAC infrastructure. The Al Control policy enables HVAC systems within each Gigafactory to work together to process sensor data, model Gigafactory dynamics and apply control actions that safely minimize the energy required to support production. Al Control is primarily deployed on systems that heat or cool critical Gigafactory production spaces and equipment. To ensure safe operation, Al Control continuously communicates with the preexisting standard control logic of each system. In the event of any Al Control error, each system seamlessly reverts to standard control. As a result, as of 2023, there have been zero safety incidents or production interruptions related to Al Control. Optimizing Battery Cell Manufacturing In order to reduce the cost of our vehicles and batteries, we also need to use less energy to produce them. Tesla has an innovative approach to manufacturing cells using a dryelectrode process. Current electrode production processes involve mixing liquids with cathode or anode powders and using massive machinery to coat and dry the electrode. Since this process involves large ovens, today's cell production consumes a lot of energy. The dryelectrode process allows for the direct transition from a cathode or anode powder to an electrode film, reducing energy consumption in the overall cell manufacturing phase by more than 70% based on our latest analysis. 46
  • 47. Impact Report 2023 47 We Minimize Water Usage Throughout Our Operations Industry Avg (Latest) Tesla (2018) 2.48 Tesla (2023) Global Water Use per Vehicle Produced by Tesla Is Coming Down Over Time Water is becoming increasingly scarce as the climate changes Producing an EV requires less water than producing an ICE vehicle Tesla is a very small industrial water consumer in Brandenburg Selected Industrial Water Consumption Local to Gigafactory Berlin-Brandenburg Tesla Impact Report 2023 Environment We Minimize Water Usage Throughout Our Operations Water is becoming increasingly scarce as the climate changes We are reducing our water usage throughout our operations as much as possible, prioritizing direct use in manufacturing. In the following section, we outline initiatives we are taking at Gigafactory Berlin-Brandenburg and Gigafactory Texas to reduce water consumption per vehicle (including in the production of battery cells). Producing an EV requires less water than producing an ICE vehicle Each automaker may draw their boundaries slightly differently, depending on how vertically integrated they are. According to the latest publicly available figures, Tesla withdrew less water at facilities dedicated to vehicle manufacturing per vehicle produced than the majority of established automakers. Global Water Use per Vehicle Produced by Tesla Is Coming Down Over Time m3 of Water per Vehicle Produced 3.37 3.27 2.48 Industry Avg Tesla Tesla (Latest) (2018) (2023) Tesla is a very small industrial water consumer in Brandenburg Gigafactory Berlin-Brandenburg was designed to consume as little water as possible. Compared to other industrial companies near the factory in East Brandenburg, Tesla consumes very little water, despite producing hundreds of thousands of vehicles per year. In fact, while Tesla has a contractual allowance to consume 1.4 million cubic meters of water per year, we only consumed a fraction of that-0.45 million cubic meters-in 2023. We continue to find ways to minimize our water usage, including through the launch of an industrial water recovery and recycling plant onsite that recycles up to 100% of the factory process waste water. See our latest video for more information. Selected Industrial Water Consumption Local to Gigafactory Berlin-Brandenburg mm3/yr e e Actual Water Consumption Opencase Mining LEAG Disposal Company EEW Oil Refinery PCK Paper Mill Leipa Steel Production Arcelor M ittal Tesla 0 e Contractual Allowance 15 30 Source: Environmental Ministry of Brandenburg (August 2023); Tesla 47 45
  • 48. Impact Report 2023 48 Setting a New Standard for Water Use per Vehicle Water-Intensive Process Optimization Rainwater and Condensate Harvesting and Reuse Reclaimed and Recycled Water Impact Report 2023 Environment Setting a New Standard for Water Use per Vehicle Water-Intensive Process Optimization We are constantly optimizing or eliminating waterintensive production processes across our operations. At Gigafactory Berlin-Brandenburg, we implemented hybrid cooling towers, eliminated quench tanks in casting and introduced cascade rinsing systems in the paint shop and battery can wash process. In 2023, we introduced various efficiency processes within our water-intensive paint shops to reduce overall water consumption at Gigafactory Texas. Rainwater and Condensate Harvesting and Reuse We are planning to capture at least 25°/o of roof runoff in a central underground storage system in Gigafactory Texas. Rainwater will be recycled for use in the cooling of manufacturing equipment. In an average year, such systems should save an estimated 14 million gallons of potable city water. Additionally, as hot, humid outdoor air is conditioned, water condenses out of the air. Typically, this condensate is discarded as wastewater. At Gigafactory Texas, we plan to use this condensate in our cooling towers and process water systems to offset incoming site water. Based off latest estimates, this could result in 13.6 million gallons of water conserved annually. A note about water usage and power generation It's important to note the dual benefits of our solar energy products in reducing GHGs and minimizing water consumption. While the impact of power generation on emissions is widely recognized, its effect on water usage often goes unnoticed. Power generation ranks among the top causes of water withdrawal in the U.S., as water for thermoelectric power 48 Reclaimed and Recycled Water The "cooling tower makeup" is the single biggest contributor to water usage in a vehicle factory after paint operations. As water that cools machinery evaporates, it needs to be topped up regularly. The total cooling tower makeup could be offset entirely by non-potable sources such as rainwater or wastewater. Using locally treated wastewater could result in offsetting the entire annual "cooling tower makeup" water demand with non-drinkable uses. We have started using reclaimed water for our landscape irrigation needs at Gigafactory Texas. Once fully deployed, we expect this to save just under 150 million gallons of potable city water annually. is used to generate electricity with steam-driven turbine generators and to cool power-producing equipment. This means that every kilowatt-hour of clean solar energy produced not only lowers GHG emissions, but also lowers water consumption.
  • 49. Impact Report 2023 49 As We Build More Efficient Factories, Our Waste per Vehicle Decreases 161 Waste per Vehicle Produced at Gigafactory Shanghai vs. Fremont Factory 413 Impact Report 2023 Environment As We Build More Efficient Factories, Our Waste per Vehicle Decreases Our legacy manufacturing operations at Fremont Factory will always produce more waste per vehicle than our newly designed factories. First, because the automotive supply chain doesn't have a strong presence on the West Coast of the U.S., many components need to be shipped from long distances to our Fremont Factory, requiring excessive packaging and creating more waste than necessary. Second, modern factories are better designed for material flow. Trailer entry points surround the whole factory, which means that components can be offloaded precisely at the part of the factory where they are needed. Waste per Vehicle Produced at Gigafactory Shanghai vs. Fremont Factory kg of Waste per Vehicle Produced 161 Gigafactory Shanghai 413 Fremont Factory 49
  • 50. Impact Report 2023 50 Circular Solutions We are driving circularity across our value chain 90 % Impact Report 2023 Environment Circular Solutions We are driving circularity across our value chain In our commitment to circularity within our value chain, we prioritize recycling materials to minimize waste. The vast majority of generated waste-such as paper, plastics metals and even water-is recyclable. At Gigafactory Shanghai, for example, just 6% of total waste generated in 2023 was not recycled. At Gigafactory Texas, we initiated a recycling program aimed at optimizing the reuse of scrap metals in our manufacturing processes. Particularly, we recycle aluminum scrap for use in our castings in Model Y. Model Y castings can use primary aluminum and a diversified feedstock of recycled aluminum, including scrap from our operations as well as recycled components from non-Tesla vehicles, such as aluminum wheels. Central to our circularity efforts is a strategic focus on battery recycling. We continue to enhance our measurement and tracking of minerals from extraction to the end-of-life of our products. As our operations expand, we will strategically identify additional recycling opportunities. We know that collaboration with external stakeholders is crucial to our circular solutions journey. We partner with stakeholders outside Tesla to increase accuracy around the carbon impact of our materials. See page 108 for more information on supplier engagement. See pages 110-112 for more information on our battery recycling efforts. of manufacturing waste recycled in 2023 At Gigafactory Texas, all battery manufacturing waste (from cell to battery pack) was recycled in 2023 50
  • 51. Impact Report 2023 51 Biodiversity 300 Impact Report 2023 Environment Biodiversity We work to preserve the natural environments around our Gigafactories. At Gigafactories Texas, Nevada and Berlin-Brandenburg we've taken steps to improve the surrounding ecosystems while minimizing our own footprint. Initiatives have focused on reintroduction of native species in areas previously disrupted at our sites. In Texas, for example, the land now used for our factory was previously a sand and gravel mine dating back to the 1970's. Following mining operations, the land was left with vast areas devoid of vegetation. The land required significant reclamation to restore the area to a more stable and ecologically functional state. Current initiatives at Gigafactory Texas are focused on fostering diverse plant and animal life and restoring ecological balance to allow for the natural recovery of the site. Gigafactory Nevada partnered with a team of ecologists at the University of Nevada, Las Vegas to conduct habitat surveys to better understand and manage biodiversity on site. We recognize the need to continue taking action to restore, maintain and enhance our local ecosystems. 300 At Gigafactory Texas, over 30 native plant species were planted native seedlings were planted in areas around Gigafactory Nevada previously disturbed by construction 51
  • 52. Product & Safety Impact Report 2023 Impact Report 2023 Product & Safety 52 Product & Safety Better in Every Way Making EVs Affordable Freedom to Travel Maximizing Safety Building the Grid of the Future 52 53 57 61 71
  • 53. 53 We make products that people love Impact Report 2023 Impact Report 2023 Product & Safety e make products that people love Consumers are unlikely to buy products just because they have a low lifetime carbon footprint. They need to be better in every way-safer, more affordable, faster and more fun. We are not just trying to build "green" products; we are committed to building the best products, period. 53
  • 54. 54 Model Y is priced Below the Average New Vehicle in the U.S. Impact Report 2023 $47,244 Average New Vehicle $44,990 Model Y Starting Price Impact Report 2023 Product & Safety Model Y is Priced Below the Average New Vehicle in the U.S. The accessibility of our products is fundamental to our mission. Model Y is priced on par with premium ICE vehicle equivalents and below the average new car selling price in the U.S. Unfortunately, most other EVs on the market today are often priced at over a $10,000 premium compared to their direct ICE vehicle equivalents. Even our most affordable Model 3 comes standard with superior equipment and software-such as Autopilot, over-the-air software updates, 4G connectivity and, in our view, the best infotainment system on the market. Starting Price (Before Incentives) Model Y Long Range (RWD) $44,990 "I I Average New Vehicle $47,244 54
  • 55. 55 Model Y total cost of ownership per mile is similar to Mass-Market ICE Vehicles Impact Report 2023 $1.17 $0.68 Total Cost per Mile $0.70 $0.68 Model Y Impact Report 2023 Product & Safety Model Y Total Cost of Ownership per Mile is Similar to Mass-Market ICE Vehicles While the "sticker price 11 of Model Y is similar to an equivalent BMW or Audi, the lifetime running costs of EVs are lower than those of ICE vehicles due to lower maintenance costs and cheaper electricity. Electric vehicles are less expensive to fuel than gasoline powered vehicles. The cost of electricity to power Model Y is up to 3 times lower than a comparable ICE vehicle. This results in approximately $7,000 of fuel savings over 5 years and 60,000 miles. For more information, visit Tesla.com/ModelY Total Cost per Mile {5 Years, 60,000 Miles) Model Y Long Range (RWD) $0.70 55 BMWX3 $1.17 Honda CR-V $0.68 Toyota RAV4 $0.68
  • 56. 56 Making EVs even more affordable Impact Report 2023 50% Impact Report 2023 Product & Safety Making EVs Even More Affordable Our goal is to displace fossil fuels by selling as many Tesla products as possible. To achieve this goal, we need to make our products even more accessible. Affordability begins with how much it costs us to produce our vehicles. We were able to reduce the cost to build a single vehicle by almost 50% since 2018 with the introduction of Model 3 and Model Y as well as the deployment of new, more efficient factories. And we aren't done yet. During 2023 Investor Day, we outlined our goal of reducing costs even further with the introduction of new vehicle and manufacturing technologies. reduction in the cost to build a single vehicle since 2018 56
  • 57. 57 People use their Tesla as their primary vehicle 13,768 Average Annual Miles Driven Impact Report 2023 Impact Report 2023 Product & Safety People Use Their Tesla as Their Primary Vehicle Our data shows that our customers drive Tesla vehicles more than the average vehicle in the U.S., suggesting that they use their Tesla as their primary vehicle. Surveys show that range and charging concerns (real or perceived) are a key reason why many people do not replace their ICE vehicle with an EV. The more confident owners are that their EV can be used for errands, commuting and long road trips, the less they will feel the need to supplement their EV with an ICE vehicle. Average Annual Miles Driven (United States) 13,768 Model Y 57 11,142 Average Vehicle
  • 58. 58 Freedom of travel is the reason people buy vehicles in the first place Impact Report 2023 Impact Report 2023 Product & Safety Freedom of Travel is the Reason People Buy Vehicles in the First Place Consumers do not buy a vehicle that can meet most of their driving needs-they buy a vehicle that meets all of their driving needs. Since its introduction in 2012, we have increased the range of Model S by over 50%-from 265 miles to 402 miles of range for the long-range version. Our focus on energy efficiency-achieving superior range from the same sized battery-has allowed us to continue to increase range while keeping the battery size relatively stable. 58
  • 59. Incredibly fast charging times for V3 and V4 Superchargers 59 200 miles of range 15 minutes of charging Impact Report 2023 Impact Report 2023 Product & Safety Incredibly Fast Charging Times for V3 and V 4 Superchargers Superchargers can recover up to miles of range 59 In about minutes of charging
  • 60. Average Uptime of Supercharger Sites* Chargers that just work 60 99.90% 99.74% 99.96% 99.95% 99.97% 2023 Impact Report 2023
  • 61. We design our vehicles to be as safe as possible All Tesla safety features come standard Impact Report 2023 Impact Report 2023 Product & Safety 61 We Design Our Vehicles to Be as Safe as Possible All Tesla safety features come standard Tesla vehicles are engineered to be some of the safest in the world. Our vehicles are equipped with specifically designed crumple zones, airbags and pretensioning seatbelts-among many other technologies. Beyond the star ratings, we push ourselves to learn more and more about passive and active safety from our fleet. Our safety principles are: Safety is our core customer experience The safest crash is no crash Safety optimization is fleet data driven and deployed at scale 61 All Tesla vehicles built since October 2016 come with a suite of external cameras, additional sensors and onboard computing that enable advanced safety features like Automatic Emergency Braking, Lane Departure Warning, Forward and Side Collision Warning, Obstacle-Aware Acceleration, blind spot warnings, vulnerable road-user detection and more-all of which continue to improve over time through over-the-air software updates. We deploy these updates to our vehicles at our customers' convenience without a trip to a Service Center. Connectivity is a hallmark of Tesla ownership and software updates continually enhance the customer experience.
  • 62. Not all active safety systems are created equal 62 94% 94% 94% 94% Superior 98% 98% Superior 98% Safety Assist Rating Euro NCAP Safety Assist Rating Tesla Model Y Tesla Model S 98% 98% Impact Report 2023 Impact Report 2023 Product & Safety Not All Active Safety Systems are Created Equal Our active safety features are powered by cameras, a neural-net computer and learnings from our fleet of over six million vehicles with billions of miles driven. Built on a deep neural network, Tesla Vision deconstructs the vehicle 1 s environment at greater levels of reliability than classical vision processing techniques can. The system also continually improves over time with accumulated fleet miles. Safety Assist Rating Model X Model 3 94% 1 94% 1 ANCAP 94% 1 94% 1 SAFETY 11ns LOI Not Rated Superior 1 2019 Safety Assist Ratings 2 2022 Safety Assist Ratings 62 Euro NCAP Safety Assist Rating 2020-2022 Model Y Model S Tesla Model V 98% 98% 2 98% 2 Tesla Model S 98% 98% 2 Not NIO ET7 95% BMW 2 Series AT 92% Rated WEY Coffee 01 94% BMWX1 92% Superior Not Rated ORA Funky Cat 93% Lexus NX 91% Nissan Ariya 93% Subaru Solterra 91% WEY Coffee 02 93% Toyota bZ4X 91%
  • 63. 63 Exceeding safety standards across four continents Impact Report 2023 Best in Class Occupant Safety Pedestrian Safety Active Safety Best in Class Top Performer Top Performer Occupant Safety Active Safety Best in Class Best in Class Top Performer Impact Report 2023 Product & Safety Exceeding Safety Standards Across Four Continents Model 3 Model Y Model S Model X ***** 2018 ***** 2020 ***** 2013 ***** 2017 IIHS HLDI 2022 slP[Tv HHS PICK+ 2022 2023 TOP HHS SAFETY PICK+ 2023 Best in Class ***** 2019 Best in Class ***** 2022 Best in Class ***** 2022 Best in Class ***** 2019 ANCAP SAFETY Top Performer ***** 2019 Top Performer ***** 2022 ***** 2014 Top Performer ***** 2019 CHINA INSURANC[ Al/TOMOTIVE S.U:ETV INDEX Top Rating Occupant Safety Active Safety 2021 Top Rating Occupant Safety Pedestrian Safety Active Safety 2021 63
  • 64. 64 Exceeding safety standards across four continents (Cont'd) Impact Report 2023 Model Y Impact Report 2023 Product & Safety Exceeding Safety Standards Across Four Continents (Cont'd) Model Y is our latest vehicle to earn a five-star safety rating from the European New Car Assessment Programme (Euro NCAP). As part of this assessment, Model Y received the highest overall score among any vehicle tested under Euro NCAP. Model Sand Model Y both received the highest overall safety scores among every vehicle tested by Euro NCAP in 2022. In the updated and tougher IIHS Side MOB 2.0 crash test (involves 82% more energy than the original 1.0 version of this crash model), the 2023 Model Y secured a Top Safety Pick+ Rating for overall crash safety from the Insurance Institute for Highway Safety (IIHS) despite more stringent eligibility. Model Y 5-Star Safety Euro NCAP, 2022 Top Safety Pick+ Rating IIHS, 2023 ***** 64
  • 65. Safety is Enhanced With Driver-Assist Technologies Impact Report 2023 65 5.64 Tesla Vehicles
 With Driver-Assist Technologies Engaged 1.24 Tesla Vehicles
 No Active Safety Total 
 U.S. Vehicle Fleet* Miles Driven Before One Accident
  • 66. Safety Score incentivizes 
 safe driving Customers who choose to be part of our Tesla Insurance program receive a Safety ScoreBeta. Instead of determining a driver's insurance premium from demographic information (gender, age, education, or marital status) and financial history (credit score), our algorithm calculates Safety ScoreBeta based on actual driving behavior. Our data shows a lower rate of collision for the cohort of customers who have enabled Safety ScoreBeta. As the vehicle's Safety ScoreBeta increases, the number of collisions per mile decreases and insurance premiums reduce. The behaviors we monitor include: @ Forward Collision WarningP @ Hard BrakinB @ Aggressive TurninB @ Unsafe Following (Tailgating) @ Forced Autopilot Disengagemenj @ Late-Night DrivinB @ Excessive SpeedinB @ Unbuckled Driving Impact Report 2023 66 Collision Rate Safer Driving, Higher Safety Scores, Fewer Collisions Impact Report 2023 Product & Safety Safety Score I ncentivizes Safe Driving Customers who choose to be part of our Tesla Insurance program receive a Safety Score 8eta. Instead of determining a driver's insurance premium from demographic information (gender, age, education, or marital status) and financial history (credit score), our algorithm calculates Safety Score 8 eta based on actual driving behavior. Our data shows a lower rate of collision for the cohort of customers who have enabled Safety ScoreBeta. As the vehicle's Safety ScoreBeta increases, the number of collisions per mile decreases and insurance premiums reduce. The behaviors we monitor include: • Forward Collision Warnings • Forced Autopilot Disengagement • Hard Braking • Late-Night Driving • Aggressive Turning • Excessive Speeding • Unsafe Following (Tailgating) • Unbuckled Driving Safer Driving, Higher Safety Scores, Fewer Collisions Safety Score 8eta 91-100 81-90 71-80 61-70 0-60 Collision Rate 0 66
  • 67. Turning into the path of a pedestrian crossing the road Turning into the path of an oncoming vehicle Traveling toward a vehicle on a perpendicular path Automatic Emergency Braking continues to improve Impact Report 2023 67
  • 68. Using new data to improve pre-crash safety 68 Injury Studies Moving to Tesla Vision increases performance Impact Report 2023 We can learn from any crash Impact Report 2023 Product & Safety Using New Data to Improve Pre-Crash Safety We can learn from any crash Whether simulated or real, we can learn from any crash to help optimize the protection of occupants and reduce the likelihood of injury. This fundamental philosophy is one of the reasons our vehicles perform at industryleading levels in regulatory and consumer crash tests globally. Because our vehicles are connected to Tesla, we can further leverage this philosophy by deploying new safety capabilities and improvements over-the-air as a software update. Injury Studies We leverage our ever-growing data set to help ensure occupants receive the best possible restraints (such as seat belts and airbags) for the impact they are involved in and design innovative restraint systems. Our safety analysis engineers evaluate simulation studies to enhance our understanding of the complex impacts that occur in the field. The pace with which we can conduct these studies has accelerated by automating our data pipelines and leveraging machine learning to analyze large data sets. As the capability of driver assistance advances, the nature of the crash exposure to our fleet will change. Moving to Tesla Vision increases performance In 2021, we removed radar from our sensor suite. This improved safety while simultaneously simplifying engineering by removing a noisy signal. Model 3 scored better in both pedestrian (including nighttime tests) and urban crash avoidance scenarios under the Euro NCAP protocols with Tesla Vision only. 68
  • 69. Over-the-Air Software Updates Allow for Low-touch Continuous Improvement Impact Report 2023 69 99% Impact Report 2023 Product & Safety Over-The-Air Software Updates Allow for Low-Touch Continuous Improvement Tesla pioneered the concept of vehicles that improve and become more capable over time by ensuring that every Tesla vehicle made since 2012 can accept over-the-air software updates. These updates have introduced new features and functionality that have made our vehicles smarter, safer and more enjoyable to drive. We have also used the over-the-air system to ensure that our vehicles are not only as secure as possible when they are delivered, but that they continue to stay as secure as possible throughout their lifetime. Furthermore, 99% of "recalls" of Tesla vehicles in 2023 were handled via over-the-air software updates-allowing our customers to skip a visit to our Service Centers, maximizing convenience and saving time. 99% of vehicles recalled globally in 2023 didn't require a trip to a Service Center 69
  • 70. Leading the industry in fire safety Impact Report 2023 70 Vehicle Fires per Billion Miles Traveled Impact Report 2023 Product & Safety Leading the Industry in Fire Safety We have always designed our batteries in a way that minimizes the chance of thermal runaway. Our battery packs are industry leading because they are designed to stop a cell runaway event from spreading to a fire. This is one of the many reasons why our rate of vehicle fires is about ten times less likely than an average vehicle. To support a safe transition to sustainable energy, we share safety techniques with the industry. We publish updated fire safety statistics in our Vehicle Safety Report as they become available. As we rely on non-digital information for some of these cases, there can be a delay between when an incident occurs, when we are notified and when it is included in our statistics. We have developed new and improved methods of identifying and reporting incidents, which will be reflected starting with our 2022 report. For more information about our methodology, see our Vehicle Safety Report. Vehicle Fires Per Billion Miles Traveled In the U.S. • Tesla • U.S. Average 2022 2021 2020 2019 2018 0 10 70 60
  • 71. Grid stability is required for decarbonization 71 Reported Electrical Disturbances Impact Report 2023 Impact Report 2023 Product & Safety Grid Stability is Required for Decarbonization As we decarbonize the economy and electrify everything, grid expansion and stability will be more important than ever. Pairing renewables with energy storage is the best way to stabilize and grow the grid while simultaneously making the required GHG emissions reductions needed to avoid the worst outcomes of climate change. Electrical disturbances in the U.S. are becoming more common, predominantly due to weather and natural disasters. According to the U.S. Department of Energy, electrical disturbances cost businesses $150 billion per year. It is not surprising that homeowners and businesses are increasingly turning to backup power supply options. Reported Electrical Disturbances In the U.S. • Weather or Natural Disaster • Vandalism, Attack or Sabotage 2005 2008 2011 2014 2017 2020 2023 0 71 Other 200 400
  • 72. An entire ecosystem Impact Report 2023 72 Renewable energy paired with battery storage will become the cheapest option available Impact Report 2023 Product & Safety An Entire Ecosystem We have an entire ecosystem of energy products including hardware and software across generation and storage. We also have project management capabilities and a strong deployment track record of getting projects done on time. Our energy products can serve many purposes, including reducing emissions, helping to prevent grid outages and acting as backup power if the grid does go down. Renewable energy paired with battery storage will become the cheapest option available We are committed to reducing the cost of our products to foster mass adoption. Ultimately, using renewable energy (such as solar and wind) with battery storage will become the cheapest energy option available, regardless of location. This is already the case in many locations around the world. As costs continue to decline, more customers will be able to financially benefit from turning to renewable energy. I I --- I I I 72 I I I I I I
  • 73. Renewables and energy storage Are already cost competitive 73 ($/MWh) 0 50 100 150 200 250 Levelized Cost of Energy Comparison for Megapack and Conventional Resources Impact Report 2023 Impact Report 2023 Product & Safety Renewables and Energy Storage Are Already Cost Competitive Megapack is cheaper per MWh than many fossil fuel alternatives. A single Megapack XL has almost 4 MWh worth of battery storage capacity, and given its scalability, enables projects over 1,000 MWh. In 2022, in order to meet demand that is well in excess of supply for energy storage products, Tesla completed a new production facility, called Megafactory, capable of producing 40,000 MWh of energy storage per year. We also announced another Megafactory in China in early 2023. The largest energy storage projects deployed in 2023 approached 1,000 MWh in size. Today, Tesla is working with its customers on projects upwards of 3,000 MWh and expects total deployments in 2024 to grow by at least 75% compared to 2023. Levelized Cost of Energy Comparison for Megapack and Conventional Resources • Subsidized • Un-subsidized Solar PV + Megapack 2 XL Natural Gas Peaker Plant Nuclear Power Plant Coal Plant Combined-Cycle Natural Gas ($/MWh) 0 Source: Lazard April 2023 analysis. Megapack 2 XL figures are for our 4-hour duration product and are based on Tesla estimates. 50 73 100 150 200 250
  • 74. Autobidder enhances economic return for our customers ERCOT (TX) Energy Storage Projects Annualized Revenues Impact Report 2023 74
  • 75. Tesla Energy products set the bar for safety and reliability Impact Report 2023 Impact Report 2023 Product & Safety 75 Tesla Energy Products Set the Bar for Safety and Reliability Tesla meets and exceeds many industry safety standards and code requirements, as demonstrated through rigorous testing. The hardware and software safety features in Powerwall and Megapack work in tandem to prevent system faults and maximize product uptime. Continuous monitoring allows for detection, diagnosis and troubleshooting of system warnings and faultsenabling timely and appropriate responses to all safety events involving Tesla products and ensuring the safety of first responders. 75
  • 76. 76 Zero Direct Emissions Built-In Safety 24/7 Monitoring Exceeds Standards Proactive Fire Control Best-In-Class Performance Impact Report 2023 Impact Report 2023 Product & Safety Zero Direct Emissions Unlike fossil fuel peaker plants, battery storage has zero direct emissions Exceeds Standards Safety is our top priority, and we continuously review, test and update our requirements and procedures Built-In Safety Our energy storage products are manufactured with hardware and software safety features Proactive Fire Control Designed to prevent battery fires (thermal runaway) and be resilient if they occur 24/7 Monitoring Early detection, diagnosis and troubleshooting of system errors and Live Support for safety events 0 Best-In-Class Performance Leading energy and power density, upwards of 400 MWh per acre 76
  • 77. People & Community Impact Report 2023 Impact Report 2023 People & Community 77 People & Community Our Employees Are Critical to Achieving Our Mission Preparing the Workforce for a Sustainable Energy Future Centering Safety and Engagement Developing Our Leaders Internally Social Impact 77 78 85 91 101
  • 78. preparing the workforce for a sustainable energy future  Impact Report 2023 Impact Report 2023 People & Community 78 Preparing the work orce or a sustainable energy uture To sustain our pace of innovation, we must ensure we attract, develop and retain a talented workforce with ample opportunity to contribute to our mission and grow professionally. We are committed to providing a workplace where our employees feel respected, satisfied and appreciated. Our policies are designed to promote fairness and respect for everyone. We hire, evaluate and promote employees based on their skills and performance. 78
  • 79. 79 We are focused on developing the best talent Hiring Events Impact Report 2023 5.9M Impact Report 2023 People & Community We Are Focused on Developing the Best Talent Hiring Events A core principle of our recruiting strategy is that the best talent doesn't always come from the established recruiting channels. We are focused on attracting and developing diverse talent and supporting their growth into leadership roles, regardless of their background. Our recruiting efforts focus on providing opportunities for the strongest candidates, regardless of their age, gender identity, sexual orientation, country of origin and other immutable characteristics. We support organizations and conferences in addition to community engagement and work focused on developing a diverse pipeline of the best candidates. In 2023, we participated in over 200 recruiting events with universities, the military and other organizations. This helped us cast a wide recruiting net, enabling groups who have not traditionally been included in our hiring pipeline to learn about Tesla and apply for a position. 79 • job applications received in 2023
  • 80. 80 Inspiring the Next Generation of Tesla Leaders  Investments in Education Impact Report 2023 Impact Report 2023 People & Community Inspiring the Next Generation of Tesla Leaders Our education outreach is centered on taking a hands-on approach to inspiring young people through STEM-based programs and events designed to spark curiosity and foster creativity. By providing access to learning opportunities for underrepresented communities, we are preparing even more people for the careers of the future. Investments in Education The investments we make in education aims to equip students with the skills and knowledge to be successful in school and at work. By supporting those who live near our factories, we are investing in the long-term health of our communities. Nevada: In April of 2023, we completed a five-year, $37.5M investment in K-12 education in the state as part of our commitment to build Gigafactory Nevada. Tesla's investment has supported thousands of students from all levels in robotics, sustainability and STEM programs. As a result of this investment, over 50°/o of middle and high schools in Nevada now have an active robotics team. Texas: At Gigafactory Texas, we continued to support Robotics and Workforce Development programs at Del Valle Independent School District (DVISD) and began work on starting the first Gigafactory Texas High School Robotics lab to support DVISD's upcoming Pathways in Technology Manufacturing program. In 2023, Tesla invested over $840,000 to support community organizations across Central Texas. 80
  • 81. 81 Inspiring the Next Generation of Tesla Leaders (Cont'd) Manufacturing Day Robotics Impact Report 2023 Introduce a Girl to Engineering Day Impact Report 2023 People & Community Inspiring the Next Generation of Tesla Leaders (Cont'd) Introduce a Girl to Engineering Day During Engineering Week, Tesla celebrates Introduce a Girl to Engineering Day, a national movement focused on encouraging girls to see engineering as a desirable and impactful career path. Tesla first became involved in 2018 at Gigafactory Nevada and now holds an annual event across many Tesla sites with the goal of creating a fun, engaging learning experience for middle school girls. As a part of the day, students receive a behind-the-scenes tour of a Tesla facility, meet some of the women working at Tesla and participate in hands-on STEM activities with employee volunteers. This year's event was both in-person and virtual, with over 3,000 registrants across 43 states and 42 countries, hosted at 17 factories, offices and showrooms across the U.S., Canada and Germany. Manufacturing Day Tesla celebrates Manufacturing Day each year on the first Friday of October to inspire young people to explore careers in manufacturing. Students and teachers are invited to Tesla factories across North America to learn about our advanced manufacturing. Leaders highlighted Tesla's mission and students got the chance to experience the Tesla ecosystem through factory tours and interactive trainings. In 2023, events took place at Fremont Factory, Gigfactory Nevada, Gigafactory New York, Gigafactory Texas and Tesla Toronto Automation with over 200 participants from middle and high schools, community colleges and local nonprofits. Robotics Tesla's support for robotics programs serves as a dynamic platform that fosters innovation and equips students with essential STEM skills for the future. Through robotics, students are empowered to work together to explore creative ways to solve problems. Tesla helps support schools through funding, providing Tesla employees as in-classroom volunteers and hosting events. We continue to invest in programs in California, Nevada, New Mexico and Texas. In 2023, Tesla hosted our first Robotics Scrimmage at Fremont Factory for schools from Oakland, California. 81
  • 82. 82 Creating Pathways to Career Opportunities in Sustainable Energy START (Manufacturing and Service) Manufacturing Development Program Impact Report 2023 Impact Report 2023 People & Community Creating Pathways to Career Opportunities in Sustainable Energy Our workforce development programming is crucial to our success and to bringing in the best talent along the way. It is essential for Tesla to create pathways to cultivate the skills needed for the opportunities in the sustainable energy economy, and we do this through a variety of programs. START (Manufacturing and Service) Tesla START is an intensive training program that equips individuals with the skills needed for a successful technician role at Tesla. We partner with colleges nationwide to integrate Tesla START into automotive and manufacturing classroom locations. In 2023, Tesla donated advanced manufacturing equipment and expanded START Manufacturing into new campuses across California, Nevada and the U.K. The first cohort achieved a 100% pass rate and now operate on full-time contracts with Tesla. Manufacturing Development Program Our Manufacturing Development Program is designed to provide graduating high school seniors with the financial resources, coursework and experience they need to start a successful manufacturing career at Tesla. We hired 373 graduates through this program in 2023 with a goal of significant growth in 2024 across our Fremont Factory, Gigafactory Nevada, Gigafactory Texas and Gigafactory New York. 82
  • 83. 83 Creating Pathways to Career Opportunities in Sustainable Energy (Cont'd) Technician Trainee Program (Service)  Apprenticeships Future Talent Program Impact Report 2023 Impact Report 2023 People & Community Creating Pathways to Career Opportunities in Sustainable Energy (Cont'd) Technician Trainee Program (Service) The Tesla Technician Trainee Program provides onthe-job automotive maintenance training at Tesla's Service Centers. Targeted at individuals already in the industry but with limited experience, the program prepares trainees for employment as entry-level service technicians or for advanced training with Tesla's START program. Apprenticeships In the U.S., the Tesla Apprenticeship is a four-year program combining academic and on-the-job training that prepares specialists in skilled trades. In 2023, we launched additional apprenticeships in partnership with local government at Gigafactory Berlin-Brandenburg with 240 apprenticeships combining theoretical study, applied learning and on-the-job experience. At Gigafactory Shanghai, a program focusing on apprenticeship and educational opportunities engages frontline workers to establish skills and continue their technical knowledge building with a feeder exam and program into Shanghai University of Electricity Power. Between 2022 and 2023, the cohort enrollment grew from 534 to 800 participants. We've also rolled out an EV technician training curriculum with partnerships in government and industry associations in Australia, New Zealand, Korea and Hong Kong. Future Talent Program Piloted in the U.K. and Ireland, this traineeship pathway is designed for early careers and career changes with a fast track 12-month program to rotate around all Tesla core Sales, Service and Delivery departments with eight-week rotations. Each trainee is supported by a rotational supervisor and a dedicated line manager. During their final eight weeks, trainees select an elective rotation that correlates with the department they would like to pursue as a full-time position upon graduation. Upon completion, we hired 76% of graduates from the first cohort into full-time roles. 83
  • 84. 84 Creating Pathways to Career Opportunities in Sustainable Energy (Cont'd) Internships  Military Fellowship Program   Employee Education Assistance Program   Impact Report 2023 Impact Report 2023 People & Community Creating Pathways to Career Opportunities in Sustainable Energy (Cont'd) Internships Our internship program is an important channel for finding talented individuals who are passionate about sustainable energy. When there is a business need, we hire university and community college students from around the world for internships across the U.S. We provide our interns with the opportunity to engage in meaningful work from day one, with the goal of offering full-time positions when their internship is complete. Military Fellowship Program Tesla's Fellowship program, in partnership with the U.S. Chamber of Commerce Foundation's Hire Our Heroes, offers exiting military service members corporate industry experience. The program aims to convert highperforming individuals to full-time roles and create a veteran talent pipeline. In 2023, our Military Transition Program in EMEA consulted with over 1,000 individuals formerly in the service in Germany, U.K., Netherlands and Belgium on potential careers in Tesla. Employee Education Assistance Program This year, we launched an Employee Education Assistance Program-providing 70,000 employees in the U.S. with tuition-free or partially funded access to over 400 learning and skills training programs. Focused on providing opportunities to our frontline workforce, it includes virtual, self-paced education options, enabling employees to pursue new qualifications or expand their knowledge while advancing their careers. 80°/o of eligible employees work on the factory line or in the field. 84
  • 85. 2.86 255,950,012 Workplace Injuries in 2022 Workplace Injuries in 2023 2.51 368,650,973 85 We center the safety and engagement of our employees The safety and health of our employees is a core value Impact Report 2023 Impact Report 2023 People & Community We Center the Safety and Engagement of Our Employees The safety and health of our employees is a core value Everyone across Tesla works to ensure a healthy and safe workplace. We actively engage employees to identify risks before incidents occur and base our programming on three pillars: do the basics right, engage and empower stakeholders and reduce risk. We take a systems-thinking approach and focus on training, collaboration and direct engagements with the people doing the work to build our products. We want to measure the most critical incidents. While we still report and track OSHA metrics, we've continued to utilize the international standard on American Society for Testing and Materials 2920-19 (ASTM) to track and manage safety incidents over time. Workplace Injuries in 2023 ASTM 2920 Global Standard Workplace Injuries in 2022 ASTM 2920 Global Standard 85 2.51 368,650,973 ASTM Rate Hours 2.86 255,950,012 ASTM Rate Hours
  • 86. 86 We listen to our employees Impact Report 2023 46% 12% 11% 8% 5% 18% Take Charge Take Charge 1,097,468 89,296 44 1579 91% Impact Report 2023 People & Community We Listen to Our Employees We empower our employees to identify improvements. Take Charge-our internal improvement suggestion module-allows employees to submit improvements in environment, health, safety, security, people and more. Promoting a company-wide culture of improvement, Take Charge is used across all departments and regions where Tesla operates. Executive leaders have adopted and been trained in Take Charge. Submissions can be made anonymously and be owned at a cross-functional level. Take Charge Submissions {January 2021-January 2024) 1,097,468 89,296 Submissions Submitters 44 1579 Countries Locations Take Charge works as a leading indicator for safety and engages those closest to the work-as well as their supervisors-to establish a process to address issues proactively. Since its launch in 2021, we've seen a 30% reduction in global injury rate. To ensure integration across our operations, submissions are categorized into Safety, People, Accuracy, Rates and Cost (SPARC): Take Charge Breakdown of Submissions by Category Safety People Rate Cost Accuracy (Quality) Other of our employees agreed they knew how to report safety and security events 86
  • 87. Impact Report 2023 87 We Empower Our Employees to Build the Safest Operations We actively engage employees to identify risks before incidents occur and base our programming on three pillars: do the basics right, engage and empower stakeholders and reduce risk. As we’ve increased employee engagement, we’ve seen our work-related injury rate come down over the same period. While Our Global Work-Related Injury Rate Is Decreasing Safety Improvement Suggestions by Employees Are Increasing 660,000 2.51 Impact Report 2023 People & Community We Empower Our Employees to Build the Safest Operations We actively engage employees to identify risks before incidents occur and base our programming on three pillars: do the basics right, engage and empower stakeholders and reduce risk. As we've increased employee engagement, we've seen our work-related injury rate come down over the same period. • 2021 2022 2023 Safety Improvement Suggestions by Employees Are Increasing 49,000 333,000 660,000 Industry Avg. *The data is taken from companies participating ORCHSE/NSC for 2022 • While Our Global Work-Related Injury Rate Is Decreasing (ASTM) 3.57 2.86 2.51 6.96* 87
  • 88. 88 Human and Organizational Performance (HOP) Principles shape our safety journey 24,195 6,500 56 1,512 50% 34 51 3,234 Impact Report 2023 Impact Report 2023 People & Community Human and Organizational Performance (HOP) Principles Shape Our Safety Journey The HOP mission is to accelerate progress through operational learning, increased capacity and systems thinking. HOP enables Tesla to learn quickly and develop robust systems that can tolerate errors and fail safely. It prioritizes making it easy for workers to do the right thing. We develop tools and programs to integrate HOP principles into daily work. In 2023, we rolled out the Essential Safeguards program, a focused effort on fatality and serious injury prevention by strengthening our preventative and mitigative safeguards. 24,195 people completed an online HOP intro course 50% increase in the number of certified HOP trainers 6,500 leaders and EHS&S professionals learned the HOP principles 34 new Learning Team Facilitators trained across the globe 88 56 1,512 Essential Safeguards leaders and EHS&S identified to ensure the professionals learned the safety of employees basics of Essential Safeguards 51 3,234 Learning Teams events where HOP completed in 2023 principles were used to learn
  • 89. 89 The safety of our contractors is 
 as important as our own employees Workforce Management Impact Report 2023 Impact Report 2023 People & Community The Safety of Our Contractors is as Important as Our Own Employees Our safety focus is not only for our employees but also for those we contract with. To enhance visibility and management of production operations with contractors, we've deployed a global contractor onboarding and management system called Workforce Management. This enables coordination of work, identification of critical impacts, assessments of risk and communication of essential safeguards to elevate the environmental, safety and health performance of our onsite contractors and suppliers. We've integrated the core HOP principles along with access to event reporting tools including Take Charge. We also developed a field verification inspection tool and conduct regular inspections to confirm Pre-Work Risk Assessments (PWRA) and Pre-Task Plans (PTP), mobile equipment inspections and permits are completed prior to each shift. In 2023, over 9,000 field verifications were completed. We will continue to integrate this work throughout our global factories and customize tools to fit the needs of our Sales, Service and Delivery (SSD) and Energy business channels. Workforce Management Pre-Work Risk Assessments Pre- Task Plans Mobile Equipment Other Permits 0 89 86% 95% 92% 84%
  • 90. 90 We track employee sentiment annually Impact Report 2023 Impact Report 2023 People & Community We Track Employee Sentiment Annually In 2023, we continued to gather employee sentiment around work, culture, the leadership team, job satisfaction and career growth opportunities through our Employee Engagement Survey. In the company-wide engagement feedback, over 80% of respondents agreed or strongly agreed that they are overall satisfied with working at Tesla, there are clear pathways for growth with feedback from management, they feel respected and accepted by their team, they feel safe at work and know how to report incidents, they are supported by their manager, are satisfied with benefits at Tesla and they know how to raise HR/People-related concerns. We develop our leaders and their team management skills throughout their time at Tesla by offering specific leadership training, enhancing our performance management tools and continuing to broaden employee recognition. This helps us drive a culture of accountability, collaboration and continuous improvement, which is essential for organizational growth. Our teams are better as a result, and over 80°/o of employees strongly agreed or agreed that their manager helps their team succeed. 90
  • 91. 91 We continue to invest in our leaders’ development Performance Management Engagement: Shout Outs Impact Report 2023 Leadership: Growth and Development Training s Leadership essentialv s Driving developmenc s Emotional intelligencei s Growth mindseti s Communication that counts i s Feedbacki s Leading through transitions  s Leading peers i s Servant leadershipi s Working with crossfunctional teams i s Coaching i s Recognition i s Interviewing with intention Impact Report 2023 People & Community We Continue to Invest in Our Leaders' Development Leadership: Growth and Development Training We launched an Upward Feedback program to engage leadership across the company as part of performance management and gauging employee sentiment. Our programmatic approach to leadership development includes a robust training series from new leader onboarding fundamentals to continued learning, which focuses on: • Leadership essentials • Leading peers • Driving development • Servant leadership • Emotional intelligence • Working with cross- • Growth mindset functional teams • Communication that counts • Coaching • Feedback • Recognition • Leading through transitions • Interviewing with intention Performance Management Tesla's comprehensive performance management framework is designed to enhance performance evaluation, formal feedback, goal setting and support mechanisms. It encompasses crucial components such as personal and professional goal setting, ongoing coaching, performance evaluation and a biannual review conversations. These elements align employee development with organizational objectives, resulting in heightened performance and overall success. In 2023, Tesla saw: • 1.5x increase in documented coaching • 100% completion rate for bi-annual evaluation cycles • 30,000+ goals developed between employees and their manager, with 96% meeting their goals Engagement: Shout Outs Recognizing exceptional work is important. We've continued to see tremendous growth in utilization of our Shout Outs tool, with usage up 138% in 2023. This enables employees to recognize the achievements, contributions or impact of their colleagues. Bringing this visibility to excellent work gives direct feedback to employees and their managers and enables leaders to see the impact their teams are having. As part of this program, we also highlight engagement in key programs such as safety improvements or vehicle delivery volunteering and track career milestones. 91
  • 92. 92 We investigate concerns and complaints 64% 3% 31% 2% Impact Report 2023 Types of Concerns and Complaints Impact Report 2023 People & Community We Investigate Concerns and Complaints An employee can raise concerns or complaints to any member of management, Human Resources (HR) or Employee Relations (ER). If they prefer to report another way, the Integrity Line is available 24 hours a day, seven days a week and allows employees to report concerns anonymously and without fear of retaliation. Concerns are investigated promptly and impartially in a manner appropriate to the circumstances. The ER team engages in feedback loops with leaders and HR to provide guidance on any appropriate follow-up actions, which range from additional communication and training to corrective action and discipline up to termination of employment. In 2023, when asked through our company-wide Employee Engagement Survey, 81% of employees strongly agreed or agreed they know where to raise HR/People related concerns or suggestions so that they can be reviewed and addressed. Types of Concerns and Complaints Human Resources/ Employee Relations Business Integrity Environmental, Health and Safety Misuse of Corporate Assets 92
  • 93. 93 Process for investigating allegations received through Integrity Line Impact Report 2023 Allegation is Reported to Hotline Allegation is routed to appropriate team Allegation is Investigated Investigation Determines: Substantiated or Unsubstantiated Appropriate Action is Taken Impact Report 2023 People & Community Process for Investigating Allegations Received Through Integrity Line Allegation is Reported To Hotline Allegations can be made anonymously Allegation is Routed to Appropriate Team Compliance Legal lnfosec HR/Employee Relations EHS&S Other Allegation is Investigated Investigation Determines: Substantiated or Unsubstantiated Appropriate Action Is Taken Potential actions include: • Employee training • Process, policy or program updates • Disciplinary action, up to and including termination • Other appropriate actions 93
  • 94. 94 we do not tolerate harassment or discrimination Impact Report 2023 Nearly 100% of Tesla employees completed COBE training in 2023 Impact Report 2023 People & Community We Do Not Tolerate Harassment or Discrimination Nearly 100% of Tesla employees completed COBE training in 2023 Our policies are designed to promote fairness and respect for everyone. We hire, evaluate and promote employees based on their skills and performance. As we grow, we continue to address challenges head on. From day one in New Hire Orientation, employees learn about Tesla's respectful workplace. As part of prevention, we set clear expectations with annual Code of Business Ethics and Anti-Harassment (COBE) trainings globally. These trainings are not only included during the onboarding process, but throughout duration of employment with Tesla. Management regularly checks completion rates and follows up to ensure each employee completes all required trainings. In 2023, 97% of Tesla employees completed COBE training. 94
  • 95. 95 Innovation Through Constructive Conflict Impact Report 2023 Impact Report 2023 People & Community Innovation Through Constructive Conflict At Tesla, our employees are passionate about making a difference in the world and for each other. We remain unwavering in our demand that our factories, offices, sales locations and Service Centers are places where our employees feel respected and appreciated. Everyone is expected to be trustworthy, demonstrate excellence in their performance and collaborate with others. Innovation and excellence go hand in hand, and we've created psychologically safe environments where people are comfortable with raising new ideas in constructive conflict. In 2023, 91% of employees agreed that we treat each other with respect, even when we have different points of view. 95
  • 96. 96 Nearly Two-Thirds of Our People Leaders Come From Internal Promotions Impact Report 2023 65% Impact Report 2023 People & Community Nearly Two-Thirds of Our People Leaders Come From Internal Promotions We offer internal career development to our employees and the ability to make a meaningful contribution to a sustainable future. As of the end of 2023, 65% of our managers were promoted from an internal, non-manager position and the average tenure of senior management • was over nine years. of managers come from internal promotions 96
  • 97. Impact Report 2023 97 Our programs support employee wellbeing holistically Impact Report 2023 People & Community Our Programs Support Employee Wellbeing Holistically Our health programs promote employee wellbeing by offering no-cost paycheck contributions for medical, dental and vision plan options for employees and family members-plus employer-paid life insurance, shortand long-term disability, confidential counseling for employees and their families, employee assistance programs and voluntary benefit programs. Employees can also access student loan and debt consolidation services, transportation subsidies and $0 cost shuttles, backup childcare, discount programs and tools and resources to support growing families. We have student loan refinancing options, 401(k) contribution matching and a benefits concierge service for LGBTQ+ employees. 97
  • 98. 98 We Offer Competitive Pay and Benefits Family Services 16 Weeks of Paid Family Leave Rethink SafetyNet Back-Up Care Employee Perks Impact Report 2023 Impact Report 2023 People & Community We Offer Competitive Pay and Benefits We continue to attract the best and brightest with our competitive pay and benefits package. We offer employees the opportunity to receive equity during their employment and share in the success of Tesla. Shared ownership of the company is one of the most essential attributes of working at Tesla. '-- Safety Net Limited financial assistance for employees experiencing temporary hardship Rethink Resources at no cost to tools and resources for families including those with developmental and learning challenges • a Back-Up Care Five days of back-up daycare, tutoring and distance learning assistance 16 Weeks of Paid Family Leave Employees spending time with their family after the birth or adoption of a child ft • • lit Employee Perks Preferred pricing on gym memberships, financial services, childcare and travel as well as savings on Tesla products Family Services Including fertility services, adoption and third-party reproduction services 98
  • 99. 99 Employee Stock Purchase Plan (ESPP) Impact Report 2023 Impact Report 2023 People & Community Employee Stock Purchase Plan (ESPP) Our employees can purchase Tesla stock at a discount through the ESPP. Enrollment in ESPP is easy with an internal site, stock admin team and support through the administrator. In 2023, we increased efforts around education for how to use this benefit. We want to ensure increased financial health and literacy is something everyone at Tesla can benefit from regardless of role or seniority. 99
  • 100. Impact Report 2023 100 Our Pay Equity Program Impact Report 2023 People & Community Our Pay Equity Program Our program is designed to assess whether similarly situated employees are paid in a similar manner after accounting for variables such as: Geographic Zone Tenure Average Performance Score Job Function Management Level and Role HR also offers a Pay Equity and Pay Transparency educational course to everyone in the People Organization, with a focus on HR partners and recruiters. This course details what pay equity is, why it is important, how unconscious bias affects pay and hiring, best practices for hiring and compensation and how each person can be an effective partner in helping the company achieve and maintain pay equity. 100
  • 101. 101 Community Engagement Supporting the Communities We Work In  Impact Report 2023 Tesla Impact EV Charging and Energy Donations Impact Report 2023 People & Community Community Engagement Supporting the Communities We Work In We are committed to positively impacting and strengthening the communities in which we live and work. We have created programs and partnerships in the regions where we operate to ensure communities benefit from our presence. Through our sustainability initiatives, we strive to support the natural environment by harnessing the power of our people, products and programs. Tesla Impact Since launching in 2020, participation in our employee volunteer program has more than doubled. In 2023, we implemented a user-friendly volunteer and giving platform, facilitating easy volunteer sign-ups, donations and engagement in major initiatives like Earth Day, Week of Service and Season for Giving, as well as various one-off volunteer events on-site or in our communities. Tesla volunteers continue to make a significant impact through their dedicated efforts. • Nearly 1,800 employees volunteered or donated • Over 8,000 volunteer hours • Over 100 non-profits impacted EV Charging and Energy Donations The goal of our EV Charging donations program is to increase access to charging and remove barriers to EV adoption by building infrastructure in communities with little-to-no access to charging. We do this by partnering with community-based organizations and donating Tesla Level 2 Wall Connectors to be installed in publicly accessible areas. In 2023, we launched a Solar and Energy Storage donation program to help support energy resiliency in communities most impacted by climate change. 101
  • 102. Impact Report 2023 102 Maui Puerto Rico Mississippi Florida Australia Disaster Relief Impact Report 2023 People & Community Disaster Relief We've been able to help communities around the world to restore power during crises by deploying Mobile Powerwall Units (MPUs): Maui • In Maui, Tesla supported wildfire relief efforts with two direct zero-cost loans of MPUs. We also provided technical support to NGO partners and Certified Installers for the rapid build and deployments to relief camps. Florida • After Hurricane Ida, Tesla deployed an MPU to power a relief center. Puerto Rico • Tesla pre-positioned five MPUs with a partner organization for crucial fire stations that support operations for most of the year. We also provided engineering support for custom mobile Powerwall trailer designs. Australia • Tesla deployed two MPUs to community centers in New South Wales after loss of power that resulted from unprecedented flooding. Mississippi • Tesla deployed two MPUs after a tornado in Mississippi to support disaster relief efforts at a central health clinic. 102
  • 103. Supply Chain Impact Report 2023 Impact Report 2023 Supply Chain 103 Supply Chain Accelerating Sustainability Through Our Sourcing Supply Chain Decarbonization Battery Recycling Responsible Sourcing of Battery Materials Responsible Sourcing of Other Priority Materials Tools 103 107 110 113 127 131
  • 104. EV Supply Chains Present More Opportunities for Positive Impact than ICE Vehicle Supply Chains Impact Report 2023 Impact Report 2023 Supply Chain 104 EV supply chains present more opportunities or positive impact than I E vehicle supply chains EVs have clear benefits during the use-phase; however, some critics say they rely disproportionately on raw material extraction and as a result have a higher environmental impact up front. In reality, the unique raw materials, manufacturing processes and structure of our supply chain aims to maximize positive environmental and social impact. 104
  • 105. 105 Tesla EV Supply Chain We leverage our market power to make mining and refining better 
 We source the critical minerals needed for our products directly from mines, refiners and smelters. This allows for increased leverage to make mining and processing a better, less GHG-intensive industry with greater traceability. In 2023, we completed more audits in this part of the supply chain than ever before. We made improvements in GHG emissions, water and air quality, mine closure, mine waste, biodiversity and community and civil society engagement, including in Indonesia and the Democratic Republic of Congo. We are set up for supplier-specific decarbonization
 Bolstered by our direct relationships with suppliers far up the supply chain, in 2023, we collected more primary and precise GHG data from suppliers in prior years, setting the stage for supplier-specific decarbonization. We optimize the recyclability of battery inputs
 EV battery inputs are highly recyclable. In 2023, at our in-house recycling facilities, Tesla processed enough recovered material for 9,000+ Model Y RWD vehicles. This will continue to massively scale as batteries begin to return to us in meaningful quantities over the next decade. We innovate through vertical integration Our vertical integration enables new innovations that are better for people and the planet. For example, at our lithium refinery in Texas, we replaced toxic materials with a reusable compound. We’ll need less mining for a fully sustainable energy future As demonstrated in Tesla’s Master Plan Part 3, a fully sustainable energy future, including producing the number of EVs needed for it, will require less mining than one based on fossil fuels. Fossil fuels currently account for 15.5Gt of material extracted from the earth each year.* In a sustainable energy economy, material extraction will decrease by 10.8Gt—with most fossil fuel extraction being replaced by 3.3Gt of renewable material extraction. Over time, this will further decrease as recycling becomes more prevalent. *Based on data from the Circularity Gap Report Impact Report 2023 ICE Supply Chain Impact Report 2023 Supply Chain 0 ICE Supply Chain Typically lacks control and transparency in the upstream supply chain Typically relies on secondary GHG data estimates Relies on single-use fossil fuels Typically focuses on manufacturing Needs more raw material extraction than a sustainable energy economy 0 Tesla EV Supply Chain We leverage our market power to make mining and refining better We source the critical minerals needed for our products directly from mines, refiners and smelters. This allows for increased leverage to make mining and processing a better, less GHG-intensive industry with greater traceability. In 2023, we completed more audits in this part of the supply chain than ever before. We made improvements in GHG emissions, water and air quality, mine closure, mine waste, biodiversity and community and civil society engagement, including in Indonesia and the Democratic Republic of Congo. We are set up for supplier-specific decarbonization Bolstered by our direct relationships with suppliers far up the supply chain, in 2023, we collected more primary and precise GHG data from suppliers in prior years, setting the stage for supplier-specific decarbonization. We optimize the recyclability of battery inputs EV battery inputs are highly recyclable. In 2023, at our in-house recycling facilities, Tesla processed enough recovered material for 9,000+ Model Y RWD vehicles. This will continue to massively scale as batteries begin to return to us in meaningful quantities over the next decade. We innovate through vertical integration Our vertical integration enables new innovations that are better for people and the planet. For example, at our lithium refinery in Texas, we replaced toxic materials with a reusable compound. We'll need less mining for a fully sustainable energy future As demonstrated in Tesla's Master Plan Part 3, a fully sustainable energy future, including producing the number of EVs needed for it, will require less mining than one based on fossil fuels. Fossil fuels currently account for 15.5Gt of material extracted from the earth each year.* In a sustainable energy economy, material extraction will decrease by 10.8Gt-with most fossil fuel extraction being replaced by 3.3Gt of renewable material extraction. Over time, this will further decrease as recycling becomes more prevalent. *Based on data from the Circularity Gap Report 105
  • 106. 106 Priority Engagement Areas and Materials Impact Report 2023 Priority Engagement Areas Priority Raw Materials Ferrous Metals (Steel & Iron) Lithium, Nickel, Cobalt Aluminum Tin, Tantalum, Tungsten, and Gold (3TG) Impact Report 2023 Supply Chain Priority Engagement Areas and Materials Our efforts are guided by our commitments and the supplier expectations included in our Responsible Sourcing Policy, Global Human Rights Policy, Supplier Code of Conduct and international frameworks like the OECD Guidelines for Multinational Enterprises, OECD Due Diligence Guidance for Responsible Business Conduct, OECD Due Diligence Guidance for Responsible Minerals, the Universal Declaration of Human Rights and the United Nations Guiding Principles on Business and Human Rights. Additional information on our responsible sourcing efforts can be found in our Modern Slavery Statement and Conflict Minerals Report. We identified several priority raw materials and engagement areas for our responsible sourcing efforts using business criteria (demand, criticality) and potential adverse impacts: Priority Engagement Areas Combatting forced labor Decarbonization Improving water quality Preventing child labor Protecting forests and biodiversity Protecting human rights Priority Raw Materials Lithium, Nickel, Cobalt Batteries, particularly in the cathode Tin, Tantalum, Tungsten, and Gold (3TG) Various electronic components within the vehicle, such as sensors, circuitry and connectors. 106 Aluminum Body structure, chassis, some components of the battery system Ferrous Metals (Steel & Iron) Frame, body panels and motor casings.
  • 107. 345 107 More Primary Data Than Ever to Inform Supply Chain Decarbonization Impact Report 2023 In 2023: Tesla Commodity Supply Chain Emissions Batteries Aluminum Steel Glass Logistics Capex Other Impact Report 2023 Supply Chain More Primary Data Than Ever to Inform Supply Chain Decarbonization We1re working to accelerate the world's transition to sustainable energy not only through our products and operations, but also through our supply chain. To get there, we need accurate emissions data. Historically, emissions have been underestimated due to limited data and generalized methodologies. That's why we prioritize gathering high-quality and primary data directly from our suppliers. See page 147 for a full disclosure of our Scope 3 GHG emissions, including supply chain. In 2023: 345 • GHG datapoints were collected directly from our suppliers through our GHG survey or LCAs disclosed by suppliers We used a process-based model for steel and aluminum for the first time We moved to more regionally representative numbers We collected significantly more primary data for the battery calculations Tesla Commodity Supply Chain Emissions Logistics 1.27% Other 46.33% Capex 10.19% Batteries 23.26% Aluminum 11.45% ~ Steel ~r 6.48% Glass 1.03% 107
  • 108. 108 In the Battery Supply Chain: Reducing Emissions Through Supplier Engagement Impact Report 2023 In 2023: 35 18 9 Impact Report 2023 Supply Chain In the Battery Supply Chain: Reducing Emissions Through Supplier Engagement In 2021 and 2022, we were the first downstream company to disclose an analysis of carbon emissions hotspots methodology in our battery supply chain using LCA methodology. This enables us to address critical areas within our supply chain more effectively. Tesla requests all suppliers in the battery supply chain to provide annual GHG emissions footprints, either through our GHG Survey, an ISO-certified facility footprint or an ISO-certified and third-party reviewed LCA. We also provided supplier-facing guidelines for Life Cycle Inventory Analysis (LCIA). In 2023, we also began requiring suppliers to provide GHG reduction plans and progress updates, with science-aligned reduction targets set at the cell, cathode, and refining/ smelting levels. In addition to getting primary data from suppliers, we create process-specific estimates of remaining emissions data. These were identified as hotspots through prior analyses. In 2024, Tesla will work closely with suppliers to develop GHG reduction targets and roadmaps. Based on the supplier data we will continue to collect, we aim to work with suppliers to develop site-specific decarbonization plans, while designing and sourcing for low-impact cells and increasing the share of recycled material. This will be guided by an overall reduction target for the battery supply chain as well as sciencealigned targets set by suppliers. In 2023: 35 18 9 suppliers disclosed facility GHG data suppliers disclosed product LCAs suppliers set science-aligned GHG reduction targets 108
  • 109. 109 Building on the World’s First Battery Passport Impact Report 2023 Cybertruck 4680 RSTE2291345831
 Battery Passport ID Number of Cells Per Battery 1344 Nickel-Cobalt-Manganese (NCM) Battery capacity relative to when it was new Technical Details 123 kWh 721 kg 800 V DC .17 kWh/kg Total Energy Battery Weight Voltage Energy Density GHG Footprint (Status of Data Collection) % of GHG Data or Count Vehicle MFG Location Austin, TX United States Austin. TX United States Cathode Chemistry More Material Traceability Countries of Origin for
 Battery Minerals Lithium 33% Cobalt 100% Nickel 88% % of Mines, Refiners and Smelters Audited Of Direct or Count NCM(4680) Nickel-Cobalt-Manganese 1 Lithium 24 GHG Datapoints 13 LCA’s 9 Reduction Targes 5 Cobalt 3 Nickel Canada Argentina Australia DRC Indonesia New Caledonia Cathode and anode active material traced to raw material source Total Number of Audits
 Per Material More More More More More More More
  • 110. 110 We Optimize the Recyclability of Battery Materials In-House Impact Report 2023 Collection Processing Reincorporation Tesla recycling facility in Austin, Texas Impact Report 2023 Supply Chain We Optimize the Recyclability of Battery Materials In-House While ICE vehicles rely on single-use fossil fuels, recovered battery inputs like nickel, cobalt, copper and lithium can be reused for new products. As a leading global manufacturer of EVs and energy products, we are well positioned to safely recover our products and efficiently reclaim battery metals to replace a substantial share of primary mined materials in our batteries with recycled content. We recycle battery materials using the methods described on the right. e Collection We typically only know that our products are no longer operational if a customer alerts us. To enhance our collection of end-of-life products for recycling, we expanded the Tesla Operating System to include recovery of end-of-life vehicles and battery packs and continued to track 100% of manufacturing scrap generated at each of our production facilities. e Processing We continued to invest in and scale our efforts to process recovered materials at Gigafactory Nevada, and our remanufacturing facilities in California and at Gigafactory New York. In addition, we also provide material to third-party recyclers. Q Reincorporation Once the battery materials have been extracted from end-of-life products and refined into battery-quality raw materials, we then reincorporate them into new products. 110
  • 111. 111 Battery Recycling:
 2023 Key Achievements Impact Report 2023 2,431 2023 Grand Total Recovered (mt) 117 860 329 Impact Report 2023 Supply Chain Battery Recycling: 2023 Key Achievements 2023 Grand Total Recovered (mt) 2,4 Nickel For more information about our operational decarbonization strategy, see pages 36-45 and 50. 117 Cobalt 111 860 329 Copper Lithium
  • 112. 112 Battery Recycling:
 Key 2023 Achievements Impact Report 2023 Wet shredded cell material at Tesla's Gigafactory Nevada 500+MT >90% 650MWh 3GWh Impact Report 2023 Supply Chain Battery Recycling: Key 2023 Achievements 5Q0+MT 650MWh 3GWh of materials recovered from returned or end-of-life products and manufacturing scrap are recycled per month battery recycling throughput at Gigafactory Nevada in Q4 of battery materials processed at our battery shredding facility, which is enough for 9,000+ Model Y RWD vehicles of battery materials sent to our recycling partners, which is enough for 43,000+ Model Y RWD vehicles 112
  • 113. 113 Combatting Forced Labor in Our Supply Chain Impact Report 2023 Our Process: Impact Report 2023 Supply Chain Combatting Forced Labor in Our Supply Chain Forced labor is a complex issue that affects supply chains in all industries and regions and requires both global and targeted local responses. In 2023, we committed more human and legal resources to combat forced labor risk in our supply chain. Our efforts are informed by International Labor Organization (ILO) guidance, including principles to cease harm and provide remedy, and regulatory frameworks relevant to our global operations. Our Process: CD Require suppliers to acknowledge our Supplier Code of Conduct at onboarding, which includes forced labor provisions, and make commitments to avoid forced labor in supplier contracts Prioritize mapping high-risk supply chains to raw materials 0 Screen our partners using a combination of resources, including reputable third-party tools and experts, including legal advisors Conduct audits that assess the following indicators: • Supplier sites where working hours exceed the 60-hour weekly threshold • Share of foreign migrant workers • Supplier sites with dispatch/contract workers • Worker accommodation • Use of third-party labor agencies • Evidence of working hours document falsification, passport withholding, withheld wages, recruitment fees and inhumane treatment Incorporation of NGO and other stakeholder reports (including feedback) to assess risk and inform business decisions ® 113 Where violations are identified, work with suppliers to review root causes, approve plans to improve and remediate issues and monitor evidence of improvement and worker engagement. We may pause sourcing from a supplier until identified issues are remediated or transition away from a relationship when a violation is not resolved
  • 114. 114 Combatting Forced Labor in Our Supply Chain: 2023 Key Achievements Impact Report 2023 13,018 5,400 Impact Report 2023 Supply Chain Combatting Forced Labor in Our Supply Chain: 2023 Key Achievements • 13,018 5,400 suppliers screened using industry leading third-party tools workers reimbursed over $150,000 after we identified instances where workers were charged recruitment or other fees for employment • 984 supplier facilities surveyed on ILO forced labor indicators through Tesla's Self-Assessment Questionnaire • 156 suppliers completed audits (covering indicators listed on prior page), including 3,645 worker interviews • 96% of audited suppliers demonstrate effective grievance mechanisms with the remainder working on corrective actions • Launched ability to restrict purchasing on our supply chain management portal if potential risks are identified and not mitigated • Over 1,000 staff covered in monthly trainings for entire procurement team on how to identify potential forced labor risks when visiting suppliers and a December Human Rights Day training-honoring the 75th anniversary of the Universal Declaration of Human Rights-on how Tesla's mission is linked to human rights in the supply chain. Requested suppliers to complete similar trainings for their staff 114
  • 115. 115 Combatting Forced Labor in Our Supply Chain: 2023 Case Studies Impact Report 2023 Interiors Battery Impact Report 2023 Supply Chain Combatting Forced Labor in Our Supply Chain: 2023 Case Studies Tesla actively combats forced labor in our supply chain to address risks and remedy any potential harm. The following cases highlight the importance of continually engaging and collaborating with suppliers to foster a culture of accountability: 0 Interiors We became aware of a potential violation of our Supplier Code of Conduct in our interiors supply chain related to recruitment practices of a labor broker. We quickly commissioned and participated in-person in two independent audits, and, upon confirmation of the risk, the supplier terminated the relationship with its labor broker, while giving contract workers the option to continue working for the supplier under new management. For mitigating future risks, our supplier established new due diligence processes for contracting partners and upstream suppliers, reimbursed all identified recruitment-related health exam fees to workers, established processes to eliminate fees paid by workers in future recruitment paths and created a new sustainability function with dedicated staff. 0 Battery In 2023, we conducted detailed chain of custody pilot exercises to verify material traceability for high-risk inputs from battery cell to mine site. We worked handin-hand with cross-functional supplier teams to ensure management systems and documentation logs were updated to meet regulatory requirements. As a result of our engagement, suppliers increased material traceability and are strengthening their documentation processes to improve chain of custody. 115
  • 116. 116 Combatting Forced Labor in Our Supply Chain: 2023 Case Studies Impact Report 2023 Interiors Accessories Aluminum Impact Report 2023 Supply Chain Combatting Forced Labor in Our Supply Chain: 2023 Case Studies • Interiors Accessories During a supplier's first audit, worker interviews crosschecked against the supplier's records confirmed that workers paid fees to obtain employment, faced involuntary wage deductions and were unable to access passports held by the employer-all of which are violations of Tesla's Supplier Code of Conduct. Tesla worked with the supplier to formulate a comprehensive corrective action plan covering immediate and longterm actions, resulting in the immediate return of all 10 workers' passports to enable freedom of movement, a company-wide investigation to understand root causes of fees paid by workers, fee repayment, an end to involuntary wage deduction and management and employee trainings. The case highlighted the importance of continually engaging and collaborating with suppliers to foster a culture of accountability. 0 Aluminum We continue to comprehensively map our aluminum supply chain in more detail-with thorough coverage of all manufacturers, traders, transportation providers and other key entities-and completed chain of custody exercises to work toward full material traceability. For example, in one supply line, we were able to map completely upstream and determine that two mines in that supply chain are certified by the Aluminum Stewardship Initiative (ASI) Certification Performance Standard, which includes criteria on forced labor, with one mine also certified by the ASI Chain of Custody Standard, which evaluates a supplier's traceability management systemsultimately enabling the assessment of forced labor risk in the most upstream part of this supply chain. 116
  • 117. 117 New Levels of Transparency for Child Labor-Free Cobalt Impact Report 2023 At large-scale mines: Screenshot from satellite monitoring system launched in collaboration with Tesla supplier Glencore Impact Report 2023 Supply Chain New Levels of Transparency for Child Labor-Free Cobalt At large-scale mines: To build our batteries, we use several different cathode chemistries. Our nickel-based cathodes (NMC and NCA) contain cobalt, but others, like our iron-based cathodes (LFP), do not. While our nickelbased cathodes will continue to need cobalt, they contain less cobalt than similar cathode chemistries in the industry, and we are increasing our use of cobaltfree iron-based batteries, particularly for energy storage and standard range products. By mapping our supply chain, we know where our cobalt comes from-and we only purchase cobalt from large-scale mines. Our direct suppliers undergo thirdparty audits to ensure no child labor happens at these mines and no material from unauthorized sources enters our supply chain. Four audits were conducted in 2023* and found no instances of child labor at our direct suppliers' sites. Our suppliers took action on all the social performance findings of the audits and either completed the corrective action plan or have a detailed plan in progress. In addition, we worked with our supplier Glencore to launch a publicly available satellite monitoring system of its Kamoto Copper Company (KCC) operation located in the DRC. High-resolution images are updated monthly and allow for anyone to see what the operations look like down to 0.5 meters of resolution, thus providing a good picture of what is happening at the mine. Users can also compare these images with images of artisanal operations, which are typically at higher risk of child labor, to identify differences in production methods. This is the first time this level of transparency was achieved as a result of a collaboration between supplier and customer in the battery minerals supply chain. *Including against the International Council on Mining and Metals (ICMM) Performance Expectations and the Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP). Both include provisions on child labor. 117
  • 118. 118 New Levels of Transparency for Child Labor-Free Cobalt Impact Report 2023 In artisanal mining communities: In 2023, the FCA accomplished the following: 5,206 18 21 Impact Report 2023 Supply Chain New Levels of Transparency for Child Labor-Free Cobalt In artisanal mining communities: While all of Tesla's sources are industrial mines, we continue to co-fund the Fair Cobalt Alliance (FCA) working with artisanal and small-scale mining (ASM) communities in the DRC. We remain committed to staying engaged in the DRC to improve conditions for stakeholders impacted by cobalt mining. In 2023, the FCA accomplished the following: 18 21 5,206 children who were found working in ASM enrolled in a comprehensive remediation program that includes reintegration to education, living stipends, and health and psycho-social support local community savings and loans groups deployed artisanal miners trained on safety standards 118
  • 119. 119 Cobalt: Risk Identification and Mitigation Summary Impact Report 2023 >55% Risk Identification M 11 cobalt suppliers M 100% of our direct cobalt suppliers M 3 cobalt suppliers M completed an audit against a Tesla-preferred international standard covering environmental and social risk_ (mines and refiners) completed an audid completed an LCl Regular engagement with NGOs Examples of Risk Mitigation Actions Completed by Suppliers Direct Supplier Status Supplier Tier Locations Audit Status* LCA Status Complete In Progress No Commitment Tesla staff during a visit to an industrial cobalt mine and processing site in the DRC in late 2023 Impact Report 2023 Supply Chain Cobalt: Risk Identification and Mitigation Summary of cobalt sourced directly from mines and refiners in 2023 For materials that we do not direct source, we apply the same supply chain mapping and due diligence requirements. Risk Identification • 11 cobalt suppliers completed an audit against a Tesla-preferred international standard covering environmental and social risks • 100% of our direct cobalt suppliers (mines and refiners) completed an audit • 3 cobalt suppliers completed an LCA • Regular engagement with NGOs Examples of Risk Mitigation Actions Completed by Suppliers • Developed air quality management and water quality management plans • Conducted a comprehensive third-party human rights risk assessment • Developed a closure plan that meets international requirements • Developed a procedure to gather, review and respond to community requests • Assessed grievance mechanisms against expectations laid out in the United Nations Guiding Principles for Business and Human Rights Direct Supplier Status • Complete • In Progress Commitment • No Commitment Supplier Tier Kamoto Copper Mine Company (Glencore) Mutanda Mining Mine (Glencore) Huayou Refiner CNGR Refiner Locations DR Congo DR Congo China China Audit Status* • (1) (2) e (1) (2) • (2} (2} • LCA Status • • • • (1) International Council on Mining and Metals (ICMM) Performance Expectations; (2) Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP) Committed = written commitment to complete an asset-specific, 3rd party verified LCA within the calendar year. Completed= 3rd party verified LCA published within the past 2 years. 119
  • 120. 120 Nickel: Reducing the Environmental and Social Impacts in Indonesia Impact Report 2023 Tesla staff during visit to nickel mines and smelters in Indonesia in 2023 Impact Report 2023 Supply Chain Nickel: Reducing the Environmental and Social Impacts in Indonesia In 2023, 13% of Tesla's nickel came from Indonesia. We understand that Indonesian production is scaling significantly and the share of Indonesian nickel in global EV supply chains will increase. The transition to EVs will not be possible by only relying on non-Indonesian nickel. Key risks in this context relate to GHG emissions, deforestation, water pollution, indigenous and community rights and worker health and safety in the country. We invested significant resources to address these head-on with our suppliers, NGOs and the Indonesian and U.S. governments. In December 2023, a Tesla delegation focused on environmental and social impact visited mines, smelters and industrial parks in Indonesia and met with government stakeholders (this is the second Tesla visit focusing on these topics after a first visit in 2022). 120
  • 121. 121 Nickel: Reducing the Environmental and Social Impacts in Indonesia Impact Report 2023 GHG Emissions Environmental Protection Indigenous Rights Traceability Audits Impact Report 2023 Supply Chain Nickel: Reducing the Environmental and Social Impacts in Indonesia GHG Emissions • Requested and received four facility and production specific LCAs and GHG footprints, covering mines and smelters, with more expected in 2024 • Asked suppliers to set decarbonization targets and move away from captive coal • Pursuing lower-carbon processing options like High-Pressure Acid Leaching (HPAL) (as opposed to higher-emitting pyrometallurgical processes) Environmental Protection • Engaged with NGOs, government and suppliers to promote safer mine waste practices such as dry stack tailings; we have a zero tolerance for tailings disposal into oceans Indigenous Rights • Engaged with NGOs, government and suppliers to explore the need for the establishment of a no-go zone for mining to protect indigenous and human rights, particularly those of uncontacted communities, in addition to supplier engagement to reinforce our commitment to protect the right of Indigenous People to grant or withhold Free, Prior and Informed Consent (FPIC) Traceability • One supplier built a pipeline for full traceability of nickel ore directly from a mine to a smelter Audits • Three identified mine sites were audited against international mining standards, with three smelters scheduled to undergo the Responsible Minerals Initiative (RMl)'s Responsible Minerals Assurance Process (RMAP) in early 2024; Tesla's expectation is that all Indonesian suppliers are audited to international standards 121
  • 122. 122 Nickel: Risk Identification and Mitigation Summary Impact Report 2023 Risk Identification L 18 nickel suppliers L 70% of our direct nickel suppliers L 5 nickel suppliers or facilities L completed an audit against a Tesla-preferred international standard covering environmental and social risks a (mines and refiners) completed an audita completed or scheduled an LCAa NGO engagement  >50% Examples of Risk Mitigation Actions Completed by Suppliers Industry Groups Direct Supplier Status Supplier Tier Locations Audit Status* LCA Status Complete In Progress No Commitment Impact Report 2023 Supply Chain Nickel: Risk Identification and Mitigation Summary >50% of nickel sourced directly from mines and refiners in 2023 For materials that we do not direct source, we apply the same supply chain mapping and due diligence requirements. Risk Identification • 18 nickel suppliers completed an audit against a Tesla-preferred international standard covering environmental and social risks • 70% of our direct nickel suppliers (mines and refiners) completed an audit • 5 nickel suppliers or facilities completed or scheduled an LCA • NGO engagement Examples of Risk Mitigation Actions Completed by Suppliers • Established detailed stakeholder mapping (communities of interest identification under some frameworks) • Published robust human rights policies and supplier code of conduct • Invested considerable resources to improving tailings storage facilities to bring them into conformance with international standards • Evaluated dewatering tailings storage to reduce water withdrawals Industry Groups • Tesla chairs the Nickel Working Group in the Responsible Minerals Initiative (RMI) 122 Direct Supplier Status • Complete • In Progress Commitment • No Commitment Supplier Tier Locations Audit Status* LCA Status Sudbury (Vale) Mine + Refiner Canada • (3) • Prony Mine New Caledonia • (4) Resources • Nickel West Mine Australia • (1) • (BHP} Murrin Murrin (Glencore) Mine Australia • (2) • China (2) CNGR Refiner • • (2) Refiner Indonesia • (2) Refiner China Huayou • • (2) Refiner Indonesia • (1) International Council on Mining and Metals (ICMM} Performance Expectations; (2) Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP); (3) Towards Sustainable Mining (TSM); (4) International Finance Corporation (IFC) Performance Standard Committed = written commitment to complete an asset-specific, 3rd party verified LCA within the calendar year. Completed = 3rd party verified LCA published within the past 2 years.
  • 123. 123 Innovations in Lithium Sourcing  Impact Report 2023 Plant Design  Community Engagement  Tesla's lithium refinery in Corpus Christi, Texas, currently under construction Impact Report 2023 Supply Chain Innovations in Lithium Sourcing Lithium is a critical input to all our batteries and another priority for responsible sourcing. Our supply chain team works closely with our own lithium refinery in Corpus Christi, Texas: Plant Design • Use of low-toxicity industrial reagents instead of sulfuric acid and sodium hydroxide, generating a byproduct that can be used in construction materials, instead of a hazardous byproduct with residual acid that must be disposed of • Alkaline reagent leach process uses -35% less natural gas compared to the traditional processes • Additional energy optimization and heat integration reduces the plant heating load by >14 MW Community Engagement • Active engagement with regional educational and workforce development institutions in advisory board capacities to inform and equip the local labor market to meet the demands of technologically intensive industries • Investments in municipal improvements and close partnerships with the regional economic development corporation to seed further economic development and growth in the region For more information on our circular solutions programming within our own operations, please see page 50. 123
  • 124. 124 Across Our Lithium Supply Chain  Impact Report 2023 5 Tesla staff during a visit to a lithium processing facility in Australia in 2023 Impact Report 2023 Supply Chain Across Our Lithium Supply Chain In 2023, our responsible sourcing teams participated in on-site visits with current and prospective Lithium suppliers in Chile and Australia. These visits helped the team better understand suppliers' current environmental and human rights practices, as well as decarbonization roadmaps. Two of our direct lithium suppliers also completed or are in the process of completing an independent thirdparty audit against the Initiative for Responsible Mining Assurance (IRMA) Standard, Tesla's preferred mining standard. IRMA is a multi-stakeholder led organization with the most comprehensive mining certification system and transparent reporting of results available. Its focus on continuous improvement allows suppliers to improve their results over time. Tesla has been an IRMA member since late 2021. Our goal is to encourage the uptake of IRMA across our supply chain. 5 mines completed or committed to date to an IRMA audit across our lithium, nickel and graphite supply chains 124
  • 125. 125 Lithium: Risk Identification Summary Impact Report 2023 >75% Risk Identification L 100% of our direct lithium suppliers L 4 lithium suppliers L (mines and refiners) completed or committed to an audit against a Tesla-preferred international standard covering environmental and social risks a completed an LCAa Reviewed NGO reports  Tesla staff during a visit to a lithium processing facility in Australia in 2023 Impact Report 2023 Supply Chain Lithium: Risk Identification Summary of lithium sourced directly from mines and refiners in 2023 For materials that we do not direct source, we apply the same supply chain mapping and due diligence requirements. Risk Identification • 100% of our direct lithium suppliers (mines and refiners) completed or committed to an audit against a Tesla-preferred international standard covering environmental and social risks • 4 lithium suppliers completed an LCA • Reviewed NGO reports 125
  • 126. 126 Lithium: Risk Mitigation Summary Impact Report 2023 Examples of Risk Mitigation Actions Completed by Suppliers as a Result of an IRMA Audit  Examples of Risk Mitigation Actions Completed by Suppliers Industry Groups Direct Supplier Status Supplier Tier Locations Audit Status* LCA Status Complete In Progress Commitment No Commitment Impact Report 2023 Supply Chain Lithium: Risk Mitigation Summary Examples of Risk Mitigation Actions Completed by Suppliers • Established effective engagement with local indigenous groups and responded to allegations of lack of FPIC regarding their operations • Tesla provided technical feedback and comment to supplier's decarbonization plan and LCA roadmap • Thorough limnological study completed by group of experts to evaluate local aquatic ecosystems, including biological, chemical and physical properties • Considering options to install solar energy on top of old tailings storage facilities Examples of Risk Mitigation Actions Completed by Suppliers as a Result of an IRMA Audit • Suppliers substantially or fully met all critical requirements • Suppliers currently closing gaps identified during audits, including: (1)Develop a differential approach for engaging with women and children, (2)Establish a process for a community grievance mechanism and monitor trends, (3) Establish a target for hiring local residents and (4)0perationalize a biodiversity management plan Industry Groups Tesla chairs the Lithium Working Group in the Responsible Minerals Initiative (RMI) Direct Supplier Status • Complete • In Progress Commitment • No Commitment Supplier Albemarle Arcadium Ganfeng Yahua Tier Mine Mine Refinery Refinery Mine Refinery Refinery Refinery Refinery Locations Chile Australia Chile China Argentina China USA China China Audit Status* • (5) (5) (2) (6) (2) (6) (5) • (2) (6) (2) (6) (2) (6) e (2) (6) LCA Status • • • • • • • • • (2) Responsible Minerals Initiative (RMI) Responsible Minerals Assurance Process (RMAP); (5) Initiative for Responsible Mining Assurance (IRMA) Standard; (6) Responsible Minerals Initiative (RMI) ESG Standard 126 Committed = written commitment to complete an asset-specific, 3rd party verified LCA within the calendar year. Completed = 3rd party verified LCA published within the past 2 years.
  • 127. 127 Aluminum: Pushing for the Industry to Respect Rights and Lower Emissions   Impact Report 2023 Direct Sourcing and Supply Chain Mapping Confirmed Upstream Supplier Locations  Other Risk Mitigation Efforts Certification Impact Report 2023 Supply Chain Aluminum: Pushing for the Industry to Respect Rights and Lower Emissions We prioritize aluminum because of the high prevalence of human rights and environmental impacts across the aluminum supply chain-including bauxite mining and the carbon emissions linked to aluminum refining and smelting. We buy aluminum in the form of sheet, ingot, castings, extrusions, forgings and foil. It shows up in many systems in the car-from Tesla's body Gigacastings to the batteries. Most of our aluminum is alloyed - meaning it is mixed with other elements to optimize engineering properties. The rising total demand for aluminum means that increased recycling is not enough to reach a truly sustainable aluminum sector. Therefore, we engage with producers of both recycled and primary material. Direct Sourcing and Supply Chain Mapping We source much of the aluminum used in our vehicles directly from smelters/secondary aluminum producers -sending the material to Tesla plants or to our Tier 1 suppliers. This, combined with our efforts of mapping upstream material sources where we don't directly source the raw material, enables increased visibility and ability to conduct due diligence. 8 In 2024, Tesla committed to the ASI for our aluminum foundry in Lathrop, CA Certification As a pre-requisite for being awarded new business, Tesla continues to ask its suppliers to certify to the Aluminium Stewardship Initiative's (ASI) Performance Standard. As of the first quarter of 2024, 92% of Cybertruck aluminum suppliers are certified or working towards this certification. Over 80% of all aluminum Tier 1 suppliers are similarly certified or working towards this certification. ASI is one of the key industry organizations developing credible decarbonization roadmaps for the aluminum industry. We appreciate that no certification replaces due diligence. We continue to work with ASI, suppliers, and stakeholders to address and reduce risks in our aluminum supply chain in recognition of its outsized impact. Confirmed Upstream Supplier Locations • Bauxite Mining: Australia, China, Guinea, Iceland, Indonesia, Solomon Islands* • Smelting: Australia, Canada, China, Germany, Norway, Malaysia, UAE, U.S. *The purchase of bauxite from the Solomon Islands occurred before 2020. We include it in this list for transparency, but our strategy is to not further procure bauxite from the Solomon Islands. Other Risk Mitigation Efforts In 2023, we directly engaged key mid-tier, directsourced smelters, including visits of senior leadership representatives to two of the world's largest smelters, during which we evaluated the decarbonization roadmaps of all smelters in our European supply base and aligned on strategies to decarbonize. Tesla also participated in a data pilot as part of RMl's Horizon Zero working group on aluminum which focused on capturing embedded emissions data for aluminum, automating data transfer processes of environmental data, and capturing additional pertinent data such as percentage of post-industrial and post-consumer scrap percentages. 127
  • 128. 128 Ferrous Metals (Steel and Iron): 
 Risk Identification and Mitigation Summary  Impact Report 2023 Direct Sourcing and Supply Chain Mapping Other Risk Mitigation Efforts Impact Report 2023 Supply Chain Ferrous Metals (Steel and Iron): Risk Identification and Mitigation Summary We prioritize identifying and addressing risks in our ferrous materials supply chain because of the high prevalence of environmental impacts across the steel and iron supply chains-steel is a significant factor of Tesla's supply chain GHG emissions. We buy ferrous materials in the form of sheet, castings and forgings. Steel is a primary component of many systems of the car, but shows up prominently in the body, chassis and powertrain of the vehicle as well as the structure of our energy products. Most of our ferrous materials are alloyedmeaning iron is mixed with other elements to optimize engineering properties. The rising total demand for iron and steel means that increased recycling is not enough for a truly sustainable steel sector. Therefore, we engage with producers of both recycled and primary material. Direct Sourcing and Supply Chain Mapping • We source much of the steel used in our vehicles directly from mills-sending the material to Tesla plants or to our Tier 1 suppliers. This direct sourcing strategy, combined with our efforts of mapping upstream material sources where we don't directly source the raw material, enables increased visibility and ability to conduct due diligence. • Sourcing country breakdown, based on identified sources: Mill Country Locations: Austria, Belgium, China, France, Germany, Sweden, U.S. Other Risk Mitigation Efforts • In order to understand the carbon footprint of steel suppliers inside our supply chain, as well as those we don't work with, we continued to work with Climate TRACE, a coalition of researchers and NGOs, with a mission to have an open-source global emissions inventory. Tesla worked with Climate TRACE members on how to make industrial data sets most useful for large steel purchasers. This innovative data-stream enables Tesla not only account more accurately for our current emissions, but also to perform scenarios of future sourcing strategies. • This year, Tesla engaged with more than a dozen steel producers across multiple continents on their decarbonization strategies. 128
  • 129. 129 3TG (Tin, Tantalum, Tungsten and Gold): Risk Identification and Mitigation Summary  Impact Report 2023 Tesla staff at a 3TG mine visit in Peru Impact Report 2023 Supply Chain 3TG (Tin, Tantalum, Tungsten and Gold): Risk Identification and Mitigation Summary Mining communities in the Democratic Republic of the Congo (DRC) and other upstream 3TG sourcing regions are essential to the production of Tesla products. Mining in conflict-affected contexts has a history of negative impacts on communities, including human rights abuses. Our due diligence process includes supplier engagement, visiting 3TG production regions with the purpose of observing on-the-ground conditions, meeting with local stakeholders and exploring opportunities for positive impact. Through these efforts, we aim to avoid contributing to human rights abuses, conflict, and instability through our sourcing, with the ultimate aim to improve on-the-ground conditions in and around 3TG mining communities. 129
  • 130. 130 3TG: 
 2023 Key Achievements Impact Report 2023 Robust Requirements  Stakeholder Engagement  Audits Upstream Engagement  Impact Impact (Continued) Impact Report 2023 Supply Chain 3TG: 2023 Key Achievements Robust Requirements • Communicated enhanced requirements to tier-1 suppliers and smelters/refiners (SORs) • Surveyed tier-1 suppliers to identify SORs that process 3TG in products supplied to Tesla and country of origin of minerals • Encouraged removal of certain actors from supply chain due to infeasibility of improvements Stakeholder Engagement • Solicited program feedback from NGOs, such as actors in the DRC and groups seeking to advance the rights of indigenous peoples • Chaired the Responsible Minerals Initiative (RMI) Gold Team Working Group "The assessment provided me an opportunity to confirm that our internal procedures and policies are aligned with the standards, and the assessment will allow us to improve more quickly." - Oscar, Compliance Officer Audits • Funded three Responsible Minerals Assurance Program (RMAP) assessments to increase compliant SORs in Tesla's supply chain via contributions to the RMI Audit Fund • Proposed concrete suggested improvements to industry audit program Upstream Engagement • Visited two artisanal mines and two processing facilities in a gold production region in Peru • Engaged one gold aggregator to become Peru's 1st RMAP-audited gold aggregator Impact • Initiated "Tesla Tech for Good" product donation project aimed at mitigating adverse human rights impacts of mining while simultaneously driving GHG reductions More information is available in our Conflict Minerals Report and our Responsible Sourcing Policies. • Impact (Continued) • Supported the expansion of the Better Mining Supply Chain Due Diligence Monitoring, Corrective Action Plans and 3T minerals traceability program in the DRC and Rwanda to two additional 3T mine sites, enabling on one hand a substantial increase in volume of Better Mining-assured 3T minerals, and on the other hand, an increase of the number of impacted workers by 44.5% in these most upstream positions of the global minerals supply chain. "Through constant on-site presence and the development of innovative technology, Better Mining brings necessary transparency to conditions on artisanal- and small-scale mine sites, supporting continual improvements and bridging the ethical and accountability gap from consumers towards the ASM operators and their local communities, which are vital for the achievement of the downstream's sustainability goals. I am very proud of the proven replicability and continued impact and growth of our program over the years, and I am grateful for the commitment of our supporters in this journey." - Emmanuel Ngueyanouba, Director of RCS Global Better Mining Programme 130
  • 131. 131 Tesla Tech for Good: 
 A Case Study in Applying Technology to Remedy Harm Associated With Supply Chain Activities   Impact Report 2023 Impact Report 2023 Supply Chain Tesla Tech for Good: A Case Study in Applying Technology to Remedy Harm Associated With Supply Chain Activities Although critical to the EV transition, mining operations can cause a range of potential adverse impacts, for example related to health and safety and the environment. Tesla believes that accelerating the world's transition to sustainable energy should not cause additional harm. The Democratic Republic of the Congo (DRC), a country of particular relevance to the mineral trade, has been in conflict for almost three decades, sustained through the trade of minerals. Too often the minerals leave the country but don't come back-a one way street. In acknowledging the consequences of mining operations, we initiated our Tesla Tech for Good product donation project, aimed at mitigating adverse human rights impacts of mining while simultaneously driving GHG reductions. During a 2022 trip to East Africa, Tesla pursued opportunities to apply our technology to mitigate adverse impacts of supply chain operations, provide remedy for harm caused, and maximize positive impact for people and the planet. We met with Panzi Hospital & Foundation, a center of excellence in the DRC that provides holistic treatment for survivors of sexual violence-a tactic used by armed actors to perpetuate conflict, gain greater access to resources and control smuggling routes. Panzi has touched the lives of more than 80,000 survivors of sexual violence, including those affected by wartime, and another 25,000 women with serious gynecological injuries. In collaboration with Panzi and based on their renewable energy strategy, in early 2024 Tesla donated ten Powerwalls and hardware accessories to be installed at one of Panzi's clinics in the DRC. Tesla and Panzi share the belief that everyone should have access to sustainable, modern, and clean energy to meet their decarbonization goals and address energy insecurity -especially those who are providing life-saving healthcare. 131 The Powerwalls will enable Panzi to work even in times of energy loss and avoid costs associated with running diesel-fuel generators. In recognition that many social impact initiatives fail to provide long-term solutions, to support sustaining impact of the project, we have committed to fund maintenance costs on the equipment for the next ten years. Tesla continues to seek opportunities to collaborate with organizations close to mining communities to find transformative solutions and address harm associated with supply chain activities. A sustainable future is one in which the rights of everyone are respected and included in a just energy transition.
  • 132. 132 Proactive Supplier Engagement & Risk Analysis  Impact Report 2023 Global Standard  Responsible Sourcing Teams  Risk-Based Approach  Supplier Selection Guidelines  Impact Report 2023 Supply Chain Proactive Supplier Engagement & Risk Analysis Global Standard In alignment with the Organization for Economic Cooperation and Development (OECD) Due Diligence Guidance for Responsible Business Conduct, risk analysis and identification is a foundational pillar of Tesla's Responsible Sourcing framework to understand human rights and environment-related risks and violations in its supply chain. Responsible Sourcing Teams Tesla's Responsible Sourcing teams lead risk analysis efforts globally across all sourcing scopes while developing and implementing fit-for-purpose plans to prevent or mitigate actual or potential adverse impacts. Teams are strategically embedded within the supply chain organization, ensuring that environmental and social impacts of our suppliers are monitored and addressed in collaboration with supply chain leadership and buyers directly responsible for sourcing parts, materials and services along with managing supplier relationships and performance. Collaboration with legal and compliance teams ensures cross-functional alignment. This overall structure encourages a proactive approach to identify and act on both supply chain risks and opportunities to have a positive impact globally as our operational footprint grows. Risk-Based Approach Tesla teams leverage the Supplier Self-Assessment Questionnaire (SAQ), Corporate Social Responsibility (CSR) audits and the Tesla Integrity Line to monitor alignment with our Supplier Code of Conduct as well as our Global Human Rights and Responsible Sourcing policies, driving a risk-based due diligence approach that informs when and where to allocate additional resources to prevent, mitigate and report adverse impacts on people, the environment and society. When the likelihood and severity of an adverse impact is high, then due diligence is more extensive. 132 Supplier Selection Guidelines In 2023, we added responsible sourcing due diligence to Tesla's internal Global Procurement Policy supplier selection guidelines to include social and environmental criteria in sourcing decisions before awarding business to any supplier, including but not limited to, CSR audit scores, SAQ results, complaints submitted via Tesla's Integrity Line and greenhouse gas (GHG) emissions.
  • 133. 133 Supplier Self-Assessment Questionnaire (SAQ)  Impact Report 2023 Impact Report 2023 Supply Chain Supplier Self-Assessment Questionnaire (SAQ) The Supplier Self-Assessment Questionnaire (SAQ) pushes Tesla sourcing efforts beyond generalized risk associated with certain commodities and countries by requiring each unique location providing production parts, materials or services to Tesla to submit a response to the SAQ. Suppliers affirm that they have policies, processes and controls at the manufacturing site level consistent with all Supplier Code of Conduct topic areas: labor, health and safety, environment, ethics and supply chain responsibility. This systematic process to identify risk at scale based on actual practices enables Tesla teams to proactively prioritize more extensive due diligence for high-risk suppliers based on the extent of potential impact on workers' health, safety or fundamental human rights and number of workers/ employees impacted at the supplier site. In 2023, we scaled our SAQ program from pilots to full launch reaching nearly 1,000 supplier sites and will continue our outreach in 2024. Follow-up with suppliers includes communication of risks identified and best practices along with development of supplier specific improvement plans, such as guidance on how to close policy gaps and building supply chain mapping capabilities. Additionally, we will communicate results to supply chain leadership and buyers. 133
  • 134. 134 Supplier Self-Assessment Questionnaire (SAQ) Impact Report 2023 2022  68% 984  1.5 million  40  85%  Supply Chains Assessed  All direct supplier categories, including batteries, aluminum, chemicals, etc. Indirect materials/services  Service centers, construction and on-site contractors  87% 93% 81% 61% Impact Report 2023 Supply Chain Supplier Self-Assessment Questionnaire (SAQ) Year initiated Response rate Total number of supplier manufacturing site submissions Number of impacted workers/employees Number of countries represented % of suppliers with a social responsibility policy 2022 68% 984 1.5 million 40 85% % of suppliers with an environmental policy % of suppliers with a health and safety policy % of suppliers with a Supplier Code of Conduct % of suppliers that have conducted a supply chain mapping exercise to identify upstream (e.g., Tier 2, Tier 3, Tier 4) suppliers 87% 93% 81% 61% Supply Chains Assessed All direct supplier categories, including batteries, aluminum, chemicals, etc. 134 Indirect materials/services Service centers, construction and on-site contractors
  • 135. 135 Grievance Mechanisms  Impact Report 2023 Grievance Channel  Number of Concerns Related to Responsible Sourcing  Total   4  Impact Report 2023 Supply Chain Grievance Mechanisms We receive concerns related to responsible sourcing through a variety of grievance channels. 2023 was the first full year the Tesla Integrity Line was available to external parties to raise a potential concern. There is a clear process, detailed and publicly available here. Tesla Integrity Line was added to the Tesla Supplier Portal in 2023 to make it more accessible to supply chain workers with access to the Portal. Grievance Channel Tesla Integrity Line Responsible Business Alliance Responsible Minerals Initiative's Minerals Grievance Platform Total 135 Number of Concerns Related to Responsible Sourcing 1 1 2 4
  • 136. 136 Grievance Mechanisms  Impact Report 2023 Supply Chain  Category of Concern   Process to Address Concern  Outcome  Impact Report 2023 Supply Chain Grievance Mechanisms Below are three examples of concerns received and how we acted on them: Supply Chain Battery Gold Tier 2 interior lighting Category of Concern Alleged improper use of funds Alleged deforestation, forced labor, human rights concerns Alleged worker-paid recruitment fees Process to Address Concern Engaged with involved parties, launched investigation with compliance team and external counsel, reviewed documents and process Engaged with audit programs, engaged directly with gold refiners, sought to understand concerns of impacted stakeholders by engaging directly with an organization that seeks to advance the rights of Indigenous peoples Engaged directly with Tier 1 supplier to launch investigation Outcome Found no breach of contract and worked with the partner to improve processes Encouraged removal of certain actors from Tesla's upstream supply chain Engaged Tier 1 supplier with audit programs 136 In addition to promoting supply chain use of the Tesla Integrity Line, as part of our CSR Audit Program, we assess suppliers' conformance with our Supplier Code of Conduct expectation to maintain a grievance mechanism of their own. This is assessed through site observation, records review and interviews of management and workers. In 2023, 96% of supplier facilities demonstrated conformance with this expectation.* We also act on concerns raised through avenues such as via NGOs, investors, customers and employees, among others. For continual improvement we are exploring opportunities to improve supplier awareness of Tesla's Integrity Line. In the future, we seek to incorporate input from affected-stakeholders on our grievance-handling process, including representatives from vulnerable groups and human rights defenders with the goal to ensure that our mechanism is responsive to the needs of affected stakeholders. *Based on Initial Audits conducted during 2023 against Tesla's Supplier Code of Conduct
  • 137. 137 Sourcing for Social Impact  Impact Report 2023 Programs  External Stakeholder Engagement  Internal Stakeholder Engagement  Impact Report 2023 Supply Chain Sourcing for Social Impact We invest in communities where we operate-not just in our direct operations but in our supply chain as well to ensure that investments in a sustainable future are equitable. Sourcing for Social Impact programs promote purchasing policies, programs and processes that contribute to socio-economic benefits where Tesla suppliers operate. We operate and source from all types of communities and want to make sure that everyone has access to economic development opportunities in the sustainable energy future. Programs Specific programs promote inclusive sourcing from suppliers that traditionally would not have access to procurement opportunities. We established a Gigafactory Texas Historically Underutilized Business (HUB) program in 2020 as part of our Economic Agreement with Travis County with a focus on identifying suppliers in construction materials and services to support ongoing factory expansion. More broadly, the purpose of the agreement is to stimulate and encourage business and commercial activity in Travis County as Tesla invests in new construction of Gigafactory Texas operating facilities. Since 2020, Tesla has spent over $100 million with qualified HUB program suppliers, supporting the growth of small-, minority- and women-owned businesses in Texas. External Stakeholder Engagement Held face-to-face meetings with six different Austinarea minority supplier and small business chambers of commerce/councils for in-depth learning sessions on their capabilities and how to leverage them to increase HUB supplier participation. Became a corporate member of the Southwest Minority Supplier Development Council (SMSDC). SMSDC is a multi-stakeholder organization headquartered in Austin focused on minority-owned business (M BE) advocacy, development, certification and connection. Joining SMSDC as a corporate member supports ongoing efforts to identify and increase spend with HUB suppliers. Moreover, ongoing corporate member training services will further strengthen Tesla's Sourcing for Social Impact program to be in alignment with best practices while building relationships with Austinarea stakeholders. Internal Stakeholder Engagement Led sourcing organization wide training on Sourcing for Social Impact-covering three learning objectives: 1) explain why sourcing for impact matters, 2) identify resources to search for suppliers and track spend and 3) commit to at least one action which contributes to Tesla's Sourcing for Social Impact program. Launched Sourcing for Social Impact Steering Committee comprised of buyers, supply chain leadership and global sustainability teams to provide stakeholder advisory support, guidance and strategic oversight of the program to ensure its success by embedding initiative objectives across sourcing teams. 137
  • 138. 138 Sourcing for Social Impact  Impact Report 2023 $1.4B 32% 45% Impact Report 2023 Supply Chain Sourcing for Social Impact • inclusive spend since 2021 of year-over-year inclusive spend increase % of year-over-year increase in number of impacted suppliers 138
  • 139. 139 Corporate Social Responsibility Audits Impact Report 2023 Initial Audits  Closure Audits  Workers Impacted by Audits  Countries included in audits  Impact Report 2023 Supply Chain Corporate Social Responsibility Audits In 2023, our Corporate Social Responsibility (CSR) audit program continued to be a key component of how we identify and mitigate risks at our suppliers' sites. It provides us with the ability to have an independent assessment of our direct supplier's performance to our Supplier Code of Conduct. Our requirement of Corrective Action Plans for non-conformances identified during the audit also means we are contributing to tangible improvements in the lives of workers at our suppliers' facilities, regardless of being employees or contract workers, as well the processes and management systems at supplier facilities. Our own audit team continued to attend a large portion of on-site audits, including 50% of initial audits, to stress the importance of the program and ensure Tesla's quality expectations were met. As part of our quality assurance process, Tesla implemented an auditor training program, reviewing Tesla's process and requirements with auditors approved to conduct audits for Tesla. These trainings involved 134 auditors and included a comprehension test at its conclusion. We also began incorporating upstream supplier audit results into our CSR audit program, a recognition that our responsibility does not stop at tier 1 suppliers and that we must continue to promote best practices throughout the supply chain. We hold these audits to the same standard: audits conducted to the RBA's audit checklist and by an independent firm approved by the RBA. We strengthened our already stringent expectations of Initial Audits 156 suppliers for what is considered sufficient to pass an audit. Until 2023, this included only the requirement of zero Closure Audits 73 priority non-conformances to avoid a closure audit. In 2023 we added the expectation that suppliers have a Workers Impacted by Audits 73,065 score of 60% or higher, otherwise they must undergo a complete re-audit of their facility within one year. Countries included in audits 11 139
  • 140. 140 Corporate Social Responsibility Audits Impact Report 2023 Risk Component  Weighting Audits Conducted (Initial+Closure)  2019 2020 2021 2022 2023 Impact Report 2023 Supply Chain Corporate Social Responsibility Audits Tesla bases its selection of tier-1 suppliers for CSR audit on the following criteria: Risk Component Weighting Country 30% Spend 25°/o SAQ 20% Product 15% Supplier Impact 10% Supplier Audit Findings (2019-2023) Audits Conducted (lnitial+Closure) Average Non-Conformance per Audit* Labor Health & Safety Environment Ethics Management Systems * Breakdown for initial audits only 2019 109 24 30.5% 29.1°/o 13.2% 3.8% 23.5% 140 2020 2021 2022 2023 79 55 170 229 20 15 20 19 30.2% 37.6% 33.0% 35.5% 31.3% 31.5% 33.9% 14.6% 13.0% 14.2% 13.0% 0.6% 0.5% 1.8% 1.4% 19.0% 17.7% 19.5% 19.8%
  • 141. Appendix Impact Report 2023 Impact Report 2023 Appendix 141 Appendix Supporting Materials TCFD SASB United Nations SDG Alignment Key Metrics Management Assertion 141 142 143 144 146 152
  • 142. Impact Report 2023 142 Topic TCFD Accounting Metric Response Impact Report 2023 TCFD Topic Governance Strategy Risk Management Metrics & Targets Appendix Accounting Metric Describe the Board's oversight of climate-related risks and opportunities. Describe management's role in assessing and managing climate-related risks and opportunities. Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. Describe the impact of climate-related risks and opportunities on the organization's businesses, strategy and financial planning. Describe the resilience of the organization's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. Describe the organization's processes for identifying and assessing climaterelated risks. Describe the organization's processes for managing climate-related risks. Describe how processes for identifying, assessing and managing climaterelated risks are integrated into the organization's overall risk management. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. Response Please see "Governance: Overview" and "Managing Climate Risk" on pages 6 and 10 of this report. Risks: Please see "TCFD: Physical Climate Risk Assessment" on page 11 of this report. Please see "Sustainability Assessment" on page 8 of this report. Opportunities: Please see "Our Mission" on page 5 of this report. Please see "Sustainability Assessment" on page 8 of this report. Opportunity: Please see "Our Mission" on page 5 of this report. Transition Risk: Please see "Governance: Managing Climate Risk" on page 10 of this report for climate-related procurement risks. Please see "Governance: Managing Climate Risk" on page 10 of this report for other climate-related transition risks. Please see "Sustainability Assessment" on page 8 of this report. Physical Risk: Please see "TCFD: Physical Climate Risk Assessment" on page 11 of this report. Analysis of financial-related impacts from climate-related risks is ongoing. Opportunities: Please see "Our Mission" on page 5 of this report. 142 Please see "TCFD: Physical Climate Risk Assessment" on page 11 of this report. Additionally, Tesla's Responsible Sourcing Team works closely with critical suppliers to ensure they are hardening their operations against future climate risk. See Supply Chain section, pages 113-130. Please see "Governance: Overview" and "Managing Climate Risk" on pages 6 and 10 of this report, and "TCFD: Physical Climate Risk Assessment" on page 11 of this report. Tesla's Responsible Sourcing Team works closely with our suppliers to ensure they are operating in a way that mitigates future climate risk. For further discussion of these efforts, please see page 113 of this report. Please see "Governance: Managing Climate Risk" on page 10 of this report. Please see more information on our GHG emissions on page 10 and "TCFD: Physical Climate Risk Assessment" on page 11 of this report. Please see "Key Metrics: GHG Emissions" on pages 146-147 of this report. Please see "Decarbonization at Tesla" on pages 37-46 of this report. Please see "TCFD: Physical Climate Risk Assessment" on page 11 of this report.
  • 143. Impact Report 2023 143 SASB Topic Accounting Metric Response Impact Report 2023 Appendix SASB Topic Product Safety Labor Practices Fuel Economy and Use-Phase Emissions Materials Sourcing Materials Efficiency and Recycling Number of Vehicles Manufactured Number of Vehicles Sold Accounting Metric Percentage of models rated by NCAP programs with overall 5-star safety ratings, by region. Response Please see pages 61-70 for our discussion of vehicle safety. Please see page 63 for specifics related to our 5-star safety ratings. Number of safety-related defect complaints, percentage investigated. Tesla reviews 100% of NHTSA VOQ complaints filed for any and all Tesla vehicles produced. Number of vehicles recalled (percentage conducted with OTA software update*). Number of U.S. recalls in 2023 (how many of those were software only): 13 (46%) Percentage of active workforce covered under collective bargaining agreements. (1) Number of work stoppages and (2) total days idle. Sales-weighted average passenger fleet fuel economy, by region. Number of {1) zero emission vehicles (ZEV), (2) hybrid vehicles and {3) plug-in hybrid vehicles sold. Discussion of strategy for managing fleet fuel economy and emissions risks and opportunities. Description of the management of risks associated with the use of critical materials. Total amount of waste from manufacturing, percentage recycled. Weight of end-of-life material recovered, percentage recycled. Average recyclability of vehicles sold. Number of U.S. vehicles affected in 2023 (how many of those were software only): 2,590,571 (99%) Number of Global recalls in 2023 (how many of those were software only): 17 (41%) Number of Global vehicles affected in 2023 (how many of those were software only): 5,729,212 (99%) No Tesla employees in the U.S. are covered by a collective bargaining agreement. Some Tesla employees outside of the U.S. are covered by collective bargaining agreements only to the extent required by law. 0/0 Please see pages 28-30 for discussion/data. Tesla only sells zero-emission vehicles. In 2023, we delivered 1,808,581 vehicles. Please see page 27 for a discussion on fleet fuel economy. Please see Sustainability Assessment on page 8 for a discussion on climate-related risks and opportunities. Please see Supply Chain section, pages 113-130. Please see Key Metrics on page 148. We make the best effort to recycle every battery pack we can. Please see pages 50 for a discussion on our circular solutions programming. Please see page 39 for a discussion on our end-of-life methodology. Please see Key Metrics on page 149 for our 2022 and 2023 end of life emissions. Please see page 50 for a discussion on our circular solutions programming. 1,845,985 1,808,581 143
  • 144. Impact Report 2023 144 United Nations SDG Alignment Impact Report 2023 Appendix United Nations SDG Alignment The United Nations defined a blueprint of 17 sustainable development goals to meet the urgent environmental, social, political and economic challenges facing our world. We understand that companies can play a critical role in providing solutions to these challenges. Our mission to accelerate the world's transition to sustainable energy directly addresses some of these challenges-our products and services have helped to create industry demand for sustainable energy products. In 2023, we conducted a sustainability assessment to determine strategic focus areas both material to the business and salient to the society and the environment (please see page 8 for more information). On the next page, we've mapped our focus areas to the most relevant Sustainable Development Goals (UN SDGs). 144
  • 145. Impact Report 2023 145 UN SDGs Focus Areas Reduced Inequalities Sustainable Cities and Communities Responsible Consumption and Production Climate Action Life Below Water Life on Land Peace, Justice and Strong Institutions Partnerships for the Goals UN SDGs Focus Areas No Poverty Zero Hunger Good Health and Well-Being Quality Education Gender Equality Clean Water and Sanitation Affordable and Clean Energy Decent Work and Economic Growth Industry, Innovation and Infrastructure United Nations SDG Alignment Goals Impact Report 2023 Appendix United Nations SDG Alignment Goals UN SDGs No Poverty Zero Hunger Good Health and Well-Being Quality Education Gender Equality Clean Water and Sanitation Affordable and Clean Energy Decent Work and Economic Growth Industry, Innovation and Infrastructure Focus Areas Responsible Sourcing Child Labor & Forced Labor Waste Management & Recycling, Circularity Product Quality & Safety Responsible Sourcing External Stakeholder Engagement Respectful Workplace & Equal Opportunities Water Use & Management Inclusive Energy Transition Product Quality & Safety Responsible Sourcing Grievance Mechanisms & Access to Remedy Responsible Data & Cybersecurity Responsible Al Inclusive Energy Transition Occupational Health & Safety Talent Management & Employee Wellbeing Employee Engagement External Stakeholder Engagement Respectful Workplace & Equal Opportunities Government Relations Policy UN SDGs Reduced Inequalities Sustainable Cities and Communities Responsible Consumption and Production Climate Action Life Below Water Life on Land Peace, Justice and Strong Institutions Partnerships for the Goals Focus Areas Government Relations Policy Inclusive Energy Transition Talent Management and Employee Wellbeing Waste Management & Recycling, Circularity Air Quality & Reducing Toxic Emissions Product Quality & Safety Responsible Data & Cybersecurity Responsible Al Occupational Health & Safety Biodiversity Climate Change & Risk Management Renewable Energy & Energy Efficiency Inclusive Energy Transition Biodiversity Waste Management & Recycling, Circularity Waste Management & Recycling, Circularity Business Ethics & Anti-Corruption Government Relations Policy Grievance Mechanisms & Access to Remedy Child Labor & Forced Labor Respectful Workplace & Equal Opportunities Government Relations Policy 145
  • 146. Impact Report 2023 146 Key Metrics Scope 1 and Scope 2 GHG Emissions (mtCO2e) 2021 GHG Emissions (mtCO2e) Scope 1 Scope 2 (Location Based) Manufacturing + Support SSD Other Totals 2022 GHG Emissions (mtCO2e) Scope 1 Scope 2 (Location Based) Manufacturing + Support SSD Other YoY Manufacturing GHG Emissions (mtCO2e/vehicle)
 Totals YoY Manufacturing GHG Emissions (mtCO2e/vehicle)
 2023 GHG Emissions (mtCO2e) Scope 1 Scope 2 (Location Based) Manufacturing + Support SSD Other Totals Impact Report 2023 Appendix Key Metrics As we consistently monitor and refine our carbon footprint reporting, it's inevitable that we'll need to update emissions data from previous years. Our methodologies have only gotten more precise as we have been able to gather more real, granular, and regionalized data. Please refer to the most recent Impact Report for accurate GHG emission figures for historical years. Scope 1 and Scope 2 GHG Emissions (mtC02e) 2021 2022 2023 GHG Emissions (mtCO2e) Manufacturing + Support SSD Other Totals GHG Emissions (mtCO2e) Manufacturing + Support SSD Other Totals YoY Manufacturing GHG Emissions (mtC02e/vehicle) GHG Emissions (mtCO2e) Manufacturing + Support SSD Other Totals YoY Manufacturing GHG Emissions (mtC02e/vehicle) Scope 1 124,000 31,000 30,000 185,000 Scope 1 148,000 27,000 27,000 202,000 -29% Scope 1 151,000 29,000 31,000 *211,000 -10% Scope 2 (Location Based) 342,000 35,000 26,000 403,000 Scope 2 (Location Based) 305,000 74,000 29,000 408,000 Scope 2 (Location Based) 331,000 98,000 37,000 *466,000 *Third-party assurance provider performed an attest engagement on the Scope 1 and 2 GHG emission totals but did not evaluate emissions by site type. Please see the assurance letter at the end of this report. 146 588,000 610,000 677,000
  • 147. Impact Report 2023 147 Scope 3 GHG Emissions (mtCO2e) Scope 3 Categories 2023 GHG Emissions (mtCO2e) 2022 GHG Emissions (mtCO2e) Category 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category 7 Category 8 Category 9 Category 11 Category 12 Impact Report 2023 Appendix 147 Scope 3 GHG Emissions (mtC02e) Scope 3 Categories 2023 GHG Emissions (mtCO2e) 2022 GHG Emissions (mtCO2e) Category 1 39,020,000 30,701,000* Category 2 4,490,000 4,267,000 Category 3 247,000 227,000 Category 4 558,000 557,000 Category 5 255,000 478,000 Category 6 53,000 37,000 Category 7 369,000 608,000 Category 8 75,000 77,000 Category 9 314,000 389,000* Category 11 3,207,000 3,409,000 Category 12 766,000 421,000 *Restated 2022 values are due to increase in data accuracy capability.
  • 148. Impact Report 2023 148 Key Metrics Uptime of Tesla Supercharger Sites Uptime of Supercharger Sites* 2023 Health & Safety 2023 Vehicle Safety Number of Vehicular Accidents Per Million Miles Driven (2022) 2023 Water Withdrawal for Manufacturing (cubic meters) 2023 YoY Reduction Total Water/Vehicle -2.4% Energy Consumption (kWh) 2023 Waste Generated in Manufacturing (metric tons) 2023 Total 397,211 YoY Reduction Total Waste/Vehicle -6.3% Impact Report 2023 Appendix Key Metrics Vehicle Safety Number of Vehicular Accidents Per Million Miles Driven (2022) Autopilot Engaged FSD Engaged No Active Safety Total US Vehicle Fleet Health & Safety ASTM Level One Rate Fatalities 2023 0.18 0.21 0.81 1.49 2023 2.51 1* *Unfortunately, Tesla experienced an employee fatality in China in February of 2023. Uptime of Tesla Supercharger Sites Uptime of Supercharger Sites* Uptime 2023 99.97% 2022 0.18 0.31 0.68 1.53 2022 2.86 0 2022 99.95% 2021 2021 3.57 1 2021 99.96% *Uptime of Supercharger sites reflects the average percentage of sites globally that had at least 50% of their daily capacity functional for the year. Energy Consumption {kWh) 2023 Electricity Consumption (non-renewable) 1,129,864,000 Electricity Consumption (renewable) 420,083,000 Fuel Consumption 1,029,221,000 Waste Generated in Manufacturing {metric tons) Recycled Hazardous Waste Recycled Non-Hazardous Waste Disposed Hazardous Waste Disposed Non-Hazardous Waste Incinerated Hazardous Waste Incinerated Non-Hazardous Waste Total YoY Reduction Total Waste/Vehicle 2023 6,273 347,304 4,345 29,307 7,567 2,415 397,211 -6.3% 2022* 2021 6,641 13,092 286,518 230,916 20,471 18,599 38,737 14,244 n/a n/a n/a n/a 352,366 276,851 -5.42% Waste num~ers have previously been reported in short tons-all numbers have been stated (for 2021 and 2022, restated) in metric tons and will be reported here on out in metric tons. *Restated 2022 values are due to increase in data accuracy capability. Water Withdrawal for Manufacturing {cubic meters) Total Freshwater Withdrawal YoY Reduction Total Water/Vehicle 2023 3,871,927 -2.4% 2022 2021 3,363,398 2,874,904 -15% 148
  • 149. Impact Report 2023 149 Average Lifecycle Emissions United States (g CO2e/mi) Model 3/Y
 (Standard Range RWD) Manufacturing Phase & Supply Chain Use Phase Total New York (g CO2e/mi) Model 3/Y 
 (Standard Range RWD) Manufacturing Phase & Supply Chain Use Phase Total Europe Model 3/Y 
 (Standard Range RWD) Manufacturing Phase & Supply Chain Use Phase Total China (g CO2e/mi) Model 3/Y 
 (Standard Range RWD) Manufacturing Phase & Supply Chain Use Phase Total France (g CO2e/mi) Model 3/Y 
 (Standard Range RWD) Manufacturing Phase & Supply Chain Use Phase Total Sichuan Province (g CO2e/mi) Model 3/Y 
 (Standard Range RWD) Manufacturing Phase & Supply Chain Use Phase Total United States (kgCO2e/kWh) Megapack 2XL* 114 Impact Report 2023 Appendix Average Lifecycle Emissions United States (g C02e/mi) Model 3/Y (Standard Range RWD) Personal Use (solar charged) Personal Use (grid charged) ICE Europe Model 3/Y (Standard Range RWD) Personal Use (solar charged) Personal Use (grid charged) ICE China (g C02e/mi) Model 3/Y (Standard Range RWD) Personal Use (solar charged) Personal Use (grid charged) ICE United States (kgC02e/kWh) Megapack 2XL* Manufacturing Phase & Supply Chain 72 62 48 Manufacturing Phase & Supply Chain 114 103 64 Manufacturing Phase & Supply Chain 114 103 65 Manufacturing Phase & Supply Chain 114 Use Phase 0 54 397 Use Phase 0 37 396 Use Phase 0 129 400 Total 72 116 445 Total 114 139 459 Total 114 231 466 *Use phase emissions from our energy storage systems calculations are in progress, including development of methodologies and the refining of real-time data 149 New York (g C02e/mi) Model 3/Y Manufacturing Phase & Use Phase Total (Standard Range RWD) Supply Chain Personal Use (solar charged) 72 0 72 Personal Use (grid charged) 62 46 108 ICE 48 397 445 France (g C02e/mi) Model 3/Y Manufacturing Phase & Use Phase Total (Standard Range RWD) Supply Chain Personal Use (solar charged) 114 0 114 Personal Use (grid charged) 103 11 113 ICE 64 396 459 Sichuan Province (g C02e/mi) Model 3/Y Manufacturing Phase & Use Phase Total (Standard Range RWD} Supply Chain Personal Use (solar charged) 114 0 114 Personal Use (grid charged) 103 32 134 ICE 65 400 466
  • 150. Impact Report 2023 150 Awards and Certifications EHS Awards Certifications Impact Report 2023 Appendix Awards and Certifications EHS Awards • Tesla Global Energy-The National Safety Council Innovation Award Runner Up for the creation and implementation of the leadership engagement tool used to verify and validate essential safeguards • Gigafactory Texas-Austin Water Excellence in pretreatment Award • Fremont Factory-True CBCI Gold Certified zero waste • Gigafactory Shanghai-UL 2999 Zero Waste to Landfill Platinum Award • Gigafactory Shanghai-China National Green Factory Award • Fremont Factory-Certificate of Merit Award-Union Sanitary District for "exceeding USD's standards for compliance, working in a collaborative relationship with USD's Environmental Compliance team, and working with USD in protecting our communities and SF Bay" Certifications • Gigafactory Nevada, Gigafactory New York, Gigafactory Shanghai-ISO 14001 and ISO 45001 certified • Tesla, Inc. Information Security, Cybersecurity, and Privacy Protection ISO/IEC 27001 certified • Australia Energy-EHS management system certification from the OFSC, Office of the Federal Safety Commission 150
  • 151. Impact Report 2023 151 Diversity EEO-1 Table Total Male Female Service Workers 100% Laborers & Helpers 100% Operatives 100% Craft Workers 100% Administrative Support 100% 18 % 18 % 10 % 31 % 69% 8 % 92% 29 % 71% 2 % 98% 31 % 69% Sales Workers 100% 23 % Technicians 100% 90 % Professionals 100% 77 % First/Mid Officials & Mgrs 100% 82 % Exec/Sr. Officials & Mgrs 100% 82 % Total 100% 77 % 29 % 71% 23 % Impact Report 2023 Appendix Diversity EE0-1 Table Job Categories Total Male (/) 0 Q) C C 0 C C ca +" ca ca ca c::: ro 0 ·- ·-"'C Cl) _J ·-ca Q) - I.. I.. ~ C I.. ca 0 '+- 0 +-' <( C ca C 0 I.. ca :::r: ca ~ ~ ·-C 00 0 Q) I.. Q) ca ~ ·- 0 ca I.. > C I... +"" a. 0 Q) Q) I... ·- ro 0 Q) ..c (/) ~E +-' E ~ ·- ca (/) ~ > :::c CO<( z <( <( I- 0 0 C ·- C +"" ca ca _J 0 ·- I.. I.. 0 '+- <( C 0 I.. ca ·-C 00 Q) ca ~ ·-I.. +"" a. 0 Q) ..c ·- (/) ~E ~ ·-:::c CO<( Service Workers 33% 30°10 14 % 3% Laborers & Helpers 29% 44% 13% 3% 5% Q% 6% 1QQ% 4010 1QQ% I I 24% 19% 8% I I 28% 42% 120/o I I I I I I I Operatives 18% 38% 22% 3% 14% 2% 5% 1QQ% I I I I I 13% 26% 150/o I Craft Workers 39% 41% 8% 2% 7% 1% 3% 1QQ% 38% 40% 8% I I I Administrative Support 42% 28% 10% 1% 14% 1% 5% 1QQ% I I I I I Sales Workers 39% 28% 13% 1% 13% 1% 6% 100% 29% 20% 6% I I 29% 19% 9% I I I I Technicians 32% 36% 8% 2% 17010 1% 4% 1QQ% I I I 30% 32% 7% I I I Professionals 40% 13% 3% Q% 39% Q% 3% 1QQ% 32% 10% 2% I I I I I I I I I First/Mid Officials & Mgrs 47% 23% 7% 2% 17% 1% 4% 1QQ% I j I I I Exec/Sr. Officials & Mgrs 55% 7% 3% Q% 33% 1% 3% 1QQ% 39% 19% 6% I 44% 7% 2% I I I I I Total 2% 1 % 24% 25% 10% I I C C ca ca ·- ·- ·- "'C ca ~ C - ca C :::c ca 0 Q) ·- > C I.. Q) ·- ca +-' ca ·-(/) E z <( <( 3% 11% 1% 2% 4% Q% I 2% 1QO/o 1% I 2% 6% 1% 1% 10% Q% 1% 9% 1% 2% 14010 1% Q% 29% Q% I 2% 13% 1% Q% 27% 1% I 2% 14% 1% I *Data only includes U.S. employees (Active/On Leave as of 12/31/2022) who identified their Gender as Male or Female, and also identified Race in their profile Female (/) (/) Q) 0 ca c::: Q) I... 0 Cl) ~ ca I... ~ 0 - 0 ro +-' ~ I- ~ 0 Q) C C 0 ·- C C ca +-' ca ca ca ro c::: 0 ·- ·- _J ·- "'C Q) Q) ·- ca I.. I.. ~ C I.. 0 '+- - 0 ca <( C ca C ~ E 0 I.. ca :::r: ca Q) ·- C 00 0 Cl) I.. u.. Q) ca ~ ·-I.. ·- 0 > C I.. +"" a. 0 Q) Cl) - ·- ·- ca 0 ca ..c (/) ~E +-' ·- E +-' ~ ·- ca (/) ~ :::c CO<( z <( <( I- ~ 3% 69% 9% 12% 6% Q% 2% Q% 10/o 31% I 5% 92% 2% 2% 1% Q% 1% Q% 1% 8% 3% 71% 4% 11% 6% 1 % 4% Q% 2% 29% I 3% 98% 1% 1% Q% Q% Q% Q% Q% 2% 3% 69% 13% 8% 3% 1% 5% Q% 2% 31% 4% 71% I 10% 9% 4% Q% 4% Q% 2% 29% I 4% 90% 2% 3% 1% Q% 2% Q% Q% 10% I 2% 77% 8% 3% 1% Q% 11% Q% 1% 23% I 3% 82% 8% 4% 2% Q% 4% Q% 10/o 18% 1% 82% 11% Q¾ 1% Q% 6% Q% 10/o 18% 3% 77% 5% 7% 4% Qo/o 5% Qo/o 1% 23% I 151 I I
  • 152. Report of Independent Accountants Impact Report 2023 Impact Report 2023 Management Assertion 152 Report of Independent Accountants To the Board of Directors of Tesla Inc. We have reviewed the accompanying management assertion of Tesla, Inc. (Tesla) that the greenhouse gas (GHG) emissions metrics for the year ended December 31, 2023, in management's assertion are presented in accordance with the assessment criteria set forth in management's assertion. Tesla's management is responsible for its assertion and for the selection of the criteria, which management believes provide an objective basis for measuring and reporting on the GHG emissions metrics. Our responsibility is to express a conclusion on management's assertion based on our review. Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants (AICPA) in AT-C section 105, Concepts Common to All Attestation Engagements, and AT-C section 210, Review Engagements. Those standards require that we plan and perform the review to obtain limited assurance about whether any material modifications should be made to management's assertion in order for it to be fairly stated. The procedures performed in a review vary in nature and timing from, and are substantially less in extent than, an examination, the objective of which is to obtain reasonable assurance about whether management's assertion is fairly stated, in all material respects, in order to express an opinion. Accordingly, we do not express such an opinion. Because of the limited nature of the engagement, the level of assurance obtained in a review is substantially lower than the assurance that would have been obtained had an examination been performed. We believe that the review evidence obtained is sufficient and appropriate to provide a reasonable basis for our conclusion. We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements related to the engagement. The firm applies the Statements on Quality Control Standards established by the AICPA. The procedures we performed were based on our professional judgment. In performing our review, we performed inquiries, performed tests of mathematical accuracy of computations on a sample basis, read relevant policies to understand terms related to relevant information about the GHG emissions metrics, reviewed supporting documentation in regard to the completeness and accuracy of the data in the GHG emissions metrics on a sample basis, and performed analytical procedures. pwc GHG emissions quantification is subject to significant inherent measurement uncertainty because of such things as GHG emissions factors that are used in mathematical models to calculate GHG emissions, and the inability of these models, due to incomplete scientific knowledge and other factors, to accurately measure under all circumstances the relationship between various inputs and the resultant GHG emissions. Environmental and energy use data used in GHG emissions calculations are subject to inherent limitations, given the nature and the methods used for measuring such data. The selection by management of different but acceptable measurement techniques could have resulted in materially different amounts or metrics being reported. As discussed in management's assertion, Tesla has estimated GHG emissions for certain emissions sources for which no primary usage data is available. 152 Based on our review, we are not aware of any material modifications that should be made to Tesla's management assertion in order for it to be fairly stated. San Jose, California April 25, 2024
  • 153. 153 Management Assertion
 Scope 1 & 2 GHG Emissions Overview Organizational Boundary Impact Report 2023 Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions Overview With respect to the greenhouse gas (GHG) emissions metrics for the year ended December 31, 2023, presented in table 2 below, which are also included in this Tesla Impact Report 2023 as identified by the u*" symbol, management of Tesla, Inc. (Tesla) asserts that the GHG emissions metrics are presented in accordance with the assessment criteria set forth below. Management is responsible for the selection of the criteria, which management believes provide an objective basis for measuring and reporting on the GHG emissions metrics, and for the completeness, accuracy, and validity of the GHG emissions metrics. Tesla's GHG emissions are rounded up to the nearest thousand. Organizational Boundary Tesla uses the operational control approach to account for and report its global Scope 1 and Scope 2 GHG emissions. This includes sites engaged in manufacturing; sales, service, and delivery; and other activities described below. Data Centers (leased locations that house Tesla computer systems and associated components), Superchargers (electric vehicle fast charging stations), and beginning in 2023, malls (leased retail storefront within shopping malls for Tesla products) are not included in our boundary as Tesla determined they do not have operational control over emissions from these sites. Data for new or acquired sites are included once the site has been operating for at least a year at the beginning of the reporting period. Conversely, sites that closed or ceased operations during the reporting period are not included in Tesla's organizational boundary. 153
  • 154. 154 Management Assertion
 Scope 1 & 2 GHG Emissions Impact Report 2023 Site Type Site Activities Table 1: Description of Tesla Sites GHG Emissions and Assessment Criteria 1,2,3  Quantity Table 2: Metrics – GHG Emissions Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions Table 1: Description of Tesla Sites Site Type Manufacturing Sales, Service, and Delivery (SSD) Other Table 2: Metrics - GHG Emissions GHG Emissions and Assessment Criteria 1• 2•3 Scope 1 GHG Emissions 4 Direct GHG emissions occurring from stationary combustion, mobile combustion, refrigerant losses, and process emissions. Scope 2 GHG Emissions (location-based) 5 Indirect GHG emissions from the generation of electricity and district heating purchased by Tesla for site operations. Site Activities • Manufacture Tesla products, including vehicles, Superchargers, solar tiles, and energy storage products. • Support manufacturing through the design and manufacture of equipment and tools used at manufacturing sites or by storing manufacturing materials, parts, or finished products. • Sell products, provide vehicle service, store parts for vehicle service, and deliver vehicles. • Conduct research & development, administration, energy product warehousing and deployment, and other mixed-use warehousing. Quantity 211,000 Metric Tons CO2e 466,000 Metric Tons CO2e 154
  • 155. 155 GHG Emissions Disclosure 1 Impact Report 2023 2 3 Management Assertion
 Scope 1 & 2 GHG Emissions Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions GHG Emissions Disclosure CD Tesla considers the principles and guidance of the World Resources Institute (WRI) and the World Business Council for Sustainable Development's (WBCSD) Greenhouse Gas Protocol Initiative's A Corporate Accounting and Reporting Standard, Revised Edition, and GHG Protocol Scope 2 Guidance, An Amendment to the GHG Protocol Corporate Standard (together the "GHG Protocol") to guide the criteria to assess, calculate and report GHG emissions. GHG emissions quantification is subject to significant inherent measurement uncertainty because of such things as GHG emissions factors that are used in mathematical models to calculate GHG emissions, and the inability of these models, due to incomplete scientific knowledge and other factors, to accurately measure under all circumstances the relationship between various inputs and the resultant GHG emissions. Environmental and energy use data used in GHG emissions calculations are subject to inherent limitations, given the nature and the methods used for measuring such data. The selection by management of different but acceptable measurement techniques could have resulted in materially different amounts or metrics being reported. Carbon dioxide equivalent (CO2e) emissions are inclusive of carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and industrial gases such as hydrofluorocarbons (HFCs) and sulfur hexafluoride (SFs). Perfluorocarbons (PFCs) and nitrogen trifluoride (NF3) are not emitted by Tesla's sites. Emissions data by individual gas is not disclosed as a majority of CO2e in Table 1 relates to CO2. These carbon dioxide equivalent emissions utilize Global Warming Potentials (GWPs) defined by the Intergovernmental Panel on Climate Change's (IPCC) Fifth Assessment Report (AR5 -100 year), unless a different Assessment Report is already embedded in the emission factor source. Carbon dioxide equivalent emissions are calculated by multiplying actual or estimated energy and fuel usage, refrigerant gas loss or process emissions by the relevant emission factor and GWP. All emission factors are updated annually where applicable. 155
  • 156. Impact Report 2023 156 GHG Emissions Disclosure 4 Management Assertion
 Scope 1 & 2 GHG Emissions Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions GHG Emissions Disclosure 0 Related to Scope 1 GHG emissions: a. Stationary combustion (natural gas): • Combustion from stationary equipment and machinery. • Global natural gas usage data was collected from monthly utility invoices obtained from third-party providers. • If usage data was not available, Tesla estimated the natural gas usage by determining an annual natural gas usage rate per square foot based on actual 2023 monthly natural gas usage data for sites in a similar geographic location and type of site. This rate was then multiplied by the square footage of the site building space. • Emission factors: United States (U.S.) Environmental Protection Agency (EPA) Emission Factors for Greenhouse Gas Inventories 2023. b. Stationary and mobile combustion (propane, diesel, and gasoline): • Combustion from emergency and portable generators, powered industrial vehicles (e.g., forklifts), temporary space heaters, and other portable equipment (e.g., landscaping equipment). • Propane, diesel, and gasoline usage data was collected from invoices and fuel reports obtained from third-party providers. • Emission factors: U.S. EPA Emission Factors for Greenhouse Gas Inventories 2023. c. Emissions from refrigerant loss to the atmosphere: • Fugitive emissions from refrigeration, air conditioning, or similar equipment resulting from leakage and service over the operational life of the equipment. • Loss data was collected from invoices and vendor reports for refrigerant refills purchased and/or installed. • Emission factors from refrigerant loss: U.S. EPA Emission Factors for Greenhouse Gas Inventories 2023; United Kingdom (UK): UK database published by the Department for Environment Food & Rural Affairs (DEFRA) 2023; IPCC Fifth Assessment Report 2013. d. Fleet mobile combustion (diesel and gasoline): • Combustion from the operation of Tesla's on-road and non-road vehicles. • Diesel and gasoline usage (volume) was collected from fuel cards issued by Tesla's fleet management partner. Vehicle miles driven by Tesla on-road vehicles was collected from odometer readings and real time telemetries on each vehicle. • Tesla classified vehicles by type: diesel medium and heavy-duty vehicles, gasoline passenger cars, gasoline light-duty trucks, gasoline heavy-duty vehicles, and non-road • industrial/commercial equipment. Temporary light duty fleet additions for operational use were categorized as 'other', for which only CO2 emissions are calculated, because Tesla does not have detailed information on what type of vehicles were rented and miles driven. • CO2 emissions were calculated by multiplying the relevant emission factor by the volume of diesel and gasoline used by Tesla's on-road and non-road vehicles for the year ended December 31, 2023. 156
  • 157. Impact Report 2023 157 GHG Emissions Disclosure Management Assertion
 Scope 1 & 2 GHG Emissions Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions GHG Emissions Disclosure • CH4 and N20 emissions were calculated by multiplying the relevant emission factor (depending on vehicle type and age) by the miles driven by Tesla's on-road vehicles, and by the volume of diesel and gasoline used by Tesla's nonroad vehicles for the year ended December 31, 2023. • Emission factors: U.S. EPA Emission Factors for Greenhouse Gas Inventories 2023. e. Process emissions: • Lithium-ion battery cell recycling: • Emissions from processing manufacturing scrap lithium-ion cells at the Gigafactory Nevada cell recycling site. • The concentration of CO2 and CH4 in emissions (emission rates) were measured during two emissions source tests. GHG emissions were calculated by multiplying the quantity of manufacturing scrap processed, as recorded by the recycling plant operations team, by the CO2 and CH4 emission rates developed based on the emissions source tests. • Emission of CO2 resulting from cleaning plastic parts with liquid CO2: • CO2 emissions were assumed to equal the mass of liquid CO2 used in the cleaning process as measured by liquid CO2 sensors on the tank. • Combustion of volatile organic compounds (VOCs) emitted to thermal oxidizers at manufacturing sites: • The quantity of VOCs emitted to thermal oxidizers were estimated by calculating the potential to emit or by a continuous emissions monitoring system. • The CO2 equivalent emissions were calculated using the number of carbon atoms in the VOCs, the molecular weight and the mass of the VOC exhausted to the thermal oxidizers and multiplied by the destruction efficiency of the thermal oxidizer. f. Estimated emissions from the sources above account for approximately 3.8% of Scope 1 GHG emissions. g. Excluded Scope 1 GHG emissions: Tesla excluded the following sources of GHG emissions, which are estimated to represent less than 1 percent of Tesla's reported Scope 1 GHG emissions: • GHG emissions from emergency stabilization of damaged and potentially damaged lithium-ion cells. • GHG emissions resulting from the chemical reaction of two-part polyurethane foam adhesives. • GHG emissions resulting from oxy-acetylene welding used to maintain sites and equipment. 157
  • 158. Impact Report 2023 157 GHG Emissions Disclosure 5 Management Assertion
 Scope 1 & 2 GHG Emissions Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions GHG Emissions Disclosure ® Related to Scope 2 GHG emissions (location-based): • GHG emissions from the generation of electricity purchased by Tesla for site operations. For sites that include Superchargers, Tesla did not include electricity procured for customer use through the Supercharger stations as those emissions are included in Scope 3, Category 11 Use of Sold Products. For purchased electricity relative to Data Centers, those emissions are included in Scope 3, Category 8 Upstream Leased Assets. • Global electricity usage data was collected from monthly utility invoices obtained from third-party providers. • If monthly usage data was not available: • For sites with less than 12 months of usage data, Tesla estimated the electricity usage by extrapolating the average consumption for the available months in the reporting period. • Tesla estimated the electricity usage by determining an annual electricity usage rate per area based on 2023 monthly electricity usage data for sites in a similar geographic location and type of site. This rate was then multiplied by the area of the site building space. • If cost data was available without the associated usage, Tesla used local unit costs to calculate usage. • District Heating usage data was collected from invoices obtained from third-party providers. If usage data was not available, Tesla estimated the usage by extrapolating the average consumption for the available months. If no data was reported, usage was based on sites in a similar geographic location and type of site. • The WRI and WBCSD issued additional guidance for Scope 2 emissions in 2015 (in GHG Protocol Scope 2 Guidance, An Amendment to the GHG Protocol Corporate Standard), which sets forth reporting under both location-based and market-based methodologies, where the prior version of the GHG Protocol only addressed a location-based methodology. The locationbased method applies average emission factors that correspond to the grid where the consumption occurs, whereas the market-based method applies emission factors that correspond to energy purchased through contractual instruments. Where contractual instruments were not purchased, the market-based emission factors represent either the residual mix, where available, or the location grid-average factors. This management assertion only includes Tesla's location-based Scope 2 GHG emissions as Tesla is continuing to implement its processes to measure and report its market-based Scope 2 GHG emissions. 157
  • 159. Impact Report 2023 158 GHG Emissions Disclosure Management Assertion
 Scope 1 & 2 GHG Emissions Impact Report 2023 Management Assertion Management Assertion Scope 1 & 2 GHG Emissions GHG Emissions Disclosure • Emission factors: • Electricity: • Canada: Environment Canada. 2023 National inventory report: greenhouse gas sources and sinks in Canada. • U.S.: U.S. EPA Emission Factors for Greenhouse Gas Inventories 2023. • Shanghai: Shanghai Municipal Bureau of Ecology and Environment 2022. • China: China Regional Power Grids 2022. • All other countries: International Energy Agency (IEA) Emissions Factors 2023. • District Heating: U.S. EPA Emission Factors for Greenhouse Gas Inventories 2023. • Estimated emissions from the source above account for approximately 8.8% of Scope 2 GHG emissions. 158
  • 160. Impact Report 2023 159 Feedback on This Report Impact Report 2023 Feedback Feedback on This Report Tesla aspires to do the right thing, and we are constantly looking for ways to do better. If you have suggestions about how our company can improve in any way, feel free to send your ideas to impactreport@tesla.com. The statements made in this report speak only as of the date on which they are made. We do not assume any obligation to update or revise any statements, whether as a result of new information, future events or otherwise, except as required by law. 159


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