Tesla impact on sustainability 2023

    Tesla impact on sustainability 2023

    E6 months ago 808
    Impact Report
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    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
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    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
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    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 
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    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. 
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    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. 
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    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. 
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    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 
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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 
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    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. 
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    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. 
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    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. 
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    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. 
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    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. 
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    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. 
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    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. 
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    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. 
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    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 
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    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 
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    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 
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    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
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    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. 
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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. 
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    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
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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 
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    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
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    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. 
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    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. 
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    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 
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    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 
•
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    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
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    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
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    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
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    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 
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    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%
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    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
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    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. 
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    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
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    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. 
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    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. 
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    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 
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    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
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    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
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    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. 
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    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 
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    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 
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    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. 
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    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 
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    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.
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    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 
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    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 
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    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 
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    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
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    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. 
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    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 
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    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
    55/160
    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
    56/160
    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
    57/160
    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
    58/160
    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
    59/160
    Average Uptime of Supercharger Sites*
Chargers that just work 
60
99.90% 99.74% 99.96% 99.95% 99.97%
2023
Impact Report 2023
    60/160
    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.
    61/160
    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%
    62/160
    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
    63/160
    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
    64/160
    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
    65/160
    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
    66/160
    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
    67/160
    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
    68/160
    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
    69/160
    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
    70/160
    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 $150 billion per year. It is not surprising that 
homeowners and businesses are increasingly turning to 
backup power supply options. 
Reported Electrical Disturbances 
In the U.S. 
• Weather or Natural Disaster • Vandalism, Attack or Sabotage 
2005 
2008 
2011 
2014 
2017 
2020 
2023 
0 
71 
Other 
200 400
    71/160
    An entire ecosystem
Impact Report 2023 72
Renewable energy paired with battery storage will 
become the cheapest option available
Impact Report 2023 Product & Safety 
An Entire Ecosystem 
We have an entire ecosystem of energy products 
including hardware and software across generation 
and storage. We also have project management 
capabilities and a strong deployment track record of 
getting projects done on time. Our energy products 
can serve many purposes, including reducing 
emissions, helping to prevent grid outages and acting 
as backup power if the grid does go down. 
Renewable energy paired with battery storage will 
become the cheapest option available 
We are committed to reducing the cost of our 
products to foster mass adoption. Ultimately, using 
renewable energy (such as solar and wind) with 
battery storage will become the cheapest energy 
option available, regardless of location. This is already 
the case in many locations around the world. As costs 
continue to decline, more customers will be able to 
financially benefit from turning to renewable energy. 
I I 
---
I 
I 
I 
72 
I I I I 
I I
    72/160
    Renewables and energy storage 
Are already cost competitive
73
($/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
    73/160
    Autobidder enhances 
economic return for 
our customers
ERCOT (TX) Energy Storage Projects Annualized Revenues
Impact Report 2023 74
    74/160
    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
    75/160
    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
    76/160
    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
    77/160
    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
    78/160
    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
    79/160
    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
    80/160
    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
    81/160
    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
    82/160
    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
    83/160
    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
    84/160
    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
    85/160
    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
    86/160
    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
    87/160
    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
    88/160
    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%
    89/160
    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
    90/160
    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
    91/160
    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
    92/160
    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
    93/160
    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
    94/160
    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
    95/160
    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
    96/160
    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
    97/160
    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
    98/160
    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
    99/160
    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
    100/160
    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
    101/160
    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
    102/160
    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
    103/160
    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
    104/160
    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 
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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.
    106/160
    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% 
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    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 
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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
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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. 
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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
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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 
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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
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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 
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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. 
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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. 
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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. 
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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 
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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. 
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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). 
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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 
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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.
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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. 
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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 
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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 
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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.
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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. 
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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. 
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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. 
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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 
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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.
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    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.
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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. 
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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
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    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
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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
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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. 
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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 
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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 
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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%
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    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
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    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.
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    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 
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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). 
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    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
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    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
    146/160
    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.
    147/160
    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% 
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    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
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    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 
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    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.. 
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Q) ca ~ ·- 0 ca I.. > C I... 
+"" a. 0 Q) Q) I... 
·- ro 0 Q) ..c (/) ~E +-' E ~ ·- ca (/) ~ > 
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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
    151/160
    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
    152/160
    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
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    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 
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    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. 
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    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. 
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    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. 
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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. 
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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. 
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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. 
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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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