#1M MON TESLA SEPTEMBER 22, 2020 BAYAN HEskyto Flinde ری gislati ၁၉ (ဖေလင်းလင်းနိုင်သည်။#2CO₂ CONCENTRATION (PPM) 425 400 375 350 325 300 275 250 225 200 175 150 The Past 5 Years Were The 5 Hottest On Record Aurry 800 700 www.w 600 500 400 Man THOUSANDS OF YEARS AGO 300 200 www 100 TODAY#3The Trend Is Reversing But We Need To Accelerate Wind and solar comprise 76% of new electricity capacity in the U.S. this year: 32 GW. SOURCE: EIA.GOV DO In 2010 46% of electricity in the U.S. was generated with coal. Today, that number is half.#41+ MILLION ELECTRIC VEHICLES DELIVERED 5 GWh OF STATIONARY BATTERIES TESLA HE Tesla's Contribution 26 BILLION ELECTRIC MILES DRIVEN 17 TWh OF SOLAR GENERATED#5M To achieve the transition to sustainable energy, we must produce more affordable EVs and Energy Storage, while building factories faster and with far less investment MON ၁၉ (ဖေလင်းလင်းနိုင်သည်။#6IN 2019 1500 GWh SMALL / ROBOTAXI Goal One: Terawatt-hour Scale Battery Production 100% ELECTRIC TRANSPORTATION REQUIRES 10OX GROWTH 3500 GWh COMPACT / MIDSIZE 900 GWh LUXURY & SUV SOURCE: EV-VOLUMES.COM 1100 GWh PICKUP TRUCK 3000 GWh SEMI & COMMERCIAL 0.1 TWh 10 TWh#7IN 2019 2300 GWh NON RENEWABLE ELECTRICITY Goal One: Terawatt-hour Scale Battery Production 100% RENEWABLE ENERGY REQUIRES 1600X GROWTH 1400 GWh COAL HEATING 2100 GWh GAS HEATING SOURCE: IHS 800 GWh OIL HEATING 1500 GWh FUTURE EV 1900 GWh FUTURE GROWTH 0.006 TWh 10 TWh#8Goal One Problem: Today's Battery Factories Cannot Scale Fast Enough 0.15 TWh || 1 GIGAFACTORY $2T INVESTMENT IN MATERIALS, CELL, AND BATTERY MANUFACTURING 2.8M TOTAL PEOPLE ESTIMATED#9Goal One Problem: Today's Battery Factories Cannot Scale Fast Enough 20 TWh 135 GIGAFACTORIES $2T INVESTMENT IN MATERIALS, CELL, AND BATTERY MANUFACTURING 2.8M TOTAL PEOPLE ESTIMATED#10$/kWh O 2012 2013 2014 2015 Goal Two: More Affordable Cells 2016 2017 2018 2019 2020 2021 2022 INDUSTRY TREND 2023 2024 FORECAST 2025#112.0% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 2009 2010 Goal Two Problem: EV Market Share Is Growing But EVS Still Aren't Accessible To All 2011 2012 2013 2014 SOURCE: EV-VOLUMES.COM/OICA 2015 2016 2017 2018 EV MARKET SHARE 2019#12To Make The Best Cars In The World, We Design Vehicles And Factories From The Ground Up SETEL KUKA#13And Now We Do This For Batteries As Well#14M MON T BATTERY DAY ၁၉ (ဖေလင်းလင်းနိုင်သည်။#15We Have A Plan To Halve The Cost Per KWh ¶ CELL DESIGN CATHODE MATERIALS CELL FACTORY ANODE MATERIALS CELL VEHICLE INTEGRATION#16m CELL DESIGN CATHODE MATERIALS CELL FACTORY ANODE MATERIALS CELL VEHICLE INTEGRATION#17CAN САР#18JELLYROLL TAB#19#20+ ANODE CATHODE SEPARATOR#21DISCHARGE + ANODE Li+ Lit Li+ Li+ Lit Li+ Li+ Li+ Li+ Lit Li+ Li+ Li+ Li+ Li+ Lit Li+ Li+ Li+ Li+ Lit Li+ Lit Li+ Li+ Lit Li+ Li+ CATHODE SEPARATOR#22CHARGING + ANODE Lit Li+ Li+ Li+ Li+ Li+ Lit Li+ Li+ Lit LI+ Li+ Li+ LI+ Li+ Li+ Li+ LI+ Li+ Li+ Li+ ... Li+ Li+ Lit Li+ Lit Li+ Li+ CATHODE SEPARATOR#231865 2008 +50% ENERGY EVOLUTION 2170 2017#24IMPROVEMENT 20% 15% 10% 5% 0% 21 26 31 Bigger Cylindrical Cells Cost Less 36 41 CELL OUTER DIAMETER MM NEW CELL 46 51 VEHICLE RANGE 56 COST REDUCTION 61#25SUPERCHARGE TIME INCREASE O 21 26 The Challenge With Big Cells Is Supercharging 31 36 41 CELL OUTER DIAMETER MM NEW CELL 46 51 56 CHARGE TIME (1 TAB) 61#26SUPERCHARGE TIME INCREASE O 21 26 The Challenge With Big Cells Is Supercharging 31 36 41 CELL OUTER DIAMETER MM NEW CELL 46 51 56 CHARGE TIME (1 TAB) CHARGE TIME (TABLESS) 61#27SIMPLER MANUFACTURING FEWER PARTS 5X REDUCTION IN ELECTRICAL PATH#2880 MM 46 MM 5X ENERGY +16% RANGE 6X POWER#2914% $/KWH REDUCTION 14% CATHODE MATERIALS CELL FACTORY ANODE MATERIALS CELL VEHICLE INTEGRATION#30PRINTING Inspiration BOTTLING#31ELECTRODE WINDING ASSEMBLY A FORMATION#321 MIX 2 & 3 COAT & DRY 4 COMPRESS S Electrode - Wet Process I 17 WH SOLVENT RECOVERY#33Powder Into Film LAB SCALE POWDER INTO FILM#341 MIX 2 DRY COAT FOTFITTE Dry Electrode 10x FOOTPRINT REDUCTION 10x ENERGY REDUCTION#35BENCH Simple is Hard LAB PILOT#361 ASSEMBLY LINE High-Speed Continuous Motion Assembly 20 GWh 7x LINE OUTPUT#37Tesla Power Electronics -86% FORMATION INVESTMENT TESLA POWER ELECTRONICS -75% FORMATION FOOTPRINT#38-75% INVESTMENT PER GWH 150 GWh 2018 GIGAFACTORY SIMPLER ACCELERATES TWH SCALE 10x SMALLER FOOTPRINT PER GWH 1 TWh TERAFACTORY#39100 GWh IN 2022 The Plan 3 TWh BY 2030#4032% $/KWH REDUCTION 11 14% CATHODE MATERIALS 18% ANODE MATERIALS CELL VEHICLE INTEGRATION#41Silicon Is Awesome And Inexpensive MOST ABUNDANT ELEMENT IN EARTH'S CRUST AFTER OXYGEN STORES 9X MORE LITHIUM THAN GRAPHITE#42MANY CYCLES 4X VOLUME EXPANSION Challenge: Volume Expansion MANY CYCLES ELECTRICAL ISOLATION SEI LAYER BROKEN SEI LAYER THICK SEI LAYER ↓ -Li+ ↓ MANY CYCLES#43SiO matrix Qi Si Carbon shell SILICON STRUCTURED IN SIO GLASS 6.6 $/KWh Current Approaches To Silicon Are Highly Engineered Expensive Materials SILICON STRUCTURED IN GRAPHITE 10.2 $/KWh SILICON NANOWIRES >100 $/KWh TESLA SILICON 1.2 $/KWh#44Instead, We Design For Expansion And Use Raw Silicon To Increase Range 20% RAW METALLURGICAL SILICON STABILIZE SURFACE THROUGH ELASTIC, ION-CONDUCTING POLYMER COATING ROBUST NETWORK HIGHLY ELASTIC BINDER + ELECTRODE DESIGN#4537% $/KWH REDUCTION 11 14% CATHODE MATERIALS 18% CELL VEHICLE INTEGRATION 5%#46What Is A Battery Cathode? CATHODES ARE LIKE BOOKSHELVES NICKEL / COBALT MANGANESE / ALUMINUM LITHIUM $/kWh METALS 35 30 25 20 15 10 5 0 Wh/kg 200 METAL COST MATTERS 400 600 IRON 800 1000 COBALT NICKEL 1200 1400#47MAXIMIZE NICKEL, REMOVE COBALT High Nickel Cathode Development | NOVEL COATINGS & DOPANTS | 15% REDUCTION IN CATHODE $/KWh#48IRON BASED LONG CYCLE LIFE Diversified Cathode Approach TEFLA NICKEL + MANGANESE LONG RANGE HIGH NICKEL MASS SENSITIVE#49The Cathode Manufacturing Processing Is A Big Target 35% NICKEL CATHODE COST BREAKDOWN 25% LITHIUM 5% COBALT 35% PROCESSING#50METAL SULFATE PRODUCTION METAL SULPHURIC ACID Traditional Cathode Process RAW MATERIALS INPUT METAL SULFATE MORE CHEMICALS WATER CATHODE PRODUCTION A BUNCH OF STUFF HAPPENS FINAL PRODUCT CATHODE WASTE WATER + BYPRODUCTS#51METAL SULFATE PRODUCTION METAL SULPHURIC ACID RAW MATERIALS INPUT METAL Tesla Cathode MORE CHEMICAL WATER WATER CATHODE PRODUCTION LESS STUFF HAPPENS FINAL PRODUCT CATHODE WASTE WATER + BYPRODUCTS#52-66% INVESTMENT I -76% I PROCESS COST O WASTE WATER#53Directly Consuming Nickel Powder Simplifies Metal Refining & Recycling SUSTAINABLY MINED/SOURCED ORES OPTIMIZED REFINING ELIMINATES BILLIONS IN BATTERY GRADE NICKEL PRODUCTION RECYCLED BATTERIES#54LITHIUM CLAYS North American Cathode Production BUILD PLANT TESLA CATHODE Ni Li 5 Ni Li Li KG X KM 30000 25000 20000 15000 10000 5000 0 SHORTEN TRAVEL DISTANCE CATHODE Status Quo LIOH-H2O LI SPODUMENE NICKEL POWDER Localized Supply Chain#55LITHIUM CLAYS COLOCATE LITHIUM CONVERSION TESLA CATHODE North American Lithium Production TESLA LITHIUM Ni Li 5 Ni Li Li SULFATE-FREE PROCESS 33% REDUCTION IN LITHIUM COST 100% ELECTRIC FACILITY#56SIGNIFICANT UNTAPPED LITHIUM IN CLAY Access Even More Lithium TESLA ACID-FREE, SALINE EXTRACTION | TESLA SECURED TWH-SCALE RESOURCE ENOUGH LITHIUM IN NEVADA TO ELECTRIFY THE ENTIRE U.S. FLEET#57Recycling Elements From Cells Is Far More Desirable Than From Raw Ores SOURCE RECYCLED CELLS TYPICAL ORES NICKEL 20% 1.2% LITHIUM 2.7% COBALT 2% 0.7% 0.2%#58TWh / YEAR - BATTERY SALES 1.20 1.00 0.80 0.60 0.40 0.20 0.00 2011 2012 2013 Recycling Resource Is 10+ Years Delayed IN 2025, BATTERIES AVAILABLE FOR RECYCLING 2014 EV BATTERY PRODUCTION 50% CAGR 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025#5949% $/KWH REDUCTION 14% 12% 18% CELL VEHICLE INTEGRATION 5%#6040% REAR UNDERBODY COST SAVINGS LEON MODEL Y GIGA CASTING -79 PARTS PER CAR OL 6100#61Giga Casting Innovations SHOT SIZE & VELOCITY & PRESSURE & TONNAGE NEW ALLOY, NO HEAT TREATING OR COATINGS#62EARLY AIRCRAFT WING MODERN AIRCRAFT WING Structural Fuel Tanks Improve Mass And Range STORAGE EXCESS STRUCTURE STORAGE#63MODERN AUTOMOTIVE BATTERY FUTURE AUTOMOTIVE BATTERY Structural Batteries Improve Mass And Range STORAGE EXCESS STRUCTURE STORAGE#6410% MASS REDUCTION THEP Revolution In Body + Battery Engineering | 14% RANGE INCREASE OPPORTUNITY | 370 FEWER PARTS#65A SSMANI2R Simpler, Smaller, Integrated Battery + Body Factory Of The Future 55% REDUCTION IN INVESTMENT PER GWH CURRENT CO Z F TERITON TETT THE ME $5666 35% REDUCTION IN FLOORSPACE FUTURE#6656% $/KWH REDUCTION 11 14% 12% 18% 7% 5%#6716% CELL DESIGN RANGE INCREASE 20% ANODE MATERIAL Stacking Up The Benefits Of Tesla's Vertical Integration CELL VEHICLE INTEGRATION 4% CATHODE MATERIAL 14% 54% 14% / KWH REDUCTION CELL DESIGN 18% CELL FACTORY 5% ANODE MATERIAL 12% CELL VEHICLE INTEGRATION CATHODE MATERIAL 7% 56% INVESTMENT PER GWH REDUCTION 7% CELL DESIGN 34% CELL FACTORY 4% ANODE MATERIAL 16% CELL VEHICLE INTEGRATION CATHODE MATERIAL 8% 69%#68$/kWh O 2012 2013 2014 2015 2016 A New Trajectory 2017 2018 2019 2020 2021 INDUSTRY TREND 2022 2023 FORECAST 2024 TESLA 2025#69CELL EQUIPMENT MANUFACTURERS RAW MATERIAL MANUFACTURERS Help Us Accelerate The Transition RIBI M... NEW AND EXISTING CELL SUPPLIERS MINERS AND REFINERS CM 6#70What Does This Mean For Our Future Products?#71Electric Vehicle Powertrains That Cost Less Than Combustion Engines $25,000 PASSENGER CAR#72AND Extreme Performance and Range#73<2 sec 0-60 MPH 200 mph TOP SPEED 1.30.3 LAGUNA SECA <9 sec 1/4 MILE >1100 HORSEPOWER >520 mi RANGE#74FORWARD-LOOKING STATEMENTS T Certain statements in this presentation, including statements regarding future products and technologies, expected features and performance of products, manufacturing expansion, cost reductions, and availability of raw materials, are forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations. Various important factors could cause actual results to differ materially, such as the risks identified in our SEC filings, including under the sections captioned "Risk Factors" in our Forms 10-K and 10-Q. Tesla disclaims any obligation to update any forward-looking statement contained in this presentation.