#1Q3 2023 Update TESLA#2Highlights Financial Summary Operational Summary Vehicle Capacity Core Technology Other Highlights Outlook Photos & Charts Key Metrics Financial Statements Additional Information 03 04 06 07 08 09 10 11 16 19 25#3HIGHLIGHTS Profitability 7.6% operating margin in Q3 Cash Operations $1.8B GAAP operating income in Q3 $1.9B GAAP net income in Q3 $2.3B non-GAAP net income¹ in Q3 Operating cash flow of $3.3B in Q3 Free cash flow² of $0.8B in Q3 $3.0B increase in our cash and investments3 QoQ to $26.1B 4.0 GWh of Energy Storage deployed in Q3 More than doubled Al training compute SUMMARY Our main objectives remained unchanged in Q3-2023: reducing cost per vehicle, free cash flow generation while maximizing delivery volumes and continued investment in Al and other growth projects. Our cost of goods sold per vehicle4 decreased to -$37,500 in Q3. While production cost at our new factories remained higher than our established factories, we have implemented necessary upgrades in Q3 to enable further unit cost reductions. We continue to believe that an industry leader needs to be a cost leader. During a high interest rate environment, we believe focusing on investments in R&D and capital expenditures for future growth, while maintaining positive free cash flow, is the right approach. Year-to-date, our free cash flow reached $2.3B while our cash and investments position continues to improve. We have more than doubled the size of our Al training compute to accommodate for our growing dataset as well as our Optimus robot project. Our humanoid robot is currently being trained for simple tasks through Al rather than hard-coded software, and its hardware is being further upgraded. Lastly, with a combined gross profit generation of over $0.5B in Q3, our Energy Generation and Storage business and Services and Other business have become meaningful contributors to our profitability. (1) Excludes SBC (stock-based compensation) (2) Free cash flow = operating cash flow less capex (3) Includes cash, cash equivalents and investments (4) Calculated by dividing Cost of Automotive Sales Revenue by respective quarter's new deliveries (ex-operating leases) TESLA#44 FINANCIAL SUMMARY (Unaudited) ($ in millions, except percentages and per share data) Total automotive revenues Energy generation and storage revenue Services and other revenue Total revenues Total gross profit Total GAAP gross margin Operating expenses Income from operations Operating margin Adjusted EBITDA Adjusted EBITDA margin Net income attributable to common stockholders (GAAP) Net income attributable to common stockholders (non-GAAP) EPS attributable to common stockholders, diluted (GAAP) EPS attributable to common stockholders, diluted (non-GAAP) Net cash provided by operating activities Capital expenditures Free cash flow Cash, cash equivalents and investments Q3-2022 18,692 1,117 1,645 21,454 5,382 25.1% 1,694 3,688 17.2% 4,968 23.2% 3,292 3,654 0.95 1.05 5,100 (1,803) 3,297 21,107 Q4-2022 21,307 1,310 1,701 24,318 5,777 23.8% 1,876 3,901 16.0% 5,404 22.2% 3,687 4,106 1.07 1.19 3,278 (1,858) 1,420 22,185 Q1-2023 19,963 1,529 1,837 23,329 4,511 19.3% 1,847 2,664 11.4% 4,267 18.3% 2,513 2,931 0.73 0.85 2,513 (2,072) 441 22,402 Q2-2023 21,268 1,509 2,150 24,927 4,533 18.2% 2,134 2,399 9.6% 4,653 18.7% 2,703 3,148 0.78 0.91 3,065 (2,060) 1,005 23,075 Q3-2023 19,625 1,559 2,166 23,350 4,178 17.9% 2,414 1,764 7.6% 3,758 16.1% 1,853 2,318 0.53 0.66 3,308 (2,460) 848 26,077 YoY 5% 40% 32% 9% -22% -719 bp 43% -52% -964 bp -24% -706 bp -44% -37% -44% -37% -35% 36% -74% 24% ESLA#55 FINANCIAL SUMMARY Revenue Pro Cash ity Total revenue grew 9% YoY in Q3 to $23.4B. YoY, revenue was impacted by the following items: + growth in vehicle deliveries + growth in other parts of the business - reduced average selling price (ASP) YOY (excluding FX impact) - negative FX impact of $0.4B¹ Our operating income decreased YoY to $1.8B in Q3, resulting in a 7.6% operating margin. YoY, operating income was primarily impacted by the following items: - reduced ASP due to pricing and mix - increase in operating expenses driven by Cybertruck, Al and other R&D projects - cost of production ramp and idle cost related to factory upgrades negative FX impact + growth in vehicle deliveries (despite the margin headwind from underutilization from new factories) + lower cost per vehicle and IRA credit benefit + gross profit growth in Energy Generation and Storage as well as Services and Other + growth in regulatory credit sales Quarter-end cash, cash equivalents and investments increased sequentially by $3.0B to $26.1B in Q3, driven by financing activities of $2.3B and free cash flow of $0.8B. (¹) Impact is calculated on a constant currency basis. Actuals are compared against current results converted into USD using average exchange rates from Q3'22. TESLA#66 OPERATIONAL SUMMARY (Unaudited) Model S/X production Model 3/Y production Total production Model S/X deliveries Model 3/Y deliveries Total deliveries of which subject to operating lease accounting Total end of quarter operating lease vehicle count Global vehicle inventory (days of supply)(¹) Solar deployed (MW) Storage deployed (MWh) Tesla locations (2) Mobile service fleet Supercharger stations Supercharger connectors Q3-2022 19,935 345,988 365,923 18,672 325,158 343,830 11,004 135,054 8 94 2,100 903 1,532 4,283 38,883 Q4-2022 20,613 419,088 439,701 17,147 388,131 405,278 15,184 140,667 13 100 2,462 963 1,584 4,678 42,419 Q1-2023 19,437 421,371 440,808 10,695 412,180 422,875 22,357 153,988 15 67 3,889 1,000 1,692 4,947 45,169 Q2-2023 19,489 460,211 479,700 19,225 446,915 466,140 21,883 168,058 16 66 3,653 1,068 1,769 5,265 48,082 (1)Days of supply is calculated by dividing new car ending inventory by the relevant quarter's deliveries and using 75 trading days (aligned with Automotive News definition). (2)Starting in Q1-2023, we revised our methodology for reporting Tesla's physical footprint. This count now includes all sales, service, delivery and body shop locations globally. Q3-2023 13,688 416,800 430,488 15,985 419,074 435,059 17,423 176,231 16 49 3,980 1,129 1,846 5,595 51,105 YoY -31% 20% 18% -14% 29% 27% 58% 30% 100% -48% 90% 25% 20% 31% 31% TESLA#77 VEHICLE CAPACITY During the quarter we brought down several production lines for upgrades at various factories, which led to a sequential decline in production volumes. We made further progress smoothing out the delivery rate across the quarter, with September accounting for ~40% of Q3 deliveries this year, compared to September accounting for -65% of Q3 deliveries in 2022. US: California, Nevada and Texas At Gigafactory Texas, we began pilot production of the Cybertruck, which remains on track for initial deliveries this year. We are expecting the Model Y production rate in Texas to grow very gradually from its current level as we ramp additional supply chain needs in a cost-efficient manner. Production of our higher density 4680 cell is progressing as planned, and we continue building capacity for cathode production and lithium refining in the U.S. China: Shanghai Other than scheduled downtime in Q3, our Shanghai factory has been successfully running near full capacity for several quarters, and we do not expect a meaningful increase in weekly production run rate. Giga Shanghai remains our main export hub. Europe: Berlin-Brandenburg Model Y remained the best-selling vehicle of any kind in Europe year-to-date (based on the latest available data as of August). Similar to Texas, further production ramp of Model Y will be gradual. Region California Shanghai Berlin Texas Nevada Various 4% Pilot production Pilot production In development In development TBD Installed capacity current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. -US/Canada Europe -China 3% 2% 1% 0% Q1 2018 Current Installed Annual Vehicle Capacity Model Model S / Model X Model 3 / Model Y Model 3 / Model Y Model Y Model Y Cybertruck Tesla Semi Next Gen Platform Roadster Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Capacity 100,000 550,000 >950,000 375,000 >250,000 >125,000 Q3 2020 Q1 2021 Q4 2020 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Status Production Production Production Production Production Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 vehicles by region (TTM) Market share of Tesla Source: Tesla estimates based on latest available data from ACEA; Autonews.com; CAAM - light- duty vehicles only TTM = Trailing twelve months#88 CORE TECHNOLOGY Artificial Intelligence Software and Hardware Software that safely performs tasks in the real world is the key focus of our Al development efforts. We have commissioned one of the world's largest supercomputers to accelerate the pace of our Al development, with compute capacity more than doubling compared to Q2. Our large installed base of vehicles continues to generate anonymized video and other data used to develop our FSD Capability features. Vehicle and Other Software All Tesla rentals through Hertz in the U.S. and Canada now allow Tesla app access, allowing renters to use keyless lock/unlock via phone key, remotely precondition the cabin, track charge status and more. Customers who already have a Tesla Profile will have their settings and preferences seamlessly applied, making the rental car feel like their own. The in-app service experience was also redesigned to allow customers to schedule service, access their loaner, track service progress, pay and manage drop- off/pickup. Prospective customers can similarly schedule, locate and test drive a demo vehicle. Battery, Powertrain & Manufacturing Despite macroeconomic headwinds, our planned factory shutdowns in Q3 and ongoing ramp at new factories, our average vehicle cost was -$37,500, and we continue to work to reduce the cost further. For very heavy vehicles, a high voltage powertrain architecture brings notable cost savings, which is why Cybertruck will adopt an 800-volt architecture. 600 500 400 300 200 100 O Mar-21 Apr-21 $40,000 $39,500 $39,000 $38,500 $38,000 $37,500 $37,000 $36,500 $36,000 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Q3 2022 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 ||| Q4 2022 Oct-22 Q1 2023 Nov-22 Dec-22 Jan-23 Cumulative miles driven with FSD Beta (millions) Feb-23 Cost of goods sold per vehicle Q2 2023 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Q3 2023 Sep-23 TESLA#99 OTHER HIGHLIGHTS Energy Storage Energy storage deployments increased by 90% YoY in Q3 to 4.0 GWh, our highest quarterly deployment ever. Continued growth in deployments was driven by the ongoing ramp of our Megafactory in Lathrop, CA toward full capacity of 40 GWh with the phase two expansion. Production rate improved further sequentially in Q3. Solar Solar deployments declined on a sequential and YoY basis to 49 MW. Sustained high interest rates and the end of net metering in California have created downward pressure on solar demand. Services and Other business As our global fleet size grows, our Services and Other business continues to grow successfully, with Supercharging, insurance and body shop & part sales being the core drivers of profit growth YoY. Pay-per-use Supercharging remains a profitable business for the company, even as we scale capital expenditures. Our team is focused on materially expanding Supercharging capacity and further improving capacity management in anticipation of other OEMs joining our network. 4 3 2 1 O 200 150 100 50 Q1 2017 (50) (100) (150) (200) Q2 2017 Q1 2017 Q3 2017 Q2 2017 Q4 2017 Q1 2018 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q2 2018 Q3 2018 Q1 2019 Q4 2018 Q2 2019 Q1 2019 Q3 2019 Q2 2019 Q4 2019 Q3 2019 Q1 2020 Q4 2019 Q2 2020 Q1 2020 Energy Storage deployments (GWh) Q3 2020 Q2 2020 Q4 2020 Q3 2020 Q4 2020 Q1 2021 Q1 2021 Q2 2021 Q3 2021 Q2 2021 Q3 2021 Q4 2021 Q4 2021 Q1 2022 Q1 2022 Q2 2022 Q2 2022 Services & Other gross profit ($M) ///// Q3 2022 Q4 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2023 Q2 2023 Q3 2023 Q2 2023 Q3 2023 TESLA#1010 OUTLOOK Volume Cash Profit Product We are planning to grow production as quickly as possible in alignment with the 50% CAGR target we began guiding to in early 2021. In some years we may grow faster and some we may grow slower, depending on a number of factors. For 2023, we expect to remain ahead of the long-term 50% CAGR with around 1.8 million vehicles for the year. We have ample liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. Furthermore, we will manage the business such that we maintain a strong balance sheet during this uncertain period. While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware-related profits to be accompanied by an acceleration of Al, software and fleet-based profits. Cybertruck deliveries remain on track for later this year. In addition, we continue to make progress on our next generation platform. TESLA#11PHOTOS & CHARTS TESLA#1212 MODEL Y STARTING PRICE INCLUSIVE OF NATIONAL AND STATE LEVEL SUBSIDIES* $36,490 in all other states CO $31,490 NY $35,990 PA $34,490 IL $32,490 ME $35,490 *Not all consumers are eligible for all subsidies. Exclusive of local and utility subsidies. Please see additional details at https://www.tesla.com/support/incentives. VT $33,990 MA $32,990 CT $34,240 NJ $32,490 DE $33,990 MD $33,490 TESLA#1313 CYBERTRUCK DELIVERIES BEGIN IN NOVEMBER 2023 www TESLA#1414 MEGAPACK FACTORY IN LATHROP, CALIFORNIA T COD ESLA#1515 GIGAFACTORY SHANGHAI - ONE MILLIONTH MODEL Y PRODUCED lion TESLA 百战不殆, 万人齐心 GFSH Phase II 100 Model YF ( ***** 10-01 记录 再破 持续领先 GIGA SHANGHAI MODELY IM = s La#1616 KEY METRICS QUARTERLY (Unaudited) 0.5 0.4 0.3 0.2 0.1 0.0 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 Vehicle Deliveries (millions of units) 6 5 4 3 2 1 O 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 ■ Operating Cash Flow ($B) Free Cash Flow ($B) 6 5 & M 3 2 1 O 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 Net Income ($B) ■Adjusted EBITDA ($B) TESLA#1717 TESLA (millions of units) Vehicle Deliveries Free Cash Flow ($B) ■ Operating Cash Flow ($B) ■Adjusted EBITDA ($B) Net Income ($B) 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 0.0 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 0.2 2 0.4 2 0.6 4 6 0.8 ONA O NA 6 8 1.0 10 8 1.2 10 12 ON A 0 0 OÑA 1.4 1.6 1.8 14 12 14 16 18 16 18 2.0 20 20 (Unaudited) KEY METRICS TRAILING 12 MONTHS (TTM)#1818 KEY METRICS TRAILING 12 MONTHS (TTM) (Unaudited) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% -20% YOY Revenue Growth Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Tesla Auto Industry S&P 500 Q2-2023 Q3-2023 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% -2% -4% Operating Margin Q3-2019 Q4-2019 Q1-2020 Q2-2020 Q3-2020 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Tesla Auto Industry -S&P 500 Source: OEM financial disclosures, Bloomberg Auto Industry includes: Tesla, BMW, Mercedes-Benz, Ford, GM, Honda, Hyundai, Nissan, Toyota and VW. Stellantis is excluded given limited historical disclosures due to the recent merger between FCA and PSA. TESLA Auto Industry operating margin is calculated by dividing the sum of USD equivalent operating profits for the entire industry by the USD equivalent revenues for respective periods.#19FINANCIAL STATEMENTS TESLA#2020 STATEMENT OF OPERATIONS (Unaudited) In millions of USD or shares as applicable, except per share data REVENUES Automotive sales Automotive regulatory credits Automotive leasing Total automotive revenues Energy generation and storage Services and other Total revenues COST OF REVENUES Automotive sales Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues Gross profit OPERATING EXPENSES Research and development Selling, general and administrative Restructuring and other Total operating expenses INCOME FROM OPERATIONS Interest income Interest expense Other (expense) income, net INCOME BEFORE INCOME TAXES Provision for income taxes NET INCOME Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS Net income per share of common stock attributable to common stockholders Basic Diluted Weighted average shares used in computing net income per share of common stock Basic Diluted Q3-2022 $ $ 17,785 286 621 18,692 1,117 1,645 21,454 13,099 381 13,480 1,013 1,579 16,072 5,382 733 961 1,694 3,688 86 (53) (85) 3,636 305 3,331 39 3,292 1.05 0.95 3,146 3,468 Q4-2022 $ $ 20,241 467 599 21,307 1,310 1,701 24,318 15,433 352 15,785 1,151 1,605 18,541 5,777 810 1,032 34 1,876 3,901 157 (33) (42) 3,983 276 3,707 20 3,687 1.18 1.07 3,160 3,471 $ $ Q1-2023 18,878 521 564 19,963 1,529 1,837 23,329 15,422 333 15,755 1,361 1,702 18,818 4,511 771 1,076 1,847 2,664 213 (29) (48) 2,800 261 2,539 26 2,513 0.80 0.73 3,166 3,468 Q2-2023 $ $ 20,419 282 567 21,268 1,509 2,150 24,927 16,841 338 17,179 1,231 1,984 20,394 4,533 943 1,191 2,134 2,399 238 (28) 328 2,937 323 2,614 (89) 2,703 0.85 0.78 3,171 3,478 LA LA Q3-2023 $ $ 18,582 554 489 19,625 1,559 2,166 23,350 15,656 301 15,957 1,178 2,037 19,172 4,178 1,161 1,253 2,414 1,764 282 (38) 37 2,045 167 1,878 25 1,853 0.58 0.53 3,176 3,493#2121 BALANCE SHEET (Unaudited) In millions of USD ASSETS Current assets Cash, cash equivalents and investments Accounts receivable, net Inventory Prepaid expenses and other current assets Total current assets Operating lease vehicles, net Solar energy systems, net Property, plant and equipment, net Operating lease right-of-use assets Digital assets, net Goodwill and intangible assets, net Other non-current assets Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued liabilities and other Deferred revenue Customer deposits Current portion of debt and finance leases (1) Total current liabilities Debt and finance leases, net of current portion (1) Deferred revenue, net of current portion Other long-term liabilities Total liabilities Redeemable noncontrolling interests in subsidiaries Total stockholders' equity Noncontrolling interests in subsidiaries Total liabilities and equity (1) Breakdown of our debt is as follows: Vehicle and energy product financing (non-recourse) Other non-recourse debt Recourse debt Total debt excluding vehicle and energy product financing Days sales outstanding Days payable outstanding 30-Sep-22 21,107 2,192 10,327 2,364 35,990 4,824 5,562 21,926 2,251 218 419 3,236 74,426 13,897 6,246 1,928 1,083 1,457 24,611 2,096 2,265 4,330 33,302 421 39,851 852 74,426 2,335 11 51 62 9 72 31-Dec-22 22,185 2,952 12,839 2,941 40,917 5,035 5,489 23,548 2,563 184 409 4,193 82,338 15,255 7,142 1,747 1,063 1,502 26,709 1,597 2,804 5,330 36,440 409 44,704 785 82,338 2,001 44 44 10 72 31-Mar-23 22,402 2,993 14,375 3,227 42,997 5,473 5,427 24,969 2,800 184 399 4,584 86,833 15,904 7,321 1,750 1,057 1,404 27,436 1,272 2,911 5,979 37,598 407 48,054 774 86,833 1,708 44 44 11 75 30-Jun-23 23,075 3,447 14,356 2,997 43,875 5,935 5,365 26,389 3,352 184 465 5,026 90,591 15,273 7,658 2,176 1,026 1,459 27,592 872 3,021 6,924 38,409 288 51,130 764 90,591 1,475 44 44 12 70 30-Sep-23 26,077 2,520 13,721 2,708 45,026 6,119 5,293 27,744 3,637 184 441 5,497 93,941 13,937 7,636 2,206 894 1,967 26,640 2,426 3,059 7,321 39,446 277 53,466 752 93,941 3,660 44 12 70 ESLA#2222 STATEMENT OF CASH FLOWS (Unaudited) In millions of USD CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and impairment Stock-based compensation Other Changes in operating assets and liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of solar energy systems, net of Purchases of investments Proceeds from maturities of investments Proceeds from sales of investments Receipt of government grants Business combinations, net of cash acquired Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net cash flows from other debt activities Net (repayments) borrowings under vehicle and energy product financing Net cash flows from noncontrolling interests - Solar Other Net cash (used in) provided by financing activities Effect of exchange rate changes on cash and cash equivalents and restricted cash Net increase (decrease) in cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash at beginning of period Cash and cash equivalents and restricted cash at end of period Q3-2022 3,331 956 362 220 231 5,100 (1,803) (991) 3 (2,791) (133) (766) (42) 229 (712) (335) 1,262 18,887 20,149 Q4-2022 3,707 989 419 354 (2,191) 3,278 (1,858) (0) (4,368) 19 76 (6,131) (162) (335) (65) 67 (495) 123 (3,225) 20,149 16,924 Q1-2023 2,539 1,046 418 40 (1,530) 2,513 (2,072) (1) (2,015) 1,604 (2,484) (127) (294) (43) 231 (233) 50 (154) 16,924 16,770 Q2-2023 2,614 1,154 445 (47) (1,101) 3,065 (2,060) (0) (5,075) 3,539 138 (76) (3,534) (124) (233) (34) 63 (328) (94) (891) 16,770 15,879 Q3-2023 1,878 1,235 465 145 (415) 3,308 (2,460) (6,131) 3,816 12 (4,762) (140) 2,194 (45) 254 2,263 (98) 711 15,879 16,590#2323 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD or shares as applicable, except per share data Net income attributable to common stockholders (GAAP) Stock-based compensation expense Net income attributable to common stockholders (non-GAAP) Less: Buy-out of noncontrolling interest Less: Dilutive convertible debt Net income used in computing diluted EPS attributable to common stockholders (non-GAAP) EPS attributable to common stockholders, diluted (GAAP) Stock-based compensation expense per share EPS attributable to common stockholders, diluted (non-GAAP) Shares used in EPS calculation, diluted (GAAP and non-GAAP) Net income attributable to common stockholders (GAAP) Interest expense Provision for income taxes Depreciation, amortization and impairment Stock-based compensation expense Adjusted EBITDA (non-GAAP) Total revenues Adjusted EBITDA margin (non-GAAP) Q3-2022 3,292 362 3,654 O 3,654 0.95 0.10 1.05 3,468 3,292 53 305 956 362 4,968 21,454 23.2% Q4-2022 3,687 419 4,106 (35) O 4,141 1.07 0.12 1.19 3,471 3,687 33 276 989 419 5,404 24,318 22.2% Q1-2023 2,513 418 2,931 (5) 2,936 0.73 0.12 0.85 3,468 2,513 29 261 1,046 418 4,267 23,329 18.3% Q2-2023 2,703 445 3,148 O 3,148 0.78 0.13 0.91 3,478 2,703 28 323 1,154 445 4,653 24,927 18.7% Q3-2023 1,853 465 2,318 2 O 2,316 0.53 0.13 0.66 3,493 1,853 38 167 1,235 465 3,758 23,350 16.1% TESLA#24RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD Net cash (used in) provided by operating activities (GAAP) Capital expenditures Free cash flow (non-GAAP) In millions of USD Net income attributable to common stockholders (GAAP) Interest expense Provision for income taxes Depreciation, amortization and impairment Stock-based compensation expense Adjusted EBITDA (non-GAAP) In millions of USD Net cash provided by operating activities - TTM (GAAP) Capital expenditures - TTM Free cash flow - TTM (non-GAAP) In millions of USD Net income attributable to common stockholders - TTM (GAAP) Interest expense - TTM Provision for income taxes - TTM Depreciation, amortization and impairment - TTM Stock-based compensation expense - TTM Adjusted EBITDA - TTM (non-GAAP) 24 TTM Trailing twelve months 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 (440) 964 2,400 3,019 (455) (895) 1,641 2,124 3,147 4,585 3,995 2,351 5,100 3,278 2,513 3,065 3,308 (546) (1,005) (1,151) (1,348) (1,505) (1,819) (1,810) (1,767) (1,730) (1,803) (1,858) (2,072) (2,060) (2,460) 418 1,395 1,868 1,328 2,775 2,228 621 3,297 1,420 441 1,005 848 293 619 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 1,618 2,321 3,318 2,259 3,292 3,687 2,513 2,703 438 1,142 1,853 126 29 28 99 69 33 276 38 167 75 115 621 681 614 474 1,841 2,487 3,203 4,090 5,023 3,791 4,968 5,404 4,267 4,653 3,758 223 761 475 71 292 848 558 44 205 922 61 346 880 418 53 305 956 362 989 261 1,046 418 323 1,154 445 1,235 361 419 465 16 169 2 553 211 951 104 170 21 567 347 1,209 331 163 186 584 543 1,807 270 246 83 618 633 1,850 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 5,943 8,024 9,184 9,931 11,497 13,851 14,078 16,031 14,724 13,242 13,956 12,164 (3,157) (4,050) (5,009) (5,823) (6,482) (6,901) (7,126) (7,110) (7,158) (7,463) (7,793) (8,450) 2,786 3,974 4,175 4,108 5,015 6,950 6,952 8,921 7,566 5,779 6,163 3,714 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 721 1,143 2,181 3,468 5,519 8,399 9,516 11,190 12,556 11,751 12,195 10,756 748 678 583 546 371 333 302 229 191 159 143 128 292 359 453 490 699 976 1,066 1,148 1,132 1,047 1,165 1,027 2,322 2,390 2,504 2,681 2,911 3,170 3,411 3,606 3,747 3,913 4,145 4,424 1,734 2,137 2,264 2,196 2,121 1,925 1,812 1,699 1,560 1,560 1,644 1,747 5,817 6,707 7,985 9,381 11,621 14,803 16,107 17,872 19,186 18,430 19,292 18,082#2525 ADDITIONAL INFORMATION WEBCAST INFORMATION Tesla will provide a live webcast of its third quarter 2023 financial results conference call beginning at 4:30 p.m. CT on October 18, 2023 at ir.tesla.com. This webcast will also be available for replay for approximately one year thereafter. CERTAIN TERMS When used in this update, certain terms have the following meanings. Our vehicle deliveries include only vehicles that have been transferred to end customers with all paperwork correctly completed. Our energy product deployment volume includes both customer units installed and equipment sales; we report installations at time of commissioning for storage projects or inspection for solar projects, and equipment sales at time of delivery. "Adjusted EBITDA" is equal to (i) net income (loss) attributable to common stockholders before (ii)(a) interest expense, (b) provision for income taxes, (c) depreciation, amortization and impairment and (d) stock-based compensation expense, which is the same measurement for this term pursuant to the performance-based stock option award granted to our CEO in 2018. "Free cash flow" is operating cash flow less capital expenditures. Average cost per vehicle is cost of automotive sales divided by new vehicle deliveries (excluding operating leases). "Days sales outstanding" is equal to (i) average accounts receivable, net for the period divided by (ii) total revenues and multiplied by (iii) the number of days in the period. "Days payable outstanding" is equal to (i) average accounts payable for the period divided by (ii) total cost of revenues and multiplied by (iii) the number of days in the period. "Days of supply" is calculated by dividing new car ending inventory by the relevant quarter's deliveries and using 75 trading days. Constant currency impacts are calculated by comparing actuals against current results converted into USD using average exchange rates from the prior period. NON-GAAP FINANCIAL INFORMATION Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a diluted per share basis (calculated using weighted average shares for GAAP diluted net income (loss) attributable to common stockholders), Adjusted EBITDA, Adjusted EBITDA margin and free cash flow. These non-GAAP financial measures also facilitate management's internal comparisons to Tesla's historical performance as well as comparisons to the operating results of other companies. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial condition and results of operations, so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla uses to run the business and allowing investors to better understand Tesla's performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above. FORWARD-LOOKING STATEMENTS Certain statements in this update, including statements in the "Outlook" section; statements relating to the future development, ramp, production and capacity, demand and market growth, cost, pricing and profitability, investment, deliveries, deployment, availability and other features and improvements and timing of existing and future Tesla products and technologies such as Model 3, Model Y, Model X, Model S, Cybertruck, our next generation vehicle platform, our Dojo training computers, our Autopilot, Full Self-Driving and other vehicle software and Al enabled products, our battery cells, our Supercharging network and our energy storage and solar products; statements regarding operating margin, operating profits, spending and liquidity; and statements regarding expansion, improvements and/or ramp and related timing at our factories are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: uncertainties in future macroeconomic and regulatory conditions arising from the current global pandemic; the risk of delays in launching and manufacturing our products and features cost-effectively; our ability to grow our sales, delivery, installation, servicing and charging capabilities and effectively manage this growth; consumers' demand for electric vehicles generally and our vehicles specifically; the ability of suppliers to deliver components according to schedules, prices, quality and volumes acceptable to us, and our ability to manage such components effectively; any issues with lithium-ion cells or other components manufactured at our factories; our ability to ramp our factories in accordance with our plans; our ability to procure supply of battery cells, including through our own manufacturing; risks relating to international expansion; any failures by Tesla products to perform as expected or if product recalls occur; the risk of product liability claims; competition in the automotive and energy product markets; our ability to maintain public credibility and confidence in our long-term business prospects; our ability to manage risks relating to our various product financing programs; the status of government and economic incentives for electric vehicles and energy products; our ability to attract, hire and retain key employees and qualified personnel and ramp our installation teams; our ability to maintain the security of our information and production and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time time; risks relating to our indebtedness and financing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned "Risk Factors" in our annual report on Form 10-K filed with the SEC on January 31, 2023. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise. TESLA#26T = SLA