#1Q2 2022 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 21 23 29 TESLA#3HIGHLIGHTS Cash Profitability Operations Operating cash flow less capex (free cash flow) of $621M in Q2 In total, $0.8B increase in our cash and cash equivalents in Q2 to $18.3B $2.5B GAAP operating income; 14.6% operating margin in Q2 $2.3B GAAP net income; $2.6B non-GAAP net income (ex-SBC¹) in Q2 27.9% GAAP Automotive gross margin in Q2 More than 1,000 vehicles produced in a single week at Gigafactory Berlin Highest solar deployment in over four years SUMMARY We continued to make significant progress across the business during the second quarter of 2022. Though we faced certain challenges, including limited production and shutdowns in Shanghai for the majority of the quarter, we achieved an operating margin among the highest in the industry of 14.6%, positive free cash flow of $621M and ended the quarter with the highest vehicle production month in our history. New factories in Berlin-Brandenburg and Austin continued to ramp in Q2. Gigafactory Berlin-Brandenburg reached an important milestone of over 1,000 cars produced in a single week while achieving positive gross margin during the quarter. From our Austin factory, the first vehicles with Tesla-made 4680 cells and structural battery packs were delivered to our U.S. customers. We are continuing to invest in capacity expansion of our factories to maximize production. The Energy business made meaningful progress in Q2 as well, achieving higher volumes with stronger unit economics. This resulted in an overall record gross profit. Customer interest in our storage products remains strong and well above our production rate. With each of the Fremont and Shanghai factories achieving their highest-ever production months and new factory growth, we are focused on a record-breaking second half of 2022. (1) SBC = stock-based compensation. TESLA#44 FINANCIAL SUMMARY (Unaudited) ($ in millions, except percentages and per share data) Automotive revenues of which regulatory credits Automotive gross profit Automotive gross margin 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)(¹) EPS attributable to common stockholders, diluted (non-GAAP)(¹) Net cash provided by operating activities Capital expenditures Free cash flow Cash and cash equivalents (DEPS= earnings per share. Q2-2021 10,206 354 2,899 28.4% 11,958 2,884 24.1% 1,572 1,312 11.0% 2,487 20.8% 1,142 1,616 1.02 1.45 2,124 (1,505) 619 16,229 Q3-2021 12,057 279 3,673 30.5% 13,757 3,660 26.6% 1,656 2,004 14.6% 3,203 23.3% 1,618 2,093 1.44 1.86 3,147 (1,819) 1,328 16,065 Q4-2021 15,967 314 4,882 30.6% 17,719 4,847 27.4% 2,234 2,613 14.7% 4,090 23.1% 2,321 2,879 2.05 2.54 4,585 (1,810) 2,775 17,576 Q1-2022 16,861 679 5,539 32.9% 18,756 5,460 29.1% 1,857 3,603 19.2% 5,023 26.8% 3,318 3,736 2.86 3.22 3,995 (1,767) 2,228 17,505 Q2-2022 14,602 344 4,081 27.9% 16,934 4,234 25.0% 1,770 2,464 14.6% 3,791 22.4% 2,259 2,620 1.95 2.27 2,351 (1,730) 621 18,324 YoY 43% -3% 41% -46 bp 42% 47% 89 bp 13% 88% 358 bp 52% 159 bp 98% 62% 91% 57% 11% 15% 0% 13%#55 FINANCIAL SUMMARY Revenue Profitability Cash Total revenue grew 42% YoY in Q2 to $16.9B. YoY, revenue was impacted by the following items: + growth in vehicle deliveries + increased average selling price (ASP) + growth in other parts of the business Our operating income improved YoY to $2.5B in Q2, resulting in a 14.6% operating margin. YoY, operating income was primarily impacted by the following items: + increased ASP + growth in vehicle deliveries + profit growth in other parts of the business + lower stock-based compensation expense - higher raw material, commodity, logistics and expedite costs - higher per unit fixed costs in Shanghai due to shutdowns - negative FX impact - Bitcoin impairment Quarter-end cash, cash equivalents and short-term marketable securities increased sequentially by $902M to $18.9B in Q2, driven mainly by free cash flow of $621M, partially offset by debt repayments of $402M. As of the end of Q2, we have converted approximately 75% of our Bitcoin purchases into fiat currency. Conversions in Q2 added $936M of cash to our balance sheet. TESLA#6OPERATIONAL 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) Store and service locations Mobile service fleet Supercharger stations Supercharger connectors Q2-2021 2,340 204,081 206,421 1,895 199,409 201,304 14,492 95,491 9 85 1,274 598 1,091 2,966 26,900 Q3-2021 8,941 228,882 237,823 9,289 232,102 241,391 16,658 108,757 6 83 1,295 630 1,190 3,254 29,281 Q4-2021 13,109 292,731 305,840 11,766 296,884 308,650 16,160 120,342 4 85 978 655 1,281 3,476 31,498 Q1-2022 14,218 291,189 305,407 14,724 295,324 310,048 12,167 128,402 6 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). 3 48 846 673 1,372 3,724 33,657 Q2-2022 16,411 242,169 258,580 16,162 238,533 254,695 9,227 131,756 4 106 1,133 709 1,453 3,971 36,165 YoY 601% 19% 25% 753% 20% 27% -36% 38% -56% 25% -11% 19% 33% 34% 34% TESLA#77 VEHICLE CAPACITY In Q2, we achieved record production rates across the company. However, we saw a continuation of manufacturing challenges related to shutdowns, global supply chain disruptions, labor shortages and logistics and other complications, which limited our ability to consistently run our factories at full capacity. US: California and Texas Our Fremont Factory made a record number of vehicles in Q2. We see opportunities for further production rate improvements. In Texas, we have added flexibility to produce vehicles with either a structural battery pack or legacy battery pack. The next generation of 4680 battery cell machinery has been installed in Texas and is in the process of commissioning. Factory output in Texas continues to grow. China: Shanghai While the Shanghai factory was shut down fully and then partially for the majority of Q2, we ended the quarter with a record monthly production level. Recent equipment upgrades will enable us to continue to increase our production rate further. Europe: Berlin-Brandenburg Thanks to strong production rate improvement towards the end of Q2, our team in Germany produced more than 1,000 Model Y vehicles in a single week, using 2170 cells. We expect the production rate to continue improving through the rest of the year. Installed Annual Capacity California Status Production Model S / Model X Model 3 / Model Y Production Production Production Model 3 / Model Y Model Y Model Y Cybertruck Production In development In development Tesla Semi Roadster In development In development Robotaxi & Others 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 Shanghai Berlin Texas TBD 3% 2% 1% 0% Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q4 2018 Q3 2018 Q1 2019 Current 100,000 550,000 >750,000 >250,000 >250,000 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 region (TTM) Market share of Tesla vehicles by Tesla estimates based on ACEA; Autonews.com; CAAM - light-duty vehicles only TTM = Trailing twelve months Source: SLA#88 CORE TECHNOLOGY Autopilot and Full Self-Driving (FSD) As of the end of Q2-2022, over 100,000 Tesla drivers in North America had access to FSD Beta. Cumulative miles driven by our customers using City Streets supervised autonomy continue to grow at an unprecedented scale. Fleet data is an important part of improving and expanding the system. We recently re-launched the Enhanced Autopilot option in North America, for those customers who are only interested in highway autonomy. Vehicle Software Vehicles with adaptive suspension in North America can now automatically adjust to a more comfortable ride height before encountering a section of rough road, informed by continuously-updated data collected by our fleet. Our latest vehicles now use Tesla Vision to tighten seat belts earlier in a wider array of frontal crashes (page 19). We expanded on the UI customization introduced in V11 software update by allowing vehicle controls such as defrost, windshield wipers and seat heaters to be one touch away. Battery, Powertrain & Manufacturing The architecture of electric vehicles allows us to rethink vehicle design and the manufacturing process beyond what was possible in the combustion engine era. Thanks to large castings and parts consolidation, the robot count in our body shops in new factories dropped by over 70% per unit of capacity compared to our first iteration of Model 3 Body Shop. Our quest for simplification is not over. We will continue to drive simplification further with every new product and every new factory. 40 35 30 25 20 15 10 5 O O Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Cumulative miles driven with FSD Beta (millions) Mar-22 Apr-22 May-22 I…….. Model S Fremont Model 3 Fremont Model Y Fremont Model Y Austin Model Y Berlin Body shop robot count per unit of manufacturing capacity Jun-22#99 OTHER HIGHLIGHTS Energy Storage Energy storage deployments decreased by 11% YoY in Q2 to 1.1 GWh, mainly due to semiconductor challenges, which are having a greater impact on our Energy business than our Automotive business. Demand for our storage products remains in excess of our ability to supply. We are in the process of ramping production at our dedicated Megapack factory to address the growing demand. Solar Solar deployments increased by 25% YoY in Q2 to 106 MW, the strongest quarterly result in over four years. Although we continue to experience import delays beyond our control on certain solar components, we have expanded our supplier base to enable growth in this business. Our solar installation team continues to improve installation efficiency, enabling higher volumes and stronger economics. Services and Other In Q2, Services and Other business returned to positive gross margin. The used car business remains strong, particularly as interest in electric vehicles expands. Additionally, we are growing merchandise, Tesla-owned collision centers and related services. The Supercharger business, which is part of Services & Other, is increasingly serving both Tesla and non-Tesla customers. To help accelerate the transition to sustainable energy even faster, we are excited to open up our global, fast-growing network to other EV customers. 120 100 80 60 40 20 O Q1 2018 4,000 3,000 2,000 1,000 O Q2 2018 Q1 2018 Q3 2018 Q4 2018 Q2 2018 Q3 2018 Q1 2019 Q2 2019 Q1 2019 Q4 2018 H Q3 2019 Q2 2019 Q4 2019 Q1 2020 Q3 2019 Q2 2020 Q4 2019 Solar deployments (MW) Q1 2020 Q3 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q4 2020 Q2 2021 Q1 2021 Q3 2021 Q2 2021 Global Tesla Supercharger locations Q3 2021 Q4 2021 Q4 2021 Q1 2022 Q2 2022 Q1 2022 Q2 2022 TESLA#1010 OUTLOOK Volume Cash Profit Product We plan to grow our manufacturing capacity as quickly as possible. Over a multi-year horizon, we expect to achieve 50% average annual growth in vehicle deliveries. The rate of growth will depend on our equipment capacity, factory uptime, operational efficiency and the capacity and stability of the supply chain. We have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. 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 with an acceleration of software-related profits. The pace of production ramps in Austin and Berlin-Brandenburg will be influenced by the successful introduction of many new product and manufacturing technologies in new locations and ongoing supply chain related challenges. Factory ramps take time, and Gigafactory Austin and Gigafactory Berlin-Brandenburg will be no different. We are making progress on the industrialization of Cybertruck, which is currently planned for Austin production subsequent to Model Y ramp. TESLA#11PHOTOS & CHARTS TESLA#1212 FREMONT FACTORY 2,000,000 VEHICLES PRODUCED 2640 엌 USE THIS 2 Million 421 W#1313 GIGAFACTORY BERLIN MODEL Y GENERAL ASSEMBLY ******* *********... TESLA CH1-O8#1414 GIGAFACTORY BERLIN - MODEL Y PAINT SHOP AA TESLA AA O ========= TESLA#1515 GIGAFACTORY TEXAS - SOLAR PANELS P SEPE LochT کرده اند - IT 0000-Cece-co Beefe ‒‒‒‒‒ 2268 GAD 2 *****#1616 GIGAFACTORY TEXAS BODY SHOP TESLA#1717 GIGAFACTORY SHANGHAI - EXTERIOR 3 mate Appar RS 05279 FE MAL / SEMPRE VARET מניה oletrates S מס נקל ORK QUE #11 । ୦୪.୦୪ ୪ଟି ଘଟିଛ ותית חדד חדד די וודווד --- T#1818 GIGAFACTORY SHANGHAI - GENERAL ASSEMBLY ☐ 0000 110 E CIOC#1919 PREDICTIVE (VISION BASED) SEAT BELT TENSIONING TE TEST-55752 Faster tensioning deployment due to Tesla Vision Speed 20 mph 0 Belted Belted with Pretensioner Belted with Vision System Vehicle Time 100 ms Lower occupant acceleration with Tesla Vision system TESLA#2020 ANNUAL SHAREHOLDER MEETING - AUGUST 4TH ANNUAL SHAREHOLDER ETING Cyber FROUNDUP 2022 TEXAS Learn more about how to vote your shares: https://ir.tesla.com/shareholders/vote ESLA#2121 KEY METRICS QUARTERLY (Unaudited) 0.4 0.3 0.2 0.1 0.0 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 Vehicle Deliveries (millions of units) 5 4 3 2 1 O 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 ■ Operating Cash Flow ($B) Free Cash Flow ($B) 1Q-2022 2Q-2022 6 5 4 3 2 1 O 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 Net Income ($B) ■Adjusted EBITDA ($B) TESLA#2222 KEY METRICS TRAILING 12 MONTHS (TTM) (Unaudited) 1.2 1.0 0.8 0.6 0.4 0.2 0.0 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 Vehicle Deliveries (millions of units) 15 12 9 9 3 O 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 ■ Operating Cash Flow ($B) Free Cash Flow ($B) 18 15 12 9 O 6 3 -3 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 Net Income ($B) ■Adjusted EBITDA ($B) TESLA#23FINANCIAL STATEMENTS TESLA#2424 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 revenue 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 income (expense), 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 $ $ Q2-2021 9,520 354 332 10,206 801 951 11,958 7,119 188 7,307 781 986 9,074 2,884 576 973 23 1,572 1,312 11 (75) 45 1,293 115 1,178 36 1,142 1.18 1.02 971 1,119 LA LA $ $ Q3-2021 11,393 279 385 12,057 806 894 13,757 8,150 234 8,384 803 910 10,097 3,660 611 994 51 1,656 2,004 10 (126) (6) 1,882 223 1,659 41 1,618 1.62 1.44 998 1,123 $ $ Q4-2021 15,025 314 628 15,967 688 1,064 17,719 10,689 396 11,085 739 1,048 12,872 4,847 740 1,494 2,234 2,613 25 (71) 68 2,635 292 2,343 22 2,321 2.29 2.05 1,015 1,135 $ $ Q1-2022 15,514 679 668 16,861 616 1,279 18,756 10,914 408 11,322 688 1,286 13,296 5,460 865 992 1,857 3,603 28 (61) 56 3,626 346 3,280 (38) 3,318 3.20 2.86 1,034 1,157 $ LA LA $ Q2-2022 13,670 344 588 14,602 866 1,466 16,934 10,153 368 10,521 769 1,410 12,700 4,234 667 961 142 1,770 2,464 26 (44) 28 2,474 205 2,269 10 2,259 2.18 1.95 1,037 1,155#2525 BALANCE SHEET (Unaudited) In millions of USD ASSETS Current assets Cash and cash equivalents Short-term marketable securities 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-Jun-21 16,229 2,129 4,733 1,602 24,693 3,748 5,883 15,665 1,734 1,311 486 1,626 55,146 7,558 4,778 1,693 812 1,530 16,371 7,871 1,318 3,336 28,896 605 24,804 841 55,146 3,969 14 3,977 3,991 15 71 30-Sep-21 16,065 30 1,962 5,199 1,746 25,002 4,167 5,821 17,298 1,962 1,260 470 1,854 57,834 8,260 5,443 1,801 831 1,716 18,051 6,438 1,365 3,486 29,340 605 27,053 836 57,834 4,531 14 2,101 2,115 14 72 31-Dec-21 17,576 131 1,913 5,757 1,723 27,100 4,511 5,765 18,884 2,016 1,260 457 2,138 62,131 10,025 5,719 1,447 925 1,589 19,705 5,245 2,052 3,546 30,548 568 30,189 826 62,131 3,952 14 1,376 1,390 10 65 31-Mar-22 17,505 508 2,311 6,691 2,035 29,050 4,745 5,686 20,027 2,181 1,261 454 2,634 66,038 11,171 5,906 1,594 1,125 1,659 21,455 3,153 2,185 3,839 30,632 459 34,085 862 66,038 3,333 14 74 88 10 72 30-Jun-22 18,324 591 2,081 8,108 2,118 31,222 4,782 5,624 21,093 2,185 218 437 2,952 68,513 11,212 6,037 1,858 1,182 1,532 21,821 2,898 2,210 3,926 30,855 421 36,376 861 68,513 3,086 13 53 66 12 80#2626 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 of effect of business combinations Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Purchases of solar energy systems, net of Proceeds from sales of digital assets Purchases of marketable securities Purchase of intangible assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net cash flows from other debt activities Collateralized lease repayments Net (repayments) borrowings under vehicle and energy product financing Net cash flows from noncontrolling interests - Solar Other Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents and restricted cash Net (decrease) increase 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 Q2-2021 1,178 681 474 115 (324) 2,124 (1,505) (1,515) (1,230) (2) (356) (31) 70 (1,549) 42 (898) 17,723 16,825 Q3-2021 1,659 761 475 253 (1) 3,147 (1,819) (30) (1,855) (2,091) (1) 562 (43) 192 (1,381) (42) (131) 16,825 16,694 Q4-2021 2,343 848 558 (19) 855 4,585 (1,810) (4) (102) (1,916) (860) (596) (63) 262 (1,257) 38 1,450 16,694 18,144 Q1-2022 3,280 880 418 19 (602) 3,995 (1,767) (5) (386) (9) (2,167) (1,436) (632) (48) 202 (1,914) (18) (104) 18,144 18,040 Q2-2022 2,269 922 361 145 (1,346) 2,351 (1,730) 936 (90) (884) (154) (248) (47) 43 (406) (214) 847 18,040 18,887#2727 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) Automotive gross margin (GAAP) Less: Total regulatory credit revenue recognized Automotive gross margin excluding regulatory credit sales (non-GAAP) Q2-2021 1,142 474 1,616 । (2) 1,618 1.02 0.43 1.45 1,119 1,142 75 115 681 474 2,487 11,958 20.8% 28.4% 2.6% 25.8% Q3-2021 1,618 475 2,093 (1) 2,094 1.44 0.42 1.86 1,123 1,618 126 223 761 475 3,203 13,757 23.3% 30.5% 1.7% 28.8% Q4-2021 2,321 558 2,879 (5) (1) 2,885 2.05 0.49 2.54 1,135 2,321 71 292 848 558 4,090 17,719 23.1% 30.6% 1.4% 29.2% Q1-2022 3,318 418 3,736 5 3,731 2.86 0.36 3.22 1,157 3,318 61 346 880 418 5,023 18,756 26.8% 32.9% 2.9% 30.0% Q2-2022 2,259 361 2,620 3 (0) 2,617 1.95 0.32 2.27 1,155 2,259 44 205 922 361 3,791 16,934 22.4% 27.9% 1.7% 26.2% TESLA#28RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD Net cash provided by (used in) operating activities (GAAP) Capital expenditures Free cash flow (non-GAAP) In millions of USD Net income (loss) 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) Depreciation, amortization and impairment - TTM Stock-based compensation expense - TTM Adjusted EBITDA - TTM (non-GAAP) 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 1,235 (640) 864 756 1,425 (440) 964 2,400 3,019 1,641 2,124 3,147 4,585 3,995 2,351 (325) (280) (250) (385) (412) (455) (546) (1,005) (1,151) (1,348) (1,505) (1,819) (1,810) (1,767) (1,730) 910 371 1,013 (895) (920) 614 418 1,395 1,868 293 619 1,328 2,775 2,228 621 In millions of USD Net (loss) income attributable to common stockholders - TTM (GAAP) Interest expense - TTM Provision for income taxes - TTM 28 TTM Trailing twelve months (408) 143 105 104 270 1,142 1,618 2,321 3,318 2,259 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 140 (702) 175 158 22 23 497 468 185 61 346 172 19 579 210 26 530 170 42 577 281 16 169 170 2 21 553 567 211 347 951 1,209 331 163 246 186 83 584 618 543 633 1,807 1,850 438 99 75 126 71 69 115 223 292 621 681 761 848 614 474 475 558 1,841 2,487 3,203 4,090 5,023 880 205 418 208 199 1,039 155 572 1,083 1,175 44 205 922 361 3,791 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 2,215 2,405 2,605 2,705 4,349 5,943 8,024 9,184 9,931 11,497 13,851 14,078 (1,240) (1,327) (1,502) (1,798) (2,418) (3,157) (4,050) (5,009) (5,823) (6,482) (6,901) (7,126) 1,931 2,786 3,974 4,175 4,108 5,015 6,950 6,952 975 1,078 1,103 907 (862) (144) 9,516 302 672 748 3Q-2019 4Q-2019 1Q-2020 2Q-2020 3Q-2020 4Q-2020 (827) 368 556 721 690 685 696 694 90 110 89 91 2,074 2,154 2,239 2,227 822 898 2,849 2,985 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 1,143 2,181 3,468 5,519 8,399 583 546 371 333 251 453 490 699 976 1,066 2,281 2,504 2,681 2,911 3,170 3,411 1,382 1,734 2,137 2,264 2,196 2,121 1,925 1,812 5,142 5,817 6,707 7,985 9,381 11,621 14,803 16,107 678 292 359 2,322 2,390 901 1,038 3,781 4,418 TESLA#2929 ADDITIONAL INFORMATION WEBCAST INFORMATION Tesla will provide a live webcast of its second quarter 2022 financial results conference call beginning at 4:30 p.m. CT on July 20, 2022 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 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. 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 automotive gross margin, 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 capacity and output rates, supply chain, demand and market growth, 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 Autopilot, Full Self-Driving and other vehicle software, energy storage and solar products, our Supercharger network, and the battery and powertrain technologies we are developing; statements regarding operating margin, operating profits, spending and liquidity; and statements regarding expansion, improvements and/or ramp and related timing at the California Factory, Gigafactory Shanghai, Gigafactory Berlin-Brandenburg, Gigafactory Texas and Megapack factory 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 Gigafactory Nevada and Gigafactory Shanghai; our ability to ramp Gigafactory Shanghai, Gigafactory Berlin-Brandenburg and Gigafactory Texas 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 to 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-Q filed with the SEC on April 25, 2022. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise.#30T = SLA