#1Q1 2020 Update TESLA#2Highlights Financial Summary Operational Summary Vehicle Capacity Core Technology Other Highlights Outlook Photos & Charts Financial Statements Additional Information 03 04 06 07 08 09 10 11 19 24 TESLA#3М 3 HIGHLIGHTS Cash Profitability Operations $1.8B increase in our cash and cash equivalents in Q1 to $8.1B Operating cash flow less capex (free cash flow) negative $895M in Q1 (of which $981M outflow due to inventory growth) $283M GAAP operating income; 4.7% operating margin in Q1 $16M GAAP net income; $227M non-GAAP net income (ex-SBC) in Q1 Gross margin at Giga Shanghai approaching level of US-made Model 3 Model Y gross margin positive in Q1 Model Y deliveries began, significantly ahead of schedule Increased Model S range to 391 miles with no increase in battery capacity Reached production of 1,000 Solar Roofs in a single week SUMMARY Q1 2020 was the first time in our history that we achieved a positive GAAP net income in the seasonally weak first quarter. Despite global operational challenges, we were able to achieve our best first quarter for both production and deliveries. Although impacted by inefficiencies related to the temporary suspension of production and deliveries in many locations, our gross margin remained strong. At Gigafactory Shanghai, further volume growth resulted in a material improvement in margins of locally made Model 3 vehicles. In addition, Model Y contributed profits, which is the first time in our history that a new product has been profitable in its first quarter. Despite the expiration of various government incentives at the end of last year, Q1 was pacing to be the strongest quarter of deliveries until our operations were interrupted in March. As a result, we remain confident in growing global production capacity as quickly as possible. We are continuing to significantly invest in our product roadmap, including improvements in technology, as well as localizing production in Shanghai and Berlin. At the same time, we are diligently managing working capital, reducing non-critical spend, and driving productivity improvements. We believe we are well-positioned to manage near-term uncertainty while achieving our long-term plans. SBC = stock-based compensation expense#4FINANCIAL SUMMARY (Unaudited) ($ 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 (Loss) income from operations Operating margin Adjusted EBITDA Adjusted EBITDA margin Net (loss) income attributable to common stockholders (GAAP) Net (loss) income attributable to common stockholders (non-GAAP) EPS attributable to common stockholders, basic (GAAP) EPS attributable to common stockholders, basic (non-GAAP) Net cash (used in) provided by operating activities Capital expenditures Free cash flow Cash and cash equivalents Q1-2019 3,724 216 751 20.2% 4,541 566 12.5% 1,088 (522) -11.5% 155 3.4% (702) (494) (4.10) (2.90) (640) (280) (920) 2,198 Q2-2019 5,376 111 1,016 18.9% 6,350 921 14.5% 1,088 (167) -2.6% 572 9.0% (408) (198) (2.31) (1.12) 864 (250) 614 4,955 Q3-2019 5,353 134 1,222 22.8% 6,303 1,191 18.9% 930 261 4.1% 1,083 17.2% 143 342 0.80 1.91 756 (385) 371 5,338 Q4-2019 6,368 133 1,434 22.5% 7,384 1,391 18.8% 1,032 359 4.9% 1,175 15.9% 105 386 0.58 2.14 1,425 (412) 1,013 6,268 Q1-2020 5,132 354 1,311 25.5% 5,985 1,234 20.6% 951 283 4.7% 951 15.9% 16 227 0.09 1.24 (440) (455) (895) 8,080 QoQ -19% 166% -9% 303 bp -19% -11% 178 bp -8% -21% -13 bp -19% -2 bp -85% -41% -85% -42% YoY 38% 64% 75% 538 bp 32% 118% 815 bp -13% 154% 1,622 bp 514% 1,248 bp N/A N/A N/A N/A -131% 10% -188% 29% EPS = Earnings per share -31% 63% -3% 268% TESLA#55 FINANCIAL SUMMARY Revenue Profitability Cash In Q1, we reached our highest ever revenue for a seasonally slower first quarter as our total revenue grew 32% YoY. Sequentially, our revenue was mainly impacted by lower deliveries, driven primarily by limitations on our ability to deliver vehicles towards the end of the quarter. As expected, our average selling price (ASP) declined further as our mix continues to shift from Model S and Model X to the more affordable Model 3 and Model Y. Our automotive gross margin of 25.5% as well as total gross margin of 20.6% both reached their highest levels in 18 months. Sequentially, GAAP gross margin was impacted by improved profitability of Gigafactory Shanghai, higher regulatory credit revenue, lower delivery volume, Model Y and Solar Roof ramp cost and lower volumes of solar and storage. Quarter-end cash and cash equivalents increased by $1.8B QoQ to $8.1B, driven mainly by our recent $2.3B capital raise and offset by negative quarterly free cash flow of $895M. Sequential inventory growth impacted our operating cash flow negatively by $981M, which was primarily attributed to the interruption of our operations at the end of the quarter. Capital expenditures increased sequentially mainly due to investments in Model Y preparations in Fremont and Gigafactory Shanghai. TESLA#66 OPERATIONAL SUMMARY (Unaudited) Model S/X production Model 3/Y production Total production Model S/X deliveries of which subject to lease accounting Model 3/Y deliveries of which subject to lease accounting Total deliveries Global inventory (days of supply)(¹) Solar deployed (MW) Storage deployed (MWh) Store and Service locations Mobile service fleet Q1-2019 14,163 62,975 77,138 12,091 1,363 50,928 63,019 30 47 229 377 550 Q2-2019 14,517 72,531 87,048 17,722 1,820 77,634 4,322 95,356 18 29 415 402 651 Q3-2019 1,587 13,881 16,318 79,837 96,155 17,483 2,588 79,703 6,498 97,186 17 43 477 413 719 Q4-2019 1,653 14,658 17,933 86,958 104,891 19,475 2,807 92,620 6,041 112,095 11 54 530 429 743 1,821 16,104 Q1-2020 15,390 87,282 102,672 12,230 1,940 76,266 4,164 88,496 20 35 260 434 756 QoQ 1,917 17,007 -14% 0% -2% -37% -31% -18% -31% -21% 82% -35% -51% Supercharger stations Supercharger connectors 1,490 12,767 Our finished vehicle inventory levels increased to 20 days of supply(¹) at the end of Q1 as we were unable to deliver cars at a normal pace towards the end of the quarter. Our fast-charging Supercharger network is currently approaching 2,000 stations worldwide. 1% 2% YoY 5% 6% 9% 39% 33% 1% 42% 50% N/A 40% -33% -26% 14% 15% 37% 29% 33% 1 The industry reference for days of supply is calculated by dividing new car inventory by the trailing four quarters of deliveries and using 261 working days (source: Automotive News). T ESLA#7VEHICLE CAPACITY Fremont In early Q1, we began production of Model Y in Fremont, using a combination of new production lines as well as shared capacity with Model 3. Our simplified and scalable approach to manufacturing is starting to take effect. We were able to build more Model Y vehicles in its first quarter of production than in the first two quarters of Model 3 in 2017. Model Y production also exceeded the first quarter of production of Model 3 in Shanghai, demonstrating continued improvements in program execution. Additionally, we achieved positive gross margin for Model Y in its first production quarter. Shanghai Our Gigafactory Shanghai ramp is progressing according to plan. Due to better than expected progress, we believe Model 3 will achieve a production rate of -4,000/week (or -200k/year extrapolated run rate) by mid-2020. Thus far, we have been able to ensure component supply in order to continue operations at the facility. In Q1, we produced only the Standard Range Plus version of Model 3. As part of our planned roadmap, in April 2020, we opened the online configurator for a Long Range version as well as for a Performance version. Berlin-Brandenburg We recently finished the land preparation phase and are about to break ground on the construction phase of this project. Based on the current progress, we are on track to start the first Model Y deliveries from Gigafactory Berlin in 2021. Installed Annual Capacity Fremont Status Production Production Production Construction In development Construction In development In development In development * Model 3/ Model Y installed capacity in Fremont will extend to 500,000 in 2020 Shanghai Berlin United States Model S / Model X Model 3 / Model Y Model 3 Model Y Model 3 Model Y Tesla Semi Roadster Cybertruck Tesla Model 3 All main sedan competitors Tesla Model Y All main crossover competitors O Current 50,000 90,000 * 400,000 200,000 100,000 150,000 200,000 250,000 Model Y market potential - US deliveries in the last 4 quarters Main sedan competitors: Mercedes C-class, BMW 3-series, Audi A4/S4, Lexus IS, Jaguar XE Main crossover competitors: Mercedes GLC, BMW X3, Audi Q5, Lexus NX, Jaguar F-pace, Porsche Macan TESLA#88 CORE TECHNOLOGY Autopilot & Full Self Driving (FSD) We enabled stop sign and traffic light recognition and braking for our Early Access Program users at the end of Q1 and to the wider public in April 2020. As we have done with previous releases of major new features, drivers will be required to confirm their attention in order to continue. Once enough real- world data is collected, the system will become more capable and our vehicles will continue driving through intersections without a confirmation. Vehicle Software Among many other security and functionality improvements, we launched "DashCam Viewer". Many customers have been requesting the possibility to view footage recorded by Autopilot cameras directly on the car screen. With the latest software update, our users can now view their Sentry Mode videos from all four angles (front, back, left & right cameras). That way, Tesla owners know right away if the Sentry Mode recording requires further attention. Battery & Powertrain The maximum range of both Model S and Model X has been extended further, even without increasing the size of the battery pack. Customers consider long range as one of the most important factors when switching from a combustion engine vehicle to an EV, and our lead has continued to increase, with 391 miles for Model S and 351 miles for Model X. We recently introduced the new heat pump system, including the octovalve for Model Y, which allowed us to reach similar EPA range to Model 3 while being -10% heavier. 400 350 300 250 200 150 100 50 O Traffic light recognition and braking 97 mile gap Apr-2017 ■ Tesla Model S Highest range non-Tesla EV Apr-2018 1₁ Apr-2019 EPA range extending the range gap 132 mile gap Apr-2020 TESLA#9OTHER HIGHLIGHTS Energy Business Megapack, a battery pack of up to 3 MWh that is preassembled at Gigafactory Nevada as a single unit, is gaining traction. We have seen an inflection point in interest for utility level storage, primarily driven by progress in reducing costs. At the moment, the demand level for this product remains above our capacity. Our order book continues to expand due to multiple projects in the pipeline that are far bigger than our Hornsdale battery in South Australia - which is still the largest Li-ion battery in the world. We have also seen an increase in cross-selling within the energy business as more than 40% of our residential solar customers opt for at least one Powerwall. In Q1, we installed our 100,000th Powerwall. Solar Roof In Q1, Gigafactory New York reached a significant milestone. In a single week, Solar Roof production exceeded 4 MW, enough for up to 1,000 homes. We will continue to onboard new installers in order to synchronize our ability to both produce and install Solar Roofs. Feedback from Solar Roof owners has been very positive. Before After TESLA#1010 OUTLOOK Introduction Volume Cash Flow Profit Product It is difficult to predict how quickly vehicle manufacturing and its global supply chain will return to prior levels. Due to the wide range of potential outcomes, near-term guidance of net income and free cash flow would likely be inaccurate. We will again revisit our 2020 guidance in our Q2 update. We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite announced production interruptions. For our US factories, it remains uncertain how quickly we and our suppliers will be able to ramp production after resuming operations. We are coordinating closely with each supplier and associated government. While near-term cash flow guidance is currently on hold, we are continuing to significantly invest in our product roadmap and long-term capacity expansion plans as we have sufficient liquidity. Model Y production lines in Shanghai and Berlin remain our most important near-term projects. While near-term profit guidance is currently on hold, we believe we will achieve industry leading operating margins and profitability with capacity expansion and localization plans underway. We expect that production of both Model Y in Fremont and Model 3 in Shanghai will continue to ramp gradually through Q2. We are continuing to build capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai and remain on track to start deliveries from both locations in 2021. Lastly, we are shifting our first Tesla Semi deliveries to 2021. TESLA#11PHOTOS & CHARTS TESLA#1212 GIGAFACTORY SHANGHAI - FUTURE MODEL Y FACTORY Sense boed una EVENT TESLA#1313 GIGAFACTORY SHANGHAI - BATTERY MODULE & PACK FACTORY wwp 44 TIMU B T www 200 29 I TESLA#1414 GIGAFACTORY SHANGHAI - BATTERY MODULE & PACK PRODUCTION LINE www TESLA#1515 SIMPLIFICATION OF VEHICLE STRUCTURE AND MANUFACTURING Model 3 rear underbody 70 pieces of metal Model Y rear underbody 2 pieces of metal (eventually a single piece) TESLA#1616 SIMPLIFICATION OF VEHICLE STRUCTURE AND MANUFACTURING 48 Model 3 rear underbody 70 pieces of metal Model Y rear underbody 2 pieces of metal (eventually a single piece) Other components connected to the rear underbody structure shown in both photos TESLA#1717 KEY METRICS QUARTERLY (Unaudited) 120,000 100,000 80,000 60,000 40,000 20,000 O 2Q-2017 3Q-2017 4Q-2017 1Q-2018 2Q-2018 3Q-2018 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 Vehicle Deliveries (units) 1.5 1.0 0.5 0.0 -0.5 -1.0 -1.5 2Q-2017 3Q-2017 4Q-2017 1Q-2018 2Q-2018 3Q-2018 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 Operating cash flow ($B) Free cash flow ($B) 0.8 0.6 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 Y 2Q-2017 3Q-2017 4Q-2017 1Q-2018 2Q-2018 3Q-2018 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 Net Income ($B) TESLA#1818 KEY METRICS TRAILING 12 MONTHS (TTM) (Unaudited) 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 2Q-2017 3Q-2017 4Q-2017 1Q-2018 2Q-2018 3Q-2018 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 Vehicle Deliveries (units) 5.0 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 2Q-2017 3Q-2017 4Q-2017 1Q-2018 2Q-2018 3Q-2018 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 II Operating cash flow ($B) Free cash flow ($B) 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 2Q-2017 3Q-2017 4Q-2017 1Q-2018 2Q-2018 3Q-2018 4Q-2018 1Q-2019 2Q-2019 3Q-2019 4Q-2019 1Q-2020 Net Income ($B) TESLA#19FINANCIAL STATEMENTS TESLA#2020 STATEMENT OF OPERATIONS (Unaudited) In millions of USD or shares as applicable, except per share data REVENUES Automotive sales. 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 (LOSS) INCOME FROM OPERATIONS Interest income Interest expense Other income (expense), net (LOSS) INCOME BEFORE INCOME TAXES Provision for income taxes NET (LOSS) INCOME Net income attributable to noncontrolling interests and redeemable noncontrolling interests NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS Net (loss) income per share of common stock attributable to common stockholders Basic Diluted Weighted average shares used in computing net (loss) income per share of common stock Basic Diluted Q1-2019 3,509 215 3,724 324 493 4,541 2,856 117 2,973 316 686 3,975 566 340 704 44 1,088 (522) 9 (158) 26 (645) 23 (668) 34 (702) (4.10) (4.10) 173 173 Q2-2019 5,168 208 5,376 369 605 6,350 4,254 106 4,360 326 743 5,429 921 324 647 117 1,088 (167) 10 (172) (41) (370) 19 (389) 19 (408) (2.31) (2.31) 177 177 Q3-2019 5,132 221 5,353 402 548 6,303 4,014 117 4,131 314 667 5,112 1,191 334 596 930 261 15 (185) 85 176 26 150 7 143 0.80 0.78 179 184 Q4-2019 6,143 225 6,368 436 580 7,384 4,815 119 4,934 385 674 5,993 1,391 345 699 (12) 1,032 359 10 (170) (25) 174 42 132 27 105 0.58 0.56 180 187 Q1-2020 4,893 239 5,132 293 560 5,985 3,699 122 3,821 282 648 4,751 1,234 324 627 951 283 10 (169) (54) 70 2 68 52 16 0.09 0.08 183 199 TESLA#2121 BALANCE SHEET (Unaudited) In millions of USD ASSETS Current assets Cash and cash equivalents 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 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 Convertible senior notes 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 31-Mar-19 2,198 1,047 3,837 596 7,678 1,973 6,242 9,851 1,253 348 1,568 28,913 3,249 2,757 763 768 1,706 9,243 9,788 1,157 2,687 22,875 570 4,606 862 28,913 3,457 29 6,517 6,546 30-Jun-19 4,955 1,147 3,382 698 10,182 2,070 6,201 10,082 1,248 481 1,609 31,873 3,134 3,150 884 631 1,791 9,590 11,235 1,182 2,717 24,724 580 5,715 854 31,873 3,518 35 7,813 7,848 30-Sep-19 5,338 1,128 3,581 893 10,940 2,253 6,168 10,190 1,234 537 1,473 32,795 3,468 2,938 1,045 665 2,030 10,146 11,313 1,140 2,714 25,313 600 6,040 842 32,795 3,702 155 7,882 8,037 31-Dec-19 6,268 1,324 3,552 959 12,103 2,447 6,138 10,396 1,218 537 1,470 34,309 3,771 3,222 1,163 726 1,785 10,667 11,634 1,207 2,691 26,199 643 6,618 849 34,309 4,183 355 7,263 7,618 31-Mar-20 8,080 1,274 4,494 1,045 14,893 2,527 6,106 10,638 1,197 516 1,373 37,250 3,970 2,825 1,186 788 3,217 11,986 10,666 1,199 2,667 26,518 632 60 9,173 867 37,250 4,022 708 7,600 8,308 TESLA#2222 STATEMENT OF CASH FLOWS (Unaudited) In millions of USD CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation, amortization and impairment Stock-based compensation Operating cash flow related to repayment of discounted convertible notes Other Changes in operating assets and liabilities, net of effect of business combinations Net cash (used in) provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Payments for the cost of solar energy systems, net Purchase of intangible assets 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 debt activities Collateralized lease repayments Net (repayments) borrowings under vehicle and solar financing Net cash flows from noncontrolling interests - Auto Net cash flows from noncontrolling interests - Solar Proceeds from issuances of common stock in public offerings Other Net cash (used in) provided by 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 Q1-2019 (668) 468 208 (188) 216 (676) (640) (280) (25) (1) (306) (456) (134) (95) (33) (13) 78 (653) 5 (1,594) 4,277 2,683 Q2-2019 (389) 579 210 176 288 864 (250) (18) (5) 32 (241) 1,326 (85) 58 19 (41) 848 18 2,143 2,766 2,683 5,449 Q3-2019 150 530 199 69 (192) 756 (385) (25) II (76) (486) (55) (83) 183 30 (28) 71 118 (11) 377 5,449 5.826 Q4-2019 132 577 281 204 231 1,425 (412) (37) 46 (403) (591) (87) 478 19 6 96 (79) 14 957 5,826 6,783 Q1-2020 68 553 211 175 (1,447) (440) (455) (26) 1 (480) 544 (97) (160) (8) (40) 2,309 160 2,708 (24) 1,764 6,783 8,547 TESLA#2323 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD or shares as applicable, except per share data Net (loss) income attributable to common stockholders (GAAP) Stock-based compensation expense Net (loss) income attributable to common stockholders (non-GAAP) Net (loss) income per share attributable to common stockholders, basic (GAAP) Stock-based compensation expense Net (loss) income per share attributable to common stockholders, basic (non-GAAP) Shares used in per share calculation, basic (GAAP and non-GAAP) Net (loss) 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) (1) Automotive gross margin (GAAP) Total regulatory credit revenue recognized Automotive gross margin excluding regulatory credits (non-GAAP) 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 cash (used in) provided by operating activities - TTM (GAAP) Capital expenditures - TTM Free cash flow - TTM (non-GAAP) 2Q-2017 (200) (959) (1,159) 2Q-2017 (294) (2,282) (2,576) 3Q-2017 (301) (1,116) (1,417) 3Q-2017 (1,019) (3,150) (4,169) 4Q-2017 510 (787) (277) 4Q-2017 (61) (3,415) (3,476) 1Q-2018 (398) (656) (1,054) 1Q-2018 (389) (3,518) (3,907) Q1-2019 (702) 208 (494) (4.10) 1.20 (2.90) 173 (702) 158 23 468 208 155 4,541 3.4% 20.2% -4.9% 15.3% 2Q-2018 (130) (610) (740) 2Q-2018 (319) (3,169) (3,488) Q2-2019 3Q-2018 1,391 (510) 881 (408) 210 (198) (2.31) 1.19 (1.12) 177 (408) 172 19 579 210 572 6,350 9.0% 18.9% -1.7% 17.2% 4Q-2018 1,235 (325) 910 3Q-2018 4Q-2018 1,373 2,098 (2,563) (1,190) (2,101) (3) Q3-2019 0.80 1.11 1.91 179 143 199 342 143 185 26 530 199 1,083 6,303 17.2% 22.8% -2.0% 20.8% 1Q-2019 (640) (280) (920) 1Q-2019 1,856 (1,725) 131 2Q-2019 864 (250) 614 2Q-2019 2,850 (1,365) 1,485 Q4-2019 105 281 386 0.58 1.56 2.14 180 105 170 42 577 281 1,175 7,384 15.9% 22.5% -1.6% 20.9% 3Q-2019 756 (385) 371 3Q-2019 2,215 (1,240) 975 4Q-2019 1,425 (412) 1,013 Q1-2020 16 211 227 0.09 1.15 1.24 183 16 169 2 553 211 951 5,985 15.9% 25.5% -5.5% 20.0% 1Q-2020 (440) (455) (895) 4Q-2019 1Q-2020 2,405 2,605 (1,327) 1,078 (1,502) 1,103 ¹Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Total revenues TESLA#2424 ADDITIONAL INFORMATION WEBCAST INFORMATION Tesla will provide a live webcast of its first quarter 2020 financial results conference call beginning at 3:30 p.m. PT on April 29, 2020 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) interest expense, (iii) provision for income taxes, (iv) depreciation, amortization and impairment and (v) stock-based compensation, 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. 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 planning purposes. 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. 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 basic per share basis, Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow. 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 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 because it allows investors greater transparency to the information used by Tesla management in its financial and operational decision-making so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla management uses to run the business as well as allows 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 development, production capacity and rates, volumes, demand, deliveries, deployment, features and/or timing of existing and future Tesla products and technologies such as Model 3, Model Y, Tesla Semi, Autopilot and Full Self Driving, and our energy products such as Megapack, statements regarding cash flow, gross margin, spending, capital expenditure and profitability targets; statements regarding productivity improvements and cost reductions; statements regarding construction, expansion and/or ramp at the Tesla Factory, Gigafactory Shanghai and Gigafactory Berlin; and statements regarding our ability to manage near-term uncertainties, 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: the risk of delays in the manufacture, production, delivery and/or completion of our vehicles and energy products and product features, including Model 3, Model Y and our autonomous driving features; our ability to grow our production, sales, delivery and servicing capabilities, and manage future growth effectively, especially internationally; consumers' willingness to adopt electric vehicles generally and our ability to design and grow simultaneous and separate market acceptance of and demand for our vehicles; the ability of suppliers to meet quality and part delivery expectations at increasing volumes, especially with respect to our high-volume models; our ability to sustain and further grow our ramp of battery cell, energy product and product component production at Gigafactory Nevada; our ability to ramp Gigafactory Shanghai in accordance with our plans; any failures by Tesla products to perform as expected or if product recalls occur; our ability to continue to reduce or control manufacturing and other costs; competition in the automotive and energy product markets generally and the alternative fuel vehicle market and the premium vehicle markets in particular; our ability to execute on our evolving strategy for product sales, service, charging and other customer infrastructure; the unavailability, reduction or elimination of government and economic incentives for electric vehicles and energy products; potential difficulties in performing and realizing potential benefits under definitive agreements for our existing and future manufacturing facilities; our ability to attract and retain key employees and qualified personnel; our ability to maintain the security of our information 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-K filed with the SEC on February 13, 2020. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. TESLn#25브 15 트 ㅗ