#1Q4 and FY 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 07 09 10 11 12 13 22 24 31#3HIGHLIGHTS Profitability Cash Operations $8.9B GAAP operating income in 2023; $2.1B in Q4 $15.OB GAAP net income in 2023; $7.9B in Q4 $10.9B non-GAAP net income¹ in 2023; $2.5B in Q4 One-time non-cash tax benefit of $5.9B recorded in Q4 for the release of valuation allowance on certain deferred tax assets Operating cash flow of $13.3B; free cash flow² of $4.4B in 2023 Operating cash flow of $4.4B; free cash flow of $2.1B in Q4 $3.0B increase in our cash and investments3 in Q4 to $29.1B Model Y became the best-selling vehicle in the world4 Energy storage deployment of 14.7 GWh in 2023, 125% growth SUMMARY In 2023, we delivered over 1.2 million Model Ys, making it the best-selling vehicle, of any kind, globally. For a long time, many doubted the viability of EVs. Today, the best-selling vehicle on the planet is an EV. Free cash flow remained strong in 2023 at $4.4B, even as we focused on future growth projects with our highest capital expenditures and R&D expenses in company history. Energy storage deployments reached 14.7 GWh in 2023, more than double compared to the previous year, while Energy Generation and Storage business profits nearly quadrupled in 2023. Gross profit of our Services & Other business increased from a ~$500M loss in 2019 to a $500M profit in 2023. Cost of goods sold per vehicle5 declined sequentially in Q4. Our team remains focused on growing our output, investing in our future growth and finding additional cost efficiencies in 2024. In late December, we started rolling out V12 of FSD Beta6. Trained on data from a fleet of over a million vehicles, this system uses Al to influence vehicle controls (steering wheel, pedals, indicators, etc.) instead of hard-coding every driving behavior. V12 marks a new era in the path to full autonomy. We are focused on bringing the next generation platform to market as quickly as we can, with the plan to start production at Gigafactory Texas. This platform will revolutionize how vehicles are manufactured. (1) Excludes SBC (stock-based compensation) and release of valuation allowance on deferred tax assets; (2) Free cash flow = operating cash flow less capex; (3) Includes cash, cash equivalents and investments; (4) Tesla estimate based on preliminary data; (5) Calculated by dividing Cost of Automotive Sales Revenue by respective quarter's new deliveries (ex-operating leases); (6) Active driver supervision required; does not make the vehicle autonomous. TESLA#44 FINANCIAL SUMMARY (Unaudited) ($ 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 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 Q4-2023 21,563 1,438 2,166 25,167 4,438 17.6% 2,374 2,064 8.2% 3,953 15.7% 7,928 2,485 2.27 0.71 4,370 (2,306) 2,064 29,094 YoY 1% 10% 27% 3% -23% -612 bp 27% -47% -784 bp -27% -652 bp 115% -39% 112% -40% 33% 24% 45% 31%#55 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 (Loss) income from operations Operating margin Adjusted EBITDA Adjusted EBITDA margin Net (loss) 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 2019 20,821 1,531 2,226 24,578 4,069 16.6% 4,138 (69) -0.3% 2,985 12.1% (862) 36 (0.33) 0.01 2,405 (1,327) 1,078 6,268 2020 27,236 1,994 2,306 31,536 6,630 21.0% 4,636 1,994 6.3% 5,817 18.4% 721 2,455 0.21 0.75 5,943 (3,157) 2,786 19,384 2021 47,232 2,789 3,802 53,823 13,606 25.3% 7,083 6,523 12.1% 11,621 21.6% 5,519 7,640 1.63 2.26 11,497 (6,482) 5,015 17,707 2022 71,462 3,909 6,091 81,462 20,853 25.6% 7,197 13,656 16.8% 19,186 23.6% 12,556 14,116 3.62 4.07 14,724 (7,158) 7,566 22,185 2023 82,419 6,035 8,319 96,773 17,660 18.2% 8,769 8,891 9.2% 16,631 17.2% 14,997 10,882 4.30 3.12 13,256 (8,898) 4,358 29,094 YoY 15% 54% 37% 19% -15% -735 bp 22% -35% -758 bp -13% -637 bp 19% -23% 19% -23% -10% 24% -42% 31%#6FINANCIAL SUMMARY Revenue Profitability Cash Total revenue grew 3% YoY in Q4 to $25.2B. YoY, revenue was impacted by the following items: + growth in vehicle deliveries + growth in other parts of the business + positive FX impact of $0.1B¹ - reduced vehicle average selling price (ASP) YOY (excl. FX impact), including unfavorable impact of mix - lower FSD revenue recognition YoY due to FSD Beta wide release in North America in Q4 22 Our operating income decreased YoY to $2.1B in Q4, resulting in an 8.2% operating margin. YoY, operating income was primarily impacted by the following items: - reduced vehicle ASP due to pricing and mix - increase in operating expenses partly driven by Al and other R&D projects - lower FSD revenue recognition YoY due to FSD Beta wide release in North America in Q4 22 - cost of Cybertruck production ramp + lower cost per vehicle, including lower raw material costs, logistics costs and IRA credit benefit + growth in vehicle deliveries + gross profit growth in Energy Generation and Storage While it did not impact Operating Income, we did record a one-time non-cash tax benefit of $5.9B in Q4 for the release of valuation allowance on certain deferred tax assets. Quarter-end cash, cash equivalents and investments increased sequentially by $3.0B to $29.1B in Q4, driven by free cash flow of $2.1B and financing activities of $0.9B. (1) Impact is calculated on a constant currency basis. Actuals are compared against current results converted into USD using average exchange rates from Q4'22. 6 TESLA#77 OPERATIONAL SUMMARY (Unaudited) Model 3/Y production Other models production Total production Model 3/Y deliveries Other models 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 Mobile service fleet Supercharger stations Supercharger connectors Q4-2022 419,088 20,613 439,701 388,131 17,147 405,278 15,184 140,667 13 100 2,462 963 1,584 4,678 42,419 Q1-2023 421,371 19,437 440,808 412,180 10,695 422,875 22,357 153,988 15 67 3,889 1,000 1,692 4,947 45,169 Q2-2023 460,211 19,489 479,700 446,915 19,225 466,140 21,883 168,058 16 66 3,653 1,068 1,769 5,265 48,082 Q3-2023 416,800 13,688 430,488 419,074 15,985 435,059 17,423 176,231 16 49 3,980 1,129 1,846 5,595 51,105 (Days of supply is calculated by dividing new vehicle ending inventory by the relevant quarter's deliveries and using 75 trading days (aligned with Automotive News definition). Q4-2023 476,777 18,212 494,989 461,538 22,969 484,507 10,563 176,564 15 41 3,202 1,208 1,909 5,952 54,892 YoY 14% -12% 13% 19% 34% 20% -30% 26% 15% -59% 30% 25% 21% 27% 29% TESLA#88 OPERATIONAL SUMMARY (Unaudited) Model 3/Y production Other models production Total production Model 3/Y deliveries Other models deliveries Total deliveries of which subject to operating lease accounting Total end of year 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 2019 302,301 62,931 365,232 300,885 66,771 367,656 25,439 49,901 13 173 1,651 433 758 1,821 16,104 2020 454,932 54,805 509,737 442,562 57,085 499,647 34,470 72,089 15 205 3,022 523 894 2,564 23,277 2021 906,032 24,390 930,422 911,242 24,980 936,222 60,912 120,342 6 345 3,992 644 1,281 3,476 31,498 2022 1,298,434 71,177 1,369,611 1,247,146 66,705 1,313,851 47,582 140,667 16 (Days of supply is calculated by dividing new vehicle ending inventory by the relevant year's deliveries and using 300 trading days (aligned with Automotive News definition). (2)We revised our methodology for reporting Tesla's physical footprint to include all sales, service, delivery and body shop locations globally for 2022 onwards. 348 6,541 963 1,584 4,678 42,419 2023 1,775,159 70,826 1,845,985 1,739,707 68,874 1,808,581 72,226 176,564 16 223 14,724 1,208 1,909 5,952 54,892 YoY 37% 0% 35% 39% 3% 38% 52% 26% 0% -36% 125% 25% 21% 27% 29% TESLA#99 VEHICLE CAPACITY After our scheduled global factory shutdown in Q3, our global production reached a record annualized run rate of nearly 2.0 million vehicles in Q4. The refreshed Model 3 - with a significantly quieter cabin, ventilated seats, a screen for rear seats, longer range and many other improvements - is now available globally. US: California, Nevada and Texas Before Tesla purchased the Fremont factory, the record output of the previous owner was nearly 430,000 nicles made in a single year. In 2023, the Tesla Fremont factory produced nearly 560,000 vehicles thanks to our -20,000 Fremont- based employees. At Gigafactory Texas, we began production of the Cybertruck and delivered the first units to customers. We expect the ramp of Cybertruck to be longer than other models given its manufacturing complexity. China: Shanghai Shanghai resumed normal rate production in Q4, rebounding from the scheduled downtime in Q3. Production of the updated Model 3 ramped to full speed in less than two months. Europe: Berlin-Brandenburg Model Y production in Berlin continued to grow in Q4, achieving both a record weekly production rate and a sequential increase in total production volume for the seventh consecutive quarter. Region California Shanghai Berlin Texas Nevada Various 4% 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 -US/Canada -Europe -China other factors. 3% 2% 1% 0% Q4 2017 Q1 2018 Q2 2018 Current Installed Annual Vehicle Capacity Model Model S / Model X Model 3 / Model Y Model 3 / Model Y Model Y Model Y Cybertruck Q3 Tesla Semi Next Gen Platform Roadster 2018 Q4 2018 Q1 2019 Q3 2019 Q2 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Capacity 100,000 550,000 >950,000 375,000 >250,000 >125,000 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Status Production Production Production Production Production Production Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Market share of Tesla vehicles by region (TTM) Source: Tesla estimates based on latest available data from ACEA; Autonews.com; CAAM - light- duty vehicles only; TTM = Trailing twelve months#1010 CORE TECHNOLOGY Artificial Intelligence Software and Hardware In Q4, we released our latest FSD Beta software (V12) to select Tesla employees, and more recently, to customers. V12 utilizes end-to-end training, enhancing the driving experience. We also introduced the 2nd generation of the Optimus robot, which uses Tesla-designed actuators and sensors and improved Al capabilities. Both FSD Beta and Optimus are trained with similar technology pillars: real-world data, neural net training and cutting-edge hardware and software. Vehicle and Other Software We delivered the Cybertruck with an all-new user interface and new communication bus, Etherloop, that efficiently moves data while significantly reducing wiring. As part of our holiday update, when parking, Tesla vehicles without ultrasonic sensors display a high-fidelity 3D rendering of the vehicle's surroundings, including nearby barriers, vehicles and painted markings. Wireless Bluetooth headphones can also now be paired with the rear screen when watching shows or playing games. FleetAPI now enables third-party solutions that enhance integration and management of Tesla devices. Battery, Powertrain & Manufacturing Cost of goods sold per vehicle declined sequentially to slightly above $36,000. Even as we approach the natural limit of cost down of our existing vehicle lineup, our team continues to focus on further cost reductions across all points of production, from raw materials to final delivery. 800 700 600 500 400 300 200 100 O Mar-21 $40,000 $39,000 $38,000 $37,000 $36,000 $35,000 $34,000 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Q4 2022 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 ev Sr. 2 Q1 2023 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Q2 2023 Jan-23 Feb-23 Cumulative miles driven with FSD Beta (millions) Mar-23 Apr-23 Q3 2023 Cost of goods sold per vehicle May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Q4 2023 TESLA#1111 OTHER HIGHLIGHTS Energy Storage Energy storage deployments decreased sequentially in Q4 to 3.2 GWh, for a total deployment of 14.7 GWh in 2023, a 125% increase compared to 2022. While we expect deployments will continue to be volatile on a sequential basis, impacted by logistics and the global distribution of projects at any given time, we expect continued growth on a trailing twelve-month basis going forward. We continue to ramp our 40 GWh Megafactory in Lathrop, CA toward full capacity. Solar Solar deployments declined on a sequential and YoY basis to 41 MW. Downward pressure on solar demand continued into Q4 as interest rates have remained high. Profitability in the quarter was negatively impacted by lower deployments and seasonal weakness in solar energy generation. Services and Other business The Services and Other business continued to grow alongside our fleet in 2023, achieving record revenue and gross profit generation. The biggest drivers of profit generation in 2023 were part sales, used vehicle sales, merchandise sales and pay- per-use supercharging. As our fleet continues to expand in the coming years, ere is an opportunity for fleet-related services to become a more meaningful driver of profit generation. 16 14 12 10 8 6 4 2 O 600 500 400 300 200 100 O -100 -200 -300 -400 -500 -600 2015 2015 2016 2016 2017 2018 2019 2020 Energy Storage deployments (GWh) 2018 2021 2017 2019 Services & Other gross profit ($M) |||··| 2020 2022 2021 2023 2022 2023 TESLA#1212 OUTLOOK Volume Cash Profit Product Our company is currently between two major growth waves: the first one began with the global expansion of the Model 3/Y platform and the next one we believe will be initiated by the global expansion of the next-generation vehicle platform. In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas. In 2024, the growth rate of deployments and revenue in our Energy Storage business should outpace the Automotive business. We have sufficient 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 production and deliveries will ramp throughout this year. In addition, we continue to make progress on our next generation platform. TESLA#13PHOTOS & CHARTS TESLA#1414 MODEL Y BEST-SELLING VEHICLE GLOBALLY IN 2023 GJ23 ZWC SLA#1515 UPDATED MODEL 3 AVAILABLE GLOBALLY are TUATION MODEL 3#1616 FREMONT FACTORY PRODUCED NEARLY 560,000 VEHICLES IN 2023, AN ALL-TIME RECORD ESLA#1717 CYBERTRUCK DELIVERY EVENT FELI ZNZZNZN W TESLA ESLA#1818 CYBERTRUCK#1919 CYBERTRUCK PRODUCTION LINE Th FIRST AID ........ E60 DANGER#2020 MEGAPACK PRODUCTION LINE SL6 ++++ WLL 100,000 LB TESLA TESLA#2121 TESLA WRAPS#2222 KEY METRICS QUARTERLY (Unaudited) 0.5 0.4 0.3 0.2 0.1 0.0 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 Vehicle Deliveries (millions of units) 00 8 7 6 5 4 3 2 1 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 ■ Operating Cash Flow ($B) Free Cash Flow ($B) 8 00 7 6 WA ла 5 4 3 2 1 O 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 Net Income ($B) ■Adjusted EBITDA ($B) TESLA#2323 KEY METRICS TRAILING 12 MONTHS (TTM) (Unaudited) 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 Vehicle Deliveries (millions of units) 20 18 16 14 12 10 8 6 4 2 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 ■ Operating Cash Flow ($B) Free Cash Flow ($B) 20 18 16 14 12 ON A 0 0 Ñ 10 8 6 2 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 Net Income ($B) ■Adjusted EBITDA ($B) TESLA#24FINANCIAL STATEMENTS TESLA#2525 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 (benefit from) 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 Q4-2022 LA LA $ $ 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 $ $ 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 LA LA Q4-2023 20,630 433 500 21,563 1,438 2,166 25,167 $ 17,202 296 17,498 1,124 2,107 20,729 4,438 1,094 1,280 2,374 2,064 333 (61) (145) 2,191 (5,752) 7,943 15 7,928 $ 2.49 2.27 3,181 3,492 ESLA#2626 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 Deferred tax assets Other non-current assets Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued liabilities and other Deferred revenue 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) Recourse debt Total debt excluding vehicle and energy product financing Days sales outstanding Days payable outstanding 31-Dec-22 22,185 2,952 12,839 2,941 40,917 5,035 5,489 23,548 2,563 184 409 328 3,865 82,338 15,255 8,205 1,747 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 2,800 184 399 399 4,185 86,833 15,904 8,378 1,750 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 3,352 184 465 537 4,489 90,591 15,273 8,684 2,176 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 3,637 184 441 648 4,849 93,941 13,937 8,530 2,206 1,967 26,640 2,426 3,059 7,321 39,446 277 53,466 752 93,941 3,660 44 44 12 70 31-Dec-23 29,094 3,508 13,626 3,388 49,616 5,989 5,229 29,725 4,180 184 431 6,733 4,531 106,618 14,431 9,080 2,864 2,373 28,748 2,857 3,251 8,153 43,009 242 62,634 733 106,618 4,613 44 44 11 63#2727 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 Deferred income taxes 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 sales 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 (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 Q4-2022 3,707 989 419 (81) 354 (2,110) 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 (55) 40 (1,475) 2,513 (2,072) (1) (2,015) 1,604 II (2,484) (127) (294) (43) 231 (233) 50 (154) 16,924 16,770 Q2-2023 2,614 1,154 445 (148) (47) (953) 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 (113) 145 (302) 3,308 (2,460) (6,131) 3,816 II 12 (4,762) (140) 2,194 (45) 254 2,263 (98) 711 15,879 16,590 Q4-2023 7,943 1,232 484 (6,033) 262 482 4,370 (2,306) (1) (5,891) 3,394 (4,804) (141) 952 (76) 152 887 146 599 16,590 17,189 TESLA#2828 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 Release of valuation allowance on deferred tax assets Net income attributable to common stockholders (non-GAAP) Less: Buy-out of noncontrolling interest 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 Release of valuation allowance on deferred tax assets 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 (benefit from) income taxes Depreciation, amortization and impairment Stock-based compensation expense Adjusted EBITDA (non-GAAP) Total revenues Adjusted EBITDA margin (non-GAAP) Q4-2022 3,687 419 4,106 (35) 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 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 2,316 0.53 0.13 0.66 3,493 1,853 38 167 1,235 465 3,758 23,350 16.1% Q4-2023 7,928 484 (5,927) 2,485 1 2,484 2.27 0.14 (1.70) 0.71 3,492 7,928 61 (5,752) 1,232 484 3,953 25,167 15.7% TESLA#2929 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 Release of valuation allowance on deferred tax assets 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 Release of valuation allowance on deferred tax assets per share EPS attributable to common stockholders, diluted (non-GAAP) Shares used in EPS calculation, diluted (GAAP and non-GAAP) Net (loss) income attributable to common stockholders (GAAP) Interest expense Provision for (benefit from) income taxes Depreciation, amortization and impairment Stock-based compensation expense Adjusted EBITDA (non-GAAP) Total revenues Adjusted EBITDA margin (non-GAAP) 2019 (862) 898 36 8 28 (0.33) 0.34 0.01 2,661 (862) 685 110 2,154 898 2,985 24,578 12.1% 2020 721 1,734 2,455 31 - 2,424 0.21 0.54 0.75 3,249 721 748 292 2,322 1,734 5,817 31,536 18.4% 2021 5,519 2,121 7,640 (5) (9) 7,654 1.63 0.63 2.26 3,386 5,519 371 699 2,911 2,121 11,621 53,823 21.6% 2022 12,556 1,560 14,116 (27) (1) 14,143 3.62 0.45 4.07 3,475 12,556 191 1,132 3,747 1,560 19,186 81,462 23.6% 2023 14,997 1,812 (5,927) 10,882 (2) 10,884 4.30 0.52 (1.70) 3.12 3,485 14,997 156 (5,001) 4,667 1,812 16,631 96,773 17.2% TESLA#30RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD Net cash 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 (benefit from) 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 (benefit from) income taxes - TTM Depreciation, amortization and impairment - TTM Stock-based compensation expense - TTM Adjusted EBITDA - TTM (non-GAAP) 30 TTM = Trailing twelve months 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 4Q-2023 964 2,400 3,019 1,641 2,124 3,147 4,585 3,995 2,351 5,100 3,278 2,513 3,065 3,308 4,370 (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) (2,306) 418 1,395 1,868 293 619 1,328 2,775 2,228 621 3,297 1,420 441 1,005 848 2,064 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 4Q-2023 1,853 7,928 438 99 1,142 75 115 1,618 126 223 761 69 2,321 3,318 71 61 292 346 848 880 558 418 2,259 3,292 3,687 2,513 2,703 44 53 33 29 28 38 61 205 305 276 261 323 167 (5,752) 922 956 989 1,046 1,154 1,235 1,232 361 362 419 418 445 465 484 3,791 4,968 5,404 4,267 4,653 3,758 3,953 621 681 475 614 474 1,841 2,487 3,203 4,090 5,023 104 170 21 567 347 1,209 331 163 186 584 543 1,807 270 246 83 618 633 1,850 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 8,024 9,184 9,931 11,497 13,851 14,078 16,031 14,724 13,242 13,956 12,164 13,256 (4,050) (5,009) (5,823) (6,482) (6,901) (7,126) (7,110) (7,158) (7,463) (7,793) (8,450) (8,898) 3,974 4,175 4,108 5,015 6,950 6,952 8,921 7,566 5,779 6,163 3,714 4,358 1Q-2021 2Q-2021 3Q-2021 4Q-2021 1Q-2022 2Q-2022 3Q-2022 4Q-2022 1Q-2023 2Q-2023 3Q-2023 4Q-2023 1,143 2,181 3,468 5,519 8,399 9,516 11,190 12,556 11,751 12,195 10,756 14,997 678 583 546 371 333 302 229 191 159 143 128 156 359 453 490 699 976 1,066 1,148 1,132 1,047 1,165 1,027 (5,001) 2,390 2,504 2,681 2,911 3,170 3,411 3,606 3,747 3,913 4,145 4,424 4,667 2,137 2,264 2,196 2,121 1,925 1,812 1,699 1,560 1,560 1,644 1,747 6,707 7,985 9,381 11,621 14,803 16,107 17,872 19,186 18,430 19,292 18,082 1,812 16,631 TESLA#3131 ADDITIONAL INFORMATION WEBCAST INFORMATION Tesla will provide a live webcast of its fourth quarter 2023 financial results conference call beginning at 4:30 p.m. CT on January 24, 2024 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. "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; 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: 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; 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-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.#32T = SLA