#1Q4 and FY2019 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 20 25 TESLA#33 HIGHLIGHTS Cash Profitability Operations $930 M increase in our cash and cash equivalents in Q4 to $6.3B $1.0 B operating cash flow less capex ("free cash flow") in Q4 $359M GAAP operating income; 4.9% operating margin in Q4 $10 5M GAAP net income; $386M non-GAAP net income (ex-SBC) in Q4 Model Y production ramp started in January 2020, ahead of schedule Increased Model Y all-wheel drive EPA range to 315 miles from 280 miles Record vehicle deliveries of 112,095 in Q4 Record Q4 storage deployment of 530 MWh; 26% solar growth QoQ SUMMARY 20 19 was a turning point for Tesla. We demonstrated strong organic demand for Model 3, returned to GAAP profitability in 2H19 and generated $1.1B of free cash flow for the year. We achieved strong cash generation through persistent cost control across the business. Our pace of execution has also improved significantly, as we have incorporated many learnings from our experience launching Model 3 in the United States. As a result, we were able to start Model 3 production in Gigafactory Shanghai in less than 10 months from breaking ground and have already begun the production ramp for Model Y in Fremont. None of this would be possible without strong demand for our products. For most of 2019, nearly all orders came from new buyers that did not hold a prior reservation, demonstrating significant reach beyond those who showed early interest. Amazingly, this was accomplished without any spend on advertising. As more people drive our cars and as the industry rapidly validates electrification, interest in our products will continue to grow. Higher volumes driven by Model Y and Gigafactory Shanghai, continued improvements in operating leverage, and further cost efficiencies should allow Tesla to ultimately reach an industry-leading operating margin. SBC = stock-based compensation expense#4FINANCIAL SUMMARY (Unaudited) ($ 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 Income (loss) from operations Operating margin Adjusted EBITDA Adjusted EBITDA margin Net income (loss) attributable to common stockholders (GAAP) Net income (loss) attributable to common stockholders (non-GAAP) EPS attributable to common stockholders, basic (GAAP) EPS attributable to common stockholders, basic (non-GAAP) Net cash provided by (used in) operating activities Capital expenditures Free cash flow Cash and cash equivalents Q4-20 18 6,323 95 1,537 24.3% 7,226 1,443 20.0% 1,029 4 14 5.7% 1,039 14.4% 14 0 345 0.81 2.00 1,235 (325) 9 10 3,686 Q1-20 19 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 Q2-20 19 5,376 111 1,0 16 18.9% 6,350 921 14.5% 1,088 (167) -2.6% 572 9.0% (408) (198) (2.31) (1.12) 864 (250) 6 14 4,955 Q3-20 19 5,353 134 1,222 22.8% 6,303 1,19 1 18.9% 930 261 4.1% 1,083 17.2% 14 3 342 0.80 1.91 756 (385) 371 5,338 Q4-20 19 6,368 133 1,434 22.5% 7,384 1,391 18.8% 1,0 32 359 4.9% 1,175 15.9% 10 5 386 0.58 2.14 1,425 (412) 1,0 13 6,268 QoQ 19% - 1% 17% -31bp 17% 17% -6 bp 11% 38% 72 bp 8% - 127 bp -27% 13% -28% 12% 88% 7% 173% 17% Yo Y 1% 40% -7% -179 bp 2% -4% -113 bp 0% - 13% -87 bp 13% 153 bp -25% 12% -28% 7% 15% 27% 11% 70% EPS = Earnings per share TESLA#55 FINANCIAL SUMMARY Revenue Profitability Cash In 2019, our revenue growth was positively impacted by a strong increase in vehicle deliveries. Revenue growth was offset by higher lease mix*, Model 3 becoming a larger part of our mix, introduction of the Standard Range trims of Model 3, and adjustments to vehicle pricing. These changes have resulted in a reduction to the average selling price (ASP) relative to 20 18. We do not expect ASP to change significantly in the near term, which means volume growth and revenue growth should correlate more closely this year. We are positioned to accelerate our revenue growth further through increasing build rates in Gigafactory Shanghai and our Model Y production line in Fremont. These production increases will allow for higher total vehicle deliveries and associated revenue. GAAP gross profit of $4.1B remained essentially flat in 20 19 compared to 2018. Volume growth and successful cost reduction efforts were offset by normalization of ASP, mix shift towards Model 3 and a higher lease mix. Sequentially, GAAP gross margin remained relatively flat in Q4 compared to Q3, while we ramped Model 3 production at Gigafactory Shanghai. While we saw an increase in operating expenses in Q4 (driven mostly by $72M of non-cash SBC expense related to one more 20 18 CEO award operational milestone becoming probable), higher gross profit resulted in a 72bp sequential improvement of GAAP operating margin to 4.9% in Q4. Quarter-end cash and cash equivalents increased by $930 M QoQ to $6.3B, driven by positive quarterly free cash flow of $1.0 B. Capital expenditures increased sequentially due to investments in Gigafactory Shanghai and Model Y preparations in Fremont. * Revenue on leased vehicles is recognized on monthly lease payments, and thus contribute less to total revenues in the quarter of delivery than sold vehicles TESLA#6OPERATIONAL (Unaudited) Model S/X production Model 3 production SUMMARY Model S/X deliveries of which subject to lease accounting Model 3 deliveries of which subject to lease accounting (1) Global inventory (days of sales) Solar deployed (MW) Storage deployed (MWh) Store and Service locations Mobile service fleet Supercharger stations. Supercharger connectors Q4-20 18 25,161 61,394 27,607 3,639 63,359 19 73 225 378 4 11 1,421 12,00 2 Q1-20 19 14,163 62,975 12,091 1,363 50,928 30 47 229 377 550 1,490 12,767 Q2-20 19 14,5 17 72,531 17,722 1,820 77,634 4,322 18 29 4 15 402 651 1,587 13,881 Q3-20 19 16,3 18 79,837 17,483 2,588 79,703 6,498 17 43 477 4 13 719 1,653 14,658 Q4-20 19 17,933 86,958 19,475 2,807 92,620 6,041 11 54 530 429 743 1,821 16,10 4 QoQ 10% 9% 11% 8% 16% -7% -35% 26% 11% 4% 3% 10% 10% YoY In Q4, the annualized total vehicle production rate in Fremont was just over 415,000 units, about the same rate as the factory under NUMMI reached in its peak year of 2006. We achieved this production rate in spite of Model S/X running on a single shift and before the start of Model Y production. Our finished vehicle inventory levels reached just 11 days of sales(¹) at the end of Q4, the lowest level in the past 4 years. Our Mobile Service fleet almost doubled in 20 19 to 743 vehicles, and we continue to open new service locations globally. As customers are increasingly buying their Tesla vehicles online, vehicle deliveries grew 50% while our retail footprint remained unchanged with a stable total store count across 2019. 1 The industry reference for days of sales is calculated by dividing new car inventory by the trailing four quarters of deliveries and using 261 working days (source: Automotive News). -29% 42% -29% -23% 46% -42% -26% 136% 13% 81% 28% 34% TESLA#7VEHICLE CAPACITY Fremont The production ramp of Model Y started in January 20 20. Together with Model 3, our combined installed production capacity for these vehicles is now 400,000 units per year. The ramp of Model Y will be gradual as we will be adding additional machinery in various production shops. After such expansions are done by mid-2020, installed combined Model 3 and Model Y capacity should reach 500,000 units per year. We will start delivering Model Y vehicles by the end of Q12020. Shanghai We have been gradually ramping local production of battery packs since late Q4 20 19. The rest of the Model 3 manufacturing processes are running as expected. Due to strong initial customer response in China, our goal is to increase Model 3 capacity even further using existing facilities. We have already broken ground on the next phase of Gigafactory Shanghai. Given the popularity of the SUV vehicle segment, we are planning for Model Y capacity to be at least equivalent to Model 3 capacity. Berlin-Brandenburg We are moving forward with our preparations near Berlin, which we have selected as the right place to build vehicles for the European market due to a strong manufacturing and engineering presence in Germany. The first deliveries from this factory are expected in 2021. Installed Annual Capacity Fremont Status Production Production Production Construction In development In development In development In development In development * Model 3/ Model Y installed capacity in Fremont will extend to 500,000 by mid-2020 Shanghai Berlin North America 300,000 250,000 200,000 150,000 100,000 50,000 0 Model S Model X Model 3 / Model Y Model 3 Model Y Model 3 Model Y Tesla Semi Roadster Cybertruck 2017 2018 Current 90,000 * 400,000 150,000 Model 3 deliveries by region 20 19 ■Other Greater Chinal ■ Europe North America TESLA#8CORE TECHNOLOGY Autopilot & Full Self Driving (FSD) To date, Tesla vehicles have driven over 3 billion miles in Autopilot mode. As our fleet grows, Autopilot miles increase exponentially, adding yet more data to our neural net. All Tesla vehicles with our FSD computer have been updated with new software that can better detect new details in their environments, allowing us to show various lane markings, traffic lights, stop signs, cones as well as other vehicles and road users. Understanding the environment around a Tesla is key to enabling our cars to react to traffic lights and stop signs and take intersections through city streets. We are currently validating this functionality before releasing to customers, and we look forward to its gradual deployment. Vehicle Software In Q4, we launched premium vehicle connectivity in the US for $9.99 (plus tax) per month. This enables our customers to stream music or videos, browse internet or see live traffic through an embedded connection. We also introduced in-app purchases, where our customers can buy various software updates, such as basic Autopilot, FSD, acceleration boost and additional premium features. Software will continue to play a growing role in our business model. Battery & Powertrain Due to continued engineering progress of the Model Y all-wheel drive (AWD), we have been able to increase its maximum EPA range to 315 miles, compared to our previous estimate of 280 miles. This extends Model Y's lead as the most energy- efficient electric SUV in the world. 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 9:274 CLIMATE Jones PHONE KEY Disconnected Parked CONTROLS Sentry Mode Active CHARGING SUMMON 224 mi LOCATION 45500 Fremont Fremont B Model Y AWD 9:274 N A PHONE KEY CLIMATE Jones CONTROLS Sentry Mode Active CHARGING LOCATION 45500 Fremont Blvd, Fremont SUMMON UPGRADES SCHEDULE SERVICE A ROADSIDE ASSISTANCE SEND VEHICLE FEEDRACK D In app purchases 9:274 UPGRADES Eligible Acceleration Boost $2,000.00 improved 0-60 mph time, 441 to 39 Autopilot Upgrades Full Self-Driving Navigate on Auto Autopark Purchased Traffic-Aware Cruise Contro Due Today Respond to traffic lights and stop Automatic driving on city streets Pay $7,000.00 *Tesla estimate $2,000.00 Pay With Credit Card |||| Jaguar iPace Mercedes EQC* Ford Mach E AWD Electric SUV energy efficiency (EPA miles per kWh) Audi e-tron TESLA#9OTHER HIGHLIGHTS Energy Business Energy storage deployment reached an all-time high of 530 MWh in Q4, which included the first deployments of Megapack, our new commercial- scale 3 MWh integrated storage system that is preassembled at Gigafactory Nevada as a single unit. Since the introduction of this product, the level of interest and orders from various global project developers and utilities has surpassed our expectations. In 2019, we deployed 1.65 GWh of energy storage, more than we deployed in all prior years combined. In Q4, we deployed 54 MW of solar, 26% more than in the prior quarter. Where offered, subscription solar has grown significantly in Q4. With a monthly subscription that can generate income from the first month of usage, there is no reason not to have solar panels installed. Solarglass Roof In Q4, we continued to ramp both Solarglass Roof production as well as installations. In addition to Tesla installers, we have also partnered with several roofing companies to support installations to fulfill demand for Solarglass Roof. After organizing several roofing company training days at our training homes in Fremont, we already demonstrated dramatically shorter installation times versus previous versions of this product. Solarglass tiles are made in our Gigafactory New York, and we are hiring hundreds of employees at this facility. 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 20 15 20 16 2017 20 18 Energy storage deployed (in MWh) Solarglass Roof installation. 20 19 TESLA#1010 OUTLOOK Volume Cash Flow Profitability Product For full year 2020, vehicle deliveries should comfortably exceed 500,000 units. Due to ramp of Model 3 in Shanghai and Model Y in Fremont, production will likely outpace deliveries this year. Both solar and storage deployments should grow at least 50% in 2020. We expect positive quarterly free cash flow going forward, with possible temporary exceptions, particularly around the launch and ramp of new products. We continue to believe our business has grown to the point of being self-funding. We expect positive GAAP net income going forward, with possible temporary exceptions, particularly around the launch and ramp of new products. Continuous volume growth, capacity expansion, and cash generation remain the main focus. Production ramp of Model Y in Fremont has begun, ahead of schedule. Model 3 production in Shanghai is continuing to ramp while Model Y production in Shanghai will begin in 2021. We are planning to produce limited volumes of Tesla Semi this year. TESLA#11PHOTOS & CHARTS TESLA#1212 FREMONT FACTORY - MODEL Y BODY SHOP TESLA#1313 FREMONT FACTORY MODEL Y BODY SHOP FRM2 BAL-TROL TESLA#1414 FREMONT FACTORY MODEL Y BODY SHOP TESLA#1515 MODEL Y - 10 MONTHS FROM PROTOTYPE TO PRODUCTION START March 20 19 Prototype TESLA LIVE January 2020 Production vehicle TESLA#1616 FREMONT FACTORY LAYOUT VS. GIGA FACTORY SHANGHAI LAYOUT In General Assembly (GA4) Paint shop General Assembly (GA3) FELONG Body in white (welding) Model 3 in Fremont, CA Stamping BIV Parking Lot Advance Stamping General Assembly Body in white (welding) Zhengjia Rd Paint shop Model 3 in Gigafactory Shanghai 两港西大道。 Zhengia Rd TESLA#1717 TESLA * Attributable to Common Stockholders Vehicle Deliveries (units) Free cash flow ($B) ■ Operating cash flow ($B) Net Income ($B)* 1Q-20 17 2Q-20 17 3Q-20 17 4Q-20 17 1Q-20 18 2Q-20 18 3Q-20 18 4 Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 1Q-20 17 2Q-20 17 3Q-20 17 4 Q-20 17 1Q-20 18 2Q-20 18 3Q-20 18 4 Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 1Q-20 17 2Q-20 17 3Q-20 17 4Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4Q-2018 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 -1.5 -0.8 -0.6 20,000 -1.0 -0.4 40,000 -0.5 -0.2 60,000 0.0 0.0 0.2 „J.,|||| 80,000 0.5 0.4 100,000 1.0 0.6 120,000 1.5 0.8 (Unaudited) KEY METRICS QUARTERLY#1818 TESLA * Attributable to Common Stockholders Vehicle Deliveries (units) II Free cash flow ($B) Operating cash flow ($B) Net Income ($B)* 1Q-20 17 2Q-20 17 3Q-20 17 4Q-20 17 1Q-20 18 2Q-20 18 3Q-20 18 4Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4 Q-20 19 1Q-20 17 2Q-20 17 3Q-20 17 4Q-20 17 1Q-20 18 2Q-2018 3Q-20 18 4 Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4 Q-20 19 1Q-20 17 2Q-20 17 3Q-20 17 4Q-20 17 1Q-20 18 2Q-2018 3Q-20 18 4 Q-2018 1Q-20 19 2Q-20 19 3Q-20 19 4 Q-20 19 0 -5.0 -3.0 50,000 -4.0 -2.0 -3.0 10 0,00 0 -2.0 - 1.0 150,000 -1.0 200,000 0.0 0.0 250,000 1.0 1.0 2.0 300,000 3.0 2.0 350,000 4.0 400,000 5.0 3.0 (Unaudited) KEY METRICS TRAILING 12 MONTHS (TTM)#1919 TESLA Vehicle deliveries Free cash flow ($B) Operating cash flow ($B) 1Q-20 13 2Q-20 13 3Q-20 13 4Q-20 13 1Q-20 14 2Q-20 14 3Q-20 14 4Q-20 14 1Q-20 15 2Q-20 15 3Q-20 15 4Q-20 15 1Q-20 16 2Q-20 16 3Q-20 16 4Q-2016 1Q-20 17 2Q-2017 3Q-2017 4 Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 $(1.5) 20,000 40,000 $(1.0) 60,000 יווווויי th, ther $ (0.5) 80,000 $- 100,000 $0.5 rate) at the end of Q2-20 18 5,000/week (250,000/year run Model 3 ramped to Mill 120,000 $1.0 $1.5 (Unaudited) VEHICLE DELIVERIES & FREE CASH FLOW#20FINANCIAL STATEMENTS TESLA#2121 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 INCOME (LOSS) FROM OPERATIONS Interest income Interest expense Other (expense) income, net INCOME (LOSS) BEFORE INCOME TAXES Provision for income taxes NET INCOME (LOSS) Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS Net income (loss) per share of common stock attributable to common stockholders Basic Diluted Weighted average shares used in computing net income (loss) per share of common stock. Basic Diluted Three months ending 31-Dec-18 6,074 249 6,323 372 531 7,226 4,659 127 4,786 329 668 5,783 1,443 356 668 5 1,029 4 14 7 (175) (14) 232 22 210 70 14 0 0.81 0.78 172 179 30-Sep-19 5,132 221 5,353 402 548 6,303 4,0 14 117 4,131 314 667 5,112 1,19 1 334 596 930 261 15 (185) 85 176 26 150 7 143 0.80 0.78 179 184 31-Dec-19 6,143 225 6,368 436 580 7,384 4,8 15 119 4,934 385 674 5,993 1,391 345 699 (12) 1,0 32 359 10 (170) (25) 174 42 132 27 10 5 0.58 0.56 180 187 Year ending 31-Dec-18 17,632 883 18,5 15 1,555 1,391 21,461 13,686 488 14,174 1,365 1,880 17,4 19 4,042 1,460 2,835 135 4,430 (388) 24 (663) 22 (1,005) 58 (1,063) (87) (976) (5.72) (5.72) 171 171 31-Dec-19 19,952 869 20,821 1,531 2,226 24,578 15,939 459 16,398 1,341 2,770 20,509 4,069 1,343 2,646 149 4,138 (69) 44 (685) 45 (665) 110 (775) 87 (862) (4.92) (4.92) 177 177 TESLA#2222 BALANCE SHEET (Unaudited) In millions of USD ASSETS Current assets Cash and cash equivalents Restricted cash 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 My Power customer notes receivable, net of current portion Restricted cash, net of current portion Other assets Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued liabilities and other Deferred revenue Resale value guarantees 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 Resale value guarantees, 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: Recourse debt. Non-recourse debt 31-Dec-18 3,686 193 949 3,113 366 8,307 2,090 6,271 11,330 350 422 398 572 29,740 3,405 2,094 630 503 793 2,568 9,993 9,404 991 329 2,710 23,427 556 4,923 834 29,740 7,081 3,552 31-Mar-19 2,198 131 1,047 3,837 465 7,678 1,973 6,242 9,851 1,253 348 4 13 354 801 28,9 13 3,249 2,277 763 480 768 1,706 9,243 9,788 1,157 211 2,476 22,875 570 4,606 862 28,9 13 6,5 17 3,486 30-Jun-19 4,955 128 1,14 7 3,382 570 10,182 2,070 6,201 10,082 1,248 481 400 366 843 31,873 3,134 2,623 884 527 631 1,791 9,590 11,235 1,182 61 2,656 24,724 580 5,715 854 31,873 7,813 3,553 30-Sep-19 5,338 233 1,128 3,581 660 10,940 2,253 6,168 10,190 1,234 537 398 255 820 32,795 3,468 2,497 1,045 441 665 2,030 10,14 6 11,3 13 1,14 0 38 2,676 25,3 13 600 6,040 842 32,795 7,882 3,857 31-Dec-19 6,268 246 1,324 3,552 713 12,10 3 2,447 6,138 10,396 1,218 537 393 269 808 34,309 3,771 2,905 1,163 317 726 1,785 10,667 11,634 1,20 7 36 2,655 26, 199 643 6,6 18 849 34,309 7,263 4,538 TESLA#2323 STATEMENT OF CASH FLOWS (Unaudited) In millions of USD Cash Flows from Operating Activities Net income (loss) Adjustments to reconcile net income (loss) to net cash 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 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 borrowings under Warehouse Agreements and automotive asset-backed notes 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 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 Three months ending 30-Sep-19 31-Dec-18 210 497 205 124 199 1,235 (325) (29) (11) (365) (185) (216) 193 38 (18) 76 (112) (4) 754 3,523 4,277 150 530 199 68 (191) 756 (385) (25) (76) (486) (19) (83) 14 8 30 (28) 71 119 (12) 377 5,449 5,826 31-Dec-19 132 577 281 204 231 1,425 (412) (37) - 46 (403) (434) (87) 321 19 6 96 (79) 14 957 5,826 6,783 Year ending 31-Dec-18 (1,063) 1,901 749 453 58 2,098 (2,10 1) (218) (18) (2,337) 37 (559) 596 112 92 296 574 (23) 312 3,965 4,277 31-Dec-19 (775) 2,154 898 (188) 665 (349) 2,405 (1,327) (105) (5) 46 (45) (1,436) 378 (389) 470 35 (76) 848 263 1,529 8 2,506 4,277 6,783 TESLA#2424 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD or shares as applicable, except per share data Net income (loss) attributable to common stockholders (GAAP) Stock-based compensation expense Net income (loss) attributable to common stockholders (non-GAAP) Net income (loss) per share attributable to common stockholders, basic (GAAP) Stock-based compensation expense Net income (loss) per share attributable to common stockholders, basic (non-GAAP) Shares used in per share calculation, basic (GAAP and non-GAAP) 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) 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 provided by (used in) operating activities (GAAP) Capital expenditures Free cash flow (non-GAAP) In millions of USD Net cash (used in) provided by operating activities (GAAP) Capital expenditures Free cash flow (non-GAAP) 1Q-20 13 2Q-20 13 3Q-20 13 4Q-20 13 64 (38) 10 2 130 (76) (90) 26 40 (41) (58) 6 (79) In millions of USD Net cash provided by (used in) operating activities TTM (GAAP) Capital expenditures - TTM Free cash flow - TTM (non-GAAP) 1Q-20 17 (70) (553) (623) 1Q-20 17 56 (1,6 18) (1,562) 2Q-20 17 (200) (959) (1,159) 2Q-2017 (294) (2,282) (2,576) 3Q-20 17 (301) (1,116) (1,4 17) 3Q-2017 (1,0 19) (3,150) (4,169) 4Q-20 17 5 10 (787) (277) Q4-20 18 14 0 205 345 1Q-20 14 2Q-20 14 3Q-20 14 4Q-20 14 60 (2) (28) (86) (141) (175) (284) (369) (81) (177) (312) (455) 4Q-20 17 (61) (3,4 15) (3,476) 0.81 1.19 2.00 172 14 0 175 22 497 205 1,039 7,226 14.4% 24.3% - 1.1% 23.2% 1Q-20 18 (398) (656) (1,054) Q1-20 19 (702) 208 (494) 2Q-20 18 (130) (6 10) (740) (4.10) 1.20 (2.90) 173 (702) 158 23 468 208 155 4,541 3.4% 20.2% -4.9% 15.3% 1Q-20 15 2Q-20 15 (132) (160) (426) (405) (558) (565) 3Q-20 18 1,391 (510) 881 Q2-20 19 (408) 210 (198) (2.31) 1.19 (1.12) 177 (408) 172 19 579 210 572 6,350 9.0% 4Q-20 18 1,235 (325) 9 10 18.9% -1.7% 17.2% 3Q-20 15 4Q-20 15 (203) (30) (393) (411) (596) (441) 1Q-20 19 (640) (280) (920) Q3-20 19 143 199 342 0.80 1.11 1.91 179 14 3 185 26 530 199 1,083 6,303 17.2% 22.8% -2.0% 20.8% 2Q-20 19 864 (250) 614 Q4-20 19 10 5 281 3Q-20 19 756 (385) 371 386 0.58 1.56 2.14 180 10 5 170 42 577 281 1,175 7,384 15.9% 1Q-20 16 2Q-20 16 3Q-20 16 4Q-20 16 (250) 150 424 (448) (217) (294) (248) (522) (467) (144) 176 (970) 22.5% -1.6% 20.9% 4Q-20 19 1,425 (412) 1,0 13 1Q-20 19 1,856 4Q-20 19 2,405 1Q-20 18 2Q-20 18 3Q-2018 4Q-20 18 2Q-20 19 3Q-20 19 (389) (319) 1,373 2,098 2,850 2,215 (3,518) (3,169) (2,563) (2,101) (1,725) (1,365) (1,240) (3,907) (3,488) (1,190) (3) 131 1,485 975 (1) Adjusted EBITDA margin is Adjusted EBITDA as a percentage of Total revenues (1,327) 1,078 TESLA#2525 ADDITIONAL INFORMATION WEBCAST INFORMATION Tesla will provide a live webcast of its fourth quarter and full year 20 19 financial results conference call beginning at 3:30 p.m. PT on January 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) (benefit) 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 20 18. 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 basic per share basis, Adjusted EBITDA, Adjusted EBITDA margin, free cash flow and non-GAAP automotive gross margin. 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. 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 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, volumes, demand, deliveries, pricing, features and/or timing of existing and future Tesla products and technologies such as Model 3, Model Y, Tesla Semi, Cybertruck, Tesla Roadster, Autopilot and Full Self Driving features, in-vehicle software features, and our energy products such as Megapack, Solarglass Roof and subscription solar; statements regarding market opportunities for Tesla products and services; statements regarding growth in service and repair capabilities; statements regarding revenue, expenses, cash availability and generation, cash flow, gross and operating margin, spending, and profitability targets; statements regarding productivity improvements, cost reductions and capacity expansion plans; statements regarding construction, expansion, ramp and/or hiring at the Fremont Factory, Gigafactory Shanghai, Gigafactory New York and a planned Gigafactory in Berlin, Germany, including cost, timing and output expectations, 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 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, including future vehicle models such as Model Y; 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 quarterly report on Form 10-Q filed with the SEC on October 29, 20 19. 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#26브 15 ㅗ