Tesla Results Presentation Deck

5 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

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