2023 Tesla Impact Report Highlights

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Impact Report

Our mission is to accelerate


Our mission is to accelerate
the world’s
the world's transition
transition to
to
sustainable energy.
sustainable energy.
To accomplish our mission, we need to design
products that are far superior to their fossil fuel
alternatives in every way, source and manufacture
them as sustainably as possible and sell as many
of them as we can.

We believe the best way to do this is by offering


an ecosystem of products that comprehensively
addresses our world's clean energy and
transportation needs.

To learn more, view our full 2023 Impact Report.


Impact
Impact Report
Report 2023
2023 Introduction 33

Tackling
TacklingClimate
Climate Change
Change
We are dedicated to solving the problems that
have a meaningful impact on the emissions from
GHG-intensive sectors and segments.

Global
Global Greenhouse
Greenhouse Gas
Gas (GHG)
(GHG) Emissions
Emissions
by
by Economic
Economic Sector
Sector

e Tesla-related sectors

31% 15% 19%


Industrial Processes
15%
Agriculture, Land Use
6%
Building
13%
Other
Electricity/Heat Transportation
Change and Forestry

Note: Percentages may not add up to 100% due to rounding.


Impact
Impact Report
Report 2023
2023 Introduction 44

We
We Make
Make Products
ProductsThat
That
Displace
DisplaceFossil
FossilFuel
FuelAlternatives
Alternatives
We design and manufacture a fully integrated
ecosystem for energy and transportation. Our
products work together to maximize their impact.
Battery Cells

Solar Energy Storage Charging Electric Vehicles Robotaxi

1
Maximizing Utilization
Through Software

Autobidder Full Self-Driving


Impact Report 2023 5

No
Pollution

in Cities​
Impact
Impact Report
Report 2023
2023 Introduction 66

20M In
In 2023,
2023, our
over
over 20
our customers
20 million
atmosphere
atmosphere by
customers avoided
million metric
avoided releasing
metric tons
by using
tons of
using our
releasing
of CO2e
C02e into
our products.
products. ​
the
into the
, , , ..
,;·

'
',;I
.
~~:;.
'

Environment 1
Minimizing
Minimizing Our
Our
Environmental
Environmental Footprint
Footprint
Unlike ICE vehicles, it is possible to fully
decarbonize the manufacturing and lifetime use
of EVs.

Electric vehicles and sustainable energy


products have a far better environmental impact
than fossil fuel alternatives. This includes the full
lifecycle: raw material mining, manufacturing,
product use and disposal.

To learn more, view the Environment section of our


full 2023 Impact Report.
Impact
Impact Report
Report 2023
2023 Environment 99

Tesla
Tesla Strives
Strivesto
to Achieve
Achieve
Net-Zero
Net-Zero GHG
GHG Emissions
Emissions
An
An ambitious
ambitious stance
stance on on GHG
GHG emissions
emissions reduction
reduction is is
necessary
necessary to to continue
continue moving
moving the
the world
world toward
toward a a
sustainable
sustainable energy
energy economy.
economy. While
While we
we have
have made
made
progress
progress in in reducing
reducing ourour emissions
emissions intensity
intensity in
in the
the
near
near term
term and
and made
made meaningful
meaningful progress
progress onon
building
building a a plan
plan to
to achieve
achieve net-zero
net-zero emissions
emissions asas
soon
soon as as possible,
possible, there
there remains
remains work
work to
to do
do to
to
finalize
finalize this
this plan.

plan.

Our
Our goal
goal is
is to
to set
set a
a target
target that
that isis both
both meaningful
meaningful
and
and thoughtful.
thoughtful. When
When we we talk
talk about
about our
our net-zero
net-zero
ambitions,
ambitions, this
this includes
includes the
the full
full product
product lifecycle
lifecycle
from
from mining
mining andand production
production through
through useuse and
and end-
end-
of-life
of-life recycling. 

recycling.

In
In addition,
addition, wewe aim
aim to
to transition
transition our
our operational
operational
electricity
electricity load
load to
to 100%
100% renewables
renewables well well before
before we
we
achieve
achieve ourour net-zero
net-zero emissions
emissions goal
goal and
and to
to continue
continue
matching
matching ourour Supercharger
Supercharger electricity
electricity load
load annually
annually
with
with renewable
renewable electricity.
electricity.
Impact
Impact Report
Report 2023
2023 Environment 10
10

Each
EachTesla
Teslaon
on the
the Road
RoadAvoids
Avoids
After 17 years of driving, a Tesla vehicle will avoid approximately 51
metric tons of C02e. Charging EVs becomes greener over time as

About
About 51
51 Tons
Tonsof
of CO2e
C02e
electricity generation becomes cleaner. By comparison, the carbon
impact of ICE vehicles remains the same every year of use.

This year, we updated our avoided emissions calculation methodology using a global model with more
primary GHG emissions data collected from our suppliers.

EV
EV Emissions
Emissions Avoided
Avoided Over
Over Time
Time
(U.S.; mt C02e) - EV Emissions - ICE Emissions - Cumulative Emissions Avoided

20

10

-10

-20

-30

-40

-50

-60
Manufacturing Phase 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Years
Impact Report 2023 Envir:onment 11

A Sustainable Energy Economy


Requires Less Mining and Raw
Material Extraction

Current Mining Extraction vs. Fully Sustainable Economy


All Other Materials Fossil Fuel Extraction Sustainable Economy Materials (Peak Demand)

18
3
50 50
Impact
Impact Report
Report 2023
2023 Environment 12
12

We
We Start
Start by
by Sourcing
Sourcing
Sustainably
Sustainably

We recycle as much as possible and,


0 over time, recycling will increasingly
help reduce raw material extraction

We prioritize working with our suppliers to reduce


supply chain emissions and other adverse impacts at
critical hotspots.

For the most GHG emission-intensive areas in our supply


chain, we work directly with suppliers to develop strict
on-site reduction plans. This includes projects like
increasing renewable energy usage and implementing
more efficient processes. We also collected more GHG
data than ever before directly from suppliers to inform
this decarbonization.

To learn more, view the Supply Chain section of our


full 2023 Impact Report.
Impact
Impact Report
Report 2023
2023 Environment 13
13

In
In 2023, we supported
2023, we supported the
the recovery
recovery of

of
enough
enough battery
battery materials
materials to
to produce
produce 43,000
43,000
Model
Model Y Y Rear-Wheel
Rear-Wheel Drive vehicles. And
Drive vehicles. And we

we
are just getting
are just getting started.
started.
Impact
Impact Report
Report 2023
2023 Environment 14
14

We
We Build
BuildEfficient
EfficientFactories
Factories
We build our factories to limit waste, water usage and
energy consumption. With each new Gigafactory, we
aim to manufacture our products more sustainably.
Where we can't reduce energy consumption, we source
renewables as much as possible.

Reducing
Reducing energy
energy Dynamic
Dynamic controls
controls for
for Sourcing
consumption
consumption energy
energy efficiency
efficiency • renewable energy

35%%
less energy used per vehicle
49%%
of total HVAC systems at Gigafactory Nevada
100%
produced in Shanghai vs. Fremont run by dynamic controls (+100% YoY)
Impact Report 2023 15

Generating More Electricity


Than is Consumed
In 2023, Tesla solar owners generated
enough zero-emissions electricity to power
all Tesla locations, including manufacturing,
support, research, sales, service and
delivery locations—more than three times.
Impact
Impact Report
Report 2023
2023 Environment 16
16

Reducing
ReducingWater
Water
Consumption
Consumption
We've reduced water use per vehicle by nearly
25% over the last five years and we achieve one of
the lowest water withdrawals per vehicle produced
in the industry.

Water
Water Use
Use per
per Vehicle
Vehicle Produced
Produced by
by Tesla
Tesla
Is
Is Coming
Coming Down
Down Over
Over Time
Time
m3 of Water per Vehicle Produced

3.37
Industry Avg
3.27
Tesla
2.48
2.48
Tesla
(Latest) (2018) (2023)
Impact Report 2023 17

We Make the Most


Efficient Electric SUV
on the Road

More efficient vehicles equals less lifetime energy use. EV Powertrain Efficiency
Tesla vehicles are among the most efficient EVs built
to date, meaning they need to be charged less often,
generate fewer emissions per mile driven and result in
greater savings for customers. ​Model Y All-Wheel
Drive achieves 3.8 EPA miles/kWh—making it the most
efficient electric SUV ever made. ​

3.8
Our Supercharger network is the largest fast-charging
network in the world. We are opening our network to
non-Tesla drivers to further accelerate the transition to
a sustainable energy economy.


The global Supercharger network was 100%
renewable in 2023, achieved through a combination of
on-site resources and annual renewable matching.
Model Y
Impact
Impact Report
Report 2023
2023 Environment 18
18

Our
Our Batteries
BatteriesAre
Are Designed
Designed
for
for 200K+
200K + Miles
Miles of
of Driving
Driving

Vehicle battery production can result in over six metric Model


Model 3/Y
3/Y Long
Long Range
Range e Retention Standard Deviation
tons of GHG emissions, so it's important that the battery Battery Retention per Distance Traveled
lasts as long as the vehicle. Even after 200,000 miles of
usage (the average life of a vehicle in the U.S.), our
batteries in Model 3 and Model Y lose just 15% of their 100%
capacity on average, while batteries in Model S and Model
X lose just 12% of their capacity on average.
80°/o

Our cathodes and anodes contain critical minerals like


lithium, nickel, cobalt, copper, graphite, manganese, iron
and phosphorus. Direct sourcing, vertical integration and 50%
regionalization help us source battery materials responsibly
and give us more control over supply.

At our own lithium refinery in Corpus Christi, Texas, instead


0%
of sulfuric acid, we will use less-toxic reagents, generating
a byproduct that can be used as a construction material. 0 50K 100K 150K 200K Miles
Product 2
We
We Make
Make Affordable
Affordable
Products
Products That
That People
People Love
Love
Many people are unlikely to buy products just
because they have a low lifetime carbon
footprint. They need to be better in every way-
more affordable, more reliable, safer and more
fun. We are not just trying to build "green"
products; we are committed to building the best
products, period.

We support our customers with a full ecosystem


throughout their ownership-from sales through
delivery and service-to ensure we provide the
best possible experience.

8 Connect with a Tesla Advisor to learn more.


Impact
Impact Report
Report 2023
2023 Product 21

Suited
Suited to Every
EveryLifestyle
Lifestyle
Our data show that our customers drive Tesla
vehicles more than the average vehicle in the U.S.,
suggesting our customers use their Tesla as their
primary vehicle.

Furthermore, Model Y was the best-selling vehicle


of any kind globally in 2023.

Average
Average Annual Miles
Miles Driven
(United States)

13,768
Model Y

11,142
Average Vehicle
Impact
Impact Report
Report 2023
2023 Product 22
22

Model
Model Y
Y is
is Priced
PricedBelow
Belowthe
the
Average
AverageNew
New Vehicle
Vehiclein
in the
the U.S.


U.S.
Model 3 and Model Y are priced on par with premium
ICE equivalents and below the average new car selling
price in the U.S. Starting at $299 per month in the
U.S., leasing Model 3 is more affordable than ever.

Model
Model Y

Y Average
Average
Long
Long Range
Range Rear-Wheel
Rear-Wheel Drive
Drive New
New Vehicle
Vehicle

$44,990

$30,490
Reflects pricing at time of publication, May 2024.
After Federal Credit
and Est. Gas Savings

$47,244
$47,244
Savings over 5 years and 60,000 miles.
Impact
Impact Report
Report 2023
2023 Product 23
23

More
More Affordable
AffordableThan
ThanYou
YouThink
Think
Model Y comes standard with premium features that create
a driving experience rivaling that of luxury vehicles, which
have a much higher average ownership cost. When you
factor in incentives, fuel savings and minimal maintenance,
Model Y has ownership costs close to those of mass-
market-less premium-vehicles.

The cost of electricity to power Model Y is up to three times


lower than a comparable ICE vehicle-resulting in up to
$7,000 of fuel savings over five years and 60,000 miles.

Total
Total Cost
Cost of
of Ownership
Ownership ($
($ per
per Mile)
Mile) ~ Depreciation,
Depreciation, Taxes,
Taxes, Fees,
Fees, Incentives
Incentives &
& Financing
Financing ~ Insurance
Insurance ~ Maintenance,
Maintenance, Tires
Tires &
& Repairs
Repairs ~ Fuel
Fuel (Electricity
(Electricity or
or Gasoline)
Gasoline)

5 Years and 60,000 Miles

BMWX3 $1.17
Model
Model Y
Y RWD
RWD $0.70
$0.70
Model
Model Y
Y RWD
RWD

$0.70
$0.70 Honda CR-V $0.68

Toyota RAV4 $0.68


Impact Report 2023 24

The Freedom to Go Anywhere

Average Uptime of Supercharger Sites*

2023

99.90% 99.74% 99.96% 99.95% 99.97%


Impact
Impact Report
Report 2023
2023 Product 38
25
25

Tesla's Safety Score


Tesla's Safety Beta
ScoreBeta
Incentivizes
lncentivizesSafer
Safer Driving
Driving

Tesla vehicles are engineered to be some of the


safest in the world.
Safer
Safer Driving,
Driving, Higher
Higher Safety
Safety Scores,
Scores,
We believe the best crash is no crash and are focused Fewer
Fewer Collisions
Collisions
on enhancing avoidance mitigations and active
safety improvements in our vehicles. We also
Safety Score 8 eta Collision
Collision Rate
Rate
incentivize safe driving through our Safety ScoreBeta
in the Tesla Insurance program. Safer driving-based
on actual driving behavior-leads to a better score, 91-100
fewer collisions and lower premiums. 81-90

All our safety features come standard in all Tesla 71-80


vehicles, and safety is enhanced when driver-assist 61-70
technologies are engaged.
0-60
0
Impact
Impact Report
Report 2023
2023 Product 26
26

Exceeding
Exceeding safety
Safety standards
Standards
across
Across four
Four continents
Continents

IIHS ANCAP
HLDI SAFETY
CHINA INSURANC[ Al/TOMOTIVE S.U:ETV INDEX

slP[Tv
2022 Best
Best in
in Class
Class Top
Top Performer
Performer Top Rating
Model 3 ***** HHS PICK+ ***** ***** Occupant
Occupant Safety
Safety
2018
2022
2019 2019 Active
Active Safety
Safety
2021

Top Rating
2023 TOP
HHSSAFETY
Best
Best in
in Class
Class Top
Top Performer
Performer Occupant
Occupant Safety

Safety
Model Y *****
2020
PICK+ ***** ***** Pedestrian
Pedestrian Safety

Safety
2023
2022 2022
Active
Active Safety
Safety
2021

Best
Best in
in Class
Class
Model S *****
2013 *****
2022
*****
2014

Best
Best in
in Class
Class Top
Top Performer
Performer
Model X *****
2017 ***** *****
2019
2019
Impact Report 2023 27

Safety is Enhanced With


Driver-Assist Technologies

Miles Driven Before One Accident

Tesla Vehicles
 Tesla Vehicles
 Total 



With Driver-Assist No Active Safety U.S. Vehicle Fleet*
Technologies Engaged

5.64 1.24
Impact
Impact Report
Report 2023
2023 Product 28
28

Setting
Setting aa High
High Standard
Standard
for
for Fire
FireSafety​
Safety
Ensuring that the risk of fire for EVs and energy storage
products is as low as possible is critical for mass
adoption. Safety is always our priority and we continue to
review, test and update our safety requirements and
procedures ahead of industry standards.

Our latest data show that vehicle fires for Tesla vehicles
are eight-times less likely than the U.S. average.

Vehicle
Vehicle Fires
Fires per
per Billion
Billion Miles
Miles Driven
Driven
2022

Tesla
Tesla U.S.
U.S.

7.3
7.3 59.5
59.5 Learn more by reading our Vehicle Safety Report
Impact Report 2023 29

Reliable Energy That’s


Affordable
Our energy products can serve many purposes,
including reducing emissions, helping to prevent grid
outages and acting as backup power if the grid does
go down. Keeping the grid up means keeping our
economy functioning, from household appliances to
factories to life-saving machinery at hospitals.

We are committed to reducing the cost of our


products to improve access and foster mass
adoption. As costs continue to decline, more
customers will be able to financially benefit from
turning to renewable energy.
People & Community 3
Our
Our Employees
Employees Are
Are Critical
Critical
toto Our
Our Mission
Mission

To sustain our pace of innovation, we must


ensure we attract, develop and retain a talented
workforce with ample opportunity to contribute
to our mission and grow professionally.

We are committed to providing a workplace


where our employees feel respected, satisfied
and appreciated. Our policies are designed to
promote fairness and respect for everyone. We
hire, evaluate and promote employees based on
their skills and performance.

e To learn more, view the People & Community section


of our full 2023 Impact Report.
Impact
Impact Report
Report 2023
2023 People & Community 32
32

Preparing
Preparingthe
the Workforce
Workforce for
for
aa Sustainable
SustainableEnergy
EnergyFuture
Future

A core principle of our recruiting strategy is that the We support organizations and conferences in STEM-based programs and events designed to
best talent doesn't always come from the established addition to community engagement work focused on spark curiosity and foster creativity.
recruiting channels. We are focused on attracting and developing a robust pipeline of the best candidates.
developing exceptional talent and supporting their Our education outreach is centered around a hands-
growth, regardless of their background. on approach to inspiring young people through

Nevada K-12 Education Commitment Internships and Apprenticeships Technician and Service Training

Introduce a Girl to Engineering Day High School Graduate Pathways Manufacturing Development Program
Impact
Impact Report
Report 2023
2023 People & Community 30
33
33

5.9M •
We
We received
in
received over
in 2023,
2023, a
over 5.9M
a 64%
64% increase
job applications
5.9M job applications
increase over
over 2022.
2022 .
Impact
Impact Report
Report 2023
2023 People & Community 34
34

We
We Empower
EmpowerOur Our Employees
Employees
To
to Build
Buildthe
the Safest
Safest Operations
Operations

We
We actively
actively engage
engage employees
employees to to identify
identify risks
risks before
before
accidents
accidents occur
occur and
and base
base our
our programming
programming on on three
three Safety
Safety Improvement
Improvement Suggestions
Suggestions While
While Our
Our Global
Global Work-Related
Work-Related
pillars:
pillars: do
do the
the basics
basics right,
right, engage
engage and
and empower
stakeholders
stakeholders and
employee
and reduce
employee engagement,
reduce risk.
risk. As
engagement, we’ve
As we’ve
we've seen
empower
we've increased
seen our
increased
our work-related
work-related
• by
by Employees
Employees Are
Are Increasing
Increasing
• Injury
Injury Rate
Rate Is
Is Decreasing
Decreasing (ASTM)

injury
injury rate
rate come
come down
down over
over the
the same
same period.
period.
2021 49,000 3.57
2022 333,000 2.86
2023 660,000
660,000 2.51
2.51
Industry Avg.
*Average based on disclosures from companies
6.96*
participating ORCHSE/NSC for 2022.
Impact Report 2023
Impact Report 2023 People & Community 35
35

We MaintainHigh Standards
We maintain high standards

for human
for Humanrights
Rightsand
and dignity
Dignity
in our
in Our supply
Supplychain​
Chain

Our approach to people also applies to our suppliers


and other partners. We take any allegations seriously
and work diligently to uphold respect for freely
chosen employment.

In 2023, we invested more human and legal resources


than ever before to combat forced and child labor in our
supply chain. We also collaborated with suppliers to
remedy harm in the interiors, battery, accessories and
156
156 3,645
3,645
aluminum supply chains. suppliers audited to identify indicators of workers interviewed
forced labor or human rights abuses in our supply chain
Impact
Impact Report
Report 2023
2023 People & Community 36
36

We
We do
Do not
Not source
Source cobalt
Cobalt from
From
mines
Mines that
That use
Use child
Child labor
Labor

To build our batteries, we use several different In addition, we worked with our supplier Glencore to *Audit frameworks include the International Council on Mining and
Metals {ICMM) Performance Expectations and the Responsible
cathode chemistries. Our nickel-based cathodes launch a publicly available satellite monitoring system Minerals Initiative (RM I) Responsible Minerals Assurance Process
(NMC and NCA) contain cobalt, but others, like our of its KCC operation located in the DRC. High- (RMAP). Both include provisions on child labor.
iron-based cathodes (LFP), do not. While our nickel- resolution images are updated monthly and allow for
based cathodes will continue to need cobalt, they anyone to see what the operations look like down to
contain less cobalt than similar cathode chemistries 0.5 meters of resolution thus providing a good picture
in the industry, and we are increasing our use of of what is happening at the mine. This is the first time
cobalt-free iron-based batteries, particularly for this level of transparency was achieved in this context.
energy storage and standard range products. Our strategy in the DRC includes funding to the Fair
Cobalt Alliance (FCA), which in 2023 provided
Tesla was the first company to directly buy cobalt remediation to children at risk of working in cobalt
from mines. We use audits and other tools to ensure mines and deployed local community savings groups.
that no child labor happens at these mines and that
no unauthorized material enters our supply chain. We remain committed to staying engaged in the DRC
Screenshot from satellite monitoring system
Four audits were conducted in the Democratic to improve conditions for stakeholders impacted by implemented based on a collaboration between
Republic of Congo (DRC)* and found no instances cobalt mining. Tesla and its cobalt supplier
of child labor at our suppliers' sites.
We’re building a world powered
by solar energy running on
batteries and transported by
electric vehicles.
Give us feedback

[email protected]

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