Vehicle Affordability What Do We See As Impact? Price Equivalency Between EVs and ICE Vehicles Consumers are unlikely to buy products only because they have a low lifetime carbon footprint. In order to convince consumers to buy our products, they need to be better in every way – performance, cost of ownership, safety, fun and more. We want to make products that people love. Model 3 is the first EV to be priced on-par with ICE vehicle equivalents Model 3 is the first EV in history priced competitively with its gas-powered equivalents, even before taking into consideration any regional subsidies and lower running costs. Unfortunately, most other EVs on the market today are often priced at over a $10,000 premium compared to their direct ICE vehicle equivalents. There doesn’t need to be a tradeoff between sustainability, performance and affordability Tesla’s ability to achieve our mission rests first and foremost on our products. We are not just trying to build the best electric cars, we are striving to build the best cars, period. Our focus from the beginning has been to develop products that are not only sustainable, but also superior to fossil-fuel alternatives in every way. Many incorrectly believe that choosing sustainable products requires consumers to compromise on price or performance, but Tesla vehicles combine performance, safety, efficiency and competitive prices. Similarly, Tesla’s energy generation and storage products power both urban and remote communities with reliable, affordable energy. Starting Price of Mid-Sized Premium Sedans (before subsidies or dealer incentives) $50,000 $40,000 $30,000 $20,000 $10,000 $0 Audi A4 BMW 3 Series Mercedes C-Class* Model 3 RWD Source: OEM websites; pricing as of March 2022. *As reported by CarandDriver.com; Daimler has not yet disclosed pricing for 2022 C-Class. 77