People and Culture Exceeding comparable manufacturing role compensation Our Plan #2: Compensating Tesla provides a highly competitive wage that meets or exceeds the wages of comparable manufacturing roles, even before equity and benefits are factored in. In 2021, Tesla’s average national wage for manufacturing jobs in the U.S. was $21.60/hour plus benefits (which, among others listed on the next page, includes an option for $0 cost paycheck deductions) and equity, which is a 2.2% increase compared to 2020. According to the Bureau of Labor Statistics, the mean hourly wage for Production Associates / Assemblers is $18.17 and the median is $17.59. Tesla continuously reviews salary and wages against benchmarks and adjusts to ensure wages are competitive. Evaluations for promotions also take place annually. The impact of stock-based compensation can be material for employees Our employees have benefited enormously from value appreciation of our stock seen through the years. While share prices will remain volatile and past performance is not indicative of future results, stock-based compensation brings shared ownership to the workforce, and our employees are encouraged to make a positive change for the benefit of all. Culturally, shared ownership of the company is one of the most essential attributes of working at Tesla. For example, assume that an employee received a grant of 320 Tesla shares in 2018 that vested 20 shares quarterly over 16 quarters (4 years). Based on the stock price at the time of the grant, the quarterly vest of 20 Tesla shares would equate to $1,331-worth of sellable shares at the end of 2018. However, the same vest two years later would equate to $14,113-worth of sellable shares per quarter based on the increase in the price per share of Tesla stock over that period. Employees are also eligible to buy additional stock at a discount through the Employee Stock Purchase Program. Value Creation at TSLA, Contributed to by 10,000s of Employees, Had Material Compensation Impact $1,400 $1,200 e$1,000 c ri$800 P re$600 a h $400 S $200 $0 28 2017 2018 2019 2020 2021 2022