Reducing Carbon Footprint Even Further We will not be content until all our factories are carbon neutral, and there are other projects that we are Tesla Manufacturing Footprint: working on to further reduce emissions. In order to reduce the cost of our vehicles and batteries, we also need Upcoming Plans to use less energy to produce them. Many of the projects created to achieve this goal were showcased at our Battery Day presentation in September 2020. 4. Transitioning to in-house manufactured 4680 Tesla cells, whose production process can reduce energy consumption by more than 70% At Tesla’s 2020 Battery Day, we presented a novel way that cells can be manufactured using a dry electrode process. Current electrode production processes involve mixing liquids with cathode or anode powders and using massive machinery to coat and dry the electrode. Since this process involves large ovens, today’s cell production consumes a lot of energy. The new dry-electrode process allows for the direct transition from a cathode or anode powder to an electrode film, reducing energy consumption in the overall cell manufacturing phase by more than 70% based on our latest analysis. 5. Utilizing renewable energy as much as possible throughout all our operations We plan to shift energy consumption toward renewables as quickly as possible throughout our operations, whether it is at our factories, sales, service or delivery locations or through our Supercharger network. 66