Appendix Metric / Disclosure / Topic Source(s) Methodology / Definition Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions (location-based) are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. Emissions from the use of a company’s products are Scope 1, 2 and 3 Emissions Definition Greenhouse Gas Protocol included in Scope 3. 6,500 miles At the moment, the manufacturing process of a Model 3 results in slightly higher GHG emissions than an equivalent combustion engine vehicle. However, based on Estimate is based on the difference in CO2e emissions from the average of manufacturing phase of a Model 3 and the global weighted average grid mix, a Model 3 has lower lifetime emissions than an Model Y and an equivalent ICE which is then divided by the net CO2e savings per mile from a Model 3 and Model Y equivalent ICE after driving 6,500 miles. Tesla estimate versus an equivalent ICE. Net CO2e savings are based on delivery-weighted global grid mix. Figure based on EPA's real-world (5-cycle) testing result of 25.3 MPG across all manufacturers for model year 2021, 70 tons: Lifetime CO emitted by an average combustion engine vehicle (model year which equates to 348gCO /mi, and 200,000 lifetime miles. Excludes CO emitted during fuel production and 2 2 2 2021) sold in the U.S. through its use-phase, excluding CO emitted during the oil Tesla estimate based on the EPA 2021 transportation. refining phase. 2 Automotive Trends Report Note: the EPA's real-world testing cycle is not the same as owner-reported MPG sourced from Consumer Reports. 135