Vehicle Safety Safety ScoreBeta – Incentivizing customers to drive safely Driver Behavior In addition to designing and building cars with the highest levels of real-world safety, we've also been working on ways to help our customers drive as safely as possible. Through our Tesla Insurance program, we do just this by providing real time feedback to customers and incentives for safe driving such as reductions in monthly insurance premiums. Customers who choose to be a part of this program receive a Safety ScoreBeta. This score changes based on driving behavior and the insurance premium changes with it. Instead of determining a driver’s insurance premiums from demographic information (gender, age, education, or marital status) and financial history (credit score), our algorithm calculates Safety ScoreBeta based on actual driver behavior. The behaviors we monitor are: • Forward Collision Warnings • Hard Braking • Aggressive Turning • Unsafe Following (Tailgating) • Forced Autopilot Disengagement Our data show a lower rate of collision for the cohort of customers who have enabled Safety ScoreBeta. As the vehicle’s Safety ScoreBeta increases, the number of collisions per mile decreases and insurance premiums reduce. Collision rate per million miles ranked by Safety ScoreBeta 91 - 100 Score 81 - 90 Score 71 - 80 Score 61 - 70 Score 0 - 60 Score 82 0

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