Water Used Per Vehicle Manufactured Tesla factories are setting a new standard of water use per vehicle Initiatives at Our Factories Water is becoming increasingly scarce as the climate changes. That is why we are reducing our water usage throughout our operations as much as possible. We have prioritized direct use in manufacturing and will continue to explore the rest of our impact throughout the supply chain and in sales, service and delivery. The “cooling tower makeup” is the single biggest contributor to water usage in any car factory after paint operations. As water that cools machinery evaporates, it needs to be topped up regularly. The total cooling tower makeup could be offset entirely by non-potable sources such as rainwater or wastewater. These are some of the initiatives we are taking at Gigafactory Berlin-Brandenburg and/or Gigafactory Texas in order to reduce water consumption per complete vehicle (including cells). 1. Water intensive process optimization: We are constantly looking into reducing water consumption by optimizing or eliminating water intensive production processes across our operations. At Gigafactory Berlin- Brandenburg, we use hybrid cooling towers, have eliminated quench tanks in casting and introduced cascade rinsing systems in the paint shop and battery can wash process for cell manufacturing. 2. Rainwater and condensate harvesting and reuse: We are planning to capture at least 25% of roof runoff (1 million square feet) to a central underground storage system within Gigafactory Texas. Rainwater will be recycled for use in the cooling of manufacturing equipment. In an average year, such systems should save an estimated 7.5 million gallons of potable city water. Additionally, as hot, humid outdoor air is conditioned, water condenses out of the air. Typically, this condensate is discarded as wastewater. At Gigafactory Texas, we reuse this condensate in our cooling towers and process water systems to offset incoming site water. 3. Reclaimed and recycled water (wastewater reuse): Using local treated wastewater could result in offsetting the entire annual cooling tower makeup water demand with non-drinkable uses. At Gigafactory Texas, this could result in an estimated 40 million gallons of potable city water conserved annually. Reclaimed water is available and under investigation for use at both Gigafactory Texas and Gigafactory Berlin-Brandenburg. 74