Responsible Sourcing Across all audits, we found no instances of child labor, forced labor or inhumane treatment of workers Supplier Audit Findings The table below details findings of our audits across all suppliers regardless of severity and includes initial audits as well as closure audits. Through July 2021, our suppliers have addressed and remedied 100% of priority non-conformances, with the remaining open priority findings to be addressed in upcoming closure audits. Our initial focus on high-risk suppliers allowed us to cover more than 70% of this group in the first three years of the audit program and gave us an understanding of suppliers to prioritize in an expanded program. In all audits conducted at Tesla's request at supplier manufacturing facilities producing Tesla products, we found no instances of child labor, forced labor or inhumane treatment. Supplier Audit Findings (2018-2021) 1 1 2018 2019 2020 2021 Audits Conducted 12 108 81 41 Average Non-Conformance per Audit 28 21 16 15 Breakdown of Findings by Topic (%) Labor 30% 30% 31% 37% Health & Safety 30% 27% 30% 33% Environment 14% 14% 13% 14% Ethics 6% 4% 2% 1% Management Systems 20% 25% 24% 15% Total 100% 100% 100% 100% In 2021, the five most common findings were related to (% of total findings within each category)2: 1. Working Hours (20.4%): no more than 60 hours work per week, overtime is voluntary, one day off per seven days 2. Emergency Preparedness (11.1%): proper permitting, emergency risk assessment at 11.1% of total findings; 3. Wages and Benefits (9.4%): proper calculation of regular and overtime wages, timely payment of wages; 4. Occupational Safety (7.5%): availability of PPE, proper permitting; and 5. Freely Chosen Employment (5.5%): contract provided in worker’s native language, no excessive penalty for leaving position 1 Over the past two years, global pandemic conditions have significantly impacted our suppliers’ ability to schedule on-site audits, leading to a decrease in our annual audit numbers. 2 The colors of percentages above indicate their inclusion in broader categories in the table. For example, Working Hours is a subcategory of Labor 115 and, therefore, both are colored blue.