CASE STUDY: Tesla first broke ground on Gigafactory 1 in 2014, providing the GIGAFACTORY 1 — opportunity to build a truly sustainable facility from the ground up. SUSTAINABLE BY DESIGN Located in Sparks, Nevada, the facility is being built in phases so that Tesla and our partners can manufacture inside the finished sections as we continue to expand. This phased approach allows us to learn and continuously improve our construction and operational techniques as we drive down the cost of battery production. As with many of our manufacturing processes, Tesla applies first-principles thinking to 2014 rendering of Gigafactory 1, achieve efficiencies across all areas of Gigafactory 1, translating into prior to Tesla beginning construction lower operating costs. Since batteries remain the costliest part of on the 3.2K-acre site. Tesla is currently electric vehicles, these efficiencies are ultimately reflected in the cost building a solar array on the rooftop to power the factory with sunlight. of the final product, allowing us to get more vehicles to consumers. ROOFTOP SOLAR ARRAY WATER STORAGE AND RE-USE SYSTEM IMPIMPAACT REPORTCT REPORT 27