REWARDING THE We believe it is important for everyone to be an owner of the company. INDIVIDUAL That is why, unlike other car companies, everyone who works at Tesla is awarded shares of Tesla stock and can buy additional Tesla stock at a discount through the employee stock purchase program. The value of Tesla’s shares has increased significantly since our IPO in 2010. The importance of equity awards cannot be ignored, especially in Silicon Valley. Tesla o!ers competitive wages and benefits in every market in which we operate. In addition, we periodically review each employee’s total compensation and make adjustments as necessary. We also believe in pay-for-performance and in providing ample opportunities for individuals to receive incremental base-pay increases and equity awards as they build their Tesla careers. We proactively examine whether pay parity issues exist to help ensure our employees are paid consistently regardless of gender, race or ethnicity. Tesla’s entry-level wages for production employees at our Fremont Factory are higher than those of other automakers, and that is before equity and benefits are factored in, which are equivalent to an additional 60% of base pay. One-fourth of Tesla’s entry-level production employees in Fremont are promoted within a year, at which point they earn an hourly wage that is 14% higher than comparable positions at Ford, GM and Fiat- Chrysler. Tesla maintains the flexibility to regularly increase wages and has done so 3 times in the past 2 years. In comparison, union-represented facilities’ wage increases are typically fixed for 4-year periods. DIVERSITY AND At Tesla, we strive to hire the best and brightest employees, regardless INCLUSION of race, color, religion, sex, sexual orientation, age, national origin, disability, protected veteran status, gender expression or gender identity, and any other protected status under applicable law. We work hard to create a diverse and inclusive workforce composed of talented individuals not just because it’s the right thing to do, but because our di!erences are what make us stronger and smarter as a company. Focusing on hiring outstanding talent, we also work to ensure that we have a diverse pipeline of candidates by completing outreach in the communities where we operate. IMPACT REPORT 39