EV vs. ICE Vehicle Emissions per Mile Despite a higher-emissions grid in China, Model 3 still has lower emissions than comparable ICE vehicles China In China, much of the grid is powered by coal. That said, even in this scenario, charging a Tesla Model 3 from the grid is still less emission intensive than running an ICE vehicle. Just like in Europe, we have assumed a vehicle lifetime of 150,000 miles. We are expecting the grid mix in China to improve dramatically over time as China remains a dominant deployer and manufacturer of renewable energy. Sichuan Province (with a population of 81 million) is a great example of this. In this province, given the high percentage of renewable energy penetration, charging an EV from the grid is less polluting than charging an EV in most global countries or states. In conclusion, even as of 2020, charging a Tesla Model 3 in any of our major markets is more environmentally friendly than burning gasoline. Considering that vehicles are used for 17 to 20 years before getting scrapped, it is reasonable to assume that in the coming years, the gap in emissions per mile between EVs and ICEs will only get wider. Average Lifecycle Emissions in China (gCO e/mi) Average Lifecycle Emissions in Sichuan Province (gCO e/mi) 2 2 500 500 400 400 300 300 Shift to 200 greener 200 grid 100 100 0 0 Model 3 Model 3 Model 3 Model 3 Avg. Mid-Size Model 3 Model 3 Model 3 Model 3 Avg. Mid-Size Ridesharing Use Personal Use Ridesharing Use Personal Use Premium ICE Ridesharing Use Personal Use Ridesharing Use Personal Use Premium ICE (solar charged) (solar charged) (grid charged) (grid charged) (solar charged) (solar charged) (grid charged) (grid charged) Manufacturing Phase Use Phase Manufacturing Phase Use Phase 15