Reducing Carbon Footprint Even Further While emissions from the manufacturing phase can account for a relatively minor portion of lifetime vehicle emissions when Tesla Manufacturing Footprint: compared to the use phase, it is still an important part of lifecycle emissions. These are the steps that we are taking to reduce Current Actions the manufacturing GHG footprint: 2. Production localization Prior to the end of 2019, all our vehicles were produced in a single location, California (with batteries and powertrains from Nevada), and shipped to the rest of the world. As Tesla’s operating cash flows improved substantially ($2.1B in 2018, $2.4B in 2019 and $5.9B in 2020), we were able to start global expansion of our vehicle manufacturing footprint. Since the vast majority of our demand comes from North America, Europe and China, we wanted to make sure we could produce and deliver vehicles locally from each of these locations. a) Fremont Factory + Gigafactory Nevada (open since 2017) b) Gigafactory Shanghai (open since 2019) c) Gigafactory Berlin-Brandenburg (will open in late 2021) d) Gigafactory Texas (will open in late 2021) Average Lifecycle Emissions in U.S. (gCO e/mi) 2 500 Former approach New approach 400 Impacted by 300 production localization 200 100 0 Model 3 Model 3 Model 3 Model 3 Avg. Mid-Size Ridesharing Use Personal Use Ridesharing Use Personal Use Premium ICE (solar charged) (solar charged) (grid charged) (grid charged) Manufacturing Phase Use Phase 18

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