Waste Generated As Tesla builds more efficient factories, our waste per vehicle decreases Per Vehicle Manufactured Building localized factories both makes sense economically and reduces waste. Because the automotive supply chain doesn’t have a strong presence on the West Coast of the U.S, many components need to be shipped from long distances, requiring excessive packaging and creating more waste than necessary. Second, modern factories are better designed for material flow. Trailer entry points surround the whole factory, which means that components can be offloaded precisely at the part of the factory where they are needed. Less material flow results in less waste, because a shorter journey requires less protective packaging. The chart below shows that waste generation per vehicle at Gigafactory Shanghai is about half of what it is in the U.S. We are expecting our upcoming factories such as Gigafactory Berlin-Brandenburg and Gigafactory Texas to continue the same trend. Any materials that are possible to recycle, we recycle The vast majority of generated waste, such as paper, plastics and metals, is recyclable. At Gigafactory Shanghai, for example, just 4% of total waste generated is not recyclable. We continue to push for innovative approaches to reducing waste, which includes reduction of non-recyclable materials in the first place, learning from local factories and deploying improvements globally or working with our logistics team to minimize shipments and packaging per vehicle. Waste Generated Per Vehicle (2020; kg/vehicle) 600 400 200 0 Global Vehicle Manufacturing Legacy Manufacturing Sites New Manufacturing Sites Waste Diverted from Disposal (Recycled) Waste Directed to Disposal • Global Vehicle Manufacturing = all major factories dedicated to vehicle manufacturing, including the Fremont Factory and supporting facilities, Gigafactory Nevada, and Gigafactory Shanghai. 27 • Legacy Manufacturing Sites = Gigafactory Nevada, Fremont Factory and supporting facilities. • New Manufacturing Sites = Gigafactory Shanghai.