Introduction The very purpose of Tesla’s existence is to accelerate the world’s transition Focusing on What Matters to sustainable energy. The objective of an Environmental, Social and Governance (ESG) impact affordability and accessibility of our products. All these themes will be report is to disclose the impact a company has on those three areas, as covered in this year’s Impact Report. well as to present, to the extent possible, data and other information qualifying and quantifying that impact. Tesla aspires to do the right thing, and we are constantly looking for ways to do better. If you have suggestions about how our company can improve At Tesla, we strive to be the best on every metric relevant to our mission to in any way, feel free to send your ideas to [email protected]. accelerate the world’s transition to sustainable energy. In order to maximize our impact, we plan to continue increasing our production Finally, it is important to note that current ESG evaluation methodologies volumes and the accessibility of our products. In more concrete terms, this tend to use a generic template to analyze every manufacturing company’s means that by 2030 we are aiming to sell 20 million electric vehicles per carbon footprint. Vehicle use phase, which realistically accounts for 80- year (compared to 0.5 million in 2020) as well as to deploy 1,500 GWh of 90% of total automotive emissions (included in Scope 3 of ESG reporting) energy storage per year (compared to 3 GWh in 2020). is repeatedly underreported. As use phase reporting guidelines remain vague, OEMs often use unrealistic assumptions for lifetime mileage and If we were to achieve such a vehicle delivery milestone through a unrealistic fuel consumption figures rather than real-world figures. As a consistent growth rate, the total Tesla vehicle fleet would surpass tens of result, it is not uncommon for the carbon footprint of the use phase to be millions of vehicles by 2030 and each of those vehicles could save tons of underreported by up to 50%. CO2from being emitted every year of usage. Our estimates in this report use real-world mileage and real-world energy Furthermore, each product we make must be continuously improved at consumption data sourced from our fleet of over one million cars on the each step of its lifecycle: from manufacturing to consumer use to recycling. road to calculate greenhouse gas (GHG) savings. We believe that reporting We must also improve every metric, including the energy and water used use phase emissions based on real-world fleet data should become an ESG to make our products, how safe our customers and employees are and the standard. 2