Reducing Carbon Footprint Even Further We will not be content until all of our factories become carbon neutral, and there are other projects that we are working on to Tesla Manufacturing Footprint: further reduce emissions. In order to reduce the cost of our vehicles and batteries, we also need to use less energy to produce Upcoming Plans them. Many of the projects created to achieve this goal were showcased at our Battery Day presentation in September 2020. 5. Transitioning to in-house manufactured 4680 Tesla cells, whose production process can reduce energy consumption by 70% At Tesla’s 2020 Battery Day, we presented a novel way that cells can be manufactured using a dry electrode process. Current electrode production processes involve mixing liquids with cathode or anode powders and using massive machinery to coat and dry the electrode. Since this process involves large ovens, today’s cell production consumes a lot of energy. The new dry- electrode process allows for the direct transition from a cathode or anode powder to an electrode film, reducing energy consumption in the overall cell manufacturing phase by at least 70% based on our latest analysis. 6. Transitioning to in-house cathode material manufacturing While transitioning to in-house cathode materials should take longer than transitioning to in-house cells, our cathode materials manufacturing process has the potential to reduce energy use in this step of the process (currently undertaken by suppliers) by 40%. 7. Utilizing renewable energy as much as possible throughout all our operations Average Lifecycle Emissions in U.S. (gCO e/mi) 2 It is our intention to shift energy consumption toward renewable energy as quickly as possible throughout our operations, whether its at our factories, sales, service or delivery locations, or through our Supercharger Network. 500 400 Impacted by energy- 300 efficient factories 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 21