Tesla Model S | Software Release 4.0

MODEL S SOFTWARE RELEASE NOTES v4.0 A new software update will be available in the coming days. The onboard notification will guide you through the installation. If you would like to review the process, instructions are available at the end of this email. After installation, Model S will feature new energy-saving “sleep” functionality, improved door handle capabilities, Voice Commands and enhanced media browsing capabilities, and added functionality for Maps, HomeLink, and Steering Wheel Controls. Beginning with this update, Release Notes will be displayed on the touchscreen right after the update and can always be accessed later by tapping the Tesla T in the status bar and tapping the Release Notes link located above your VIN number, next to the software version number. NEW FEATURES ENHANCEMENTS NEW CONTROLS / SETTINGS Vehicle Sleep Synchronized Door Handles Auto-Presenting Door Handles App Launcher USB Media Browsing Alarm Release Notes Alphabetical Index Metric Distance Unit Voice Commands Calling from Maps Range Driving Mode Steering Wheel Controls - Fan Speed / Sunroof Throttle Response HomeLink - Location Awareness Energy App NEW FEATURES Vehicle Sleep With this release, Model S will power off the display and vehicle electronics each time you exit, transitioning to a “sleep” state. When you return to Model S, you’ll note a modest increase in the time it takes the touchscreen and instrument panel to wake from this energy-saving state. Model S will initiate the startup process the moment the key is recognized nearby. You can only begin driving once both displays are ready. If you would prefer to keep the displays powered so they’ll be instantly available each time you return, you can change the setting in Controls > Settings > Vehicle. Note that keeping the displays powered will reduce your car’s range up to 8 miles per day when the car is not plugged in, and will also reduce the life of your 12V battery and vehicle electrical systems. If displays are set to power off, the displays will power off 2 hours after the rest of the car goes to sleep. The displays will also power off when the battery charge is low (or after 60 hours without use), regardless of the setting. App Launcher With this feature, you can easily launch an app in the bottom app window (in addition to the current default behavior, where tapping an icon replaces the app in the top window). To try it, tap and hold an application icon. You’ll notice a small pop-up indicating the top and bottom viewing panes. Drag the icon to your preferred location. © COPYRIGHT 2012 TESLA MOTORS INC

TESLA MOTORS -­‐ SOFTWARE UPDATE NOTIFICATION Options • Drag an app icon to the top or bottom portion of the pop-up. • Drag an app icon directly to the bottom viewing pane of the touchscreen. A single tap of any icon will place the app in the top pane. • If the app is already launched, a second tap will switch it between half-screen to full-screen display. (Note that only certain apps have a full-screen view). Release Notes Release Notes will be displayed on the touchscreen right after the update and can always be accessed later by tapping the Tesla T in the status bar and tapping the Release Notes link located above your VIN number, next to the software version number. Voice Commands You can now use your voice to easily navigate to any business or location, listen to music via the Internet, or dial a contact. Note: This feature requires connectivity. 1. To issue a voice command, press and hold the voice button (upper right) on the steering wheel. 2. Wait for the tone and then speak your command while continuing to hold the button down. 3. Release the button when you’re finished speaking. You’ll be prompted through the process via onscreen messages at the bottom of the instrument panel. Example: “Processing…” while your voice command is analyzed. Below is the supported syntax. Listen to music You can use your voice to search for and play selections from the Internet music service Slacker. Begin your command with “Listen to” or “Play,” followed by the name of a song, album, artist, or combination. • Listen to The Black Keys • Listen to Boogie Wonderland • Play Honkey Chateau by Elton John • Listen to Free Fallin by Tom Petty Once a selection is made, you can then listen to a custom radio station based on your search results. Note that providing multiple cues in your voice command, such as artist plus song name, will often improve the voice recognition accuracy.

TESLA MOTORS -­‐ SOFTWARE UPDATE NOTIFICATION Navigation To navigate or search within the Maps app, say “Drive to,” “Navigate to,” or “Where is,” followed by an address, business name, business category, or landmark. • Navigate to 3500 Deer Creek Road, Palo Alto • Navigate to Starbucks on University Avenue, Palo Alto • Drive to Starbucks on Homestead in Cupertino • Navigate to the French Laundry Restaurant • Where is Stanford University? Call a contact To place calls on a phone connected via Bluetooth, start your command with “Call” or “Dial,” followed by the contact’s first and/or last names. • Call Eric • Dial Mike Phillips ENHANCEMENTS Synchronized Door Handles All door handles now present and retract in unison. Previously, a handle on a particular door would retract soon after that door closed without retracting the other handles. Now, all handles will remain extended for one minute after the last door closes. USB Media Browsing The Media app has been enhanced to display music files as they are organized and named on a USB drive. This is especially useful for large music collections explicitly organized by folder. • Connect a USB drive in the port located below the center console. • Select the Media app and navigate to “My Music & Devices.” • In addition to viewing content by Artists, Albums, and Songs, you’ll now be able to access your media By Folder. Alphabetical Index Lists in the Media and Phone apps now offer a handy alphabetical index to make it easier to find your favorite song, album, artist or key contact. Tap and slide your finger along the right side of the display. A grey bar with the index will scroll up and down highlighting individual letters to indicate your place on the list.

TESLA MOTORS -­‐ SOFTWARE UPDATE NOTIFICATION Calling from Maps Call functionality has been extended to the Maps application. When searching for a business, results that include a phone number will now offer a Call button for one-tap dialing. Note: A Bluetooth-enabled phone must be paired and connected to the touchscreen in order to make a call. Steering Wheel Controls The All-Glass Panoramic Roof and the Climate Control Fan Speed can now be adjusted via the right-hand scroll wheel. In addition, while you can continue to program the right scroll wheel to control your most frequently used function, you can now also easily access any individual function as needed. Just tap on the lower right steering wheel button, select “Customize” and select “All.” With this selection, each time you press or scroll the right wheel, you can pick a different function among climate control temperature, climate control fan speed, display brightness, sunroof, or music source. Throttle Response Advancements in powertrain control now provide an improved throttle response. This refinement delivers torque more rapidly than before while minimizing any harshness to the acceleration of your vehicle. Whether in stop-and-go traffic or quickly accelerating on the highway, your Model S now has a smoother, crisper pedal feel for an even more enjoyable drive. Location-Aware HomeLink HomeLink controls are now location-aware, automatically appearing on the touchscreen when Model S approaches your garage door (or gate, etc.). The name of the corresponding programmed location will be highlighted in green. The control disappears when you drive away. Note: Current HomeLink locations will automatically become location-aware.

TESLA MOTORS -­‐ SOFTWARE UPDATE NOTIFICATION Energy App The Energy app on the touchscreen has been updated to visually highlight the connection between projected range and energy consumption by showing projected range directly on the energy chart. By default, it displays the “Instant” projected range, which reflects consumption over the last tenth of a mile. You can also adjust the chart to see projected range based on average energy consumption over the previously traveled distance shown across the chart—either 5, 15, or 30 miles. When the car turns off, the projected range display will reset to the “Instant” value. This enhanced Energy app replaces the Range "bar" (which showed projected vs. rated range) on the instrument panel and on the touchscreen's Controls window. Also, projected range is no longer a choice for the instrument panel's center dial. Rather, you can now choose between Rated and "Ideal" range, which is based on driving a steady 55 mph on a flat road. NEW CONTROLS / SETTINGS Auto-Presenting Door Handles Door handles now present automatically as you walk up to the driver’s door with the key. This function works whether the car is locked or unlocked. This feature can be turned on or off via the setting in Controls > Settings > Vehicle. Alarm Model S alarm system will sound the horn if any door, trunk or frunk of a locked car is mechanically opened by non-standard means. The Alarm system can be turned on or off via Controls>Settings>Vehicle. Metric Distance Unit Your distance measurements can now be displayed in miles or kilometers. Go to Controls > Settings > Units & Format to adjust. Note that this setting will be saved as part of your Driver Profile. This setting will affect the following areas in the touchscreen and instrument panel: • Range • Speedometer • Energy chart • Trip meters • Google Maps search results & turn-by-turn driving directions

TESLA MOTORS -­‐ SOFTWARE UPDATE NOTIFICATION Range Driving Mode Range mode conserves energy by reducing climate control power. • Climate control will be limited so Model S cabin heating and cooling may be less effective. • Seat heaters will turn on to compensate for the restricted cabin heating. You can access this setting at Controls>Settings>Vehicle. SOFTWARE UPDATE INSTRUCTIONS Software Updates Model S updates its software wirelessly, providing new functionality throughout your term of ownership. The process to install these enhancements is outlined below. Onboard Notification The first time you enter your Model S after an update is made available, you will be shown a scheduling dialogue box. You can install immediately, confirm the suggested time, or schedule an alternate time. Once scheduled, the icon will change color from yellow (unscheduled) to white (scheduled). At any point before installation begins, you can re-schedule the installation. IMPORTANT: Model S must be in Park and not driving when new software is being installed. A software update can take up to 2 hours to complete so be sure to select a time when the car can sit idle for this period. If your car is charging when the update is scheduled, charging will temporarily stop and restart after the software is installed. If you are driving when the installation is scheduled, the installation will be cancelled. Troubleshooting: If the touchscreen indicates that the update was not completed or if you have questions about any other onboard message, please contact our Ownership Experience team at [email protected] or 877.77.TESLA TESLA MOTORS | 3500 DEER CREEK ROAD | PALO ALTO | CA 94304