Impact

20

Report 22
A Sustainable Future is Within Reach

Impact Report 2022 2

01

Master Plan

Part 3
A Message of Hope
80% of global energy comes
from fossil fuels

Current State Primary Energy

Consumption
165 PWh/yr

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A sustainable energy economy
requires 50% less total energy

Current State Primary Energy

Consumption
165 PWh/yr

Sustainable 84 PWh/yr
Energy Economy

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The transition to sustainable
energy will reduce global mining
and extraction needs

Current Mining Extraction Fully Sustainable Economy

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The investment required is
manageable and achievable

240 TWh 0.2% $10T

Zero
30 TW 1/2 10%

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Beyond Tesla

While we are uniquely focused on accelerating

the world’s transition to sustainability, a full
transition will require efforts far beyond Tesla.

In Master Plan Part 3, we highlight five key areas

that we believe can most dramatically advance

the shift to sustainability.

A five-step plan to shift to sustainable energy

36% 22% 23% 13% 6%

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The path to 100%

sustainability by 2050

Solar & Wind Deployment
 Vehicle, Stationary & Thermal
 Electric Vehicle Production


(TW/yr) Battery Production (TWh/yr) (Millions/yr)

3x increase 29x increase 11x increase

2022 2022 2022

Deployment 0.36 Deployment Deployment

Required Required Required

Deployment Deployment Deployment

1.0

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Total solar, wind and battery installed
base and investment needed

Solar & Wind Farms Vehicle & Stationary Batteries Manufacturing Capex

30.4 TW 240 TWh $10 T

Renewable Energy Grid 10.6 Renewable Energy Grid 0.8

Switch to EVs 4.8 Switch to EVs 7.0

Heat Pumps 4.8 Heat Pumps 0.3

High Temp Thermal 6.5 High Temp Thermal 0.8

Planes & Ships 3.7 Planes & Ships 1.0

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02

Environmental

Impact
The Future is Electric
Displacing Fossil Fuels Carbon Impact of Our Products Carbon Impact of Our Operations Water and Waste
19-25 26-39 40-49 50-58

13.4 Mmt 100% -30% -15% 90%

of CO2e emissions renewable Greenhouse gas H2O per vehicle of manufacturing waste
avoided Supercharger network emissions per vehicle recycled

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We make products
that displace fossil
fuel alternatives.
Air pollution from burning fossil
fuels leads to premature deaths

Fine Particulate Air Source: waqi.info

Pollution in Europe (2023)

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Tesla produced and delivered over
1.3 million EVs globally in 2022 Electric Vehicles Produced

Tesla

BYD

VW Group

Hyundai Motor

R-N-M Alliance

Stellantis

BMW Group

Ford

GM

Toyota Motor Corp.

Jaguar Land Rover (Tata)

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A single Tesla vehicle avoids
55 tons of CO2e over its life EV Emissions Impact Over Time (U.S.; mt CO2e)

Manufacturing
Annual Driving

Emissions Emissions

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In 2022, our customers avoided
releasing about 13.4 million metric tons
of CO2e into our atmosphere.
Average Lifecycle Emissions

Model 3/Y Shift to Greener Grid

Personal Use Personal Use

68 68
Personal Use Personal Use
134 113
Average
Premium ICE 467 Average
Premium ICE 467
Vehicle Vehicle

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The carbon impact of ICE vehicles
remains the same every year of use

U.S. Electricity Grid Generation Mix

Source: IEA

2022-2040 Tesla estimate based on recent grid mix shifts.
Conservatively assumes no change in federal policy or acceleration
Charging EVs becomes of move to renewables in the U.S. for electricity generation.

greener over time

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Greater efficiency than a Prius,
performance of a Porsche

Model Y is the most

efficient electric SUV

Model Y

Model 3

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Even after 200,000 miles, our
batteries degrade just 12%

Model S/X

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Reducing our manufacturing footprint

Building more Covering roof space with Leveraging AI to make our

sustainable factories solar panels energy use more efficient
from the ground up

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Producing an EV requires less water
than producing an ICE vehicle Water Withdrawal Intensity in Global Vehicle
Manufacturing (m3/vehicle)

Gigafactory Berlin (est.)* 1.80 0.48

1.90 0.00
Tesla (2022) 2.57 0.00
Gigafactory Texas (est.)* 2.78 0.84
2.91 0.00
15% YoY reduction in
water used per vehicle 3.68 0.00
3.75 0.00
3.80 0.00
4.12 0.00
4.54 0.00
4.77 0.00

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Setting a new standard for
water use per vehicle

Water-intensive Rainwater and condensate Reclaimed and

process optimization harvesting and reuse recycled water

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03

Product

Impact

B e t t e r i n E v e r y Way
Making EVs Affordable Freedom to Travel Maximizing Safety Building the Grid of the Future
61-64 65-70 71-89 90-97

$0.49 99.95% 5-Star $ <0.001%

per mile total cost of Supercharger uptime rating from NHSTA, Lowest cost per failure rate of
ownership for Model 3 Euro NCAP and watt solar energy products
SR, similar to a Corolla ANCAP for Model Y

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Affordability
is key to mass
adoption.
Model 3 is the first EV to
be priced on par with ICE
vehicle equivalents

Starting Price

Model 3

$39,900

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Model 3 total cost of ownership per
mile is similar to a Toyota Corolla Total Cost of Ownership

Model 3
$0.49

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Making EVs even more affordable

Cost of Goods Sold

Model 3/Y

50% Reduction in Cost

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Our products
are designed to
be better in
every way.
We make products that
people love

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Chargers that just work

Average Uptime of
Supercharger Sites*

99.94%
99.90%
99.74%
99.96%
99.95%

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Exceeding safety standards across four continents

Best in Class Top Performer

Occupant Safety
Active Safety

Best in Class Top Performer Occupant Safety

Pedestrian Safety

Active Safety

Best in Class

Best in Class

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Highest score awarded

3% higher than the second highest manufacturers

92% 92%

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Not all active safety systems are
created equal Safety Assist Rating

94% 94% 98% 98%

94% 94% 98%

Superior Superior

Euro NCAP Safety Assist Rating

Tesla Model Y 98%

Tesla Model S 98%

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Safety is enhanced when
Autopilot is engaged

Number of Vehicular Accidents

0.18 Autopilot Engaged

Mostly Highway Miles

0.31 FSDBeta Engaged

Mostly Non-Highway Miles

0.68 No Active Safety

Total U.S. Vehicle Fleet*

*Based on our data of Tesla vehicles and NHSTA
data of vehicles

For more information about our methodology,

see our Vehicle Safety Report.

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Real-World Crashes

Frontal

Left Hand Right Hand

Rear

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Tesla Energy is a
one-stop shop.
An entire ecosystem

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Renewables & energy storage
are already cost competitive

Levelized Cost of Energy Comparison for Megapack

and Conventional Resources

Megapack + renewables ($/MWh) 0 50 100 150 200 250

is cheaper than other
conventional solutions

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 Zero Direct Emissions Built-In Safety 24/7 Monitoring

Exceeds Standards Proactive Fire Control Best-In-Class Performance

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Less than 0.001% failure rate

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04

People

& Culture
O u r e m p loy e e s a r e
c r i t i ca l to ac h i e v i n g
our mission
Attracting Talent Building the Best Workplace Compensation Social Impact
100-108 109-122 123-131 132-136

3.6 M ~128,000 67% 71% 9.4 yrs

applications employees U.S. employees from internal leadership median tenure of
underrepresented groups promotions senior management

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Our employees are critical to our
mission to accelerate the world’s
transition to sustainable energy

Impact Report 2022 101

We grew by 29,000 employees
last year globally Total Global Employee Count

127,855

Impact Report 2022 104

Engineering students want to
work for Tesla and SpaceX more U.S. Engineering Students’ Rankings
than any other organization

SpaceX

Tesla

According to Universum’s 2022 U.S. rankings.

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We received 3.6 million job applications in 2022.
We strive to have the safest and
healthiest operations in the world
Workplace Injuries
ASTM 2920 Global Standard

3.58
175,807,810

2.86
255,950,012

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We are a majority-minority
company with 67% of U.S.
employees from
underrepresented groups 11% 4%

21% 33%

2%
1%
28%

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U.S. benefits

SafetyNet Back-Up Care Employee Perks

Rethink 16 Weeks of Paid Family Services

Family Leave

Impact Report 2022 126

05

Supply

Chain
We source from suppliers
that respect human
rights and protect the
environment
Our Approach Battery Supply Chain Priority Materials Data Systems
139-145 146-163 164-185 186-191

800+ 12 3X 3 1st
suppliers engaged materials with increase in direct GHG hotspot analyses worldwide Battery
in responsible increased visibility supplier audits completed to cover our Passport piloted
sourcing cathode chemistries

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Our 2022 Program Highlights

Engagement Expectations Tracking

Visibility Audits Production Control

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We align with industry best practices

1 Maintain Strong Policies &

Management Systems

5 1
2 Collect & Investigate
Supply Chain Environmental
& Social Risk Data

3 Implement Risk Mitigation

Measures in Priority
4 2 Engagement Areas

4 Collaborate With Industry

Initiatives
3
5 Disclose in the

Impact Report

Impact Report 2022 143

An EV’s lifetime CO2e is less
than a comparable ICE vehicle

Tons CO2e per vehicle

ICE Average 93
Tesla 37

Vehicle Supply Chain Battery Supply Chain Use Phase

55 tons of CO2e
avoided

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 Reporting Tesla’s 

2022 Scope 3 Emissions
(Category 1, 4)* 27%

47% 18%

8%

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Our batteries rely on
critical minerals Tesla Battery

Cathode Anode

Copper

Graphite

Iron ore

Significant part of Phosphorus

battery cell costs =
lithium, nickel and cobalt

Impact Report 2022 151

 Direct sourcing

2021

Lithium

Hydroxide 2022
>95%

2021

Nickel 2022
>45%

2021

Cobalt 2022
>55%

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Hotspot analyses help
prioritize Tesla's GHG efforts

NCA Cell—Global Warming Potential Contribution Analysis Contribution to CO2 Impact per kg
Nickel 36%
Upstream from Tesla
Primary extraction and processing

Cobalt 1% Lithium
Lithium 15%
Aluminium 4%
Graphite 21% 69% 17%
Cathode Manufacturing 6%
Electricity (Cell Assembly) 9% 10% 5%
Other 7%

Nickel

69% 18%
LFP Cell—Global Warming Potential Contribution Analysis
10% 3%
Lithium 2%
Upstream from Tesla
Primary extraction and processing

Graphite 34%
Iron 1% Cobalt
Phosphorus 3%
Cathode Manufacturing 15%
77% 6%
Electricity (Cell Assembly) 28%
Other 18%
13% 4%

Impact Report 2022 158