SEPTEMBER 22, 2020

The Past 5 Years Were The 5 Hottest On Record

CO 2 CONCENTRATION (PPM)

425

400

375

350

325

300

275

250

225

200

175

150

800 700 600 500 400 300 200 100 TODAY

THOUSANDS OF YEARS AGO

 The Trend Is Reversing But We Need To Accelerate

Wind and solar comprise 76% In 2010 46% of electricity in

of new electricity capacity in the the U.S. was generated with coal.
U.S. this year: 32 GW. Today, that number is half.

SOURCE: EIA.GOV
 Tesla’s Contribution

1+ MILLION ELECTRIC 26 BILLION ELECTRIC

VEHICLES DELIVERED MILES DRIVEN

5 GWh OF 17 TWh OF
STATIONARY BATTERIES SOLAR GENERATED
To achieve the transition to sustainable energy,
we must produce more affordable EVs and
Energy Storage, while building factories faster
and with far less investment
 Goal One: Terawatt-hour Scale Battery Production

100% ELECTRIC TRANSPORTATION REQUIRES 100X GROWTH

IN 2019 0.1
TWh

1500 GWh 3500 GWh 900 GWh 1100 GWh 3000 GWh 10
TWh

SMALL / COMPACT / LUXURY PICKUP SEMI &

ROBOTAXI MIDSIZE & SUV TRUCK COMMERCIAL

SOURCE: EV-VOLUMES.COM
 Goal One: Terawatt-hour Scale Battery Production

100% RENEWABLE ENERGY REQUIRES 1600X GROWTH

0.006
IN 2019
TWh

2300 GWh 1400 GWh 2100 GWh 800 GWh 1500 GWh 1900 GWh 10
TWh

NON RENEWABLE COAL GAS OIL FUTURE FUTURE

ELECTRICITY HEATING HEATING HEATING EV GROWTH

SOURCE: IHS
Goal One Problem: Today’s Battery Factories Cannot Scale Fast Enough

$2T
INVESTMENT IN MATERIALS, CELL,
AND BATTERY MANUFACTURING

0.15 = 1
TWh GIGAFACTORY

2.8M
TOTAL PEOPLE ESTIMATED
Goal One Problem: Today’s Battery Factories Cannot Scale Fast Enough

$2T
INVESTMENT IN MATERIALS, CELL,
AND BATTERY MANUFACTURING

0.15
20 = 135
1
TWh GIGAFACTORIES
GIGAFACTORY

2.8M
TOTAL PEOPLE ESTIMATED
 Goal Two: More Affordable Cells

$/kWh INDUSTRY TREND FORECAST

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
 Goal Two Problem: EV Market Share Is Growing
But EVs Still Aren’t Accessible To All

EV MARKET SHARE

2.0%

1.8%

1.6%

1.4%

1.2%

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

SOURCE: EV-VOLUMES.COM / OICA

 To Make The Best Cars In The World,
We Design Vehicles And Factories From The Ground Up
And Now We Do This For Batteries As Well
BATTERY DAY
We Have A Plan To Halve The Cost Per KWh

CELL DESIGN CELL FACTORY ANODE MATERIALS

CATHODE CELL VEHICLE

MATERIALS INTEGRATION
CELL DESIGN CELL FACTORY ANODE MATERIALS

CATHODE CELL VEHICLE

MATERIALS INTEGRATION
1865 2170

+50%
ENERGY

EVOLUTION

2008 2017
 Bigger Cylindrical Cells Cost Less

IMPROVEMENT NEW CELL VEHICLE RANGE COST REDUCTION

20%

15%

10%

5%

0%

21 26 31 36 41 46 51 56 61

CELL OUTER DIAMETER MM

 The Challenge With Big Cells Is Supercharging

SUPERCHARGE TIME INCREASE NEW CELL

21 26 31 36 41 46 51 56 61

CELL OUTER DIAMETER MM

 The Challenge With Big Cells Is Supercharging

SUPERCHARGE TIME INCREASE NEW CELL

21 26 31 36 41 46 51 56 61

CELL OUTER DIAMETER MM

SIMPLER MANUFACTURING

FEWER PARTS

5X REDUCTION IN ELECTRICAL PATH

 5X
ENERGY

+16%
80 MM
RANGE

6X
POWER

46 MM
 14% CELL FACTORY ANODE MATERIALS

14%
$/KWH REDUCTION

CATHODE CELL VEHICLE

MATERIALS INTEGRATION
 Inspiration

PRINTING BOTTLING
ELECTRODE WINDING ASSEMBLY FORMATION
 Electrode – Wet Process

1
MIX

2 & 3
COAT & DRY SOLVENT RECOVERY

4
COMPRESS
Powder Into Film

LAB SCALE POWDER INTO FILM

 Dry Electrode

1
MIX

10x
FOOTPRINT REDUCTION

10x
ENERGY REDUCTION

2
DRY COAT
 Simple is Hard

BENCH LAB PILOT

 High-Speed Continuous Motion Assembly

1 20 7x
ASSEMBLY LINE GWh LINE OUTPUT
 Tesla Power Electronics

-86% -75%
FORMATION INVESTMENT FORMATION FOOTPRINT

TESLA POWER ELECTRONICS

 -75% 10x
INVESTMENT PER GWH SMALLER FOOTPRINT PER GWH

150 GWh 1 TWh

2018 GIGAFACTORY TERAFACTORY

SIMPLER ACCELERATES TWH SCALE

 The Plan

100 GWh 3 TWh

IN 2022 BY 2030
 14% 18% ANODE MATERIALS

32%
$/KWH REDUCTION

CATHODE CELL VEHICLE

MATERIALS INTEGRATION
 Silicon Is Awesome And Inexpensive

MOST ABUNDANT ELEMENT IN EARTH’S CRUST AFTER OXYGEN STORES 9X MORE LITHIUM THAN GRAPHITE
 Challenge: Volume Expansion

S E I L AY E R

-Li+
4 X VO LU M E E X PA N S I O N

M A N Y C YC L E S
BROKEN

S E I L AY E R

M A N Y C YC L E S

M A N Y C YC L E S

ELECTRICAL
I S O L AT I O N THICK

S E I L AY E R
 Current Approaches To Silicon Are Highly
Engineered Expensive Materials

SILICON STRUCTURED SILICON STRUCTURED SILICON TESLA

IN SIO GLASS IN GRAPHITE NANOWIRES SILICON

6.6 $/KWh 10.2 $/KWh >100 $/KWh 1.2 $/KWh

 Instead, We Design For Expansion And Use
Raw Silicon To Increase Range 20%

RAW METALLURGICAL SILICON STABILIZE SURFACE ROBUST NETWORK

THROUGH ELASTIC, HIGHLY ELASTIC BINDER

ION-CONDUCTING POLYMER COATING + ELECTRODE DESIGN
 14% 18% 5%

37%
$/KWH REDUCTION

CATHODE CELL VEHICLE

MATERIALS INTEGRATION
 What Is A Battery Cathode?

CATHODES ARE LIKE BOOKSHELVES METAL COST MATTERS

$/kWh METALS

35

30
COBALT
25

20

15 NICKEL
N I C K E L / CO B A LT
MANGANESE /
A LU M I N U M
10
LITHIUM

5 IRON

Wh/kg 200 400 600 800 1000 1200 1400

 High Nickel Cathode Development

MAXIMIZE NICKEL, REMOVE COBALT NOVEL COATINGS & DOPANTS 15% REDUCTION IN CATHODE $/KWh
 Diversified Cathode Approach

MEGAPACK

IRON BASED NICKEL + MANGANESE HIGH NICKEL

LONG CYCLE LIFE LONG RANGE MASS SENSITIVE
 The Cathode Manufacturing Processing Is A Big Target

CATHODE COST BREAKDOWN

35% 25% 5% 35%

NICKEL LITHIUM COBALT PROCESSING

 Traditional Cathode Process

METAL SULFATE PRODUCTION RAW MATERIALS INPUT CATHODE PRODUCTION FINAL PRODUCT

METAL
CATHODE
METAL SULFATE
SULPHURIC ACID

MORE CHEMICALS

A BUNCH OF STUFF HAPPENS

WASTE WATER
+ BYPRODUCTS

WATER
 Tesla Cathode

METAL SULFATE PRODUCTION RAW MATERIALS INPUT CATHODE PRODUCTION FINAL PRODUCT

METAL METAL
CATHODE

SULPHURIC ACID
LESS STUFF HAPPENS

MORE CHEMICAL

WATER

WASTE WATER
+ BYPRODUCTS

WATER
-66% -76% 0
INVESTMENT PROCESS COST WASTE WATER
 Directly Consuming Nickel Powder Simplifies Metal Refining & Recycling

SUSTAINABLY MINED/SOURCED ORES OPTIMIZED REFINING RECYCLED BATTERIES

ELIMINATES BILLIONS IN BATTERY GRADE NICKEL PRODUCTION

 North American Cathode Production

BUILD PLANT SHORTEN TRAVEL DISTANCE

KG x KM CATHODE LiOH-H2O Li SPODUMENE NICKEL POWDER

Ni Li
30000

25000

20000
TESLA
CATHODE

LITHIUM
15000
CLAYS

Li 10000

5000

0
Ni
Status Quo Localized Supply Chain
Li
 North American Lithium Production

COLOCATE LITHIUM CONVERSION SULFATE-FREE PROCESS

Ni Li

33%
REDUCTION IN LITHIUM COST
TESLA
TESLA LITHIUM
CATHODE

LITHIUM
CLAYS

Li

100%
Ni ELECTRIC FACILITY

Li
 Access Even More Lithium

SIGNIFICANT UNTAPPED LITHIUM IN CLAY TESLA ACID-FREE, SALINE EXTRACTION TESLA SECURED TWH-SCALE RESOURCE

ENOUGH LITHIUM IN NEVADA TO ELECTRIFY THE ENTIRE U.S. FLEET

 Recycling Elements From Cells Is Far More Desirable Than From Raw Ores

SOURCE NICKEL LITHIUM COBALT

RECYCLED CELLS
20% 2.7% 2%

TYPICAL ORES
1.2% 0.7% 0.2%
 Recycling Resource Is 10+ Years Delayed

TWh / YEAR – BATTERY SALES

EV BATTERY PRODUCTION 50% CAGR

1.20

1.00

0.80

IN 2025, BATTERIES
AVAILABLE FOR RECYCLING
0.60

0.40

0.20

0.00

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
 14% 18% 5%

49%
$/KWH REDUCTION

12% CELL VEHICLE

INTEGRATION
 40% -79
REAR UNDERBODY COST SAVINGS PARTS PER CAR

MODEL Y GIGA CASTING

 Giga Casting Innovations

SHOT SIZE ∝ VELOCITY ∝ PRESSURE ∝ TONNAGE NEW ALLOY, NO HEAT TREATING OR COATINGS
 Structural Fuel Tanks Improve Mass And Range

STORAGE

EXCESS STRUCTURE

EARLY
AIRCRAFT WING

STORAGE

MODERN
AIRCRAFT WING
 Structural Batteries Improve Mass And Range

STORAGE

EXCESS STRUCTURE
MODERN
AUTOMOTIVE
BATTERY

STORAGE

FUTURE
AUTOMOTIVE
BATTERY
 Revolution In Body + Battery Engineering

10% MASS REDUCTION 14% RANGE INCREASE OPPORTUNITY 370 FEWER PARTS
 Simpler, Smaller, Integrated Battery + Body Factory Of The Future

55% REDUCTION IN INVESTMENT PER GWH 35% REDUCTION IN FLOORSPACE

CURRENT FUTURE
 14% 18% 5%

56%
$/KWH REDUCTION

12% 7%
 Stacking Up The Benefits Of Tesla’s Vertical Integration

RANGE INCREASE $ / KWH REDUCTION INVESTMENT PER GWH REDUCTION

CELL VEHICLE

INTEGRATION

CELL VEHICLE

8%
CELL VEHICLE
 INTEGRATION
INTEGRATION

7% 16%
14%
12% 4%
CATHODE

4% MATERIAL

69%
ANODE

5% CATHODE
 MATERIAL
CATHODE
 MATERIAL

20%
MATERIAL
54% ANODE

MATERIAL 56%
18% 34%

ANODE

CELL

MATERIAL
16% 14%
FACTORY

7% CELL

FACTORY

CELL DESIGN CELL DESIGN CELL DESIGN

 A New Trajectory

$/kWh INDUSTRY TREND FORECAST TESLA

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
 Help Us Accelerate The Transition

CELL EQUIPMENT NEW AND EXISTING

MANUFACTURERS CELL SUPPLIERS

RAW MATERIAL
MINERS AND REFINERS
MANUFACTURERS
What Does This Mean For Our Future Products?
Electric Vehicle Powertrains That Cost Less
Than Combustion Engines

$25,000 PASSENGER CAR

 AND Extreme
Performance and Range
 1.30.3
LAGUNA SECA

<2 sec 200 mph <9 sec >1100 >520 mi

0-60 MPH TOP SPEED 1/4 MILE HORSEPOWER RANGE
FORWARD-LOOKING STATEMENTS

Certain statements in this presentation, including statements regarding future products and technologies, expected features and performance of products, manufacturing expansion, cost reductions, and availability of raw materials, are
forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. Various important factors could cause actual results to differ materially, such as the risks
identified in our SEC filings, including under the sections captioned “Risk Factors” in our Forms 10-K and 10-Q. Tesla disclaims any obligation to update any forward-looking statement contained in this presentation.