#1Q2 2020 Update TESLA#2Highlights Financial Summary Operational Summary Vehicle Capacity Core Technology Other Highlights Outlook Photos & Charts Financial Statements Additional Information 03 04 06 07 08 09 10 11 20 25 TESLA#33 HIGHLIGHTS Cash Profitability Operations $535M increase in our cash and cash equivalents in Q2 to $8.6B Operating cash flow less capex (free cash flow) $418 M in Q2 $327M GAAP operating income; 5.4% operating margin in Q2 $ 104 M GAAP net income; $451M non-GAAP net income (ex-SBC) in Q2 Four quarters of sequential profitability Next US Gigafactory site selected; preparations underway Increased Model S range to 402 miles (EPA) Model Y and China-made Model 3 production rates continue to increase SUMMARY Our business has shown strong resilience during these unprecedented times. Despite the closure of our main factory in Fremont for nearly half the quarter, we posted our fourth sequential GAAP profit in Q2 2020, while generating positive free cash flow of $418 M. Our profit improved sequentially due to fundamental operational improvements. Additionally, we experienced costs associated with factory shutdowns, which were offset by actions taken during the quarter to reduce expenses. For the trailing 12 months, our GAAP operating margin reached nearly 5%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels. We believe the progress we made in the first half of this year has positioned us for a successful second half of 2020. Production output of our existing facilities continues to improve to meet demand, and we are adding more capacity. Later this year, we will be building three factories on three continents simultaneously. While we invest in our product roadmap, improve technology and localize production, we continue to drive cost efficiencies across the business and closely manage working capital. It is important to manage our cash diligently in order to ensure we are ready for any scenario. SBC = stock-based compensation expense A#4FINANCIAL SUMMARY (Unaudited) ($ in millions, except percentages and per share data) Automotive revenues of which regulatory credits Automotive gross profit Automotive gross margin Total revenues Total gross profit Total GAAP gross margin Operating expenses (Loss) income from operations Operating margin Adjusted EBITDA Adjusted EBITDA margin Net (loss) income attributable to common stockholders (GAAP) Net (loss) income attributable to common stockholders (non-GAAP) EPS attributable to common stockholders, diluted (GAAP) EPS attributable to common stockholders, diluted (non-GAAP) Net cash provided by (used in) operating activities Capital expenditures Free cash flow Cash and cash equivalents Q2-20 19 5,376 111 1,0 16 18.9% 6,350 921 14.5% 1,088 (167) -2.6% 572 9.0% (408) (198) (2.31) (1.12) 864 (250) 6 14 4,955 Q3-20 19 5,353 134 1,222 22.8% 6,303 1,19 1 18.9% 930 261 4.1% 1,0 83 17.2% 143 342 0.78 1.86 756 (385) 371 5,338 Q4-20 19 6,368 133 1,434 22.5% 7,384 1,391 18.8% 1,032 359 4.9% 1,175 15.9% 10 5 386 0.56 2.06 1,425 (4 12) 1,0 13 6,268 Q1-2020 5,132 354 1,311 25.5% 5,985 1,234 20.6% 951 283 4.7% 951 15.9% 16 227 0.08 1.14 (440) (455) (895) 8,080 Q2-2020 5,179 428 1,3 17 25.4% 6,036 1,267 21.0% 940 327 5.4% 1,209 20.0% 10 4 451 0.50 2.18 964 (546) 4 18 8,6 15 QoQ 1% 21% 0% - 12 bp 1% 3% 37 bp - 1% 16% 69 bp 27% 414 bp 550% 99% 525% 9 1% YoY -4% 286% 30% 653 bp -5% 38% 649 bp - 14% N/A 805 bp 111% 1,102 bp N/A N/A N/A N/A N/A 12% 20% 118% N/A -32% 7% 74% EPS = Earnings per share TESLA#55 FINANCIAL SUMMARY Revenue Profitability Cash In Q2, total revenues remained relatively flat QoQ. The positive impact of higher vehicle deliveries, higher regulatory credit revenue and higher energy generation and storage revenue was somewhat offset by lower vehicle average selling price (ASP) and lower services and other revenue. Our operating profit improved in Q2 despite challenging circumstances. Positive impacts included lower operating costs due to a temporary reduction in employee compensation expense, a sequential increase in regulatory credit revenue and deferred revenue recognition of $48M related to a Full Self Driving (FSD) feature release. These positive contributions were offset by significant costs. related to factory shutdowns, as well as a sequential increase in non-cash SBC expense primarily attributable to $10 1M related to 2018 CEO award milestones. While ASPs declined sequentially, improvements in product and manufacturing costs, driven by Model Y and China-made Model 3, and improved aftermarket software and connectivity revenue made a positive impact on our profitability. Quarter-end cash and cash equivalents increased by $535M QoQ to $8.6B, driven mainly by free cash flow of $418 M. Free cash flow was negatively impacted by a higher percentage of deliveries occurring towards the end of the quarter compared to prior quarters, as well as an increase in government rebates and regulatory credit receivables, which are paid in accordance with their payment terms. Since vehicle production resumed in Fremont and Nevada in early May, our days payable outstanding was not impacted as much as initially anticipated. TESLA#6OPERATIONAL SUMMARY (Unaudited) Model S/X production Model 3/Y production Total production Model S/X deliveries Model 3/Y deliveries Total deliveries of which subject to operating lease accounting Total end of quarter operating lease vehicle count Global inventory (days of supply) (¹) Solar deployed (MW) Storage deployed (MWh) Store and Service locations (2) Mobile service fleet Q2-20 19 14,5 17 72,531 87,048 17,722 77,634 95,356 6,142 38,828 19 29 4 15 406 651 Q3-20 19 Supercharger stations Supercharger connectors Our finished vehicle inventory levels decreased to 17 days of supply (1) at the end of Q2. 1,587 13,881 16,318 79,837 96,155 17,483 79,703 97,186 9,086 44,241 18 43 477 4 17 719 1,653 14,658 Q4-20 19 17,933 86,958 10 4,891 19,475 92,620 112,095 8,848 49,901 10 54 530 433 743 1,821 16,10 4 Q1-2020 15,390 87,282 10 2,672 12,230 76,266 88,496 6,10 4 53,159 25 35 260 438 756 1,9 17 17,00 7 Q2-2020 6,326 75,946 82,272 10,6 14 80,277 90,891 4,716 54,5 19 17 27 4 19 446 769 2,035 18, 10 0 QoQ -59% - 13% -20% - 13% 5% 3% -23% 3% -32% -23% 6 1% 2% 2% 6% 6% Yo Y -56% 5% -5% -40% 3% -5% -23% 40% - 11% -7% 1% 10% 18% 28% 30% Since leasing revenue and leasing cost of goods sold (COGS) are driven by total net leased vehicle count, we have included the quarter-end operating lease vehicle count in the table above. Some legacy leases require lease accounting, despite receiving cash associated with the full vehicle price at time of delivery. As those leases expire and the return option is not taken, the remaining unrecognized revenue and COGS are booked to leasing revenue and leasing COGS. (1) Days of supply is calculated by dividing new car ending inventory by the quarter's deliveries and using 75 trading days (aligned with Automotive News definition) (2) Our Store and Service locations metric now includes body shops TESLA#7VEHICLE CAPACITY Fremont Although the Model Y production line was operating for about four months in the first half of 2020 due to shutdowns, we exited Q2 with Model Y production running at installed capacity. This ramp was significantly faster than our initial Model 3 ramp, which took over nine months to reach the same weekly rate. We are installing additional machinery at the Fremont Factory, which is expected to increase total Model 3 / Model Y capacity from 400,000 to 500,000 units per year. Shanghai Model 3 has received a strong reception in China, not only becoming the best- selling EV, but also competing with mid-sized premium sedans, such as BMW 3- series and Mercedes C-class. This is not surprising given Model 3's lower price point (even before subsidies and vehicle tax), reduced operating costs and industry- leading standard equipment. Construction for Model Y lines in the Shanghai factory is progressing as planned, with first deliveries expected in 2021. Berlin-Brandenburg Germany, one of our biggest European markets, Gigafactory Berlin construction continues to progress. As we build new factories, we continue to iterate on the factory and product design to improve efficiency, cost and technology. We are implementing further structural improvements based on our learnings from prior factories. Status Production Production Production Construction In development Construction In development In development In development In development * Model 3 / Model Y installed capacity in Fremont will extend to 500,000 in 2020 Installed Annual Capacity Fremont Shanghai Berlin New US factory United States 20% 10% 0% - 10% -20% -30% -40% -50% Model S Model X Model 3 / Model Y Model 3 Model Y Model 3 Model Y Model Y Cybertruck Tesla Semi Roadster Current |||| ||||| |||| Source: OEM websites; based on latest-available data Jan-May YoY ** US, Europe and China only 90,000 * 400,000 200,000 Tesla Hyundai Mercedes Toyota* BMW Kia cars Global vehicle deliveries in the 1st half of 2020 (YoY) VW Ford** Nissan* Renault PSA TESLA#8CORE TECHNOLOGY Autopilot & Full Self Driving Our traffic light and stop sign recognition system is becoming more robust as we continue to collect more data from our customers driving through intersections. As of Q2, our FSD-equipped cars will either stop at an intersection or drive through it without driver confirmation when it is deemed safe to do so. Ultimately, the necessity for confirmation will be withdrawn completely. Vehicle Software It has been more than eight years since we delivered our first Model S. During that time, we have regularly updated the software to each of our over one million vehicles. Every week, we review feedback from blogs, social media or aggregators to learn what functionality our customers would like to see next. Over-the-air updates have been a part of Tesla's strategy since the beginning and the functionality continues to improve. For example, in Q2 we enabled the interior camera, enabled repeater cameras when parking and improved the user interface. Battery & Powertrain We know from our customers that range is an all-important attribute for those looking to switch from their combustion engine vehicle to an EV. Our efforts to maximize range are not slowing down. In July 2020, we announced an updated Model S with an EPA-tested range of 402 miles - making it the first production EV in history to break the 400-mile range threshold. 400 350 300 250 200 150 10 0 50 0 2012 Model S with a 2020 OTA software update 400 350 300 250 L.….. 200 150 10 0 50 Model S LR+ Porsche Taycan 4S Premium sedan EPA range * Tesla estimate 0 Jaguar Mercedes Audi iPace EQC* e-tron Model X Model Y LR+ AWD Premium SUV EPA range TESLA#99 OTHER HIGHLIGHTS Energy Business Although recently launched and still ramping, Megapack generated a profit for the first time in Q2. Storage deployments increased sequentially to 4 19 MWh, driven by increases in both Powerwall and Megapack. Autobidder, a real-time energy trading platform that is designed to maximize energy revenue from our utility scale batteries, continues to be an important part of our storage strategy. We recently launched this platform in Europe and started trading on the European Power Exchange, in addition to exchanges in the U.S. and Australia. Solar Recently, we made home retrofit solar even more affordable in the U.S., while also offering an increased efficiency panel. At $1.49 per watt, the average Tesla solar system is now one-third less expensive (1) than the industry. The average customer buying a large system in California will likely offset their system cost with a reduced electricity bill in approximately six years (2). We also introduced a lowest-cost guarantee and money-back guarantee. Our new pricing is made possible by several improvements, such as moving to recommending standard sizes that customers can order with one click online and the reduction of customer acquisition costs through the automation of processes. Solar Roof installations roughly tripled in Q2 compared to Q1. We continue to expand our installation team to increase the deployment rate. (1) Industry average based on data from Solar Energy Industries Association (SEIA) (2) Assuming $300 monthly electricity bill r 400. $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5.000 $- Before incentives ■With Federal Tax Credit Small 4.1 kW C O Autobidder platform 000 Large 12.2 kW O O Medium 8.2 kW New retrofit solar pricing (depending on roof size) O 084255 Extra Large 16.3 kW TESLA#1010 OUTLOOK Introduction Volume Cash Flow Profit Product Although we have successfully ramped vehicle production back to prior levels, it remains difficult to predict whether there will be further operational interruptions or how global consumer sentiment will evolve in the second half of 2020. We will continue to update our outlook as necessary. We have the capacity installed to exceed 500,000 vehicle deliveries this year, despite recent production interruptions. While achieving this goal has become more difficult, delivering half a million vehicles in 2020 remains our target. We should have sufficient liquidity to fund our product roadmap, long-term capacity expansion plans and other expenses. For the trailing 12 months, we achieved a GAAP operating margin of just under 5%. We expect our operating margin will continue to grow over time, ultimately reaching industry-leading levels with capacity expansion and localization plans underway. We are continuing to build capacity for Model Y at Gigafactory Berlin and Gigafactory Shanghai, and we remain on track to start deliveries of these vehicles from both locations in 2021. The next US Gigafactory site has been selected and preparations are underway. Tesla Semi deliveries will also begin in 2021. We continue to significantly invest in our product roadmap. TESLA#11PHOTOS & CHARTS TESLA#1212 GIGA FACTORY SHANGHAI - MODEL Y FACTORY (FOREGROUND); MODEL 3 FACTORY (BACKGROUND) 22 3825 TESLA#1313 GIGA FACTORY SHANGHAI - MODEL Y FACTORY INTERIOR AVATAVARANKZVAN 10.0 TESLA#1414 GIGA FACTORY SHANGHAI - MODEL Y FACTORY INTERIOR 7 KUKA TESLA#1515 GIGA FACTORY SHANGHAI - MODEL Y FACTORY INTERIOR 2015 TESLA#1616 GIGA FACTORY BERLIN MODEL Y FACTORY CONSTRUCTION HOULOT ‒‒‒‒ TESLA#1717 GIGA FACTORY BERLIN MODEL Y FACTORY RENDERING TESLA TESLA#18CO F III In r IC Vehicle Deliveries (units) Free Cash Flow ($B) Operating Cash Flow ($B) Net Income ($B) 3Q-20 17 4 Q-20 17 1Q-20 18 2Q-20 18 3Q-20 18 4 Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4 Q-20 19 1Q-2020 2Q-2020 3Q-20 17 4 Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4 Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4 Q-20 19 1Q-20 20 2Q-2020 3Q-20 17 4Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 1Q-2020 2Q-2020 0 -1.5 -0.8 -0.6 20,000 - 1.0 -0.4 40,000 -0.5 -0.2 60,000 0.0 0.0 I 0.2 80,000 0.5 0.4 10 0,00 0 1.0 0.6 120,000 1.5 0.8 (Unaudited) KEY METRICS QUARTERLY#1919 TESLA Vehicle Deliveries (units) ■Free Cash Flow ($B) Operating Cash Flow ($B) Net Income ($B) 3Q-20 17 4 Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 1Q-20 20 2Q-2020 3Q-20 17 4 Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 1Q-20 20 2Q-2020 3Q-20 17 4 Q-2017 1Q-20 18 2Q-20 18 3Q-20 18 4Q-20 18 1Q-20 19 2Q-20 19 3Q-20 19 4Q-20 19 1Q-2020 2Q-2020 0 -5.0 -3.0 50,000 -4.0 -2.0 -3.0 10 0,00 0 -2.0 - 1.0 150,000 -1.0 200,000 0.0 0.0 IIII 250,000 1.0 1.0 2.0 300,000 3.0 2.0 350,000 4.0 400,000 5.0 3.0 (Unaudited) KEY METRICS TRAILING 12 MONTHS (TTM)#20FINANCIAL STATEMENTS TESLA#2121 STATEMENT OF OPERATIONS (Unaudited) In millions of USD or shares as applicable, except per share data REVENUES Automotive sales. Automotive leasing Total automotive revenue Energy generation and storage Services and other Total revenues COST OF REVENUES Automotive sales. Automotive leasing Total automotive cost of revenues Energy generation and storage Services and other Total cost of revenues Gross profit OPERATING EXPENSES Research and development Selling, general and administrative Restructuring and other Total operating expenses (LOSS) INCOME FROM OPERATIONS Interest income Interest expense Other (expense) income, net (LOSS) INCOME BEFORE INCOME TAXES Provision for income taxes NET (LOSS) INCOME Net income attributable to noncontrolling interests and redeemable noncontrolling interests NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS Net (loss) income per share of common stock attributable to common stockholders Basic Diluted Weighted average shares used in computing net (loss) income per share of common stock Basic Diluted Q2-20 19 5,168 208 5,376 369 605 6,350 4,254 10 6 4,360 326 743 5,429 921 324 647 117 1,088 (167) 10 (172) (41) (370) 19 (389) 19 (408) $ (2.31) $ (2.31) 177 177 Q3-20 19 5,132 221 5,353 402 548 6,303 4,0 14 117 4,131 314 667 5,112 1,19 1 334 596 930 261 15 (185) 85 176 26 150 7 143 $ 0.80 $ 0.78 179 184 Q4-20 19 LA GA 6,143 225 6,368 436 580 7,384 $ 4,8 15 119 4,934 385 674 5,993 1,391 345 699 (12) 1,032 359 10 (170) (25) 174 42 132 27 10 5 $ 0.58 0.56 180 187 Q1-2020 4,893 239 5,132 293 560 5,985 3,699 122 3,821 282 648 4,751 1,234 324 627 951 283 10 (169) (54) 70 2 68 52 16 $ 0.09 $ 0.08 183 199 Q2-2020 $ $ 4,911 268 5,179 370 487 6,0 36 3,714 14 8 3,862 349 558 4,769 1,267 279 661 940 327 8 (170) (15) 150 21 129 25 10 4 0.56 0.50 186 207 TESLA#2222 BALANCE SHEET (Unaudited) In millions of USD ASSETS Current assets Cash and cash equivalents Accounts receivable, net Inventory Prepaid expenses and other current assets Total current assets Operating lease vehicles, net Solar energy systems, net Property, plant and equipment, net Operating lease right-of-use assets Goodwill and intangible assets, net Other non-current assets Total assets LIABILITIES AND EQUITY Current liabilities Accounts payable Accrued liabilities and other Deferred revenue Customer deposits Current portion of debt and finance leases (1) Total current liabilities Debt and finance leases, net of current portion (1) Deferred revenue, net of current portion Other long-term liabilities Total liabilities Redeemable noncontrolling interests in subsidiaries Convertible senior notes Total stockholders' equity Noncontrolling interests in subsidiaries Total liabilities and equity (1) Breakdown of our debt is as follows: Vehicle and energy product financing (non-recourse) Other non-recourse debt Recourse debt Total debt excluding vehicle and energy product financing 30-Jun-19 4,955 1,14 7 3,382 698 10,182 2,070 6,201 10,082 1,248 481 1,609 31,873 3,135 3,150 883 631 1,791 9,590 11,235 1,182 2,717 24,724 580 5.715 854 31,873 3,5 18 35 7,8 13 7,848 30-Sep-19 5,338 1,128 3,581 893 10,940 2,253 6,168 10,190 1,234 537 1,473 32,795 3,468 2,938 1,045 665 2,030 10,14 6 11,3 13 1,14 0 2,714 25,3 13 600 6,040 842 32,795 3,702 155 7,882 8,037 31-Dec-19 6,268 1,324 3,552 959 12,10 3 2,447 6,138 10,396 1,218 537 1,470 34,309 3,771 3,222 1,163 726 1,785 10,667 11,634 1,20 7 2,691 26,199 643 6,6 18 849 34,309 4,183 355 7,263 7,6 18 31-Mar-20 8,080 1,274 4,494 1045 14,893 2,527 6,10 6 10,638 1,197 5 16 1,373 37,250 3,970 2,825 1,186 788 3,217 11,986 10,666 1,199 2,667 26,5 18 632 60 9,173 867 37,250 4,022 708 7,600 8,308 30-Jun-20 8,615 1,485 4,0 18 1,2 18 15,336 2,524 6,069 11,00 9 1,274 508 1,4 15 38,135 3,638 3,110 1,130 713 3,679 12,270 10,4 16 1,198 2,870 26,754 6 13 44 9,855 869 38,135 4,043 1,4 15 7,10 6 8,521 TESLA#2323 STATEMENT OF CASH FLOWS (Unaudited) In millions of USD CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: Depreciation, amortization and impairment Stock-based compensation Other Changes in operating assets and liabilities, net of effect of business combinations Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures Payments for the cost of solar energy systems, net Purchase of intangible assets Receipt of government grants Business combinations, net of cash acquired Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net cash flows from debt activities Collateralized lease repayments Net borrowings (repayments) under vehicle and solar financing Net cash flows from noncontrolling interests - Auto Net cash flows from noncontrolling interests - Solar Proceeds from issuances of common stock in public offerings Other Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents and restricted cash Net increase in cash and cash equivalents and restricted cash Cash and cash equivalents and restricted cash at beginning of period Cash and cash equivalents and restricted cash at end of period Q2-20 19 (389) 579 210 176 288 864 (250) (18) (5) 32 (241) 1,326 (85) 58 19 (41) 848 18 2,143 2,766 2,683 5,449 Q3-20 19 150 530 199 69 (192) 756 (385) (25) (76) (486) (55) (83) 183 30 (28) 71 118 (11) 377 5,449 5,826 Q4-20 19 132 577 281 204 231 1,425 (412) (37) 46 (403) (591) (87) 478 19 6 - 96 (79) 14 957 5,826 6,783 Q1-20 20 68 553 211 175 (1,447) (440) (455) (26) 1 (480) 544 (97) (160) (8) (40) 2,309 160 2,708 (24) 1,764 6,783 8,547 Q2-2020 129 567 347 16 7 (246) 964 (546) (20) (566) 164 (71) 18 (3) (42) 57 123 38 559 8,547 9,10 6 TESLA#2424 RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited) In millions of USD or shares as applicable, except per share data Net (loss) income attributable to common stockholders (GAAP) Stock-based compensation expense Net (loss) income attributable to common stockholders (non-GAAP) Net (loss) income per share attributable to common stockholders, diluted (GAAP) Stock-based compensation expense Net (loss) income per share attributable to common stockholders, diluted (non-GAAP) Shares used in per share calculation, diluted (GAAP and non-GAAP) Net (loss) income attributable to common stockholders (GAAP) Interest expense Provision for income taxes Depreciation, amortization and impairment Stock-based compensation expense Adjusted EBITDA (non-GAAP) Total revenues Adjusted EBITDA margin (non-GAAP) (¹) Automotive gross margin (GAAP) Total regulatory credit revenue recognized Automotive gross margin excluding regulatory credits (non-GAAP) In millions of USD Net cash (used in) provided by operating activities (GAAP) Capital expenditures Free cash flow (non-GAAP) In millions of USD Net cash (used in) provided by operating activities - TTM (GAAP) Capital expenditures - TTM Free cash flow - TTM (non-GAAP) 3Q-20 17 (301) (1,116) (1,4 17) 4Q-20 17 5 10 (787) (277) 3Q-20 17 (1,0 19) (3,150) (4,169) (3,476) 4Q-20 17 (61) (3,4 15) 1Q-20 18 (398) (656) (1,054) 1Q-20 18 (389) (3,518) (3,907) 2Q-20 18 (130) (610) (740) 2Q-20 18 (319) (3,169) (3,488) Q2-20 19 (408) 210 (198) (2.31) 1.19 (1.12) 177 (408) 172 19 579 210 572 6,350 9.0% 18.9% -1.7% 17.2% 3Q-20 18 1,391 (510) 881 3Q-20 18 1,373 (2,563) (1,190) Q3-20 19 4Q-2018 1,235 (325) 9 10 4Q-20 18 2,098 (2,10 1) (3) 143 199 342 0.78 1.08 1.86 184 143 185 26 530 199 1,083 6,303 17.2% 22.8% -2.0% 20.8% 1Q-20 19 (640) (280) (920) 1Q-20 19 1,856 (1,725) 131 Q4-20 19 10 5 281 0.56 1.50 2.06 187 386 2Q-20 19 864 (250) 6 14 1,175 7,384 15.9% 2Q-20 19 2,850 (1,365) 1,485 10 5 170 42 577 281 22.5% -1.6% 20.9% 3Q-20 19 756 (385) 371 3Q-20 19 2,215 (1,240) 975 Q1-2020 16 211 227 0.08 1.0 6 1.14 199 16 169 2 553 211 951 5,985 15.9% 25.5% -5.5% 20.0% 4Q-20 19 1,425 (412) 1,0 13 4Q-20 19 2,405 (1,327) 1,078 1Q-2020 (440) (455) (895) 1Q-2020 2,605 (1,502) 1,10 3 Q2-2020 10 4 347 451 0.50 1.68 2.18 207 10 4 170 21 567 347 1,20 9 6,036 20.0% 25.4% -6.7% 18.7% 2Q-2020 964 (546) 4 18 2Q-2020 2,705 (1,798) 907 (1) Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues TESLA#2525 ADDITIONAL INFORMATION WEBCAST INFORMATION Tesla will provide a live webcast of its second quarter 2020 financial results conference call beginning at 2:30 p.m. PT on July 22, 2020 at ir.tesla.com. This webcast will also be available for replay for approximately one year thereafter. CERTAIN TERMS When used in this update, certain terms have the following meanings. Our vehicle deliveries include only vehicles that have been transferred to end customers with all paperwork correctly completed. Our energy product deployment volume includes both customer units installed and equipment sales; we report installations at time of commissioning for storage projects or inspection for solar projects, and equipment sales at time of delivery. "Adjusted EBITDA" is equal to (i) net income (loss) attributable to common stockholders before (ii) (a) interest expense, (b) provision for income taxes, (c) depreciation, amortization and impairment and (d) stock-based compensation expense, which is the same measurement for this term pursuant to the performance-based stock option award granted to our CEO in 2018. "Free cash flow" is operating cash flow less capital expenditures. NON-GAAP FINANCIAL INFORMATION Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP automotive gross margin, non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a diluted per share basis (calculated using weighted average shares for GAAP diluted net income (loss) attributable to common stockholders), Adjusted EBITDA, Adjusted EBITDA margin, and free cash flow. These non-GAAP financial measures also facilitate management's internal comparisons to Tesla's historical performance as well as comparisons to the operating results of other companies. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial condition and results of operations because it allows investors greater transparency to the information and financial metrics used by Tesla management in its financial and operational decision- making, as well as allows investors to better understand Tesla's performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above. FORWARD-LOOKING STATEMENTS Certain statements in this update, including statements in the "Outlook" section; statements relating to the development, production capacity and output rates, volumes, demand, deliveries, installation capacity, deployment, features and/or timing of existing and future Tesla products and technologies such as Model 3, Model Y, Cybertruck, Tesla Semi, Roadster, Autopilot and Full Self Driving, and our energy products and services such as Megapack, Solar Roof and Autobidder; statements regarding cash flow, operating margin, spending, liquidity and profitability targets; statements regarding productivity improvements, cost reductions and efficiencies; and statements regarding construction, expansion, improvements and/or ramp at the Tesla Factory, Gigafactory Shanghai, Gigafactory Berlin and a new U.S. factory, are "forward-looking statements" that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: uncertainties in future macroeconomic and regulatory conditions arising from the current global pandemic, the risk of delays in the manufacture, production, delivery and/or completion of our vehicles and energy products and product features, including Model 3, Model Y, Tesla Semi and our autonomous driving features; our ability to grow our production, sales, delivery and servicing capabilities, and manage future growth effectively, especially internationally; consumers' willingness to adopt electric vehicles generally and our ability to design and grow simultaneous and separate market acceptance of and demand for our vehicles; the ability of suppliers to meet quality and part delivery expectations at increasing volumes, especially with respect to our high-volume models; our ability to sustain and further grow our ramp of battery cell, energy product and product component production at Gigafactory Nevada; our ability to ramp Gigafactory Shanghai, Gigafactory Berlin and the new U.S. factory in accordance with our plans; any failures by Tesla products to perform as expected or if product recalls occur; our ability to continue to reduce or control manufacturing and other costs; competition in the automotive and energy product markets generally and the alternative fuel vehicle market and the premium vehicle markets in particular; our ability to execute on our evolving strategy for product sales, service, charging and other customer infrastructure; the unavailability, reduction or elimination of government and economic incentives for electric vehicles and energy products; potential difficulties in performing and realizing potential benefits under definitive agreements for our existing and future manufacturing facilities; our ability to attract and retain key employees and qualified personnel and ramp our installation teams; our ability to maintain the security of our information and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time to time; risks relating to our indebtedness and financing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned "Risk Factors" in our quarterly report on Form 10-Q filed with the SEC on April 30, 2020. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise. TESLn#26브 15 트 ㅗ