Tesla Investor Presentation — April 2018

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Tesla First Quarter 2018 Update

 Model 3 production hit 2,270/week in April for the 3rd straight week over 2,000

 Q1 Auto GAAP gross margin up sequentially by 80 bp and non-GAAP by 500 bp

 Cash balance of $2.7 billion at the end of Q1

 2018 Capex projection reduced from >$3.4 billion to <$3 billion

 Expecting positive GAAP net income and positive cash flow in Q3 and Q4 2018

We made significant progress on the Model 3 ramp in the second ha lf of Q1, and the momentum continued into early Q2. Prior to a

planned shutdown in mid-April to further increase production, we produced more than 2,000 Model 3 vehicles for three straight w eeks,

and we hit 2,270 in the last of those weeks. Even at this stage of the ramp, Model 3 is already on the cusp of becoming the be st-selling

mid-sized premium sedan in the US, and our deliveries continue to increase. Consumers have clearly shown that electric vehicle s are

simply more desirable when priced on par with their internal combustion engine competitors while offering better technology,

performance and user experience.

If we execute according to our plans, we will at least achieve positive net income excluding non-cash stock based compensation in Q3

and Q4 and we expect to also achieve full GAAP profitability in eac h of these quarters. This is primarily based on our ability to reach

Model 3 production volume of 5,000 units per week and to grow Model 3 gross margin from slightly negative in Q1 2018 to close t o

breakeven in Q2 and then to highly positive in Q3 and Q4. Ultimatel y, the growth of Model 3 and th e profit associated with it will help us