Tesla Investor Presentation — October 2020

Document content

Financial Summary 04

Operational Summary 06

Battery Day Highlights 11

Financial Statements 23

Additional Information 28

The third quarter of 2020 was a record quarter on many levels. Over the

past four quarters, we generated over $1.9B of free cash flow while

spending $2.4B on new production capacity, service centers,

Supercharging locations and other capital investments. While we took

additional SBC expense in Q3, our GAAP operating margin reached 9.2%.

We are increasingly focused on our next phase of growth. Our most recent

capacity expansion investments are now stabilizing with Model 3 in

Shanghai achieving its designed production rate and Model Y in Fremont

expected to reach capacity -level production soon.

During this next phase, we are implementing more ambitious architectural

changes to our products and factories to improve manufacturing cost and

efficiency. We are also expanding our scope of manufacturing to include

additional areas of insourcing. At Tesla Battery Day, we announced our

plans to manufacture battery cells in -house to aid in our rapid expansion

plan. We believe our new 4680 cells are an important step forward to

reduce cost and improve capital efficiency, while improving performance.

We continue to see growing interest in our cars, storage and solar

products and remain focused on cost -efficiency while growing capacity as

quickly as possible.$5.9B increase in our cash and cash equivalents in Q3 to $14.5B

Operating cash flow less capex (free cash flow ) of $1.4B in Q3Cash

Record vehicle deliveries, profitability and free cash flow

Buildout of three new factories on three continents continues as planned