1、ImpactReport2022A Sustainable Future is Within Reach2Impact Report 2022A Sustainable Future is Within Reach Our mission is to accelerate the worlds transition to sustainable energy.To accomplish this mission,we need to design products that are far superior to their fossil fuel counterparts in every

2、way,source and manufacture them as sustainably as possible and sell as many of them as we can.We believe the best way to do this is by offering an ecosystem of products that comprehensively addresses our worlds clean energy generation,storage and transportation needs.Impact Report 2022 Foreword Ever

3、y vehicle we sell,battery we install and solar panel we add moves the needle in the direction of a sustainable future.Thank you to the Tesla team,customers and supporters for bringing us closer to our goal in 2022.2 Contents3Impact Report 2022Environmental ImpactMaster Plan Part 3People&CultureProdu

4、ct Impact010204032.1Displacing Fossil Fuels4.1Attracting Talent3.1Making EVs Affordable2.2Carbon Impact of Our Products4.2Building the Best Workplace3.2Freedom to Travel2.3Carbon Impact of Our Operations2.4Water and Waste4.3Compensation4.4Social Impact3.3Maximizing Safety 3.4Building the Grid of the

5、 FutureContents 01 02 Master Plan Part 3 5 Environmental Impact 17 2.1 19 Displacing Fossil Fuels 2.2 26 Carbon Impact of Our Products 2.3 40 Carbon Impact of Our Operations 2.4 50 Water and Waste Impact Report 2022 Contents 03 Product Impact 59 3.1 61 Making EVs Affordable 3.2 65 Freedom to Travel

6、3.3 71 Maximizing Safety 3.4 90 Building the Grid of the Future 04 People&Culture 4.1 Attracting Talent 4.2 Building the Best Workplace 4.3 Compensation 4.4 Social Impact 98 100 109 123 132 3 Contents4Impact Report 2022Supply Chain055.1Our Approach5.2Battery Supply Chain5.3Priority Materials5.4Data

7、SystemsManagement Assertion08Appendix07Governance06Contents 05 06 07 08 Supply Chain 137 Governance 192 Appendix 203 Management Assertion 216 5.1 139 Our Approach 5.2 146 Battery Supply Chain 5.3 164 Priority Materials 5.4 186 Data Systems Impact Report 2022 Contents 4 Master Plan Part 301A Message

8、of HopeTodays energy economy is dirty and wasteful.Current StatePrimary Energy Consumption165 PWh/yr80%of global energy comes from fossil fuels7Impact Report 202280%of global energy comes from fossil fuels Todays energy economy is dirty.80%of our energy comes from burning fossil fuels,which leads to

9、 rising global temperatures and CO2 levels,as well as premature deaths from pollution.Current State Sustainable Sources e Fossil Fuels Impact Report 2022 Master Plan Part 3 Furthermore,the current energy economy is wasteful-with only one third of global energy produced delivering useful work or heat

10、.Primary Energy Consumption 165 PWh/yr 7 A sustainable future is within reach.A sustainable future is within reach.Current StatePrimary Energy Consumption165 PWh/yr84 PWh/yrSustainable Energy Economy9A sustainable energy economy requires 50%less total energyImpact Report 2022A sustainable energy eco

11、nomy requires 50%less total energy Most people assume that an electrified civilization requires the same or more energy than a fossil fuel economy.That is not true.Current State A sustainable energy economy is clean and far more efficient-requiring only half the primary energy of a fossil fuel econo

12、my.Primary Energy Consumption 165 PWh/yr Sustainable 84 PWh/yr Energy Economy Sustainable Sources e Fossil Fuels O End-Use Efficiency Impact Report 2022 Master Plan Part 3 9 The transition to sustainable energy will reduce global mining and extraction needs10Impact Report 2022Current Mining Extracti

13、onFully Sustainable EconomyThe transition to sustainable energy will reduce global mining and extraction needs Current Mining Extraction All Other Materials Mined e Fossil Fuel Extraction Impact Report 2022 Master Plan Part 3=1 Gigaton Sustainable Economy Materials Fully Sustainable Economy Note:The

14、se are the minerals that we focus our responsible battery sourcing efforts on-particularly lithium,nickel and cobalt.10 10%Zero240 TWh30 TW1/2$10T0.2%The investment required is manageable and achievable11Impact Report 2022The investment required is manageable and achievable Total land use,capital in

15、vestment and resource requirements are achievable.Additionally,a sustainable energy economy actually requires less investment and less material extraction than continuing todays unsustainable path.240TWh Storage 0 30TW Renewable power Impact Report 2022 Master Plan Part 3 I,-.-0.2%Land area required

16、 1/2 The energy required$10T Manufacturing investment 10%2022 world GDP Zero Insurmountable resource challenges 11 Only 0.2%of Earths land area is required.Only 0.2%of Earths land area is required.A five-step plan to shift to sustainable energy36%22%23%13%6%Beyond TeslaWhile we are uniquely focused

17、on accelerating the worlds transition to sustainability,a full transition will require efforts far beyond Tesla.In Master Plan Part 3,we highlight five key areasthat we believe can most dramatically advance the shift to sustainability.13Impact Report 2022Beyond Tesla While we are uniquely focused on

18、 accelerating the worlds 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 Including transpor

19、tation,heat generation and industrial manufacturing Renewably Power the Existing Grid Impact Report 2022 Master Plan Part 3 22%Switch to Electric Vehicles 23%Switch to Heat Pumps 13%6%High Temp Heat Sustainably Fuel Delivery&Hydrogen Planes&Boats 13 The path to 100%sustainability by 205014Solar&Wind

20、 Deployment(TW/yr)2022 DeploymentRequired Deployment0.361.03x increaseVehicle,Stationary&ThermalBattery Production(TWh/yr)2022 DeploymentRequired Deployment29x increaseElectric Vehicle Production(Millions/yr)2022 DeploymentRequired Deployment11x increaseImpact Report 2022The path to 100%sustainabili

21、ty by 2050 Solar&Wind Deployment(TW/yr)X increase 2022 Deployment Required 0.36 Deployment 1.O Per Year Impact Report 2022 Master Plan Part 3 To accomplish this five-step plan,the worlds annual deployment of solar and wind and annual production of batteries will need to continue to grow.We believe t

22、hese growth rates are achievable.Vehicle,Stationary&Thermal Battery Production(TWh/yr)2022 Deployment X increase 0.54 I Required Deployment 16 Per Year Electric Vehicle Production(Millions/yr)11x increase 2022 Deployment 8 Required Deployment 8 5 Per Year 14 Total solar,wind and battery installed ba

23、se and investment neededVehicle&Stationary Batteries0.87.00.30.81.0Manufacturing CapexRenewable Energy GridSwitch to EVsHeat PumpsHigh Temp ThermalPlanes&Ships15Solar&Wind Farms10.64.84.86.53.7Renewable Energy GridSwitch to EVsHeat PumpsHigh Temp ThermalPlanes&Ships30.4TWTWhT240$10Impact Report 2022

24、Total solar,wind and battery installed base and investment needed Solar&Wind Farms.4TW Renewable Energy Grid 10.6 Switch to EVs 4.8-Heat Pumps 4.8-High Temp Thermal 6.5 Planes&Ships 3.7-Total 30.4TW Impact Report 2022 Master Plan Part 3 Vehicle&Stationary Batteries TWh Renewable Energy Grid 22.9-Swi

25、tch to EVs 115.7 Heat Pumps 6.7 High Temp Thermal 49.9 Planes&Ships 44.4 Total 239.6TWh Manufacturing Capex T Renewable Energy Grid 0.8-Switch to EVs 7.0-Heat Pumps 0.3 High Temp Thermal 0.8-Planes&Ships 1.0-Total$10.T 15 EnvironmentalImpactThe Future is Electric021813.4 Mmtof CO2e emissions avoided

26、-30%Greenhouse gas emissions per vehicle-15%H2O per vehicle100%renewable Supercharger network90%of manufacturing waste recycledImpact Report 2022Water and Waste50-58Carbon Impact of Our ProductsCarbon Impact of Our Operations26-3940-49Displacing Fossil Fuels19-25Displacing Fossil Fuels 19-25 13.4 Mm

27、t of C02e emissions avoided Carbon Impact of Our Products 26-39 Carbon Impact of Our Operations 40-49-=-.,-.100%renewable Supercharger network-30%Greenhouse gas emissions per vehicle-15%H20 per vehicle Impact Report 2022 Environmental Impact Water and Waste 50-58 90%of manufacturing waste recycled 1

28、8 We make products that displace fossil fuel alternatives.2.1 Displacing Fossil Fuels e make products that displace fossil fuel alternatives.-p 20Air pollution from burning fossil fuels leads to premature deathsImpact Report 2022Fine Particulate Air Pollution in Europe(2023)Source:waqi.infoAir pollu

29、tion from burning fossil fuels leads to premature deaths Pollution from burning fossil fuels leads to eight million premature deaths globally each year.That accounts for one-in-five premature deaths worldwide.This is a major advantage of zero-emission products that is often forgotten.Our products ar

30、e not just about the future of our planet,but also about addressing preventable deaths today.Note:According to recently published research in Environmental Research by Harvard University,in collaboration with the University of Birmingham,the University of Leicester and University College London,air

31、pollution causes over eight million premature deaths annually.Impact Report 2022 Environmental Impact Fine Particulate Air Pollution in Europe(2023).,.#.-.-.Source:waqi.info e Good Moderate-Unhealthy(For sensitive groups)-Unhealthy e Very Unhealthy 20 21Tesla produced and delivered over 1.3 million

32、EVs globally in 2022Impact Report 2022Electric Vehicles ProducedTeslaVW GroupBYDHyundai MotorR-N-M AllianceStellantisBMW GroupFordGMToyota Motor Corp.Jaguar Land Rover(Tata)Tesla produced and delivered over 1.3 million EVs globally in 2022 Although we are focused on our own deliveries,electric vehic

33、le(EV)sales by all carmakers need to increase.We hope that every vehicle manufacturer will strive to produce hundreds of thousands of EVs per year,as significant reductions in emissions will only be achieved with an industry-wide shift.Emissions credit revenue is used for EV capacity expansion,which

34、 in turn displaces internal combustion engine(ICE)vehicles.In 2022,we generated almost$1.8 billion in revenue selling zero-emission regulatory credits to other original equipment manufacturers(OEMs).While it is common practice today for ICE vehicle OEMs to purchase regulatory credits from other comp

35、anies(such as Tesla)to offset their emissions,it is not a sustainable strategy.In order to meet increasingly strict regulatory requirements across the world,OEMs will be forced to develop truly competitive EVs.Impact Report 2022 Environmental Impact Electric Vehicles Produced Source:EV-;microcars no

36、t included.Tesla data are production volumes;other OEMs sales and delivery volumes are assumed to approximate their production for the year.Tesla BYD VW Group Hyundai Motor R-N-M Alliance Stell antis BMW Group Ford GM Toyota Motor Corp.Jaguar Land Rover(Tata)-I -II I I 0 200,000 400,000 600,000 800,

37、000 1,000,000 1,200,000 1,400,000 2022 2021 2020 2019 2018 2017 21 EV Emissions Impact Over Time(U.S.;mt CO2e)ManufacturingEmissionsAnnual Driving Emissions22Impact Report 2022A single Tesla vehicle avoids 55 tons of CO2e over its lifeA single Tesla vehicle avoids 55 tons of C02e over its life After

38、 approximately two years of driving,an EVs lifetime emissions are lower than an ICE vehicles.While EVs today still emit more greenhouse gases(GHGs)during the manufacturing phase,including emissions from the supply chain,it takes less than two years worth of driving before the total emissions from an

39、 EV fall below that of a comparable ICE vehicle.After 17 years of driving-the average life of a vehicle in the U.S.-a single Tesla vehicle will avoid almost 55 tons of C02e.This number is conservative for two reasons:it assumes no improvement in grid emissions over time and that an ICE vehicle maint

40、ains its fuel efficiency throughout its life.Impact Report 2022 Environmental Impact EV Emissions Impact Over Time(U.S.;mt C02e)20 10 0-10-20-30-40-50-60 Manufacturing Emissions I Annual Driving Emissions-.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I.I 20 10 0-10-20-30-40-50-60 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1

41、5 16 17 Years-EV-ICE Vehicle Cumulative EV Avoided Emissions 22 Current frameworks werent built for a company like Tesla23Impact Report 2022Current frameworks werent built for a company like Tesla The popular frameworks for measuring and reducing GHG emissions were written by and developed for well-

42、established companies with polluting products.These frameworks do not account for the impact of emissions that are avoided through the sale of zero-emission or clean-tech products.By the end of the decade,Tesla will need to build many more factories with the goal of ultimately producing 20 million v

43、ehicles and over 1,000 GWhs of energy storage per year.Each one of these products will avoid many tons of CO2e throughout its life.Tesla plays a critical role in achieving global commitments for electrification in the energy and transportation sectors through the sale of our products.Even as Tesla c

44、onstructs the most efficient factories with maximum renewable energy utilization,there will undoubtedly be incremental emissions from our growing Impact Report 2022 Environmental Impact factory footprints in the near term as we work to decarbonize all industrial processes and supply chain inputs.Tes

45、la supports making as much progress as possible toward a zero-emission future-indeed,it is our core mission as a company.There is a lot of work left to do to build a GHG-accounting system that holds polluters accountable,highlights the work being done by companies building zero-emission products and

46、 achieves the goal of decarbonizing the economy.Scope 1 GHG Emissions:From stationary combustion,mobile combustion and process emissions Scope 2 GHG Emissions:From production of purchased electricity and heat 23 In 2022,our customers avoided releasing about 13.4 million metric tons of CO2e into our

47、atmosphere.In 2022,our customers avoided releasing about 13.4 million metric tons of CO2e into our atmosphere.The more products we deliver,the faster we accelerate our mission25Impact Report 2022The more products we deliver,the faster we accelerate our mission In 2022,the global fleet of Tesla vehic

48、les,energy storage and solar panels enabled our customers to avoid emitting 13.4 million metric tons of CO2e.Thats equal to over 33 billion miles of driving.Learn more about how we calculate emissions savings on page 204.Impact Report 2022 Environmental Impact 25 Our products continue to get greener

49、 over time.2.2 Carbon Impact of Our Products Our products continue to get greener over time.27We use primary data to calculate emissions from our productsImpact Report 2022We use primary data to calculate emissions from our products With data from over four million vehicles on the road and a fleet o

50、f solar and storage products,we can calculate our emissions at a much higher level of accuracy than most manufacturers and can therefore develop emissions-reduction solutions to match.This also means that we can calculate our use-of-product emissions year-over-year.We do not have to estimate emissio

51、ns over the lifetime of the vehicle because we have primary data.See page 144-150,156-159 in our Supply Chain section and page 207 in Appendix for more detail.Impact Report 2022 Environmental Impact(.,:;:.-?i:,.,l _.).!.i :;.:,.:,.,._.,!.t,.,r 1:.)-ij.,.i.27 NEDC,WLTP or EPA testing cycles do not re

52、present real-world fuel or electricity consumption28Impact Report 202270 tonsNEDC,WLTP or EPA testing cycles do not represent real-world fuel or electricity consumption We used real-world energy consumption by Model 3 and Model Y to analyze EV energy consumption.For ICE fuel consumption,we used data

53、 provided by Consumer Reports,which reports model year 2021 mid-size premium sedans achieve 24.3 MPG on average.This translates to over 400 grams of CO2e per mile once we account for emissions generated through the extraction,refining and shipment of oil.New European Driving Cycle(NEDC)Worldwide Har

54、monized Light Vehicles Test Procedure(WL TP)U.S.Environmental Protection Agency(EPA)Impact Report 2022 Environmental Impact 0 70 tons Lifetime CO2e emitted by an avg.ICE vehicle(model year 2021)through its use phase.*Sold in the U.S.and excluding CO2e emitted during the oil refining phase.28 100%ren

55、ewable Supercharger network.100%renewable Supercharger network.30Powering our vehicles with renewable energyImpact Report 2022Powering our vehicles with renewable energy The global Supercharger network was 100%renewable in 2022,achieved through a combination of on-site resources and annual renewable

56、 matching.More than half of home charging in California was 100%renewable through annual renewable matching.Impact Report 2022 Environmental Impact 30 31Lifecycle Analysis Glossary Impact Report 2022Lifecycle EmissionsAverage Premium ICE VehicleModel 3/Y*Personal UseSolar ChargedPersonal UseGrid Cha

57、rgedLifecycle Analysis Glossary The per-mile lifecycle emissions of our vehicles include emissions from upstream supply chain,direct emissions from manufacturing and electricity consumption and use-phase emissions when charged from a grid with a generation mix that reflects the geographic distributi

58、on of Model 3 and Model Y deliveries in the U.S.,Europe and China.Before we dive in,here are the scenarios and assumptions were using for our analysis:*In 2022,we have added the impact of Model Y to the emissions-per-mile calculation in our LCA.Given that Model 3 and Model Y have 70%-plus parts comm

59、onality and share many manufacturing processes,their GHG emissions are very similar.We have decided to present the LCA as a weighted average of Model 3 and Model Y based on production share for each vehicle(for manufacturing-phase emissions)and delivery volumes in each region(for use-phase emissions

60、).8 Green NCAP reported that Model 3 has an exceptionally low Estimated Lifecycle GHG Emissions and Estimated Lifecycle Primary Energy Demand,second only to the electric Dacia Spring.Impact Report 2022 Environmental Impact SCENARIOS Model 3/Y*Personal Use Solar Charged Emissions per mile if Model 3/

61、Y principally charged at home using a solar system and energy storage Personal Use Grid Charged Emissions per mile if Model 3/Y principally charged at home from the grid Average Premium ICE Vehicle Based on an average of mid-size premium sedans and mid-size premium crossover SUVs,with a real-world f

62、uel economy of 24.3 MPG ASSUMPTIONS Lifecycle Emissions Using solar panels and Powerwall exclusively to charge Model 3/Y adds emissions to the manufacturing phase and reduces use-phase emissions to as low as zero No additional renewable energy capacity on the grid during the life of the vehicle-the

63、shape of the renewable energy adoption curve is still up for debate Manufacturing-phase emissions for Model 3/Y in the U.S.represent a Fremont-made vehicle,while manufacturing-phase emissions in Europe and China represent a China-made vehicle 31 32Impact Report 2022Model 3/YPersonal UsePersonal Use1

64、13Personal Use68Personal UseShift to Greener GridAverage Lifecycle Emissions68134Average Premium ICE VehicleAverage Premium ICE Vehicle467467Average Lifecycle Emissions United States gC02e/mi*Model 3/Y Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 68 134-467-e Manu

65、facturing Phase and Supply Chain e Use Phase Impact Report 2022 Environmental Impact*gCO2e/mi*=grams of CO2-equivalent emissions per mile driven New York gC02e/mi*Shift to Greener Grid Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 68 113 467-32 33Impact Report 2022

66、148187487Average Lifecycle Emissions148159487Model 3/YPersonal UsePersonal UsePersonal UsePersonal UseShift to Greener GridAverage Premium ICE VehicleAverage Premium ICE VehicleAverage Lifecycle Emissions Europe gC02e/mi*Model 3/Y Personal Use Solar Charged Personal Use Grid Charged Average Premium

67、ICE Vehicle 148 187 487-e Manufacturing Phase and Supply Chain e Use Phase*gCO2e/mi*=grams of CO2-equivalent emissions per mile driven Impact Report 2022 Environmental Impact Austria gC02e/mi*Shift to Greener Grid Personal Use Solar Charged Personal Use Grid Charged Average Premium ICE Vehicle 148 1

68、59 487-33 Impact Report 2022Average Lifecycle Emissions17029034153161Model 3/YPersonal UsePersonal UsePersonal UsePersonal UseShift to Greener GridAverage Premium ICE VehicleAverage Premium ICE Vehicle487487Average Lifecycle Emissions China gC02e/mi*Model 3/Y Personal Use Solar Charged Personal Use

69、Grid Charged Average Premium ICE Vehicle 170 290 487-e Manufacturing Phase and Supply Chain e Use Phase*gCO2e/mi*=grams of CO2-equivalent emissions per mile driven Impact Report 2022 Environmental Impact Sichuan Province 9co2e/mi*Shift to Greener Grid Personal Use Solar Charged Personal Use Grid Cha

70、rged Average Premium ICE Vehicle 153 161 487-I-34 The carbon impact of ICE vehicles remains the same every year of useCharging EVs becomes greener over time35Source:IEA2022-2040 Tesla estimate based on recent grid mix shifts.Conservatively assumes no change in federal policy or acceleration of move

71、to renewables in the U.S.for electricity generation.Impact Report 2022U.S.Electricity Grid Generation MixThe carbon impact of ICE vehicles remains the same every year of use The grid keeps getting cleaner,while ICE vehicle emissions do not.Based on publicly available sales and fleet data,we estimate

72、 that an average vehicle in the U.S.is scrapped after 17 years and slightly less than 200,000 miles of driving.As an ICE vehicle ages,its fuel efficiency only remains stable if serviced properly.Meanwhile,electricity generation to charge EVs has become greener over time with the addition of cleaner

73、energy sources to the grid.EV drivers can increase their renewable energy mix by installing solar energy generation or storage systems on their homes.Impact Report 2022 Environmental Impact U.S.Electricity Grid Generation Mix(Conservative Estimate)100%80%60%40%20%0%2015 2016 2018 2020 2022E 2024E 20

74、26E 2028E 2030E 2032E 2034E 2036E 2038E 2040E-Zero-Emission Sources Source:IEA 2022-2040 Tesla estimate based on recent grid mix shifts.Conservatively assumes no change in federal policy or acceleration of move to renewables in the U.S.for electricity generation.35 36Greater efficiency than a Prius,

75、performance of a PorscheModel Y is the most efficient electric SUVModel YModel 3Impact Report 2022Greater efficiency than a Prius,performance of a Porsche Tesla vehicles are among the most efficient EVs built to date.Model Y All-Wheel Drive(AWD)achieves 4.0 EPA miles/kWh,which makes it the most effi

76、cient electric SUV ever made.While achieving the best-in-class energy efficiency,our AWD models also provide impressive acceleration and speed.Model Y 4.3 s 135 mph Long Range AWD 0-60 mph Top Speed Model 3 3.9 s 145 mph Long Range AWD 0-60 mph Top Speed Impact Report 2022 Environmental Impact 36 37

77、Impact Report 2022Energy EfficiencyEPA rangeModel Y4.03.2VW ID.43.1Ford Mach E2.7Jaguar iPace2.6Audi e-tronEnergy Efficiency-EPA range Small SUVs(AWD)miles/kWh Model Y 4.Q VW ID.4 3.2 Ford Mach E 3.1 Jaguar iPace 2.7 Audi e-tron 2.6 Impact Report 2022 Environmental Impact 37 Electrifying heavy-duty

78、trucks is critical to our mission38Impact Report 20221%18%Combination Trucks vs.Rest of Total U.S.FleetElectrifying heavy-duty trucks is critical to our mission Combination trucks account for about 18/o of U.S.vehicle emissions-Semi will help change that.With less than 2 kWh per mile of energy consu

79、mption,Semi can travel up to 500 miles on a single charge,fully loaded.Charging with electricity is approximately 2.5 times cheaper per mile than refueling with diesel.Operators can see estimated fuel savings of up to$200,000 within their first three years of ownership.*Based on average diesel price

80、s in California between February 2022-July 2022 and typical electric rates.Impact Report 2022 Environmental Impact:i.,-_./0 Combination Trucks vs.Rest of Total U.S.Fleet 1%Fleet of vehicles on the road 18%All U.S.vehicle em1ss1ons 38 Even after 200,000 miles,our batteries degrade just 12%39Impact Re

81、port 2022Model S/XEven after 200,000 miles,our batteries degrade just 12%We often get asked:Will I need to replace my battery at some point in the future?The answer is no.Since weve been selling EVs for over a decade,we have a reliable data set that shows us battery degradation over time.We estimate

82、 that a vehicle gets scrapped after approximately 200,000 miles of usage in the U.S.and roughly 150,000 miles in Europe.Even after 200,000 miles of usage,our batteries lose just 12/o of their capacity on average.Note:Mileage is only one factor in battery capacity retention;battery age is also a majo

83、r factor.Retention figures at lower mileages above likely reflect the impact of age while higher mileage values,which come from high-utilization vehicles,likely reflect less influence from battery age.Performance of newer chemistries(not yet shown here)can vary and we plan to expand disclosure once

84、we have sufficient data.Impact Report 2022 Environmental Impact Model S/X Battery Retention per Distance Traveled e Retention Standard Deviation 100%80%50%0%0 Miles 50K Miles 100K Miles 150K Miles 200K Miles 39 We minimize the carbon impact of our operations.2.3 Carbon Impact of Our Operations e min

85、imize the carbon impact of our operations.J.Unlike ICE vehicles,it is possible to fully decarbonize the manufacturing and lifetime use of EVs41Impact Report 2022Unlike ICE vehicles,it is possible to fully decarbonize the manufacturing and lifetime use of EVs Electric vehicles and sustainable energy

86、products have a far better environmental impact than fossil fuel alternatives.This impact only increases when you take a step back to include the full lifecycle:raw material mining,product use and disposal.Impact Report 2022 Environmental Impact 41 42Minimizing GHG emissions from our full value chai

87、n30%YoY reductionin GHG operational emissions per vehicleScope 1 GHG EmissionsScope 2 GHG EmissionsmtCO2emtCO2e202,000*408,000*148,000305,00027,00074,00027,00029,000Impact Report 2022Minimizing GHG emissions from our full value chain Our goal is for all Tesla factories to be carbon neutral In suppor

88、t of our mission,we track and try to minimize emissions that result from our full value chain,including our supply chain and manufacturing processes,as well as our sales,service and delivery activities.In 2022,we measured our Scope 1 and Scope 2 GHG emissions considering the principles and guidance

89、of the GHG Protocol.Impact Report 2022 Environmental Impact Metric Scope 1 GHG Emissions Scope 2 GHG Emissions Location-Based Scope 1 GHG Emissions:Unit of Measure From stationary combustion,mobile combustion and process emissions Scope 2 GHG Emissions:From production of purchased electricity and he

90、at Manufacturing 148,000 305,000 sso1 Other2 Total 27,000 27,000 202,000*74,000 29,000 408,000*1 SSD=Sales,Service&Delivery 2 Other includes sites that conduct research and development,administration,energy product warehousing and deployment and other mixed-used warehousing.*Third-party assurance pr

91、ovider performed an attest engagement on the Scope 1 and 2 GHG emission totals but did not evaluate emissions by site type.Please see the assurance letter at the end of this report.42 43We measure all Scope 3 emissions categories,but focus on the largest:product use and supply chainImpact Report 202

92、2Scope 3 EmissionsWe measure all Scope 3 emissions categories,but focus on the largest:product use and supply chain Scope 3 emissions calculations are often highly academic,even those frameworks that are widely used like the GHG Protocol.They rely on large estimations and assumptions that often lead

93、 to figures that are not reflecting the true impact.Tesla is in a unique position because we obtain real data for the use of our products and our high level of vertical integration and direct sourcing relationships positions us to develop world-class data management systems.For Teslas Scope 3 GHG em

94、issions,please see the metrics on page 207 in the appendix.For Teslas supply chain GHG emissions,please see page 150.Impact Report 2022 Environmental Impact 0 Scope 3 Emissions Indirect emissions(not included in Scope 2)that occur in the value chain of the reporting company,including both upstream a

95、nd downstream emissions 43 44Reducing our manufacturing footprintImpact Report 2022Covering roof space with solar panelsLeveraging AI to make our energy use more efficientBuilding more sustainable factories from the ground upReducing our manufacturing footprint Building more sustainable factories fr

96、om the ground up Impact Report 2022 Environmental Impact Covering roof space with solar panels 0 Leveraging Al to make our energy use more efficient 44 45Building more sustainable factories from the ground up19%less kWh of energy used in Shanghai vs.FremontImpact Report 2022 Fremont,CA Gigafactory S

97、hanghaiBuilding more sustainable factories from the ground up We build each new factory to be better and more sustainable than the last.For example,at Gigafactory Texas,we chose highly efficient,insulated,low-emissivity windows to reduce building heating and cooling demand.In addition,waste heat rec

98、overy from our compressors alone will offset over 1 MW of natural gas consumption for process heating.While we have already completed substantial improvements at Gigafactory Shanghai,further improvements will continue at Gigafactory Berlin-Brandenburg and Gigafactory Texas.Impact Report 2022 Environ

99、mental Impact:-:-Paint:Shop.J Model 3 Gigafactory Shanghai Booy in Wliite(Welding)Stamping(:;eiriral Ais.smbty:.,-.,1 45 46Covering roof space with solar panels32,400 kW of solar panels installedon factoriesImpact Report 2022 I,-.-Covering roof space with solar panels We design new factories to be c

100、overed with solar panels.By year-end 2022,we had installed 32,400 kW of solar at our factories-with the largest installation at Gigafactory Texas.We will continue to add more renewable energy to serve our factories and facilities.Impact Report 2022 Environmental Impact.j .,;.i-.r,-.-,.,_:,-.v-z _.:_

101、-=:.-.:!.o:.=7-.46 47Impact Report 2022Leveraging AI to make our energy use more efficientAI Control Energy SavingsG Leveraging Al to make our energy use more efficient In 2022,Al Control was launched at Gigafactory Texas and expanded to 34%of the total heating,ventilation and air conditioning infra

102、structure at Gigafactory Nevada.The Al Control policy enables HVAC systems within each Gigafactory to work together to process sensor data,model Gigafactory dynamics and apply control actions that safely minimize the energy required to support production.Al Control is primarily deployed on systems t

103、hat heat or cool critical Gigafactory production spaces and equipment.To ensure safe operation,Al Control continuously communicates with the pre-existing standard control logic of each system.In the event of any Al Control error,each system seamlessly reverts to standard control.As a result,there ha

104、ve been zero safety incidents or production interruptions related to Al Control.Impact Report 2022 Environmental Impact Al Control Energy Savings Al off Al on Al off Alon e Energy Outside Temp 47 Reducing our carbon footprint even further48Impact Report 2022Transitioning to in-house manufactured 468

105、0 Tesla cells,whose production process can reduce energy consumption by more than 70%Utilizing renewable energy as much as possible throughout all our operationsReducing our carbon footprint even further In order to reduce the cost of our vehicles and batteries,we also need to use less energy to pro

106、duce them.At Teslas 2020 Battery Day,we presented a novel way to manufacture cells using a dry-electrode process.Current electrode production processes involve mixing liquids with cathode or anode powders and using massive machinery to coat and dry the electrode.Since this process involves large ove

107、ns,todays cell production consumes a lot of energy.The new dry-electrode process allows for the direct transition from a cathode or anode powder to an electrode film,reducing energy consumption in the overall cell manufacturing phase by more than 70%based on our latest analysis.We plan to shift ener

108、gy consumption toward renewables as quickly as possible throughout our operations-whether it is at our factories,sales,service or delivery locations or through our Supercharger network.Impact Report 2022 Environmental Impact Transitioning to in-house manufactured 4680 Tesla cells,whose production pr

109、ocess can reduce energy consumption by more than 70%Utilizing renewable energy as much as possible throughout all our operations 48 AustinBuffaloRenoBerlinShanghaiFremontWe use less water per vehicle than the industry average.2.4 Water and Waste e use less water per vehicle than the industry average

110、.51Water is becoming increasingly scarce as the climate changesImpact Report 2022Water is becoming increasingly scarce as the climate changes We are reducing our water usage throughout our operations as much as possible,prioritizing direct use in manufacturing.In the following section,we outline ini

111、tiatives we are taking at Gigafactory Berlin-Brandenburg and Gigafactory Texas to reduce water consumption per vehicle(including battery cells).Impact Report 2022 Environmental Impact I I I I 51 52Producing an EV requires less water than producing an ICE vehicle15%YoY reduction in water used per veh

112、icleImpact Report 2022Water Withdrawal Intensity in Global Vehicle Manufacturing(m3/vehicle)1.800.48Gigafactory Berlin(est.)*1.900.002.780.84Gigafactory Texas(est.)*2.570.00Tesla(2022)3.752.910.000.003.680.003.800.004.120.004.540.004.770.00Producing an EV requires less water than producing an ICE ve

113、hicle Each automaker may draw their boundaries slightly differently,depending on how vertically integrated they are.According to the latest publicly available figures,Tesla withdrew less water at facilities dedicated to vehicle manufacturing per vehicle produced than the majority of established auto

114、makers.Please see metrics on page 208 in the appendix for more information.Impact Report 2022 Environmental Impact Water Withdrawal Intensity in Global Vehicle Manufacturing(m3/vehicle)Vehicle Manufacturing Gigafactory Berlin(est.)*1.80 BMW 1.90 Tesla(2022)2.57 Gigafactory Texas(est.)*2.78 Mercedes-

115、Benz 2.91 Industry Avg.3.68 VW Group 3.75 Ford 3.80 Toyota 4.12 GM 4.54 Stell antis 4.77 Cell Manufacturing 0.48 0.00 0.00 0.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00*Latest estimate for water consumption based on factory design.Actual production figures will not be known until factories are ramped to f

116、ull production.Other manufacturer water efficiency comes from publicly available data with the latest year available.Source:Latest OEM disclosures 52 53Setting a new standard for water use per vehicleImpact Report 2022Water-intensive process optimizationRainwater and condensate harvesting and reuseR

117、eclaimed and recycled waterSetting a new standard for water use per vehicle Water-intensive process optimization Impact Report 2022 Environmental Impact Rainwater and condensate harvesting and reuse 0 Reclaimed and recycled water 53 54Impact Report 2022Water-intensive process optimizationWater-inten

118、sive process optimization We are constantly optimizing or eliminating water-intensive production processes across our operations.At Gigafactory Berlin-Brandenburg,we implemented hybrid cooling towers,eliminated quench tanks in casting and introduced cascade rinsing systems in the paint shop and batt

119、ery can wash process.Impact Report 2022 Environmental Impact 54 55Rainwater and condensate harvesting and reuseImpact Report 2022Rainwater and condensate harvesting and reuse We are planning to capture at least 25%of roof runoff in a central underground storage system in Gigafactory Texas.Rainwater

120、will be recycled for use in the cooling of manufacturing equipment.In an average year,such systems should save an estimated 7.5 million gallons of potable city water.Additionally,as hot,humid outdoor air is conditioned,water condenses out of the air.Typically,this condensate is discarded as wastewat

121、er.At Gigafactory Texas,we reuse this condensate in our cooling towers and process water systems to offset incoming site water.Impact Report 2022 Environmental Impact 55 Every kilowatt-hour of clean solar energy produced lowers GHG emissions and lowers water consumption56Reclaimed and recycled water

122、Impact Report 2022A note about water usage and power generation0 Reclaimed and recycled water The.,cooling tower makeup is the single biggest contributor to water usage in any car factory after paint operations.As water that cools machinery evaporates,it needs to be topped up regularly.The total coo

123、ling tower makeup could be offset entirely by non-potable sources such as rainwater or wastewater.Using locally treated wastewater could result in offsetting the entire annual.,cooling tower makeup water demand with non-drinkable uses.Based on our latest estimates,at Gigafactory Texas,this could res

124、ult in an estimated 170 million gallons of potable city water conserved annually.Starting in 2023,we will begin using reclaimed water for our landscape irrigation needs at Gigafactory Texas.Once fully deployed,we expect this to save just under 150 million gallons of potable city water annually.Impac

125、t Report 2022 Environmental Impact A note about water usage and power generation While many recognize the impact that power generation has on GHG emissions,its impact on water consumption is less appreciated.Power generation is one of the leading causes of water withdrawal in the U.S.,as water for t

126、hermoelectric power is used to generate electricity with steam-driven turbine generators and to cool power-producing equipment.This means that every kilowatt-hour of clean solar energy produced not only lowers GHG emissions,but also lowers water consumption.I,-,I Every kilowatt-hour of clean solar e

127、nergy produced lowers GHG emissions and lowers water consumption 56 57As we build more efficient factories,our waste per vehicle decreasesImpact Report 2022As we build more efficient factories,our waste per vehicle decreases Our legacy manufacturing operations at the Fremont Factory will always prod

128、uce more waste per vehicle than our newly designed factories.First,because the automotive supply chain doesnt have a strong presence on the West Coast of the U.S.,many components need to be shipped from long distances to our Fremont Factory,requiring excessive packaging and creating more waste than

129、necessary.Second,modern factories are better designed for material flow.Trailer entry points surround the whole factory,which means that components can be offloaded precisely at the part of the factory where they are needed.Impact Report 2022 Environmental Impact.I I ri;t;n.E 57 58We recycle all mat

130、erials possible90%manufacturing waste recycledImpact Report 2022Waste Generated in Vehicle Manufacturing263Global Vehicle Manufacturing374Legacy Manufacturing Sites180New Manufacturing SitesWe recycle all materials possible The vast majority of generated waste-such as paper,plastics and metals-is re

131、cyclable.At Gigafactory Shanghai,for example,just 7%of total waste generated in 2022 was not recyclable.We push for innovative approaches to waste reduction.Examples include the reduction in use of non-recyclable materials,learning from local factories and deploying improvements globally and minimiz

132、ing shipments and packaging.Please see metrics on page 208 in the appendix for more information.Impact Report 2022 Environmental Impact Waste Generated in Vehicle Manufacturing 2022;kg/vehicle Global Vehicle Manufacturing 263 Legacy Manufacturing Sites 37 4 New Manufacturing Sites 180 e Waste Divert

133、ed From Disposal(Recycled)e Waste Directed to Disposal Note:The chart above shows that waste generation per vehicle at Gigafactory Shanghai is less than half of what it is in the U.S.We are expecting our upcoming factories,such as Gigafactory Berlin-Brandenburg and Gigafactory Texas,to continue the

134、same trend.-58 ProductImpactBetter in Every Way0360$0.49per mile total cost of ownership for Model 3 SR,similar to a Corolla99.95%Supercharger uptime5-Starrating from NHSTA,Euro NCAP and ANCAP for Model Y$Lowest cost per watt solar0.001%failure rate of energy productsImpact Report 2022Building theGr

135、id of theFuture90-97Freedom to TravelMaximizing Safety65-7071-89Making EVs Affordable61-64Making EVs Affordable 61-64$0.49 per mile total cost of ownership for Model 3 SR,similar to a Corolla Impact Report 2022 Product Impact Freedom to Travel 65-70 99.95%Supercharger uptime Maximizing Safety 71-89

136、5-Star rating from NHSTA,Euro NCAP and ANCAP for Model Y Building the Grid of the Future 90-97$0.001%Lowest cost per watt solar failure rate of energy products 60 Affordability is key to mass adoption.3.1 Making EVs Affordable Affordability is key to mass adoption.Model 3 is the first EV to be price

137、d on par with ICE vehicle equivalents62Impact Report 2022$39,900Model 3Starting PriceModel 3 is the first EV to be priced on par with ICE vehicle equivalents The accessibility of our products is fundamental to our mission.Model 3 is the first EV in history priced competitively with its gas-powered e

138、quivalents,even before taking into consideration any regional subsidies and lower running costs.Unfortunately,most other EVs on the market today are often priced at over a$10,000 premium compared to their direct ICE vehicle equivalents.Even our most affordable Model 3 comes standard with superior eq

139、uipment and software-such as Autopilot,over-the-air software updates,4G connectivity and,in our view,the best infotainment system on the market.Impact Report 2022 Product Impact Starting Price(Before Incentives)Mid-Sized Premium Sedans Model 3 RWD$39,900 Audi A4$40,300 BMW 3 Series$43,800 Mercedes C

140、-Class$44,850 62 63Model 3 total cost of ownership per mile is similar to a Toyota CorollaImpact Report 2022Total Cost of OwnershipModel 3$0.49Model 3 total cost of ownership per mile is similar to a Toyota Corolla While the sticker price of Model 3 is similar to an equivalent BMW or Audi,the lifeti

141、me running costs of EVs are lower than those of ICE vehicles due to lower maintenance costs,cheaper electricity and the high residual value of used Tesla vehicles.Note:The advantage of having a fleet of vehicles that is constantly online is the ability to analyze real-world data rather than only bei

142、ng able to use estimates.We have an extensive database of Model 3 residual values and cost of repairs,maintenance,energy use,etc.Additionally,the insurance cost for Model 3 RWD is based on the projected median insurance rate in the U.S.for Model 3 drivers.Impact Report 2022 Product Impact Total Cost

143、 of Ownership 5 years,60,000 miles Model 3 RWD$0.49 per mile Toyota Corolla*$0.46 per mile e Depreciation,Taxes,Fees,Incentives&Financing e Insurance e Maintenance,Tires&Repairs Fuel(Electricity or Gasoline)*Based on 2023 Model Base Trims 63 Cost of Goods Sold64Making EVs even more affordableImpact

144、Report 2022Model 3/Y50%Reduction in CostMaking EVs even more affordable Our goal is to build and deliver 20 million vehicles a year by 2030.To achieve this goal,we need to make our products even more accessible.Affordability begins with how much it costs us to produce our vehicles.We were able to re

145、duce the cost to build a single vehicle by almost 50%since 2018-with the introduction of Model 3 and Model Y as well as the deployment of new,more efficient factories.And we arent done yet.During 2023 Investor Day,we outlined our goal of reducing that cost by another 50o/o with the introduction of o

146、ur next generation platform.Impact Report 2022 Product Impact Cost of Goods Sold Expected reduction in cost Model 3/Y Today Next Gen Future Cost of goods sold per vehicle 50%Reduction in Cost 64 Our products are designed to be better in every way.3.2 Freedom to Travel Our products are designed to be

147、 better in every way.We make products that people love66Impact Report 2022We make products that people love Consumers are unlikely to buy products just because they have a low lifetime carbon footprint.They need to be better in every way-safer,more affordable,faster and more fun.We are not just tryi

148、ng to build 11green11 products;we are committed to building the best products,period.Impact Report 2022 Product Impact 66 67Impact Report 2022People use their Tesla as their primary vehicle13,793 Miles11,121 MilesAverage Annual Miles Driven in the U.S.People use their Tesla as their primary vehicle

149、Our data shows that our customers drive Tesla vehicles more than the average vehicles in the U.S.,which suggests that they use their Tesla as their primary vehicle.Surveys show that range concerns(real or perceived)are a key reason why many people do not replace their ICE vehicle with an EV.The more

150、 confident owners are that their EV can be used for errands,commuting and long road trips,the less they will feel the need to supplement their EV with an ICE vehicle.Impact Report 2022 Product Impact 0 Average Annual Miles Driven in the U.S.Model Y 13,793 Miles Avg.Vehicle 11,121 Miles 67 Freedom of

151、 travel is the reason people buy vehicles in the first place68Impact Report 202250%Range Increase2022 Model SFreedom of travel is the reason people buy vehicles in the first place Consumers do not buy a vehicle that can meet most of their driving needs-they buy a vehicle that meets all of their driv

152、ing needs.Since its introduction in 2012,we have increased the range of Model S by over 50o/o-from 265 miles to 405 miles of range for the long-range version.Our focus on energy efficiency-achieving superior range from the same sized battery-has allowed us to continue to increase range while keeping

153、 the battery size relatively stable.Impact Report 2022 Product Impact Range Increase 2022 Model S 2012 Model S 68 Incredibly fast charging times for V3 and V4 Superchargers300 mi of range at highway speeds=4 hrs of driving69Impact Report 2022Incredibly fast charging times for V3 and V4 Superchargers

154、 After four hours on the road,drivers are likely to take a break.Superchargers can recover up to 200 miles of range in just 15 minutes of charging,long enough for a quick snack.Impact Report 2022 Product Impact 69 70Impact Report 2022Average Uptime of Supercharger Sites*99.94%99.90%99.74%99.96%99.95

155、%Chargers that just workChargers that just work .Impact Report 2022 Product Impact 0 Average Uptime of Supercharger Sites*99.94%2018 99.90%2019 99.74%2020 99.96%2021 99.95%2022*Uptime of Supercharger sites reflects the average percentage of sites globally that had at least 50%of their daily capacity

156、 functional for the year.70 We design our vehicles to be as safe as possible.3.3 Maximizing Safety e design our vehicles to be as safe as possible.All Tesla safety features come standard72Impact Report 2022Lars Explains|Tesla Vehicle SafetyAll Tesla safety features come standard Tesla vehicles are e

157、ngineered to be some the safest in the world.Our vehicles are equipped with specifically designed crumple zones,airbags and pretensioning seatbelts-among many other technologies.Beyond the star ratings,we push ourselves to learn more and more about passive and active safety from our fleet.We believe

158、 the best crash is no crash and are focused on enhancing avoidance mitigations and active safety improvements in our vehicles.Impact Report 2022 Product Impact All Tesla vehicles built since October 2016 come with a suite of external cameras,additional sensors and onboard computing that enable advan

159、ced safety features like Automatic Emergency Braking,Lane Departure Warning,Forward and Side Collision Warning,Obstacle-Aware Acceleration,blind spot warnings,vulnerable road-user detection and more-all of which continue to improve over time through over-the-air software updates.We deploy these upda

160、tes to our vehicles at our customers convenience without a trip to a Service Center.Connectivity is a hallmark of Tesla ownership and software updates continuously enhance the customer experience.Lars Explains I Tesla Vehicle Safety 72 73Impact Report 2022Source:Source:Euro NCAP Safety Tests of Tesl

161、a Model Y 2022-Best in Class 2022-Small Off-RoadEuro NCAP Safety Tests of Tesla Model S 2022-Best in Class 2022-Executive|Pure ElectricSource:Source:Euro NCAP Safety Tests of Tesla Model S 2022-Best in Class 2022-Executive I Pure Electric Euro NCAP Safety Tests of Tesla Model V 2022-Best in Class 20

162、22-Small Off-Road Impact Report 2022 Product Impact 73 74Impact Report 2022Exceeding safety standards across four continentsOccupant SafetyPedestrian SafetyActive SafetyOccupant Safety Active SafetyTop PerformerTop PerformerBest in ClassBest in ClassBest in ClassBest in ClassExceeding safety standar

163、ds across four continents Model 3 Model Y Model S Model X Impact Report 2022*2022*2022 Product Impact IIHS HILDI-2112!sB,v IIHS PfOK+2022 1 TOP 202;c:SAFETY IIHS PfGK+2022 Best in Class 2019*2022 Best in Class*2022 Best in Class*2022 Best in Class 2019*2022 ANCAP SAFETY Top Performer 2019*2022 Top P

164、erformer*2022 itpwJffi;$jft11 Top Rating Occupant Safety Active Safety 2021 Top Rating Occupant Safety Pedestrian Safety Active Safety 2021 74 75Impact Report 2022Highest score awarded92%92%3%higher than the second highest manufacturersHighest score awarded Euro NCAP Overall Score 2020-2022 protocol

165、 Model Y Impact Report 2022 Product Impact 00 Model S 3%higher than the second highest manufacturers Lexus NX 89%Subaru Outback 89%Nissan Qashqai 88%WEY Coffee 01*88%Mazda CX-60 87%NIO ET7 87%*Great Wall Motors Lexus RX 89/o Genesis G80 88%Polestar 2 88%WEY Coffee 02*88%Mercedes-Benz C 87%Nissan X-T

166、rail 87%Mercedes-EQ EQE 89%Mercedes-EQ EQS 88%smart#1 88%Hyundai IONIQ 6 87%Mercedes-Benz GLC 87%ORA Funky Cat 87%75 Not all active safety systems are created equal 76Impact Report 2022Euro NCAP Safety Assist RatingTesla Model YTesla Model S98%98%Safety Assist Rating94%94%94%94%Superior98%98%Superio

167、r98%Not all active safety systems are created equal The range of sensors,compute power and quality of software in Automatic Emergency Braking(AEB)systems can vary dramatically across all vehicle makes and models.Our active safety features are powered by eight cameras,a neural-net computer and learni

168、ngs from our fleet of over four million cars.Built on a deep neural network,Tesla Vision deconstructs the vehicles environment at greater levels of reliability than classical vision processing techniques can.Model Y is our latest vehicle to earn a five-star safety rating from the European New Car As

169、sessment Programme(Euro NCAP).As part of this assessment,Model Y received the highest overall score among any vehicle tested under Euro NCAP.Model S and Model Y both received the highest overall safety scores among every vehicle tested by Euro NCAP in 2022.Impact Report 2022 Product Impact Safety As

170、sist Rating ANCAP 11gs LOI SFEn 1 2019 Safety Assist Ratings Model X Model 3 94%1 94%1 94%1 Not Rated Superior 2 2022 Safety Assist Ratings Euro NCAP Safety Assist Rating 2022 Tesla Model Y gao1o NIO ET7 95%Tesla Model S 98%WEY Coffee 01 94%ORA Funky Cat 93/o Nissan Ariya 93%WEY Coffee 02 93%Model Y

171、 Model S 98%2 98%2 98%2 Not Rated Superior Not Rated BMW 2 Series AT 92%BMWX1 92%Lexus NX 91%Subaru Solterra 91%Toyota bZ4X 91%76 77Impact Report 2022Safety is enhanced when Autopilot is engagedNumber of Vehicular AccidentsAutopilot EngagedMostly Highway Miles0.18FSDBeta EngagedMostly Non-Highway Mi

172、les0.31No Active Safety0.68Total U.S.Vehicle Fleet*Based on our data of Tesla vehicles and NHSTA data of vehiclesFor more information about our methodology,see our Vehicle Safety Report.Safety Score incentivizes safe drivingBeta78Impact Report 2022Collision RateRanked bySafety ScoreBeta90UnsafeSafeS

173、afety ScoreSafety Score8eta incentivizes safe driving Customers who choose to be part of our Tesla Insurance program receive a Safety Score8eta.Instead of determining a drivers insurance premium from demographic information(gender,age,education or marital status)and financial history(credit score),o

174、ur algorithm calculates Safety Score8eta based on actual driver behavior.Our data shows a lower rate of collision for the cohort of customers who have enabled Safety ScoreBeta.As the vehicles Safety ScoreBeta increases,the number of collisions per mile decreases and insurance premiums reduce.The beh

175、aviors we monitor include:Forward Collision Warnings Hard Braking Aggressive Turning Unsafe Following(Tailgating)Forced Autopilot Disengagement Late-Night Driving Excessive Speeding Unbuckled Driving Impact Report 2022 Product Impact Safety Score Based On Driving Behavior 90 Unsafe Safe Safety Score

176、 Collision Rate 91-100 81-90 71-80 61-70 0-60 Ranked by Safety Score Beta 0 78 Automatic Emergency Braking continues to improve79Impact Report 2022Turning into the path of a pedestrian crossing the roadTurning into the path of an oncoming vehicleTraveling toward a vehicle on a perpendicular path 80I

177、mpact Report 2022Superior nighttime safetySuperior nighttime safety In 2021,U.S.pedestrian and road-user fatalities reached their highest-a 53%increase since 2012-and over 75%of fatalities occur at night.Model S,Model 3,Model X and Model Y are Euro NCAP five-star rated,including for nighttime pedest

178、rian crash avoidance.Model 3 and Model Y have also both received Superior,the highest possible rating from IIHS,for the nighttime performance of our pedestrian AEB system.Impact Report 2022 Product Impact 80 We are using real-world data from our fleet to design our safety systems.e are using real-wo

179、rld data from our fleet to design our safety systems.82Impact Report 2022We can learn from any crashWe can learn from any crash Whether simulated or real,we can learn from any crash to help optimize the protection of occupants and reduce the likelihood of injury.This fundamental philosophy is one of

180、 the reasons our vehicles perform at industry-leading levels in regulatory and consumer crash tests globally.As all of our vehicles are connected,we can further leverage this philosophy by deploying new safety capabilities and improvements over-the-air as a software update.Impact Report 2022 Product

181、 Impact 82 83Impact Report 2022Left HandRight HandFrontalRearReal-World CrashesReal-World Crashes Measured by Impact Left Hand Impact Report 2022 Product Impact I I I,.Frontal I I I .I.i.Right Hand Rear 83 84Using new data to improve pre-crash safetyImpact Report 2022Injury StudiesIntegrated Detecti

182、on FrontUsing new data to improve pre-crash safety hll Injury Studi 1 Impact Report 2022 Environmental Impact I,I 7-._ Integrated Detection Front 84 85Impact Report 2022Injury StudiesOptimizing restraint system performance in real-world crash scenarioshll Injury Studies We leverage our ever-growing

183、data set to help ensure occupants receives the best possible restraints(such as seat belts and airbags)for the impact they are involved in,and design innovative restraint systems for the future.Our safety analysis engineers evaluate through simulation studies to enhance our understanding of the comp

184、lex impacts that occur in the field.The study of injuries has been accelerated by the creation of automated data pipelines and by leveraging machine learning to analyze large data sets.As the capability of driver assistance advances,the nature of the crash exposure to our fleet will change.Impact Re

185、port 2022 Product Impact 85 86Impact Report 2022Integrated Detection Front(IDF)Deployed to the fleet in an over-the-air updateIntegrated Detection Front(IDF)IDF can help us understand the nature of an impact before first contact even occurs in a crash.The IDF system is continuously watching for the

186、potential threat of a frontal impact to our vehicles and acts as an early warning to further enhance our crash-sensing system.When an imminent frontal impact is detected by our vision system,IDF results in faster and improved restraint decision-making(e.g.,early seatbelt pretension where needed).In

187、turn,the new and rich data set from IDF can provide a positive feedback loop of safety analysis.Impact Report 2022 Product Impact r,.Ul en N.I I-C/)w I-86 87Impact Report 2022Moving to Tesla Vision increases performanceMoving to Tesla Vision increases performance In 2021,we decided to remove radar f

188、rom our sensor suite.This improved safety while simultaneously simplifying engineering by removing a noisy signal.Model 3 scored better in both pedestrian(including nighttime tests)and urban crash avoidance scenarios under the Euro NCAP protocols with Tesla Vision only.Impact Report 2022 Product Imp

189、act 87 88Leading the industry in fire safetyImpact Report 2022For more information about our methodology,see our Vehicle Safety Report.Leading the industry in fire safety We have always designed our batteries in a way that minimizes the chance of thermal runaway.Our battery packs are industry leadin

190、g because they are designed to stop a cell runaway event from spreading to a fire.This is one of the many reasons why our rate of vehicle fires is about ten times less likely than an average vehicle.To support a safe transition to sustainable energy,we share safety techniques with the industry.For m

191、ore information about our methodology,see our Vehicle Safety Report.Impact Report 2022 Product Impact 88 89Fire incidents are lower forTesla vehicles than the average vehicle in the U.S.Impact Report 2022Fire incidents are lower for Tesla vehicles than the average vehicle in the U.S.In 2022,our rate

192、 of incidents continued to decrease.We will publish our updated statistics in our Vehicle Safety Report.As we rely on non-digital information for some of these cases,there can be a delay between when an incident occurs,when we are notified and when it is included in our statistics.We are developing

193、new and improved methods of identifying and reporting incidents.Impact Report 2022 Product Impact 89 Tesla Energy is a one-stop shop.3.4 Building the Grid of the Future Tesla Energy is a one-stop shop.-Grid stability is required for decarbonization91Impact Report 2022Reported Electrical Disturbances

194、Grid stability is required for decarbonization As we decarbonize the economy and electrify everything,grid expansion and stability will be more important than ever.Pairing renewables with energy storage is the best way to stabilize and grow the grid while simultaneously making the required GHG reduc

195、tions needed to avoid the worst outcomes of climate change.Electrical disturbances in the U.S.are becoming more common,predominantly due to weather and natural disasters.According to the U.S.Department of Energy,electrical disturbances cost businesses$150 billion per year.It is not surprising that h

196、omeowners and businesses are increasingly turning to backup power supply options.Impact Report 2022 Product Impact Reported Electrical Disturbances In the U.S 2004 2012 2022 0 4t Weather or Natural Disaster Vandalism,Attack or Sabotage Other 91 An entire ecosystem 92Impact Report 2022An entire ecosy

197、stem We have an entire ecosystem of energy products including hardware and software across generation and storage.We also have project management capabilities and a strong deployment track record of getting projects done on time.Our energy products can serve many purposes,including reducing emission

198、s,helping to prevent grid outages and acting as backup power if the grid does go down.Customers can enjoy a seamless experience whether they are a homeowner looking to achieve energy independence or a utility developer looking for the most cost-effective and reliable energy solutions.Pairing energy

199、storage with renewables enables cost-effective stabilization and decarbonization of the grid.Impact Report 2022 Product Impact 92 Renewable energy paired with battery storage will become the cheapest option availableGuaranteed lowestprice for solar$93Impact Report 2022Renewable energy paired with ba

200、ttery storage will become the cheapest option available We are committed to reducing the cost of our products to foster mass adoption.Ultimately,using renewable energy(such as solar and wind)with battery storage will become the cheapest energy option available,regardless of location.This is already

201、the case in many locations around the world.As costs continue to decline,more customers will be able to financially benefit from turning to renewable energy.Impact Report 2022 Product Impact 93 Renewables&energy storage are already cost competitiveMegapack+renewables is cheaper than other convention

202、al solutions94Impact Report 2022Levelized Cost of Energy Comparison for Megapack and Conventional Resources($/MWh)010015050200250Renewables&energy storage are already cost competitive Megapack is cheaper per MWh than many fossil fuel alternatives.A single Megapack XL has almost 4 MWh worth of batter

203、y storage capacity,and given its scalability,enables projects over 1,000 MWh.In 2022,in order to meet demand that is well in excess of supply for energy storage products,Tesla completed a new production facility,called Megafactory,capable of producing 40,000 MWh of energy storage per year.We also an

204、nounced another Megafactory in China in early 2023.Impact Report 2022 Product Impact Levelized Cost of Energy Comparison for Megapack and Conventional Resources($/MWh)Solar PV+Megapack 2 XL Natural Gas Peaker Plant Nuclear Power Plant Coal Plant Combined-Cycle Natural Gas($/MWh)0 Subsidized e Un-sub

205、sidized 50 100 Source:Lazard April 2023 analysis.Megapack 2 XL figures are for our 4-hour duration product and are based on Tesla estimates.150 200 250 94 95Impact Report 2022Tesla energy products set the bar for safety and reliabilityTesla energy products set the bar for safety and reliability Tesl

206、a meets and exceeds many industry safety standards and code requirements,as demonstrated through rigorous testing.The hardware and software safety features in Powerwall and Megapack work in tandem to prevent system faults and maximize product uptime.Continuous monitoring allows for detection,diagnos

207、is and troubleshooting of system warnings and faults-enabling timely and appropriate responses to all safety events involving Tesla products and ensuring the safety of first responders.Impact Report 2022 Product Impact.-=-.,.-95 96Impact Report 2022Zero Direct Emissions Built-In Safety24/7 Monitorin

208、g Exceeds Standards Proactive Fire ControlBest-In-Class PerformanceZero Direct Emissions Unlike fossil fuel peaker plants,battery storage has zero direct emissions Exceeds Standards Safety is our top priority,and we continuously review,test and update our requirements and procedures Impact Report 20

209、22 Product Impact Built-In Safety Our energy storage products are manufactured with hardware and software safety features Proactive Fire Control Designed to prevent battery fires(thermal runaway)and be resilient if they occur 24/7 Monitoring Early detection,diagnosis and troubleshooting of system er

210、rors and Live Support for safety events Best-In-Class Performance Highest energy and power density in the industry,upwards of 300 MWh per acre 96 97Impact Report 2022Less than 0.001%failure rateLess than 0.001%failure rate Safety is always our priority and we continue to review,test and update our s

211、afety requirements and procedures ahead of industry standards.Failure rates of Tesla energy storage products are extremely low,and are lower than serious transformer fires.*The risk of battery fires,as with all energy infrastructure,is never zero.If we account for all our energy products since incep

212、tion,the failure rate is Visibility Increased visibility into 12 material supply chains Impact Report 2022 Supply Chain Expectations Added stricter supplier expectations in our contracts and policies Audits Tripled the number of direct supplier audits and maintained the number of battery supply chai

213、n audits,11 Tracking Increased measurable improvement on environmental and social issues in our supply chain Production Control Increased the amount of material directly sourced from nickel,lithium and cobalt producers 141 142Remaining engaged to promote responsible sourcingGovernanceImpact Report 2

214、022Remaining engaged to promote responsible sourcing When we become aware of a risk in our supply chain,we assess and work with the appropriate parties to address it.Disengaging because of a potential risk can have unintended socio-economic consequences for local communities.We believe the best way

215、to promote responsible sourcing is to remain engaged and encourage corrective actions.In instances where supply chain actors present an unwillingness to improve,Tesla will consider removing them.Governance Our responsible sourcing team is strategically embedded into our supply chain organization and

216、 our efforts are overseen by executives from Supply Chain,Investor Relations and Policy.We regularly report on progress to these executives and a committee of representatives from Compliance,Environmental Health and Safety,Global Trade Compliance,Internal Audit,Legal,Policy,Sustainability and more.I

217、mpact Report 2022 Supply Chain 142 143We align with industry best practicesImpact Report 202254321Implement Risk Mitigation Measures in Priority Engagement AreasCollaborate With Industry InitiativesDisclose in theImpact ReportCollect&Investigate Supply Chain Environmental&Social Risk DataMaintain St

218、rong Policies&Management Systems54321We align with industry best practices We source responsibly according to the Organisation for Economic Co-operation and Development(OECD),Responsible Business Conduct(RBC)Framework,the OECD Due Diligence Guidance for Responsible Mineral Supply Chains and the Unit

219、ed Nations Guiding Principles(UNGPs)on Business and Human Rights.As risks evolve,we continually review our approach to due diligence with the goal of improving our efforts to identify and mitigate risk as well as have the same expectations for our suppliers.Policies applicable to all suppliers and e

220、mbedded into the General Terms and Conditions:1.Tesla Responsible Sourcing Policy*:Teslas public commitment to responsible sourcing 2.Tesla Supplier Code of Conduct:Teslas expectations for our suppliers 3.Global Human Rights Policy*:Teslas commitment to uphold respect for human rights-training on hu

221、man rights in recognition of Human Rights Day held on Dec 11,2022 Impact Report 2022 Supply Chain *Updated in 2023 s II Maintain Strong Policies&Management Systems Collect&Investigate Supply Chain Environmental&Social Risk Data Implement Risk Mitigation Measures in Priority Engagement Areas Collabor

222、ate With Industry Initiatives Disclose in the Impact Report 143 144Impact Report 2022Forced labor and responsible sourcingClear supplier expectationsInternal trainingInternational Labor Organization(ILO)Forced Labor IndicatorsForced labor and responsible sourcing Forced labor prevention,identificati

223、on and remediation are a priority for Tesla.We take any allegations of forced labor in our supply chain seriously and work diligently to uphold respect for freely chosen employment while reducing our respective risk exposure.Combatting forced labor requires the establishment of minimum standards tha

224、t all suppliers must comply with,incorporating all applicable legal requirements,as well as the setting of high expectations our entire supply chain shall work toward.We have established a management system that effectively drives the development and implementation of our efforts to combat forced la

225、bor.We have established tools and processes for the early detection of forced labor and implemented due diligence procedures to monitor potential risk indicators and help prevent abuses at our suppliers.Our approach includes the following:Impact Report 2022 Supply Chain Clear supplier expectations W

226、e set comprehensive policies and robust procedures to help ensure that no one in our supply chain is forced to work.Our Global Human Rights Policy,Supplier Code of Conduct and Responsible Sourcing Policy outline our commitments and supplier expectations related to forced labor,which are further enfo

227、rced through the contractual agreements with our suppliers.Internal training On International Human Rights Day,we established an internal training program to educate employees on the salient issue of forced labor.The training provided employees with a concrete toolkit to identify signs of forced lab

228、or during supplier visits and nearly 1,000 Tesla supply chain and engineering employees attended.International Labor Organization(ILO)Forced Labor Indicators Debt bondage Restriction of movement Withholding wages Retention of ID documents Abuse of vulnerability Deception Abusive living and working c

229、onditions Physical and sexual violence Intimidation and threats Excessive overtime Isolation 144 145Impact Report 2022Implementing best practicesCustoms Trade Partnership Against Terrorism(CTPAT)Collective effortsFor more information,please see our California Transparency inSupply Chain Acts Stateme

230、nt and our U.K.Modern Slavery Act Transparency Statement.Worker VoiceLearn more about our new worker voice mechanism on page 111.Identification of forced labor indicatorsImplementing best practices Customs Trade Partnership Against Terrorism(CTPAT)Tesla joined the CTPAT program in July 2019.In Septe

231、mber 2022,the U.S.Customs and Border Protection(CBP)met with Tesla management and internal stakeholders from across the organization to validate that we are meeting the minimum security criteria established for the program.CTPAT members are required to have a documented social compliance program in

232、place that,at a minimum,addresses how the company ensures goods imported into the United States were not mined,produced or manufactured,wholly or in part,with prohibited forms of labor,i.e.,forced,imprisoned,indentured or indentured child labor.Through CTPAT,we have engaged with the CBP and the Depa

233、rtment of Homeland Securitys Center for Countering Human Trafficking to educate them on sourcing patterns for commodities at high risk for forced or trafficked labor.In CBPs February 2023 Validation Report,CBP commended Tesla for committing significant Impact Report 2022 Supply Chain resources to en

234、sure that their supply chains and business partners meet ethical sourcing and labor requirements and recognized the processes we have in place to screen business partners as a best practice-outstanding in both scope and depth.Collective efforts We engage with multi-stakeholder working groups,such as

235、 those within the Responsible Business Alliance and its associated Responsible Labor Initiative.For more information,please see our California Transparency in Supply Chain Acts Statement and our U.K.Modern Slavery Act Transparency Statement.Worker Voice Learn more about our new worker voice mechanis

236、m on page 111.Identification of forced labor indicators Mapping of our supply chain wherever feasible Verifying the relationships between Tesla and upstream suppliers Understanding suppliers existing policies and management systems related to forced labor Requiring suppliers undergo third-party audi

237、ts,including International Labor Organization indicators of forced labor Requiring suppliers implement corrective action plans for gaps in their efforts Acting on worker voices in our supply chain:see Worker Voice section Reviewing information from credible external sources,such as government agenci

238、es and NGO reports Implementing targeted assessments of suppliers with a higher risk of forced labor Incorporating third-party research into our due diligence on suppliers 145 Battery Supply ChainWe measure upstream emissions.5.25.2 Battery Supply Chain e measure upstream em1ss1ons.!I h.li Impact Re

239、port 2022As a key step to decarbonizing our supply chain,we collect GHG data from our suppliersSupply Chain Emissions 30-50%147As a key step to decarbonizing our supply chain,we collect GHG data from our suppliers Emissions from purchased goods and services are categorized as Scope 3 emissions by th

240、e GHG Protocol.*Managing supply chain emissions is critical for our continued journey to accelerate the worlds transition to sustainable energy.*Governed by World Research Institute and World Business Council for Sustainable Development Supply Chain Emissions 0-50%of the total lifecycle GHG emission

241、s of a Tesla vehicle Impact Report 2022 Supply Chain 147 148Building a system that avoids undercounting supply chain emissionsImpact Report 2022Realistic Tesla Total of Supply Chain EmissionsPrimary emissionsreporting from suppliersData reported by our suppliersLifecycle analysis conducted by third

242、partiesSatellite dataAdditional Data Points From High-Quality SourcesEstimate of Teslas Total Supply Chain Emissions Based on the USEEIO*ModelBuilding a system that avoids undercounting supply chain emissions Historically,company supply chain emissions have been significantly undercounted due to the

243、 complexity of engagement,data availability,data consistency and differences in reporting boundaries.We recognize that we can no longer assume that a missing data point should equate to zero emissions.To take steps to significantly reduce our impact,we must understand the true emissions footprint of

244、 our supply chain.Our methodology aims to balance data quality with data availability to give the most complete and accurate picture possible.We use a systematic approach to quantify the emissions by incorporating data from multiple high-quality sources.Impact Report 2022 Supply Chain Estimate of Te

245、slas Total Supply Chain Emissions Based on the USEEIO*Model*USEEIO:United States Environmental Protection Agencys Environmentally Extended Input Output Additional Data Points From High-Quality Sources Factored into the model using a data-weighed path-exchange method Primary emissions reporting from

246、suppliers Lifecycle analysis conducted by third parties Data reported by our suppliers(Carbon Disclosure Project)Satellite data(Pilot with Climate Trace Coalition)Realistic Tesla Total of Supply Chain Emissions 148 149An EVs lifetime CO2e is less than a comparable ICE vehicle55 tons of CO2e avoidedI

247、mpact Report 20229337TeslaICE AverageTons CO2e per vehicle Vehicle Supply ChainBattery Supply ChainUse PhaseAn EVs lifetime C02e is less than a comparable ICE vehicle With todays electricity grid,an EVs supply chain emits approximately four tons more than a comparable ICE vehicles supply chain.This

248、is mostly due to the emissions associated with an EVs battery;however,this upfront investment of C02e gets paid back after approximately two years of driving the vehicle.After that,an EVs lifetime C02e is less than a comparable ICE vehicle,ultimately resulting in-55 tons of C02e savings over the lif

249、etime of the EV.This savings will only get better over time as the EV supply chain and the grid used to charge EVs get cleaner through technological innovation,renewable energy deployment and increases in recycled battery materials.Impact Report 2022 Supply Chain Tons C02e per vehicle ICE Average 93

250、-Tesla 37 Vehicle Supply Chain Battery Supply Chain Source:OEM Sustainability Disclosures 149 150Reporting Teslas 2022 Scope 3 Emissions(Category 1,4)*Impact Report 202227%18%47%8%Reporting Teslas 2022 Scope 3 Emissions(Category 1,4)*Categories are:(1)purchased goods and services,(4 upstream logisti

251、cs For specific efforts on how to calculate and reduce GHG emissions in the battery supply chain,see pages 156-159.Impact Report 2022 Supply Chain 47%All Others 27%Battery Emissions 18%Aluminum Emissions 8%Steel Emissions 150 151Our batteries rely on critical mineralsSignificant part of battery cell

252、 costs=lithium,nickel and cobaltImpact Report 2022Tesla BatteryPhosphorusIron oreCathodeCopperGraphiteAnodeOur batteries rely on critical minerals Batteries drive Teslas sustainability mission.Our cathodes and anodes contain critical minerals like lithium,nickel,cobalt,copper,graphite,manganese,iron

253、 and phosphorus.Lithium,nickel and cobalt play an essential function in improving vehicle range and safety performance.While the relative amount of minerals needed for each cathode chemistry varies,Teslas cell production growth rate will increase our demand for primary mined minerals-these are essen

254、tial for the transition to sustainable energy.Significant part of battery cell costs=lithium,nickel and cobalt Impact Report 2022 Supply Chain Tesla Battery For our cathodes,Tesla is currently pursuing a diversified roadmap Cathode Anode CJ Minerals prioritized for responsible sourcing NCA NCM LFP C

255、opper Higher energy Higher energy Lower energy applications applications applications Graphite Lithium Lithium Lithium Nickel Nickel Iron ore Cobalt Cobalt Phosphorus Aluminium Manganese 151 152Our responsible mining and refining initiatives Independent Responsible Mining ProgramsDirect SourcingVert

256、ical Integration and RegionalizationImpact Report 2022Our responsible mining and refining initiatives Direct Sourcing Impact Report 2022 Supply Chain Independent Responsible Mining Programs Vertical Integration and Regionalization-05Gr1 I:()L 90-1.I,;9 152 153Direct sourcingCobalt202255%2021Nickel20

257、2245%2021Impact Report 2022LithiumHydroxide202295%2021Direct sourcing Direct sourcing from mining and refining companies allows us to engage in environmental and social issues in local contexts-instead of having to rely on companies that typically sit between EV manufacturers and mining.This enables

258、 more transparent and traceable supply chain data.All contracts include binding environmental and social requirements.Nickel and cobalt saw year-over-year increases.Impact Report 2022 Supply Chain Lithium Hydroxide Nickel Cobalt 2021 95%2022 95%2021 30%2022 45%2021 50%2022 55%153 Independent respons

259、ible mining programs4154Responsible mining and refining programs recognized by TeslaCompleted or committed to complete audits78%100%Responsible Minerals Initiative(RMI)Responsible Minerals Assurance Process(RMAP)Towards Sustainable Mining(TSM)International Council on Mining and Metals(ICMM)Performan

260、ce ExpectationsCopperMarkInternational Finance Corporation(IFC)Performance StandardsTesla is a member of IRMA(our preferred scheme)Impact Report 2022Independent responsible m1n1ng programs To get an expert outside view on how mining can improve in our supply chain,we use external mining initiatives

261、and expect suppliers to undergo independent audits.In 2021,we joined the Initiative for Responsible Mining Assurance(IRMA)and encourage our suppliers to undergo IRMA assessments.Mining companies in our supply chain completed or agreed to IRMA audits Tesla prefers suppliers to use IRMA-the most strin

262、gent mine site standard in our view-and we also recognize other responsible production schemes.Impact Report 2022 Supply Chain Responsible mining and refining programs recognized by Tesla I RM,11+,u lntitiwforResponsible ltf M1nmg Assurance Tesla is a member of IRMA(our preferred scheme)Responsible

263、Minerals Initiative(RMI)Responsible Minerals Assurance Process(RMAP)Towards Sustainable Mining(TSM)International Council on Mining and Metals(ICMM)Performance Expectations CopperMark International Finance Corporation(IFC)Performance Standards Completed or committed to complete audits 8%of all refine

264、rs and mine sites in our cobalt,nickel and lithium supply chains 00%of all refiners and mine sites with whom we have direct contracts 154 155More control with vertical integration and regionalizationA better refining processLiOH-H2OSpodumene ConcentrateImpact Report 2022More control with vertical in

265、tegration and regionalization Vertical integration and regionalization help us source battery materials responsibly and have more control over supply.We are currently building our own lithium refinery in Corpus Christi,Texas.Our innovative lithium refining process aims to commercialize a process tha

266、t eliminates the use of sulfuric acid and subsequently removes the sodium sulfate byproduct.In 2022,we signed offtake agreements with lithium and nickel producers in the United States and Canada,growing Teslas North American supplier base.Impact Report 2022 Supply Chain A better refining process Our

267、 lithium refinery in Corpus Christi,Texas Alkaline Reagent Crude Li2CO3 From Primary/Secondary Sources.Spodumene Concentrate Ca lei nation Pressure Leach Conversion Purification&Concentration Crystallization Sand&CaCO3 155 156Mapping and reducing GHG emissions in the battery supply chainBattery supp

268、ly chain=25-30%of total supply chain GHG emissions Impact Report 2022Mapping and reducing GHG emissions in the battery supply chain We prioritize our battery supply chain,as it makes up over 25-30/o of the GHG emissions in our supply chain.Impact Report 2022 Supply Chain 156 157We identify GHG hotsp

269、ots in the battery supply chainImpact Report 2022Hotspot analysisCollect primary GHG data for all hotspotsDevelop targeted GHG reduction efforts at hotspotsWe identify GHG hotspots in the battery supply chain Continuing the work from 2021,we completed a supply chain-wide GHG hotspot analysis for our

270、 nickel-based and LFP supply chains in partnership with Minviro.These hotspot analyses are based on the specific known processing routes used in Teslas supply chains.These are important-to-identify areas of opportunity so we can continue to push technology and optimize value chains to lower the embe

271、dded carbon of our products.Impact Report 2022 Supply Chain Hotspot analysis Collect primary GHG data for all hotspots Develop targeted GHG reduction efforts at hotspots The majority of GHG emissions happen upstream from Tesla,primarily at the mineral refining stages Within upstream supply chains,re

272、fining/chemical processing of ore/feedstock into battery product is the largest driver of impact Lithium and cobalt are small contributors due to the low carbon footprint of Chilean brine and Congolese cobalt Nickel is a bigger contributor in nickel-based chemistries than lithium or cobalt Graphite

273、is a big contributor in both chemistries 157 158Hotspot analyses help prioritize Teslas GHG effortsImpact Report 2022Lithium10%5%17%69%10%3%18%69%Nickel13%4%6%77%CobaltContribution to CO2 Impact per kgNCA CellGlobal Warming Potential Contribution AnalysisNickel36%1%15%4%21%6%9%7%CobaltLithiumAlumini

274、umGraphiteCathode ManufacturingElectricity(Cell Assembly)OtherUpstream from TeslaPrimary extraction and processingLFP CellGlobal Warming Potential Contribution AnalysisLithium2%34%1%3%15%28%18%GraphiteIronPhosphorusCathode ManufacturingElectricity(Cell Assembly)OtherUpstream from TeslaPrimary extrac

275、tion and processingHotspot analyses help prioritize Teslas GHG efforts NCA Cell-Global Warming Potential Contribution Analysis Contribution to CO2 impact per kg CI(ti Nickel 36%C:iii en Cobalt 1%en Q)E 0 0 0.C.-Lithium 15%C E C:(ti(ti Q)4%-.Aluminium C:-0 en.:;C.0:J(ti Graphite 21%.-Cathode Manufact

276、uring 6%.(ti E;:Electricity(Cell Assembly)9%CL Other 7%Total 100%LFP Cell-Global Warming Potential Contribution Analysis Contribution to CO2 impact per kg CI(ti Lithium 2%C:iii iii 34%en Graphite Q)E 0 0 0.C.-Iron 1%C E C:(ti(ti Q)-.Phosphorus 3%C:-0 en.;:C.0:J(ti Cathode Manufacturing 15%.-Electric

277、ity(Cell Assembly)28%.(ti E;:Other 18%CL Total 100%Impact Report 2022 Supply Chain Contribution to CO2 Impact per kg Lithium Chemical Processing 69%Upgrading 10%Nickel Chemical Processing 69%Upgrading 10%Cobalt Chemical Processing 77%Upgrading 13%Primary Extraction 17%Transportation 5%Primary Extrac

278、tion 18%Transportation 3%Primary Extraction 6%Transportation 4%158 159Translating data into GHG reduction measures in the battery supply chainTesla provided input to the IFC Net Zero Roadmap for Nickel and Copper Mining,which yielded recommendations for GHG emissions reductions at mining and refinin

279、g sites.This includes the use of green hydrogen,process optimization(e.g.,high-intensity blasting,coarse ore floating and sorting),digitization and automation(e.g.,haul truck automation),unique energy storage options(e.g.,compressed/liquid air)or haulage electrification.Impact Report 202276%1518GHG

280、Data CoverageTranslating data into GHG reduction measures in the battery supply chain We develop GHG reduction efforts at mines and with refiners.Tesla provided input to the IFC Net Zero Roadmap for Nickel and Copper Mining,which yielded recommendations for GHG emissions reductions at mining and ref

281、ining sites.This includes the use of green hydrogen,process optimization(e.g.,high-intensity blasting,coarse ore floating and sorting),digitization and automation(e.g.,haul truck automation),unique energy storage options(e.g.,compressed/liquid air)or haulage electrification.Impact Report 2022 Supply

282、 Chain GHG Data Coverage 76%of cobalt,nickel and lithium mines in our supply chain 18 additional suppliers in the battery supply chain provided GHG data in response to a pilot of Teslas GHG survey 15 Lifecycle Analyses(LCAs)shared with Tesla by suppliers 159 160Impact Report 2022The worlds first Bat

283、tery PassportTraceability technology being set up at a mine in Teslas supply chainThe worlds first Battery Passport As a member of RelSource consortium and the Global Battery Alliance(GBA),in 2022,Tesla co-published the worlds first Battery Passport for one of our nickel-based batteries.Traceability

284、 technology being set up at a mine in Teslas supply chain We digitally traced shipments of cobalt-using blockchain-enabled barcode scanning technology-from mine to Gigafactory Shanghai and collected GHG emissions and human rights data from every stage of the supply chain.Impact Report 2022 Supply Ch

285、ain-;i,r-:.:l-:l.i4!,H.i1 n111,;.;-,.1:.,.,-1 r:Tesla odel 3 Standard ang C-50 TESLr-1 Source Butt91)h8illlh prov-!i:iance-T4Y.hrI deti.w!S Su:,trun.l11 performanc,a l:lattl!fV c,ert.rkate-:i Rr:ir.;p:;hnll.ir:.-J:icf.lndlife.,160 None of our batteries go to landfills.None of our batteries go to lan

286、dfills.162Recycling can help reduce our reliance on primary mined materialsImpact Report 2022100 Recycling can help reduce our reliance on primary mined materials Tesla seeks to reduce its reliance on primary mined materials and contribute to a more positive environmental footprint through battery a

287、nd cell recycling.In 2022,Tesla made strong progress to advance recycling activities:None of our batteries(manufacturing scrap or fleet returns)go to landfills Deployment of equipment to recycle 100/o of on-site generated manufacturing scrap across manufacturing facilities Safe stockpiling for futur

288、e processing of any materials generated that cannot be immediately processed(thereby enabling an optimization of material streams,equipment parameters and the validation of new market technologies to recover battery metals at scale)Impact Report 2022 Supply Chain Significant resources put toward the

289、 development of scalable battery recycling technology for nickel-and iron-based cathode chemistries,including recovery and re-use of lithium Year-over-year increase in absolute volume of materials available for recovery Development of a reverse logistics system to recover batteries from sold product

290、s Teslas recycling program aims to be the gold standard for others to follow as we optimize the safest and most efficient methods to recover materials.This will directly decrease the demand for mining in the long term.100 metric tons/week capacity demonstrated at Gigafactory Nevada 162 163Impact Rep

291、ort 20222021 Grand Total(mt)2,3003009002023In-house recycling process2024Metals Recovery2022 Grand Total(mt)Recovered for recyclingRecovered for recycling 2021 Grand Total(mt)1,500 Nickel 200 300 Cobalt Copper 2022 Grand Total(mt)2,300 300 900 300 Nickel Cobalt Copper Lithium Impact Report 2022 Supp

292、ly Chain In-house recycling process 2023 Physical Deconstruction 2024 Physical Deconstruction Thermal Processing Thermal Processing Qualification of Material&Sorting Metals Recovery 163 Priority MaterialsWe support responsible mining and refining.5.35.3 Priority Materials e support responsible minin

293、g and refining.165Focusing on specific materialsImpact Report 2022LiSiNiAl3TGCoFocusing on specific materials The best way to understand the upstream risk in supply chains is to map the supply chain.We do this by collecting information on the industries,companies and locations,wherever possible,back

294、 to the raw materials.We take a risk-based approach to these efforts,starting where there are recognized issues to address.Through this process,we identified six priority materials,listed on the right,across which our efforts are described in more detail in the following sections.In addition to thes

295、e materials,we also expanded our efforts to the apparel supply chain to give us greater visibility into provenance and labor and environmental practices.This built on our decision in 2021 to source recycled or organically grown cotton,both of which can significantly reduce environmental impact compa

296、red to traditionally grown cotton.Impact Report 2022 Supply Chain The use of organic cotton also gives greater assurance to the sourcing practices and environmental impact by allowing us to select suppliers who have shared more on their due diligence efforts.Two other areas Tesla has started to map

297、are phlogopite mica,which we use as a thermal barrier for different applications in our vehicle and energy products,and graphite,used in the battery anode.Phlogopite mica is relatively abundant and affordable,but it has associated risks.Tesla has mapped its mica supply chain and is working toward fu

298、ll traceability.Tesla also engaged with its Tier 1 suppliers and required that they become members of the Responsible Mica Initiative(RMI)and conduct regular audits.Note:Tier 1 suppliers are those that Tesla purchases directly from.Upstream or sub-tier suppliers are those further away from Tesla,clo

299、ser to raw materials.Li Lithium Co Cobalt 3TG Tin,Tantalum,Tungsten&Gold Ni Nickel Al Aluminum Si Silica 165 Priority MaterialsMaterial focus:Lithium5.3.15.3.1 Priority Materials Material focus:Lithium 167Risk identification in LithiumImpact Report 2022Audits Trip to Lithium Production Region in Chi

300、leGHG MappingExternal stakeholder engagementSupply Chain MappingCellCathodeRefiningMiningMappedNot MappedSuppliers(Tesla Contracts)&Responsible Sourcing StatusSupplierTierLocationsAudit Status*LCA StatusCompleteIn ProgressCommitmentNo CommitmentRisk identification in Lithium Trip to Lithium Producti

301、on Region in Chile A Tesla team visited lithium extraction sites and met with local stakeholders in Argentina in February 2022 and Chile in February 2023.These trips focused on questions related to water usage,indigenous peoples rights and the use of new technologies,such as Direct Lithium Extractio

302、n(DLE),to extract lithium in a more efficient way that reduces land use,water use and energy use.The Chile trip included visits to an energy storage project.Audits Six audits completed,including 50%of all lithium extraction sites in our supply chain,against responsible production standards.*Impact R

303、eport 2022 Supply Chain GHG Mapping GHG emissions data collected from 100%of lithium mines and upstream refiners in our supply chain.External Stakeholder Engagement Engaged scientists and reviewed scientific studies related to the impact of lithium extraction on groundwater Discussed questions relat

304、ed to lithium extraction impacts on water,GHG and community engagement at a closed-door meeting of the International Lithium Association(ILiA)Supply Chain Mapping Mapped Not Mapped Tier Status Cell Cathode Refining Mining Suppliers(Tesla Contracts)&Responsible Sourcing Status Supplier Tier Locations

305、 Audit Status*LCA Status Albemarle Livent Ganfeng Yahua Refiner Refiner Mine Mine Refiner Refiner Mine Refiner Refiner China Australia Australia Chile USA China Argentina China China N/A*N/A*N/A*e N/A*N/A*e N/A*e*Against IRMA,ICMM Performance Expectations,RMI RMAP,Towards Sustainable Mining,CopperMa

306、rk or IFC Performance Standards*There is not yet a universally recognized standard for lithium refiners Complete In Progress Commitment No Commitment 167 168Priority Engagement Areas and ActionsImpact Report 20224321Our responses to identified risks in Lithium95%Our responses to identified risks in

307、Lithium Priority Engagement Areas and Actions 0 Access to clean water and protecting water levels and water quality in waterways affected by supplier operations Evaluated third-party studies on water impacts related to lithium brine extraction Worked with suppliers on solutions that increase water r

308、ecycling,rely on saltwater desalinization for operations and educate consumers on the differences between brine and water Protection of forests and biodiversity Reviewed environmental permit documentation and site visits to confirm ecosystem protection measures are in place Two of our lithium suppli

309、ers underwent audits against IRMA,which includes strict biodiversity and protected areas requirements Impact Report 2022 Supply Chain Community consultation,engagement and protection of indigenous rights Tesla site visits included direct community engagement to confirm suppliers investments on the g

310、round and active community consultation Offtake contracts include commitments to the important role of native communities as traditional owners of the land Energy use and GHG emissions reduction and air pollution Worked with our suppliers to reduce dependence on non-renewable resources Explored ways

311、 to reduce carbon footprint(such as through Direct Lithium Extraction)Two of our cell manufacturing suppliers committed to the Science-Based Targets Initiative(SBTi)95%sourced lithium hydroxide directly from upstream suppliers in 2022 168 169Impact Report 2022Tesla delegation visit to Chile in Febru

312、ary 2023Exploring future projects at the source of our lithium and nickel supply chainsExploring future projects at the source of our lithium and nickel supply chains Similar to our efforts in cobalt,Tesla will explore financing sustainability projects in countries at the source of our lithium and n

313、ickel supply chains to support the identified engagement areas.We developed a framework that allows us to identify projects aligned with our mission based on technical feasibility,financial stability,participatory planning process,localized procurement,robust monitoring and evaluation,innovation,col

314、laboration with other stakeholders among others.Impact Report 2022 Supply Chain Tesla delegation visit to Chile in February 2023 169 Material focus:NickelPriority Materials5.3.25.3.2 Priority Materials Material focus:Nickel Tesla staff at a nickel mine in Canada,August 2022Impact Report 2022Risk ide

315、ntification in NickelExternal stakeholder engagementTesla trips to Canada and IndonesiaGHG MappingAuditsSupply Chain MappingCellCathodeRefiningMiningMappedNot MappedSuppliers(Tesla Contracts)&Responsible Sourcing StatusSupplierTierLocationsAudit Status*LCA StatusCompleteIn ProgressCommitmentNo Commi

316、tment171Risk identification in Nickel Tesla Trips To Canada And Indonesia A Tesla team visited nickel mine sites and met with local stakeholders in Indonesia in May 2022 and in Canada in August 2022.The Indonesia trip focused on questions related to deforestation,water management and local traceabil

317、ity efforts.Audits Tesla staff at a nickel mine in Canada,August 2022 Twenty-eight audits completed,including 62%of all nickel refiners and mines in our supply chain,against responsible production standards.*GHG Mapping GHG emissions data collected from 61%of nickel mines and upstream refiners in ou

318、r supply chain.Impact Report 2022 Supply Chain External Stakeholder Engagement Ongoing discussions with NGOs related to appropriate mining standards for nickel mining,stakeholder mapping and community impacts in Indonesia Participated in and provided input to the IFC Net Zero Roadmap for Copper and

319、Nickel Mining that was published in February 2022 Reviewed Nickel Institute industry-wide Lifecycle Analysis(LCA)Discussed our sustainability expectations during a roundtable on ESG expectations for nickel producers in Indonesia organized by the Nickel Institute in December 2022 Supply Chain Mapping

320、 Mapped Not Mapped Tier Status Cell Cathode Refining Mining Suppliers(Tesla Contracts)&Responsible Sourcing Status Supplier Huayou CNGR Glencore Murrin Murrin BHP Nickel West Prony Resources Vale Sudbury Tier Refiner Refiner Mine Mine Mine Mine+Refiner Locations Audit Status*China Indonesia China In

321、donesia Australia Australia New Caledonia Canada LCA Status *Against IRMA,ICMM Performance Expectations,RMI RMAP,Towards Sustainable Mining,CopperMark or IFC Performance Standards Complete In Progress Commitment No Commitment 171 Priority Engagement Areas and Actions Impact Report 202221Our response

322、s to identified risks in Nickel 45%456893172Our responses to identified risks in Nickel Priority Engagement Areas and Actions Fair working conditions,human rights and occupational health and safety Reviewed safety records and provided clear guidance on safeguards around working conditions Access to

323、clean water and protecting water levels and water quality in waterways affected by supplier operations Included clear expectations on water management and reviewed reports on water quality around mine sites Protection of forests and biodiversity Reviewed environmental permits and annual reports prov

324、ided to government to ensure mining is occurring within permitted areas Impact Report 2022 Supply Chain 0 Community consultation,engagement and protection of indigenous rights Worked with suppliers to conduct thorough stakeholder mapping and maintain relationships with local communities Energy use a

325、nd GHG emissions reduction and air pollution Encouraged suppliers to transition to renewable energy sources and follow up on commitments to install solar energy capacity Reviewed industry roadmaps and work plans to decarbonize the nickel mining sector Included GHG emissions reduction initiatives in

326、our yearly surveys to direct suppliers e Hazardous substance management Reviewed audit results and corrective action plans to ensure suppliers meet expectations around hazardous waste Waste management,including tailings Engaged with suppliers to ensure adequate tailings management systems are in pla

327、ce so that a prompt response is deployed in case of failure 29 suppliers removed Due to supply chain due diligence concerns after attempted risk mitigation 45%sourced Nickel directly from producers in 2022 172 Material focus:CobaltPriority Materials5.3.35.3.3 Priority Materials Material focus:Cobalt

328、 174Impact Report 2022Risk identification in CobaltAuditsGHG MappingExternal stakeholder engagementTrip to Cobalt Production Region in DCRSuppliers(Tesla Contracts)&Responsible Sourcing StatusSupplierTierLocationsAudit Status*LCA StatusCompleteIn ProgressCommitmentNo CommitmentSupply Chain MappingCe

329、llCathodeRefiningMiningMappedNot MappedRisk identification in Cobalt Trip to Cobalt Production Region in DCR A Tesla team visited industrial and artisanal mine sites and met with local stakeholders and NGOs working on issues like health,safety and child labor remediation in the Democratic Republic o

330、f Congo(DRC)in November 2022.The trip focused on community engagement and artisanal-industrial mining relations,as well as environmental conditions and occupational health and safety at industrial cobalt mines.Audits Sixteen audits completed,including 88%of all cobalt refiners and mines in our suppl

331、y chain,against responsible production standards.*Impact Report 2022 Supply Chain GHG Mapping GHG emissions data collected from 89%of cobalt mines and upstream refiners in Teslas supply chain and every step from the KCC mine site in the DRC to Giga Shanghai via the Battery Passport pilot mentioned o

332、n page 160.External Stakeholder Engagement Reviewed grievances from NGOs and academic studies related to working conditions at industrial mines.Supply Chain Mapping Mapped Not Mapped Tier Cell Status Cathode Refining Mining Suppliers(Tesla Contracts)&Responsible Sourcing Status Supplier Tier Locatio

333、ns Audit Status*LCA Status Huayou Refiner China CNGR Refiner China Glencore Mine DR Congo KCC Glencore Mine DR Congo Mutanda*Against IRMA,ICMM Performance Expectations,RMI RMAP,Towards Sustainable Mining,CopperMark or IFC Performance Standards Complete In Progress Commitment No Commitment 174 175Priority Engagement Areas and Actions Impact Report 2022Our responses to identified risks in Cobalt 55%