Tesla Motors

Kurt Kelty Director, Supply Chain for Powertrain Copyright 2013 Tesla Motors, Inc. Battery Technology

Tesla Roadster Tesla Roadster Sport

Zero-emissions electric powertrain 0-60mph acceleration: 3.7s Quarter mile acceleration: 12.7s Driving range: 394km (EPA-defined test cycles) Carbon fiber body, aluminum chassis Full Federal Motor Vehicle Safety Standards (FMVSS) compliant

Copyright 2013 Tesla Motors, Inc.

LIGHTNINGCAR\Mgmt Presentations\GS Prepared Managment Presentation forTesla\Tesla_Management

Tesla Motors 1st Vehicle

2400 shipped 4+ years & 34+ million customer miles Tesla Brand EV leadership, innovation & excellence Proved EVs are a superior ownership experience Lead the Focused Value Proven performance,Creation reliability, value & safety Way Forward

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Performance

0-60mph; 4.3 s (Performance)

Range 265 miles for 85 kWh Starting Price for 60 kWh $62,400 Started Production June 2012

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Model S Most Awarded Car of 2013

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Model S Better By Design

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Battery Pack

Powertrain

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Innovative Interior
Maps & Audio

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Browser

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2x Interior Space 7 Passengers Storage Up Front 17-inch Touchscreen Upgradable Software Remote Vehicle Monitoring Customizable Instrument Cluster

Vehicle Controls

Fremont Facility: Expansion

Offices Paint Shop

5 million ft2 / 200+ acres

Body in White

400,000+ unit historical capacity $42MM purchase price Equipment purchased at attractive prices

Final Assembly Plastics Press Shop Material Handling

Assembly at 20,000 vehicles on single shift

Tesla Factory Fremont, CA

Planned Model S Facilities Future Programs

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Press Center

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Body Center

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Paint Center

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Assembly Center

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Assembly Center

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Quality Audit

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Model X A New Vehicle Category

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Falcon Wing Doors Deployed

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Gen III EVs for the Mass Market

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Vehicle Affordability

Third Generation Platform

Second Generation Platform

Tesla Gen III Sedan & Crossover

First Generation

Tesla Model S

Tesla Model X

Tesla Roadster

Market Size
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Working with Japanese Suppliers

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Teslas Suppliers in Japan

Old Japan Companies major suppliers to the auto industry
Panasonic Denso

New Japan Companies

Less involvement to date, probably due to:
Lack of visibility of capabilities Speed that Tesla operates Communication
Languages: Japanese staff at Tesla Regular face to face visits Engineer stationed in Japan Video conferences:

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What makes Japanese Suppliers Great Partners?

Understanding of the core technology
Ask a question get an answer Extremely important for making improvements

Commitment are solid

delivery promises are kept

Quality control
Very few problems When problems occur huge effort to solve

Integrity

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Challenges for Japanese suppliers

1. Speed!
from concept to production takes too long

2. Inefficiencies
Bureaucratic sales organizations, Elevator ladies

3. Risk Aversion
More risk need to be taken in development and business, overreliance on trading companies, use of L/C

4. Cost
Need to buy more subcomponents from non-Japanese suppliers

Copyright 2013 Tesla Motors, Inc.

 Copyright 2013 Tesla Motors, Inc.