Tesla Battery Day 2020

1. S E P T E M B E R 2 2 , 2 0 2 0

2. The Past 5 Years Were The 5 Hottest On Record
400
150
350
300
250
200
800 700 600 500 400 300 200 100 TODAY
CO2 CONCENTRATION (PPM)
THOUSANDS OF YEARS AGO
425
375
325
275
225
175

3. The Trend Is Reversing But We Need To Accelerate
Wind and solar comprise 76%
of new electricity capacity in the
U.S. this year: 32 GW.
In 2010 46% of electricity in
the U.S. was generated with coal.
Today, that number is half.
SOURCE: EIA.GOV

4. 1+ MILLION ELECTRIC
VEHICLES DELIVERED
5 GWh OF
STATIONARY BATTERIES
26 BILLION ELECTRIC
MILES DRIVEN
17 TWh OF
SOLAR GENERATED
Tesla’s Contribution

5. To achieve the transition to sustainable energy,
we must produce more affordable EVs and
Energy Storage, while building factories faster
and with far less investment

6. 100% ELECTRIC TRANSPORTATION REQUIRES 100X GROWTH
PICKUP
TRUCK
IN 2019
3500 GWh
1500 GWh 1100 GWh
900 GWh 3000 GWh
COMPACT /
MIDSIZE
SMALL /
ROBOTAXI
LUXURY
& SUV
SEMI &
COMMERCIAL
10
TWh
0.1
TWh
Goal One: Terawatt-hour Scale Battery Production
SOURCE: EV-VOLUMES.COM

7. Goal One: Terawatt-hour Scale Battery Production
OIL
HEATING
1400 GWh
2300 GWh 800 GWh
2100 GWh 1900 GWh
COAL
HEATING
NON RENEWABLE
ELECTRICITY
GAS
HEATING
FUTURE
EV
1500 GWh
FUTURE
GROWTH
100% RENEWABLE ENERGY REQUIRES 1600X GROWTH
IN 2019
10
TWh
0.006
TWh
SOURCE: IHS

8. TWh
0.15
GIGAFACTORY
1
=
Goal One Problem: Today’s Battery Factories Cannot Scale Fast Enough
INVESTMENT IN MATERIALS, CELL,
AND BATTERY MANUFACTURING
$2T
TOTAL PEOPLE ESTIMATED
2.8M

9. TWh
0.15
GIGAFACTORY
1
=
Goal One Problem: Today’s Battery Factories Cannot Scale Fast Enough
INVESTMENT IN MATERIALS, CELL,
AND BATTERY MANUFACTURING
$2T
TOTAL PEOPLE ESTIMATED
2.8M
TWh
20
GIGAFACTORIES
135
=

10. FORECAST
$/kWh
Goal Two: More Affordable Cells
0
2012 2014 2015 2016 2017 2018 2019 2020 2023 2025
2013
INDUSTRY TREND
2024
2021 2022

11. Goal Two Problem: EV Market Share Is Growing
But EVs Still Aren’t Accessible To All
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
2019
2010 2011 2012 2013 2014 2016 2018
2009 2017
2015
EV MARKET SHARE
SOURCE: EV-VOLUMES.COM / OICA

12. To Make The Best Cars In The World,
We Design Vehicles And Factories From The Ground Up

13. And Now We Do This For Batteries As Well

14. BATTERY DAY

15. We Have A Plan To Halve The Cost Per KWh
CELL DESIGN CELL FACTORY ANODE MATERIALS
CATHODE
MATERIALS
CELL VEHICLE
INTEGRATION

16. CELL DESIGN CELL FACTORY ANODE MATERIALS
CATHODE
MATERIALS
CELL VEHICLE
INTEGRATION

23. EVOLUTION
2008
1865
2017
2170
ENERGY
+50%

24. Bigger Cylindrical Cells Cost Less
61
31 36 41 46 51 56
26
21
CELL OUTER DIAMETER MM
IMPROVEMENT NEW CELL COST REDUCTION
VEHICLE RANGE
0%
20%
15%
10%
5%

25. The Challenge With Big Cells Is Supercharging
NEW CELL
CELL OUTER DIAMETER MM
SUPERCHARGE TIME INCREASE
0
61
31 36 41 46 51 56
26
21

26. The Challenge With Big Cells Is Supercharging
NEW CELL
CELL OUTER DIAMETER MM
SUPERCHARGE TIME INCREASE
0
61
31 36 41 46 51 56
26
21

27. SIMPLER MANUFACTURING
FEWER PARTS
5X REDUCTION IN ELECTRICAL PATH

28. 46 MM
80
MM
RANGE
+16%
ENERGY
5X
6X
POWER

29. CELL FACTORY ANODE MATERIALS
CATHODE
MATERIALS
CELL VEHICLE
INTEGRATION
14%
14%
$/KWH REDUCTION

30. Inspiration
PRINTING BOTTLING

31. ELECTRODE WINDING ASSEMBLY FORMATION

32. Electrode – Wet Process
1
MIX
4
COMPRESS
2 & 3
COAT & DRY SOLVENT RECOVERY

33. Powder Into Film
LAB SCALE POWDER INTO FILM

34. Dry Electrode
1
MIX
2
DRY COAT
ENERGY REDUCTION
10x
10x
FOOTPRINT REDUCTION

35. PILOT
LAB
BENCH
Simple is Hard

36. ASSEMBLY LINE
1
GWh
20
LINE OUTPUT
7x
High-Speed Continuous Motion Assembly

37. TESLA POWER ELECTRONICS
FORMATION INVESTMENT
-86%
FORMATION FOOTPRINT
-75%
Tesla Power Electronics

38. 2018 GIGAFACTORY TERAFACTORY
150 GWh 1 TWh
INVESTMENT PER GWH
-75%
SMALLER FOOTPRINT PER GWH
10x
SIMPLER ACCELERATES TWH SCALE

39. The Plan
IN 2022
100 GWh
BY 2030
3 TWh

40. ANODE MATERIALS
CATHODE
MATERIALS
CELL VEHICLE
INTEGRATION
18%
32%
$/KWH REDUCTION
14%

41. Silicon Is Awesome And Inexpensive
MOST ABUNDANT ELEMENT IN EARTH’S CRUST AFTER OXYGEN STORES 9X MORE LITHIUM THAN GRAPHITE

42. Challenge: Volume Expansion
4X VOLUME EXPANSION
MANY CYCLES
MANY CYCLES
ELECTRICAL
ISOLATION
-Li+
MANY CYCLES
THICK
SEI LAYER
BROKEN
SEI LAYER
SEI LAYER

43. Current Approaches To Silicon Are Highly
Engineered Expensive Materials
6.6 $/KWh
SILICON STRUCTURED
IN SIO GLASS
10.2 $/KWh
SILICON STRUCTURED
IN GRAPHITE
>100 $/KWh
SILICON
NANOWIRES
1.2 $/KWh
TESLA
SILICON

44. Instead, We Design For Expansion And Use
Raw Silicon To Increase Range 20%
THROUGH ELASTIC,
ION-CONDUCTING POLYMER COATING
STABILIZE SURFACE ROBUST NETWORK
HIGHLY ELASTIC BINDER
+ ELECTRODE DESIGN
RAW METALLURGICAL SILICON

45. CATHODE
MATERIALS
CELL VEHICLE
INTEGRATION
14% 18% 5%
37%
$/KWH REDUCTION

46. What Is A Battery Cathode?
CATHODES ARE LIKE BOOKSHELVES METAL COST MATTERS
$/kWh METALS
0
5
10
15
20
25
30
35
1400
400 600 800 1000 1200
200
Wh/kg
IRON
NICKEL
COBALT
LITHIUM
NICKEL / COBALT
MANGANESE /
ALUMINUM

47. High Nickel Cathode Development
MAXIMIZE NICKEL, REMOVE COBALT NOVEL COATINGS & DOPANTS 15% REDUCTION IN CATHODE $/KWh

48. Diversified Cathode Approach
MEGAPACK
LONG CYCLE LIFE LONG RANGE MASS SENSITIVE
IRON BASED NICKEL + MANGANESE HIGH NICKEL

49. The Cathode Manufacturing Processing Is A Big Target
NICKEL
CATHODE COST BREAKDOWN
LITHIUM COBALT PROCESSING
5%
35% 25% 35%

50. Traditional Cathode Process
METAL SULFATE PRODUCTION RAW MATERIALS INPUT CATHODE PRODUCTION FINAL PRODUCT
METAL
METAL SULFATE
SULPHURIC ACID
WATER
MORE CHEMICALS
A BUNCH OF STUFF HAPPENS
CATHODE
WASTE WATER
+ BYPRODUCTS

51. Tesla Cathode
METAL SULFATE PRODUCTION RAW MATERIALS INPUT CATHODE PRODUCTION FINAL PRODUCT
METAL METAL
SULPHURIC ACID
WATER
MORE CHEMICAL
LESS STUFF HAPPENS
CATHODE
WASTE WATER
+ BYPRODUCTS
WATER

52. INVESTMENT
-66%
PROCESS COST
-76%
WASTE WATER
0

53. Directly Consuming Nickel Powder Simplifies Metal Refining & Recycling
ELIMINATES BILLIONS IN BATTERY GRADE NICKEL PRODUCTION
SUSTAINABLY MINED/SOURCED ORES OPTIMIZED REFINING RECYCLED BATTERIES

54. North American Cathode Production
BUILD PLANT SHORTEN TRAVEL DISTANCE
KG x KM
0
5000
10000
15000
20000
25000
30000
Localized Supply Chain
Status Quo
NICKEL POWDER
Li SPODUMENE
LiOH-H2O
CATHODE
Li
Ni
Li
Li
Ni
LITHIUM
CLAYS
TESLA
CATHODE

55. COLOCATE LITHIUM CONVERSION
Li
Ni
Li
Li
Ni
LITHIUM
CLAYS
North American Lithium Production
SULFATE-FREE PROCESS
33%
ELECTRIC FACILITY
100%
REDUCTION IN LITHIUM COST
TESLA
CATHODE
TESLA
LITHIUM

56. Access Even More Lithium
SIGNIFICANT UNTAPPED LITHIUM IN CLAY TESLA ACID-FREE, SALINE EXTRACTION TESLA SECURED TWH-SCALE RESOURCE
ENOUGH LITHIUM IN NEVADA TO ELECTRIFY THE ENTIRE U.S. FLEET

57. Recycling Elements From Cells Is Far More Desirable Than From Raw Ores
SOURCE NICKEL LITHIUM COBALT
RECYCLED CELLS
20% 2.7% 2%
TYPICAL ORES
1.2% 0.7% 0.2%

58. Recycling Resource Is 10+ Years Delayed
EV BATTERY PRODUCTION 50% CAGR
TWh / YEAR – BATTERY SALES
0.00
0.20
0.40
0.60
0.80
1.00
1.20
2012
2011 2014
2013 2016
2015 2018
2017 2020
2019 2022
2021 2024
2023 2025
IN 2025, BATTERIES
AVAILABLE FOR RECYCLING

59. CELL VEHICLE
INTEGRATION
14%
12%
49%
$/KWH REDUCTION
18% 5%

60. MODEL Y GIGA CASTING
REAR UNDERBODY COST SAVINGS
40%
PARTS PER CAR
-79

61. Giga Casting Innovations
SHOT SIZE ∝ VELOCITY ∝ PRESSURE ∝ TONNAGE NEW ALLOY, NO HEAT TREATING OR COATINGS

62. Structural Fuel Tanks Improve Mass And Range
EARLY
AIRCRAFT WING
MODERN
AIRCRAFT WING
STORAGE
EXCESS STRUCTURE
STORAGE

63. Structural Batteries Improve Mass And Range
MODERN
AUTOMOTIVE
BATTERY
FUTURE
AUTOMOTIVE
BATTERY
STORAGE
EXCESS STRUCTURE
STORAGE

64. Revolution In Body + Battery Engineering
370 FEWER PARTS
14% RANGE INCREASE OPPORTUNITY
10% MASS REDUCTION

65. 55% REDUCTION IN INVESTMENT PER GWH 35% REDUCTION IN FLOORSPACE
Simpler, Smaller, Integrated Battery + Body Factory Of The Future
CURRENT FUTURE

66. 14%
7%
56%
$/KWH REDUCTION
12%
18% 5%

67. Stacking Up The Benefits Of Tesla’s Vertical Integration
RANGE INCREASE $ / KWH REDUCTION INVESTMENT PER GWH REDUCTION
54%
16%
20%
4%
14%
CELL DESIGN
ANODE
MATERIAL
CATHODE
MATERIAL
CELL VEHICLE
INTEGRATION
14%
18%
7%
CELL DESIGN
CATHODE
MATERIAL
CELL VEHICLE
INTEGRATION
CELL
FACTORY
ANODE
MATERIAL
12%
5%
56%
7%
CELL DESIGN
34%
4%
16%
8%
69%
CATHODE
MATERIAL
CELL VEHICLE
INTEGRATION
CELL
FACTORY
ANODE
MATERIAL

68. A New Trajectory
TESLA
FORECAST
INDUSTRY TREND
$/kWh
0
2012 2014 2015 2016 2017 2018 2019 2020 2023 2025
2013 2024
2021 2022

69. Help Us Accelerate The Transition
MINERS AND REFINERS
RAW MATERIAL
MANUFACTURERS
CELL EQUIPMENT
MANUFACTURERS
NEW AND EXISTING
CELL SUPPLIERS

70. What Does This Mean For Our Future Products?

71. Electric Vehicle Powertrains That Cost Less
Than Combustion Engines
$25,000 PASSENGER CAR

72. AND Extreme
Performance and Range

73. 0-60 MPH
<2 sec
TOP SPEED
200 mph
1/4 MILE
<9 sec
HORSEPOWER
>1100
RANGE
<520 mi
LAGUNA SECA
1.30.3

74. FORWARD-LOOKING STATEMENTS
Certain statements in this presentation, including statements regarding future products and technologies, expected features and performance of products, manufacturing expansion, cost reductions, and availability of raw materials, are
forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations. Various important factors could cause actual results to differ materially, such as the risks
identified in our SEC filings, including under the sections captioned “Risk Factors” in our Forms 10-K and 10-Q. Tesla disclaims any obligation to update any forward-looking statement contained in this presentation.