Opening remarks (Zach Kirkhorn) Big focus for Tesla over recent history is expansion and globalization of Model Y program Investor Day will be broken up into 5 parts “What does it take to to convert Earth to sustainable energy generation and use” Master Plan: Part 3 (Elon Musk & Drew Baglino) Tesla’s big goal is to show that there is a clear path to sustainable energy on Earth without destroying ourselves or the planet Detailed white paper will be published with their assumptions and calculations Over 80% of global energy comes from fossil fuels Half problem statement of fossil fuel economy 240TWh of battery energy storage to achieve that (combination of EVs and stationary storage) 8:1 ratio assumed meaning for 30TW of power we need 240TWh of energy storage This is not a big number relative to the global economy Electric economy will mine less ore than with fossil fuel economy All forms transportation (minus rockets) will go electric once energy battery production ramps enough All cars will go autonomous and electric, only a matter of time Conservative estimate based on assumptions around fleet size In reality fewer vehicles will be needed thanks to autonomy Heading rapidly towards autonomous & electric future Model 3 can go one mile on the same amount of energy it takes to boil a pot of water for pasta, and another to cook the pasta Modern EVs are extremely efficient Heatpumps are air conditioners in reverse that will be used to displace fossil fuel heat sources in homes At some point they might make heat pumps for homes Hydrogen could replace coal for things like steel production Needed for industrial processes Shipping accounts for 3% of global CO2 emissions Even w/ LFP long haul ships can be electrified Short haul planes easily doable, long haul flights will be in reach soon enough Long haul ships & planes need to be redesigned and switched to a different architecture to take advantage of electrified fuel source 450wh/kg is needed to convert long haul planes & ships to electrification and it already exists Tesla wants to produce 1TWh of energy per year as soon as they can Building a sustainable energy economy is less than sustaining existing fossil fuel economy Only requires 0.2% of available land Switching would dramatically reduce impact to environment 68 Gigatons of ore every year with fossil fuel economy Greatly reduced with switch to sustainable economy As we extract resources, we find more As Tesla has continued to grow, more core resources have become available Vast majority of heavy lifting in terms of electrified transport can be achieved by lithium iron phosphate batteries Only long range vehicles need nickel-based Lithium batteries Recycling efforts will make this ramp require less and less mined ore over time Vehicle Design (Franz von Holzhausen & Lars Moravy) ...

Like I have done with previous earnings calls, I have compiled notes that I wanted to share from today’s 2022 Tesla Q4 Earnings Call. Enjoy! Opening remarks from Elon Musk General 2022 fantastic year for Tesla, best year ever on every level Over 1.3M cars delivered in 2022, 17% operating margin, highest of any car maker Generated $12.5B in net income and $7.5B in free cash flow Tesla achieved these records despite numerous headwinds Most common question from investors is how is demand As of January 2023 Tesla has noticed the strongest ever demand year to date Demand is almost 2x the current production rate Model Y price has been increased due to increased demand Tesla expects the automotive industry as a whole to contract so price is very important with current state of economy Making very good progress on cost control and seeing the cost of production in Berlin & Texas drop as production ramps FSD FSD Beta has been deployed to 400,000 customers 100 million miles of FSD usage for city streets FSD released in light of exemplary Safety Statistics that the Tesla team has been closely tracking 4680s 4680s production reached 1000 cars per week at in 2022 Q4 4680 production capacity increased by 100 GWh with expansion plans for Giga Nevada Will continue to use other cell providers as well as cells produced internally Ultimate goal is to produce 1000 GWh per year Energy & Mission Energy storage saw record growth in 2022 and that continues to accelerate Tesla’s main goal is to continue accelerating the advent of sustainable energy & transport Tesla wants to make as many cars as possible Tesla wans to be the best manufacturer including that of technology Opening remarks from Zach Kirkhorn Revenue increased over 50% Operating income doubled Margins remained industry leading Sequential and annual margins were impacted by ASP reductions Rising interest rates in US increased cost of each vehicle by 10% Energy business had its strongest year yet Plan is to move aggressively Demand - Customer interest remains high Cost reduction Holding steady while rapidly increasing volume while increasing efficiency Accelerating implementation of improvements in Austin & Berlin where inefficiencies are the highest To ensure competitiveness going forward, prices have been adjusted accordingly so ASPs are expected to lower slightly going forward More to come on March investor day Q & A from retail investors IRA EV Tax Credits Long term Tesla expects the value of these tax credits to be significant especially as they ramp in the 100s of GWHs Since these incentives require domestic manufacturing they are splitting the credits with Panasonic in 2022 but expect that to change as they bring more domestic battery capacity online later this year (and in 2024) They expect the value of these incentives to be $150M-200M and growing as volumes grow Pretty well positioned as IRA incentivizes domestic battery production which Tesla already had in their immediate & future plans Expected ASP After Price Cuts In current forecast Tesla believes they’ll be above 20% automotive gross margins (excluding leases & $47k ASP across all models) The ASP reduction is not as large as reduction in configurator prices Most focused on operating margin Every time Tesla sells a vehicle they have the potential for future revenue from software (ex. FSD especially as it continues to get better) Elon still expects FSD to result in the biggest value increase in history Elon & Politics Elon states due to his follower count on Twitter he is popular and therefore mostly favorable Tesla does not officially monitor favorability of Elon 4680 Ramp (Texas) 1K vehicles / week was years in the making, big accomplishment for the Tesla team 1 of 4 4680 manufacturing lines in Giga Texas are in production, 3 are in the commissioning / install stage & continue Plan is to appropriately (cost effective) ramp 4680 production before start of production of CyberTruck Drive factory yields up as much as possible 2024 is planned to be a major year for 4680 HW4 CyberTruck will have HW4 For 2023 CyberTruck will not be a significant contributor but it will be in 2024 Elon said CyberTruck will be his personal vehicle of choice Upgrading cars w/ HW3 should not be needed as long as they can get to 200-300% safer than humans, HW4 may be 500-600% safer What really matters to Tesla is that they continue to improve the average safety on the road Cost and difficulty of retrofitting (for HW3 vehicles) would be quite significant and therefore not economically feasible Insurance Currently $300M premium run rate 20% QoQ growth States in which they are operating, 17% of customers are using Tesla insurance products This percentage keeps creeping up Most commonly see adoption occur when vehicle purchased vs after the fact Motivation of starting this business is to improve TCO of their vehicles Want to keep costs low and accessible to customers Competition helps drive costs down across the board Adjusted design of car and software to minimize cost of repair Avoid accident first and foremost by encouraging use of Autopilot Most accidents are fairly small CyberTruck Production to start sometime this summer Going to be very slow at the start Future Factories Will provide an update in the future and thinking about very carefully What’s the fastest path to 1000 GWh Q & A from Financial Analysts Production & Increasing Efficiencies Current production capacity is actually closer to 2M but saying 1.8M to be conservative due to potential external headwinds (like we have seen the last few years) If you look at size of Giga Nevada that is allocated to make 100 GWH, it is noticeably smaller than the space used to produces 35 GWh Elon expects competitors to struggle to keep up with Tesla’s manufacturing prowess New products are going to blow people’s minds Elon believes they have the most exciting product roadmap of any product on earth “More great ideas than they know what to do with” -Elon Musk Expect bumps along the way including a recession in 2023 Long term Elon believes Tesla will still be the most valuable company on earth Lithium costs per car expected to rise in 2023 and therefore do not expect COGS to get back to $36k Continue to re-design supply chain to reduce costs Fleet is starting to mature and gathering a lot of data to optimize for margin going forward Later this year they’ll be looking at the powertrain side materials where they are paying for perf than they need or more content without sacrificing reliability Elon expects to see a deflation in input costs which should improve margins 1.8M unit forecast estimate is production capacity constrained, not related cell supply Not all of 4680s produced in Giga Nevada will go into the Semi According to Elon future products will use the 4680 Elon believes it is counterproductive to ramp number of products without appropriately scaling battery production Autonomy / FSD Excitement around FSD continues to grow and is resulting in an increase in take rate Tesla is both a software and hardware company and many forget that according to Elon HW3 is still the most efficient inference computer out there even though its 5 years old from design Fully recognize EAP cost, recognized a portion of deferred revenue for FSD for features that are available, some deferred until they are ready for public consumption Tesla still believes nobody is close from a general autonomous driving perspective “You can’t see 2nd place with a telescope” -Elon Musk Elon doesn’t expect that to last forever Whoever can keep up with EVs will be there Going to keep focus on total vehicle space and Car companies in China are most competitive in world Elon thinks a company out of China is most likely to be in 2nd Tesla China team is winning in China Dojo & Optimus Dojo slated to be used by Tesla by end of 2023 Optimus continues to be developed and potential is endless with this product alone Tesla thinks Dojo will be competitive with NVIDIA H1 at end of 2023, surpass it in 2024 They are going to focus on energy usage per frame of video when training Do see potential for order of magnitude in training performance compared to traditional GPU training clusters Very similar to ASICs being CPU for specific tasks Communication between Dojo modules is extremely efficient Efficiency w/ inference not going away especially when you expand outside of vehicles Captive Financing Captive financing has been used to plug gaps in markets for existing 3rd party products Couple offerings in Europe Energy loans in US Leasing Using captives to support vehicle sales Zach believes there is an opportunity to grow captive financing and plumbing is in place to do more Cash is required to grow so want to be careful on how much they invest into this aspect of the business

After a few month delay in FSD Beta content the planets aligned where I got a new FSD Beta build and the roads so happened to be clear (rare for this time of year in Minnesota). I have been busy testing 10.69.25.2 and minus an annoying regression with the intersection of 37th Ave NE & Central Ave NE (Northeast Minneapolis) this build has been pretty solid for me so far. ...

Intro 5 years since the Tesla Semi was unveiled Attendees got to tour the production lines Tesla has not wavered from their commitment to delivering the best class 8 truck out there Why do we need the Tesla Semi? Semis make up 1% of all US vehicles, roughly a few hundred thousand today Semis account for 20% of total vehicle emissions Semis are responsible for over 1/3 of all vehicle-related US particulate emissions Tesla Vehicle Lineup Tesla wanted to make the Semi fun and be enjoyable for the drivers, “It’s a Beast” Big shortage of Semi drivers so Tesla hopes this will encourage more folks to take up over the road trucking Tesla Semi fast to accelerate, fast to brake, a big step change on what it’s like to drive a Semi truck according to Elon Powertrain & Efficiency Tesla Semi has 3x the power of any diesel semi on the road today 500 miles on a single charge with a full load First Tesla vehicle based on the new 1000V powertrain, more vehicles will use this powertrain in the future Able to leverage existing tech in Semi that is already produced at volume (power train, battery cells, infotainment, HVAC, etc.) Tried and true technology enables them to start with a more powerful & reliable initial product Tesla tested the Semi in every imaginable way including in the real world and in the lab Tesla plans to use the Semi in their own supply chains to get the most data from their own feedback loops to enable rapid refinement Tesla is already running several Semis 24x7 between Sparks, NV and Fremont, CA Tesla Semi uses drive units w/ carbon sleeved rotors just like in the Plaid Model S & X Clutched automatically so power delivery is always smooth and ready when the driver needs it 2 of the drive units shutdown while cruising on the freeway The drive units are the size of a football and something you can carry in your hands No runaway situations because there are no gears to miss and able to take full advantage of regenerative braking from drive units Traction control automatically stops the truck from jack knifing which isn’t possible with regular diesel trucks Able to accelerate up a 6% incline like Donner Pass Tesla Semi commonly has cold brakes after coming down large hills thanks to the powerful regenerative braking Tesla will post the entire video on youtube unedited to prove the range figures above 500 miles of range achieved with full load, no special aero treatment, no charging along the way, etc. 1 small resting break (30 minutes) for the driver (mandatory) Tesla Semi is shaped like a bullet 2 kWh / mi energy consumption Next level engineering required to bring the Tesla Semi to market Ease of Use As easy to drive as a Model 3 Drivers have the ability to stand up in the cab, unheard of with similar class trucks More cargo space as well for tools and other cargo Single-touch suspension dump Design team focused on a lot of typical driver workflows and developed the truck to always accommodate the driver Charging 3x the current Supercharger cable density New V4 Superchargers immerse the conductors in coolant and doing some secret sauce isolation monitoring on the backend to deliver 1MW of power The V4 charging cable used by the Tesla Semi will also be supported by the CyberTruck! Tesla is working with Semi customers to build charging infrastructure at their facilities with megapacks to ensure that operations are never disrupted no matter what First delivery Completed first delivery to Modesto factory from Giga Nevada and brought back a load of snacks

After a bit of a lull in FSD Beta content I received 10.69.3 earlier this morning (2022-11-02) and have been busy testing ever since. All videos related to 10.69.3 will be posted here. https://youtu.be/SC1cYNI1IRo Tesla - FSD Beta 10.69.3 - St Anthony Pkwy UPL Turn Pt 1 This video contains footage recorded on the morning of November 2nd, 2022 of FSD Beta 10.69.3 attempting 3 UPL turns onto St Anthony Pkwy from Johnson St NE (NE Minneapolis). There was not a lot of traffic during this time of day so I’ll be posting another video later tonight once rush hour hits. ...

After a long drive back from California I had the chance tonight to listen to the 2022 Q3 Tesla earnings call. Like I have done with previous earnings calls, I have compiled notes that I wanted to share below. Enjoy! Opening remarks from Elon Musk General Q3 record quarter on many levels Industry leading operating margins of 17% Free cash flows surpassed $3B in Q3, $9B over last 12 mos Q4 should be record breaking and tracking well so far Giga Berlin reached milestone of 2000 cars per week (with very good quality), continues to rapidly ramp Giga Texas should reach milestone of 2000 cars per week very soon Demand continues to be strong especially for Q4 and Tesla expects to to sell every car they make for the foreseeable future “Long way to go to reach 1% of global vehicle fleet” -Elon Musk Stock buyback completely possible even with worst case scenario but still needs to go through formal board review Long term trend for Tesla continues to be positive Elon for the first time recognizes that Tesla has the potential to be larger than Apple & Saudi Aramco combined (without factoring in Optimus) “Most exciting product portfolio on earth, some of which you have hard of and some which you haven’t” -Elon Musk Final development stage for CyberTruck with production equipment being set up Robotaxi platform design coming along nicely Moving as fast as possible to achieve 1TWh of vertically-integrated battery production capacity in the US (including anode, cathode, lithium refining, etc.) 4680s 4680 production has tripled in Q3 compared to Q2 Elon expects 4680s to be a significant portion of vehicle production in Giga Texas in the near future 2nd generation of manufacturing equipment for 4680s in Giga Texas continues to quickly ramp and will nicely compliment the existing Kato Rd Battery Pilot Plant AI Day 2022 Follow Up Recruiting goal accomplished as smartest AI folks are applying and considering careers w/ Tesla Autopilot 60M millions driven by FSD Beta as of September 2022 FSD Beta to move to wide release to all North American customers by end of 2022 (current target is November) Anybody that has ordered FSD Beta (or subscribed) will have immediate access to FSD Beta Tesla is seeing that safety increases with vehicles w/ FSD Beta enabled than those that don’t Opening remarks from Zach Kirkhorn Automotive Profitability GAAP: 17.2% Gross: 27.9% Operating margin best yet even with Giga Berlin & Giga Texas production ramps weighing heavily With Giga Berlin, Giga Texas, and regulatory credits excluded, operating margins would have been strongest yet and gross margin would have been ~30% With that said, Giga Berlin & Giga Texas are positively contributing to future profitability as they ramp further & further Margin headwinds associated w/ macro economic conditions Energy gross profits highest they have been thanks to record production of Megapack & Powerwall offerings Free cash flows record despite decrease of cars in transit at end of quarter Started to experience limits on outbound logistics capacity which was not anticipated Definitely recognized with cargo ships leaving China as well as trucks within Europe Previously, roughly 2/3 of Q3 deliveries occurred in month of September with 1/3 of those coming in the final two weeks As a result, Tesla has begun to spread regional builds throughout the quarter to reduce transportation & logistic bottleneck (should also reduce costs, improve customer experience, etc). Still on track for 50% annual growth in production in 2022 however some supply chain risks exist (out of Tesla control) 50% annual growth for deliveries will be just below due to increase in cars in transit Expect a gap in production & delivery numbers in Q4 however those vehicles will be delivered at the beginning of Q1 2023 Continuing to build cars as fast as possible while maintaining healthy operating margins Q & A Inflation Reduction Act (IRA) Tesla plans to fully meet IRA’s requirements and sees it as a big accelerator for Tesla achieving their mission as well as battery supply chains here in America Elon meets they will meet all thresholds outlined in the IRA Worldwide Backlog (outside of North American) Elon believes China is experiencing a recession of shorts (property market) while Europe has a energy-driven recession New Products “Tesla is committed to continuous improvement” -Elon “Best Tesla is the latest Tesla” -Elon Musk “Plaid Model S & X are the best cars on earth, nothing close, just try one” -Elon Giga Berlin & Possible Power Cuts in Germany Don’t foresee this as a large risk to the company Cast front underbody as well as structural battery pack (Model Y) will be introduced to Giga Berlin later this year CyberTruck Facilities are actively being prepared for CyberTruck production On track for early production in early 2023 Beta builds have started and will continue to ramp into 2023 “When can I drive my beta” -Elon Musk Elon blamed delay on force majeurs including global supply chain crisis Tesla Semi First deliveries to Pepsi Co December 1st, Elon will be attending in person Will initially ship with the 2170 battery cells and eventually 500 miles of range (on level ground) fully loaded w/ cargo “I’d ask, what are your assumptions about wh/kg and wh/mi and they’d look at me with a blank stare, and say Hydrogen” -Elon Elon believes hydrogen is not needed for heavy duty trucking Takes a year to ramp production so expectation is to significantly ramp over next few years w/ production target of 50,000 units in North America by end of 2024 Plan is to expand Tesla Semi beyond North American Batteries 4680 production is expected to exceed 1000 car sets / week by end of Q4 2022 Focus is now shifting from production ramp to cost optimization and increasing production capacity in North America 300-400TWh of battery production necessary to transition entire world to sustainable energy Main cathode material will be iron since it can scale to very high tonnage 2x as much iron as nickel Manganese mixed in as well Aggressively pursuing a North American cathode supply, more to come on this one Tesla still believes they will meet the estimates they outlined on Battery Day Drew has been daily driving a structural pack Model Y for some time, still going strong Prolonged Recession Not reducing production in anyway, recession or not Elon believes Tesla is recession resilient (not recession proof) thanks to the fact the world has acknowledged they should move to EVs Battery storage needed to realize larger rollout of renewables Growth of energy storage business unit expected to grow at a rate of 150-200% per year, faster than vehicles by a lot Tesla can withstand quite a bit of downside before having to tweak production, product roadmap, etc. Even if 2023 is a horrible recession year, they still foresee generating noticeable amounts of cash Primary focus of new vehicle development team is to create next generation vehicle Half the cost of the Model 3 & Y platform Will be smaller as well Will quickly exceed the production of all other vehicles combined Going to take everything they learned from other vehicles into next-gen vehicle Goal is to create 2 cars with the same effort it takes to build a single Model 3 Vertical Integration Only have done this out of necessity and if it is required for them to do mining, Tesla will do it Elon has been meeting with senior US govt officials and he has asked for them to expedite permitting process for clean energy related projects Gradual improvements as they redesign the whole supply chains, Tesla is figuring out dramatic inefficiencies FSD Beta Elon expects functionality to be good enough to take you from your house to a friend’s house, grocery store, etc. “Almost never should have to touch the controls” -Elon Elon believes next year they’ll have sufficient data to share w/ regulators that proves FSD Beta is safer than the average human driver Operational efficiency Many different areas that Tesla can optimize further Costs of many commodities coming down however key elements like Lithium remain high Shipping costs went from $20k per container to about $3.5k (lots of things have been deflationary) Twitter Elon is excited even though he and partnered investors are over paying for Twitter He believes long term value far exceeds that of its current value Dojo Still a debate on whether or not it’ll be able to exceed performance of latest & greatest NVIDIA GPUs when it comes to NN training Elon believes they’ll known within next 1 - 1.5 years if Dojo is more powerful than NVIDIA GPUs

Tesla AI Day 2022 has been one of the most eagerly anticipated Tesla-related events of the year and it did not disappoint! As a FSD Beta Tester & techy, I was extremely excited to learn more about the underlying innovations that Tesla has come up with as they continue to develop their Full Self Driving solution. It was also exciting to see Optimus for the first time & better understand where Tesla is at in the product’s development cycle. I did my best at taking notes and have shared them below for your reference. If you are interested in rewatching the event you can do that by clicking the link here. Enjoy! ...

Early this morning my Model 3 was included in the early deployment wave of FSD Beta 10.69.2.2. Even though I’m on vacation I did actually take my Model 3 with me so I was able to do a drive around Arcadia, CA to see if I recognized any changes in behavior when compared to 10.69.2. https://youtu.be/oTitm65ok8s Tesla - FSD Beta 10.69.2.2 - First Impressions Around Arcadia, CA This video contains footage recorded on the morning of September 19th, 2022 of FSD Beta 10.69.2.2 driving me around Arcadia, CA. On this drive I recognized some increased confidence with chuck-style unprotected left turns (w/ medians) as well as better detection of flashing yellow turn lights. This build seems to get closer to the confidence that was originally experienced by OG testers with 10.69.0. Keep up the great work Autopilot team! ...

After a busy last couple of weeks testing FSD Beta 10.69.1 & 10.69.1.1 I received 10.69.2 yesterday and had the opportunity to do some testing around NE Minneapolis. Right off the bat I recognized 10.69.2 is much better about detecting VRUs (especially at distance) however in some cases it seems a little too eager to hit the brakes when approaching a VRU waiting to cross the intersection, even when traffic is closely following behind. I plan to do a few more drives tomorrow before I leave for California so stay tuned for more 10.69 content! ...

After doing a ton of testing with FSD Beta 10.69.1 over the last few days I received a notification around noon yesterday that Tesla OS 2022.20.11 aka FSD Beta 10.69.1.1 was ready to install on my Model 3. After performing a few drives with 10.69.1.1 I can say it builds upon some of the improvements we saw in 10.69.1 while: Introducing smoother creep behavior Producing less jerky brake & throttle inputs Adding increased confidence with VRUs I plan to do some additional testing as time permits over the long weekend so stay tuned for more FSD Beta content! ...