SAFE HARBOR Certain statements in this presentation, including statements relating to Model S production in 2014; manufacturing in general and manufacturing and timing of stationary storage products in particular; Gigafactory timing, site location, plans and output expectations; and statements regarding future vehicles such as Model X and Model 3 are “forward-looking statements” that are subject to risks and uncertainties. These forward-looking statements are based on management’s current expectations, and as a result of certain risks and uncertainties, actual results may differ materially from those projected.   The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: delays in the ramping of production capacity and delivery of Model S, including the ability of suppliers to supply parts at desired quality levels and quantities; market acceptance of electric vehicles in general and new Tesla vehicle models, specifically Model X and Model 3; delays in the manufacture and launch of Model X; problems or delays in developing the stationary storage products; problems or delays in bringing the Gigafactory online and operating it in line with expectations; Tesla’s ability to establish, maintain and strengthen the Tesla brand; Tesla’s ability to execute on its manufacturing expansion as well as the risks and uncertainties identified under the section captioned “Risk Factors” in our quarterly report on Form 10-Q filed with the SEC on August 8, 2014. Except as required by law, Tesla disclaims any obligation to update information contained in these forward-looking statements. During my presentation I may discuss our business outlook and make other forward-looking statements. Such statements are predictions based on management’s expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our most recent Form 10-Q filed with the SEC.

MISSION To accelerate the world’s transition to sustainable energy.

TIMELINE OF INNOVATION 2015 TESLA ENERGY MODEL X

GIGAFACTORY 1

Tesla Battery Gigafactory 1 Overall LIB Market (GWh/Year) Global cell supply growing, but almost entirely in Asia 500,000 Vehicles + Energy Storage GWh/Year Production Copyright©2015-2016/B3 Corporation

Battery Cell Energy Density Trend Volumetric Energy Density [Wh/l] 600 500 400 300 200 580 Doubling in 10 years Tesla Model III Li-Ion 330 350 Tesla Model S 280 Tesla Roadster Ni/MH Ni/Cd General Motors EV1 1985 1990 1995 2000 2005 2010 2015

ENERGY PRODUCTS MODEL S/X 75kWh and 100kWh 6.4kWh – 13.5kWh 100kWh+

BATTERY ARCHITECTURE Products Cylindrical Cells Battery Packs Modules Fundamental architecture / design is shared. Small form factor cells arranged into modules. Modules into packs. Packs into products.

SCALABLE DESIGN “Pod” 1X 1X 16X New pack for Tesla Energy called the pod. Powerwall uses 1 Pod. Powerpack uses 16 Pods. Another example of using existing tech for new applications. Much like Superchargers use onboard chargers from Model S.

BATTERY SYSTEM EXPERTISE 90,000+ VEHICLES 1.5 BILLION MILES 7.5GWh ENERGY STORAGE 30GW POWER ELECTRONICS 50+ POWERPACK INSTALLATIONS 50+ MWh STORAGE 550+ SUPERCHARGERS 3,000+ CONNECTIONS 3.3 GW+ POWER ELECTRONICS

SOLAR SELF CONSUMPTION Charge Powerwall Use Powerwall Energy Excess Solar Energy Grid Feed-in Use Grid Solar Production kW Time of Day 0:00 12:00 24:00 Direct Consumption Home Loads

POWERWALL

POWERWALL KEY FEATURES No field assembly Wall mounted sleek design Breakthrough pricing Scalable Unparalleled Battery Experience

SAMPLE INSTALLATION Solar Paired, self consumption with backup.

POWERWALL USE CASES Backup Power Energy Independence Energy Control to Save Money Self-consumption Load shifting Utility demand charge avoidance Utility demand response programs Backup Power Short-term brownouts and blackouts Long term resiliency for natural disasters Energy Independence PV + Powerwall as primary; grid as backup Completely off-grid

SELF CONSUMPTION + BACKUP SYSTEM DESIGN INVERTER

German Residential Market Overview Residential power consumers in Germany can save money by self-consuming more of their solar PV system’s generation due to gap between new Feed-in-Tariffs and retail electricity prices. A storage unit allows excess PV generation to be stored and consumed during load spikes or generation troughs. Tesla is introducing a second generation residential battery system using proven design and engineering from Electric Vehicles.

Site Analysis Method Storage Optimization kW Power Demand $ Rate Tariff Maximize Savings Potential through co-optimizing for load shifting, demand shaving and battery characteristics Tesla Algorithm

POWERPACK SYSTEMS 2MW/4MWh Tesla facility, Lathrop, CA This Powerpack System is installed at Tesla’s own facility in Lathrop, CA. The 2MW/4MWh system performs peak shaving (demand charge reduction).

POWERPACK

POWERPACK KEY FEATURES Fully integrated, AC-connected system Liquid thermal control Enhanced safety architecture Scalable Unparalleled Battery Experience

LARGE SCALE BENEFITS Increased renewable penetration Energy cost reduction Energy supply security Grid efficiency Grid resilience

250kW / 1MWh POWERPACK GRID INTERFACE Flexible Installation 250kW PCS Blocks Powerpack Combiner Site Master Controller

POWERPACK INVERTER Liquid Cooled Outdoor Rated 50 kW to 500 kW 99% Efficiency 50Hz/60Hz 380-480VAC Internal temperature controls gives the Powerpack Inverter a broad operating temperature range (-30C to 50C) Ingress Rating = IP66 Power range per Inverter cabinet = 50 kW to 500 kW Peak Efficiency = 99% Full Load Efficiency = 98.5% CEC Efficiency = 99% Nominal frequency is configurable to 50Hz or 60Hz AC Voltage is configurable between 380-480VAC

POWERPACK SOFTWARE Tailored Solution Dispatch Optimization Monitoring Application Tailored Solution Various applications on either side of the meter can be combined and prioritized to meet customer needs based on detailed use case simulations. The Tesla team works with businesses to determine the precise system specifications and applications for your site. Dispatch Optimization Powerpack Software autonomously performs real-time analysis and forecasting of a site’s energy usage, generation, and tariff data to optimize the charge and discharge of the batteries. Its algorithms can accommodate a wide range of on-site generation sources, tariff structures, and grid services. Monitoring Application Tesla’s use interface enables easy monitoring of system performance, savings and revenue over time.

POWERPACK SYSTEMS 250kW/1MWh 4-Hour Configuration

UTILITY SCALE PROJECTS 10MW / 40 MWh

Sample Energy Savings Estimate

Capacity Replenishment CAPACITY MAINTENANCE Capacity Replenishment Ensures deliverability of firm capacity (kW) and energy (kWh) over life of maintenance agreement Tesla will add hardware to the system on periodic basis Capacity Time

CAPACITY MAINTENANCE (20 YEARS) Start End 25MW / 100 MWh

QUESTIONS