Download - Tesla, Inc. · 12/31/2020 · PART III. Item 10. Directors, Executive Officers and Corporate Governance 108 Item 11. Executive Compensation 108 Item 12. Security Ownership of Certain

UNITEDSTATESSECURITIESANDEXCHANGECOMMISSION

Washington,D.C.20549

FORM10-K

(MarkOne)☒ ANNUALREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934

ForthefiscalyearendedDecember31,2020OR

☐ TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934Forthetransitionperiodfromto

CommissionFileNumber:001-34756

Tesla,Inc.(Exactnameofregistrantasspecifiedinitscharter)

Delaware 91-2197729(Stateorotherjurisdictionofincorporationororganization)

(I.R.S.EmployerIdentificationNo.)

3500DeerCreekRoadPaloAlto,California 94304

(Addressofprincipalexecutiveoffices) (ZipCode)(650)681-5000

(Registrant’stelephonenumber,includingareacode)SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Titleofeachclass TradingSymbol(s) NameofeachexchangeonwhichregisteredCommonstock TSLA TheNasdaqGlobalSelectMarket

SecuritiesregisteredpursuanttoSection12(g)oftheAct:None

Indicatebycheckmarkwhethertheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.Yes☒No☐IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13or15(d)oftheAct.Yes☐No☒Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934(“ExchangeAct”)duringthepreceding12months

(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)during

thepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles).Yes☒No☐Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompanyoranemerginggrowthcompany.Seethedefinitionsof

“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct:

Largeacceleratedfiler ☒ Acceleratedfiler ☐

Non-acceleratedfiler ☐ Smallerreportingcompany ☐

Emerginggrowthcompany ☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandards

providedpursuanttoSection13(a)oftheExchangeAct.☐IndicatebycheckmarkwhethertheRegistranthasfiledareportonandattestationtoitsmanagement’sassessmentoftheeffectivenessofitsinternalcontroloverfinancialreportingunderSection

404(b)oftheSarbanes-OxleyAct(15U.S.C.7262(b))bytheregisteredpublicaccountingfirmthatpreparedorissueditsauditreport.☒Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).Yes☐No☒Theaggregatemarketvalueofvotingstockheldbynon-affiliatesoftheregistrant,asofJune30,2020,thelastdayoftheregistrant’smostrecentlycompletedsecondfiscalquarter,was$160.57billion

(basedontheclosingpriceforsharesoftheregistrant’sCommonStockasreportedbytheNASDAQGlobalSelectMarketonJune30,2020).SharesofCommonStockheldbyeachexecutiveofficer,director,andholderof5%ormoreoftheoutstandingCommonStockhavebeenexcludedinthatsuchpersonsmaybedeemedtobeaffiliates.Thisdeterminationofaffiliatestatusisnotnecessarilyaconclusivedeterminationforotherpurposes.

AsofFebruary1,2021,therewere959,853,504sharesoftheregistrant’sCommonStockoutstanding.DOCUMENTSINCORPORATEDBYREFERENCE

Portionsoftheregistrant’sProxyStatementforthe2021AnnualMeetingofStockholdersareincorporatedhereinbyreferenceinPartIIIofthisAnnualReportonForm10-Ktotheextentstatedherein.SuchproxystatementwillbefiledwiththeSecuritiesandExchangeCommissionwithin120daysoftheregistrant’sfiscalyearendedDecember31,2020.

TESLA,INC.

ANNUALREPORTONFORM10-KFORTHEYEARENDEDDECEMBER31,2020

INDEX PagePARTI.

Item1. Business 4Item1A. RiskFactors 14Item1B. UnresolvedStaffComments 27Item2. Properties 27Item3. LegalProceedings 28Item4. MineSafetyDisclosures 28

PARTII.

Item5. MarketforRegistrant’sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities 29Item6. SelectedConsolidatedFinancialData 30Item7. Management’sDiscussionandAnalysisofFinancialConditionandResultsofOperations 31Item7A. QuantitativeandQualitativeDisclosuresAboutMarketRisk 49Item8. FinancialStatementsandSupplementaryData 50Item9. ChangesinandDisagreementswithAccountantsonAccountingandFinancialDisclosure 107Item9A. ControlsandProcedures 107Item9B. OtherInformation 107

PARTIII.

Item10. Directors,ExecutiveOfficersandCorporateGovernance 108Item11. ExecutiveCompensation 108Item12. SecurityOwnershipofCertainBeneficialOwnersandManagementandRelatedStockholderMatters 108Item13. CertainRelationshipsandRelatedTransactions,andDirectorIndependence 108Item14. PrincipalAccountantFeesandServices 108

PARTIV.

Item15. ExhibitsandFinancialStatementSchedules 108Item16. Summary 125

Signatures 126

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Forward-LookingStatementsThediscussionsinthisAnnualReportonForm10-Kcontainforward-lookingstatementsreflectingourcurrentexpectationsthatinvolverisksanduncertainties.Theseforward-lookingstatementsinclude,butarenotlimitedto,statementsconcerninganypotentialfutureimpactofthecoronavirusdisease(“COVID-19”)pandemiconourbusiness,ourstrategy,futureoperations,futurefinancialposition,futurerevenues,projectedcosts,profitability,expectedcostreductions,capitaladequacy,expectationsregardingdemandandacceptanceforourtechnologies,growthopportunitiesandtrendsinthemarketinwhichweoperate,prospectsandplansandobjectivesofmanagement.Thewords“anticipates,”“believes,”“could,”“estimates,”“expects,”“intends,”“may,”“plans,”“projects,”“will,”“would”andsimilarexpressionsareintendedtoidentifyforward-lookingstatements,althoughnotallforward-lookingstatementscontaintheseidentifyingwords.Wemaynotactuallyachievetheplans,intentionsorexpectationsdisclosedinourforward-lookingstatementsandyoushouldnotplaceunduerelianceonourforward-lookingstatements.Actualresultsoreventscoulddiffermateriallyfromtheplans,intentionsandexpectationsdisclosedintheforward-lookingstatementsthatwemake.Theseforward-lookingstatementsinvolverisksanduncertaintiesthatcouldcauseouractualresultstodiffermateriallyfromthoseintheforward-lookingstatements,including,withoutlimitation,theriskssetforthinPartI,Item1A,“RiskFactors”inthisAnnualReportonForm10-KandinourotherfilingswiththeSecuritiesandExchangeCommission.Wedonotassumeanyobligationtoupdateanyforward-lookingstatements.

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PARTI

ITEM1. BUSINESSOverview

Wedesign,develop,manufacture,sellandleasehigh-performancefullyelectricvehiclesandenergygenerationandstoragesystems,andofferservicesrelatedtooursustainableenergyproducts.Wegenerallysellourproductsdirectlytocustomers,includingthroughourwebsiteandretaillocations.Wealsocontinuetogrowourcustomer-facinginfrastructurethroughaglobalnetworkofvehicleservicecenters,MobileServicetechnicians,bodyshops,SuperchargerstationsandDestinationChargerstoacceleratethewidespreadadoptionofourproducts.Weemphasizeperformance,attractivestylingandthesafetyofourusersandworkforceinthedesignandmanufactureofourproductsandarecontinuingtodevelopfullself-drivingtechnologyforimprovedsafety.Wealsostrivetolowerthecostofownershipforourcustomersthroughcontinuouseffortstoreducemanufacturingcostsandbyofferingfinancialservicestailoredtoourproducts.Ourmissiontoacceleratetheworld’stransitiontosustainableenergy,engineeringexpertise,verticallyintegratedbusinessmodelandfocusonuserexperiencedifferentiateusfromothercompanies.

SegmentInformationWeoperateastworeportablesegments:(i)automotiveand(ii)energygenerationandstorage.

Theautomotivesegmentincludesthedesign,development,manufacturing,salesandleasingofelectricvehiclesaswellassalesofautomotiveregulatorycredits.Additionally,theautomotivesegmentisalsocomprisedofservicesandother,whichincludesnon-warrantyafter-salesvehicleservices,salesofusedvehicles,retailmerchandise,salesbyouracquiredsubsidiariestothirdpartycustomersandvehicleinsurancerevenue.Theenergygenerationandstoragesegmentincludesthedesign,manufacture,installation,salesandleasingofsolarenergygenerationandenergystorageproductsandrelatedservicesandsalesofsolarenergysystemsincentives.

OurProductsandServicesAutomotive

Model3Model3isafour-doormid-sizesedanthatwedesignedformanufacturabilitywithabasepriceformass-marketappeal,whichwebegandeliveringin

July2017.WecurrentlymanufactureModel3attheFremontFactoryandatGigafactoryShanghai.

ModelYModelYisacompactsportutilityvehicle(“SUV”)builtontheModel3platformwithseatingforuptosevenadults,whichwebegandeliveringinMarch

2020.WecurrentlymanufactureModelYattheFremontFactoryandatGigafactoryShanghai.

ModelSandModelXModelSisafour-doorfull-sizesedanthatwebegandeliveringinJune2012.ModelXisamid-sizeSUVwithseatingforuptosevenadults,whichwe

begandeliveringinSeptember2015.ModelSandModelXfeaturethehighestperformancecharacteristicsandlongestrangesthatweofferinasedanandSUV,respectively,andwemanufacturebothmodelsattheFremontFactory.

FutureConsumerandCommercialElectricVehiclesWehavealsoannouncedseveralplannedelectricvehiclestoaddressadditionalvehiclemarkets,includingspecializedconsumerelectricvehiclesin

CybertruckandthenewTeslaRoadsterandacommercialelectricvehicleinTeslaSemi.Wealsoplantointroduceinthefuturealower-costvehicletoleveragedevelopmentsinourproprietaryFullSelf-Driving(“FSD”),batterycellandothertechnologies.

EnergyGenerationandStorageEnergyStorageProductsWebegandeliveriesofthemostrecentgenerationsofPowerwall,PowerpackandMegapack,whichareourlithium-ionbatteryenergystorageproducts

integratedwithinvertersandcontroltechnology,in2016,2017and2019,respectively.Powerwallisdesignedtostoreenergyatahomeorsmallcommercialfacility.MegapackandPowerpackareenergystoragesolutionsforcommercial,industrial,utilityandenergygenerationcustomers,whichmaybegroupedtogethertoformlargerinstallationscapableofreachinggigawatthours(“GWh”)orgreater.Wealsoofferintegratedsystemscombiningenergygenerationandstorage.OurenergystorageproductsarecurrentlyassembledatGigafactoryNevada.

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Wehavealsodevelopedsoftwarecapabilitiesforremotelycontrollinganddispatchingourenergystoragesystemsacrossawiderangeofmarketsandapplications,includingthroughourreal-timeenergytradingplatform.

SolarEnergyOfferingsWesellretrofitsolarenergysystemstocustomersandchannelpartnersandalsomakethemavailablethroughleaseandpowerpurchaseagreement

(“PPA”)arrangementsandasubscription-basedsaleofsolarpower,whichiscurrentlyavailableinlimitedU.S.markets.Wepurchasemostofthecomponentsforourretrofitsolarenergysystemsfrommultiplesourcestoensurecompetitivepricingandadequatesupply.Wealsodesignandmanufacturecertaincomponentsforoursolarenergyproducts.

In2019,wecommenceddirectcustomerandchannelpartnersalesofthethirdgenerationofourSolarRoof,whichcombinespremiumglassrooftileswithenergygeneration.WearerampingthevolumeproductionofSolarRoofatGigafactoryNewYork,andweareimprovingourinstallationcapabilityandefficiency.

TechnologyAutomotive

BatteryandPowertrainOurcorevehicletechnologycompetenciesincludepowertrainengineeringandmanufacturingandourabilitytodesignvehiclesthatutilizetheunique

advantagesofanelectricpowertrain.Wehavedesignedourproprietarypowertrainsystemstobeadaptable,efficient,reliableandcost-effectivewhilewithstandingtherigorsofanautomotiveenvironment.Weofferdualmotorpowertrainvehicles,whichusetwoelectricmotorstomaximizetractionandperformanceinanall-wheeldriveconfiguration,andareintroducingvehiclepowertraintechnologyfeaturingthreeelectricmotorsforfurtherincreasedperformance.

Amongotherthings,wemaintainextensivetestingandR&Dcapabilitiesforbatterycells,packsandsystems,andhavebuiltanexpansivebodyofknowledgeonlithium-ioncellchemistrytypesandperformancecharacteristics.Inordertoenableagreatersupplyofcellsforourproductswithhigherenergydensityatlowercosts,wearecurrentlyusingourexpertisetodevelopanewproprietarylithium-ionbatterycellandimprovedmanufacturingprocesses.

VehicleControlandInfotainmentSoftwareTheperformanceandsafetysystemsofourvehiclesandtheirbatterypacksrequiresophisticatedcontrolsoftware.Controlsystemsinourvehicles

optimizeperformance,customizevehiclebehavior,managechargingandcontrolallinfotainmentfunctions.Wedevelopalmostallofthissoftware,includingmostoftheuserinterfaces,internallyandupdateourvehicles’softwareregularlythroughover-the-airupdates.

Self-DrivingDevelopmentWehaveexpertiseindevelopingtechnologies,systemsandsoftwaretoenableself-drivingvehiclesusingprimarilyvisionandradar-basedsensors.Our

FSDComputerrunsourneuralnetworksinourvehicles,andwearealsodevelopingadditionalcomputerhardwaretobetterenablethemassiveamountsoffielddatacapturedbyourvehiclestocontinuallytrainandimprovetheseneuralnetworksforreal-worldperformance.

Currently,weofferinourvehiclescertainadvanceddriverassistsystemsunderourAutopilotandFSDoptions.Althoughatpresentthedriverisultimatelyresponsibleforcontrollingthevehicle,oursystemsprovidesafetyandconveniencefunctionalitythatrelievesdriversofthemosttediousandpotentiallydangerousaspectsofroadtravelmuchlikethesystemthatairplanepilotsuse,whenconditionspermit.Aswithothervehiclesystems,weimprovethesefunctionsinourvehiclesovertimethroughover-the-airupdates.

WeintendtoestablishinthefutureanautonomousTeslaride-hailingnetwork,whichweexpectwouldalsoallowustoaccessanewcustomerbaseevenasmodesoftransportationevolve.

EnergyGenerationandStorageEnergyStorageProductsWeleveragemanyofthecomponent-leveltechnologiesfromourvehiclesinourenergystorageproducts.Bytakingamodularapproachtothedesignof

batterysystems,wecanoptimizemanufacturingcapacityamongourenergystorageproducts.Additionally,ourexpertiseinpowerelectronicsenablesustointerconnectourbatterysystemsseamlesslywithglobalelectricitygridswhileprovidingfast-actingsystemsforpowerinjectionandabsorption.Wehavealsodevelopedthesoftwaretoremotelycontrolanddispatchourenergystoragesystemsusingourreal-timeenergytradingplatform.

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SolarEnergySystemsWehaveengineeredSolarRoofovernumerousiterationstocombineaestheticappealanddurabilitywithpowergeneration.Theefficiencyofoursolar

energyproductsisaidedbyourownsolarinverter,whichalsoincorporatesourpowerelectronicstechnologies.WedesignedbothproductstointegratewithPowerwall.

DesignandEngineeringAutomotive

Wehaveestablishedsignificantin-housecapabilitiesinthedesignandtestengineeringofelectricvehiclesandtheircomponentsandsystems.Ourteamhascorecompetenciesincomputeraideddesignaswellasdurability,strengthandcrashtestsimulations,whichreducestheproductdevelopmenttimeofnewmodels.Additionally,ourteamhasexpertiseinselectingandworkingwitharangeofmaterialsforourvehiclestobalanceperformance,costanddurabilityinwaysthatarebestsuitedforourvehicles’targetdemographicsandutility.Wehavealsousedourcapabilitiestoachievecomplexengineeringfeatsinstamping,castingandthermalsystems,andarecurrentlydevelopingdesignsthatintegratebatteriesdirectlywithvehiclebodystructureswithoutseparatebatterypackstooptimizemanufacturability,weight,rangeandcostcharacteristics.

Wearealsoexpandingourmanufacturingoperationsgloballywhileexploringwaystolocalizeourvehicledesignsandproductionforparticularmarkets,includingcountry-specificmarketdemandsandfactoryoptimizationsforlocalworkforces.Asweincreaseourcapabilities,particularlyintheareasofautomation,die-makingandline-building,wearealsomakingstridesinthesimulationsmodelingthesecapabilitiespriortoconstruction.

EnergyGenerationandStorageOurexpertiseinelectrical,mechanical,civilandsoftwareengineeringallowsustodesignandmanufactureourenergygenerationandstorageproducts

andcomponents.Wealsoemployourdesignandengineeringexpertisetocustomizesolutionsincludingourenergystorageproducts,solarenergysystemsand/orSolarRoofforcustomerstomeettheirspecificneeds.Wehavedevelopedsoftwarethatsimplifiesandexpeditesthedesignprocessandmaximizestheenergyproductionofeachsolarenergysystem,aswellasmountinghardwarethatfacilitatessolarpanelinstallation.

SalesandMarketingHistorically,wehavebeenabletogeneratesignificantmediacoverageofourcompanyandourproducts,andwebelievewewillcontinuetodoso.Such

mediacoverageandwordofmoutharethecurrentprimarydriversofoursalesleadsandhavehelpedusachievesaleswithouttraditionaladvertisingandatrelativelylowmarketingcosts.

AutomotiveDirectSalesOurvehiclesaleschannelscurrentlyincludeourwebsiteandaninternationalnetworkofcompany-ownedstores.Insomejurisdictions,wealsohave

galleriestoeducateandinformcustomersaboutourproducts,butsuchlocationsdonotactuallytransactinthesaleofvehicles.Webelievethisinfrastructureenablesustobettercontrolcostsofinventory,managewarrantyserviceandpricing,educateconsumersaboutelectricvehicles,maintainandstrengthentheTeslabrandandobtainrapidcustomerfeedback.

Wereevaluateoursalesstrategybothgloballyandatalocation-by-locationlevelfromtimetotimetooptimizeourcurrentsaleschannels.Salesofvehiclesintheautomobileindustrytendtobecyclicalinmanymarkets,whichmayexposeustovolatilityfromtimetotime.

UsedVehicleSalesOurusedvehiclebusinesssupportsnewvehiclesalesbyintegratingthetrade-inofacustomer’sexistingTeslaornon-Teslavehiclewiththesaleofa

neworusedTeslavehicle.TheTeslaandnon-Teslavehiclesweacquireastrade-insaresubsequentlyremarketed,eitherdirectlybyusorthroughthirdparties.WealsoremarketusedTeslavehiclesacquiredfromothersourcesincludingleasereturns.

PublicChargingWehaveagrowingglobalnetworkofTeslaSuperchargers,whichareourindustrialgrade,high-speedvehiclechargers.Wherepossible,weco-locate

Superchargerswithoursolarandenergystoragesystemstoreducecostsandpromoterenewablepower.Superchargerstationsaretypicallyplacedalongwell-traveledroutesandinandarounddensecitycenterstoallowTeslavehicleownerstheabilitytoenjoyquick,reliableandubiquitouschargingwithconvenient,minimalstops.UseoftheSuperchargernetworkeitherrequirespaymentofafeeorisfreeundercertainsalesprograms.

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Wealsoworkwithawidevarietyofhospitality,retailandpublicdestinations,aswellasbusinesseswithcommutingemployees,toofferadditionalchargingoptionsforourcustomers.TheseDestinationChargingandworkplacelocationsdeployTeslaWallConnectorstoprovidechargingtoTeslavehicleownerswhopatronizeorareemployedattheirbusinesses.Wealsoworkwithsingle-familyhomeownersandmulti-familyresidentialentitiestodeployhomechargingsolutions.

In-AppUpgradesAsourvehiclesarecapableofbeingupdatedremotelyover-the-air,ourcustomersmaypurchaseadditionalpaidoptionsandfeaturesthroughtheTesla

app.Weexpectthatthisfunctionalitywillalsoallowustooffercertainoptionsandfeaturesonasubscriptionbasisinthefuture.

EnergyGenerationandStorageWemarketandselloursolarandenergystorageproductstoresidential,commercialandindustrialcustomersandutilitiesthroughavarietyofchannels.

Weemphasizesimplicity,standardizationandaccessibilitytomakeiteasyandcost-effectiveforcustomerstoadoptcleanenergy,whilereducingourcustomeracquisitioncosts.

IntheU.S.,weofferresidentialsolarandenergystorageproductsdirectlythroughourwebsite,storesandgalleries,aswellasthroughournetworkofchannelpartners.OutsideoftheU.S.,weuseourinternationalsalesorganizationandanetworkofchannelpartnerstomarketandselltheseproductsfortheresidentialmarket.WealsosellPowerwalldirectlytoutilities.Inthecaseofproductssoldtoutilitiesorchannelpartners,suchpartnerstypicallyselltheproductandmanagetheinstallationincustomerhomes.

Wesellourcommercialandutility-scaleenergystoragesystemstocustomersthroughourU.S.andinternationalsalesorganizationandourchannelpartnernetwork.Incertainjurisdictions,wealsosellinstalledsolarenergysystems(withorwithoutenergystorage)tocommercialcustomersthroughcash,leaseandPPAtransactions.

ServiceandWarrantyAutomotive

ServiceWeprovideserviceforourelectricvehiclesatourcompany-ownedservicelocationsandthroughTeslaMobileServicetechnicianswhoperformwork

remotelyatcustomers’homesorotherlocations.Performingvehicleserviceourselvesprovidesuswiththecapabilitytoidentifyproblemsandimplementsolutionsandimprovementsfaster,andoptimizelogisticsandinventorybetter,thantraditionalautomobilemanufacturersandtheirdealernetworks.Theconnectivityofourvehiclesalsoallowsustodiagnoseandremedymanyproblemsremotelyandproactively.

VehicleLimitedWarrantiesandExtendedServicePlansWeprovideamanufacturer’slimitedwarrantyonallnewandusedTeslavehicleswesell,whichmayincludeseparatelimitedwarrantiesoncertain

components,specifictypesofdamageorbatterycapacityretention.Wealsocurrentlyofferextendedserviceplansthatprovidecoveragebeyondthenewvehiclelimitedwarrantiesforcertainmodelsinspecifiedregions.

EnergyGenerationandStorageWeprovideserviceandrepairstoourenergyproductcustomers,includingunderwarrantywhereapplicable.

EnergyStorageSystemsWegenerallyprovidemanufacturer’slimitedwarrantieswitheverynewenergystorageproductandoffercertainextendedlimitedwarrantiesthatare

availableatthetimeofpurchaseofthesystem.Ifweinstallasystem,wealsoprovidecertainlimitedwarrantiesonourinstallationworkmanship.Aspartofourenergystoragesystemcontracts,wemayprovidethecustomerwithperformanceguaranteesthatwarrantthattheunderlyingsystemwillmeetorexceedtheminimumenergyperformancerequirementsspecifiedinthecontract.

SolarEnergySystemsForretrofitsolarenergysystems,weprovideseparatelimitedwarrantiesforworkmanshipandagainstroofleaks,andforSolarRoof,weprovidelimited

warrantiesfordefectsandweatherization.Forcomponentsnotmanufacturedbyus,wegenerallypass-throughtheapplicablemanufacturers’warranties.Aspartofoursolarenergysystemcontracts,wemayprovidethecustomerwithperformanceguaranteesthatwarrantthattheunderlyingsystemwillmeetorexceedtheminimumenergygenerationrequirementsspecifiedinthecontract.

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FinancialServicesAutomotive

PurchaseFinancingandLeasesWeofferleasingand/orloanfinancingarrangementsforourvehiclesincertainjurisdictionsinNorthAmerica,EuropeandAsiathroughvariousfinancial

institutions.Undercertainofsuchprograms,wehaveprovidedresalevalueguaranteesorbuybackguaranteesthatmayobligateustorepurchasethesubjectvehiclesatpre-determinedvalues.Wealsooffervehiclefinancingarrangementsincertainmarketsforspecifiedvehiclemodelsdirectlythroughourlocalsubsidiaries.

InsuranceInAugust2019,welaunchedaninsuranceproductdesignedforourcustomers,whichoffersratesthatareoftenbetterthanotheralternatives.This

productiscurrentlyavailableinCalifornia,andweplantoexpandboththemarketsinwhichweofferinsuranceproductsandourabilitytooffersuchproducts,aspartofourongoingefforttodecreasethetotalcostofownershipforourcustomers.

EnergyGenerationandStorageEnergyStorageSystemsWecurrentlyoffercertainloan,leaseand/orPPAoptionstoresidentialorcommercialcustomerswhopairenergystoragesystemswithsolarenergy

systems.Weintendtointroducefinancialservicesofferingsforcustomerswhopurchasestandaloneenergystorageproductsinthefuture.

SolarEnergySystemsWeoffervariousfinancingoptionstooursolarcustomers.Oursolarloanoffersthird-partyfinancingtoenablethecustomertopurchaseandownasolar

energysystem.Wearenotapartytotheloanagreement,andthethird-partylenderhasnorecourseagainstuswithrespecttotheloan.Oursolarleaseofferscustomersafixedmonthlyfeeatratesthattypicallytranslateintolowermonthlyutilitybillsandanelectricityproductionguarantee.OursolarPPAchargescustomersafeeperkilowatt-hourbasedontheamountofelectricityproducedbyoursolarenergysystems.WemonetizethecustomerpaymentswereceivefromourleasesandPPAsthroughfundswehaveformedwithinvestors.WealsointendtointroducefinancialservicesofferingsforourSolarRoofcustomersinthefuture.

Manufacturing

ManufacturingFacilitiesintheBayArea,CaliforniaWemanufactureandtestourvehiclesatourmanufacturingfacilitiesintheBayAreainCalifornia,includingtheFremontFactoryandotherlocal

manufacturingfacilities.Wealsomanufactureanddevelopcertainpartsandcomponentsthatarecriticaltoourintellectualpropertyandqualitystandards,suchasModelSandModelXbatterypacksandourproprietarylithium-ionbatterycells,attheselocations.

GigafactoryNevadanearReno,NevadaWehaveintegratedbatterymaterial,cell,moduleandbatterypackproductionforModel3,ModelYandourenergyproductsinonelocationat

GigafactoryNevada.Inaddition,wemanufacturevehicledriveunitsandourenergystorageproductsthere.GigafactoryNevadaallowsustoaccesshighvolumesoflithium-ionbatterycellsmanufacturedbyourpartnerPanasonictherewhileachievingasignificantreductioninthecostofourbatterypacks.WecontinuetoinvestinGigafactoryNevadatoachieveadditionaloutputthere,includingthroughouragreementwithPanasonic.

GigafactoryNewYorkinBuffalo,NewYorkWeuseGigafactoryNewYorkforthedevelopmentandproductionofourSolarRoofandothersolarproductsandcomponents,energystorage

componentsandSuperchargercomponents,andforotherlessor-approvedfunctions.

GigafactoryShanghaiinChinaWeestablishedGigafactoryShanghaitoincreasetheaffordabilityofourvehiclesforcustomersinlocalmarketsbyreducingtransportationand

manufacturingcostsandeliminatingtheimpactofunfavorabletariffs.Wecontinuetoincreasethedegreeoflocalizedprocurementandmanufacturingthere.GigafactoryShanghaiisrepresentativeofourplantoiterativelyimproveourmanufacturingoperationsasweestablishnewfactories,asweimplementedthelearningsfromourModel3rampattheFremontFactorytocommenceandrampourproductiontherequicklyandcost-effectively.

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OtherManufacturingGenerally,wecontinuetoexpandproductioncapacityatourexistingfacilities.Wealsointendtofurtherincreasecost-competitivenessinoursignificant

marketsbystrategicallyaddinglocalmanufacturing,includingatGigafactoryBerlininGermanyandGigafactoryTexasinAustin,Texas,whichareunderconstruction.

SupplyChainOurproductsusethousandsofpurchasedpartsthataresourcedfromhundredsofsuppliersacrosstheworld.Wehavedevelopedcloserelationships

withvendorsofkeypartssuchasbatterycells,electronicsandcomplexvehicleassemblies.Certaincomponentspurchasedfromthesesuppliersaresharedoraresimilaracrossmanyproductlines,allowingustotakeadvantageofpricingefficienciesfromeconomiesofscale.

Asisthecaseformostautomotivecompanies,mostofourprocuredcomponentsandsystemsaresourcedfromsinglesuppliers.Wheremultiplesourcesareavailableforcertainkeycomponents,weworktoqualifymultiplesuppliersforthemwhereitissensibletodosoinordertominimizeproductionrisksowingtodisruptionsintheirsupply.Wealsomitigateriskbymaintainingsafetystockforkeypartsandassembliesanddiebanksforcomponentswithlengthyprocurementleadtimes.

Ourproductsusevariousrawmaterialsincludingaluminum,steel,cobalt,lithium,nickelandcopper.Pricingforthesematerialsisgovernedbymarketconditionsandmayfluctuateduetovariousfactorsoutsideofourcontrol,suchassupplyanddemandandmarketspeculation.Westrivetoexecutelong-termsupplycontractsforsuchmaterialsatcompetitivepricingwhenfeasible,andwecurrentlybelievethatwehaveadequateaccesstorawmaterialssuppliesinordertomeettheneedsofouroperations.

GovernmentalPrograms,IncentivesandRegulationsGlobally,boththeoperationofourbusinessbyusandtheownershipofourproductsbyourcustomersareimpactedbyvariousgovernmentprograms,

incentivesandotherarrangements.Ourbusinessandproductsarealsosubjecttonumerousgovernmentalregulationsthatvaryamongjurisdictions.

ProgramsandIncentivesCaliforniaAlternativeEnergyandAdvancedTransportationFinancingAuthorityTaxIncentivesWehaveagreementswiththeCaliforniaAlternativeEnergyandAdvancedTransportationFinancingAuthoritythatprovidemulti-yearsalestax

exclusionsonpurchasesofmanufacturingequipmentthatwillbeusedforspecificpurposes,includingtheexpansionandongoingdevelopmentofelectricvehiclesandpowertrainproductioninCalifornia.

GigafactoryNevada—NevadaTaxIncentivesInconnectionwiththeconstructionofGigafactoryNevada,weenteredintoagreementswiththeStateofNevadaandStoreyCountyinNevadathat

provideabatementsforspecifiedtaxes,discountstothebasetariffenergyratesandtransferabletaxcreditsinconsiderationofcapitalinvestmentandhiringtargetsthatweremetatGigafactoryNevada.TheseincentivesareavailableuntilJune2024orJune2034,dependingontheincentive.

GigafactoryNewYork—NewYorkStateInvestmentandLeaseWehavealeasethroughtheResearchFoundationfortheStateUniversityofNewYork(the“SUNYFoundation”)withrespecttoGigafactoryNewYork.

Undertheleaseandarelatedresearchanddevelopmentagreement,wearecontinuingtodesignatefurtherbuildoutsatthefacility.Wearerequiredtocomplywithcertaincovenants,includinghiringandcumulativeinvestmenttargets.

AswetemporarilysuspendedmostofourmanufacturingoperationsatGigafactoryNewYorkpursuanttoaNewYorkStateexecutiveorderissuedinMarch2020asaresultoftheCOVID-19pandemic,weweregrantedaone-yeardeferralofourobligationtobecompliantwithourapplicabletargetsundersuchagreementonApril30,2020,whichwasmemorializedinanamendmenttoouragreementwiththeSUNYFoundationinJuly2020.

GigafactoryShanghai—LandUseRightsandEconomicBenefitsWehaveanagreementwiththelocalgovernmentofShanghaiforlanduserightsatGigafactoryShanghai.Underthetermsofthearrangement,weare

requiredtomeetacumulativecapitalexpendituretargetandanannualtaxrevenuetargetstartingattheendof2023.Inaddition,theShanghaigovernmenthasgrantedtoourGigafactoryShanghaisubsidiaryin2019and2020certainincentivestobeusedinconnectionwitheligiblecapitalinvestmentsatGigafactoryShanghai.Finally,theShanghaigovernmentgrantedabeneficialcorporateincometaxrateof15%tocertaineligibleenterprises,whichislowerthanthe25%statutorycorporateincometaxrateinChina.OurGigafactoryShanghaisubsidiarywasgrantedthislowerratefor2019through2023.

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GigafactoryBerlin–PendingGrantWehaveappliedforagrantwiththeGermangovernmenttoimprovethedesign,chemistry,manufacturingtechnologyandrecyclingoflithium-ion

batterycellsforGigafactoryBerlin.ThegrantwasapprovedbytheEuropeanCommissioninJanuary2021anditsimplementationwillbesubjecttoagrantagreementwiththeGermangovernment.

GigafactoryTexas–TaxIncentivesInconnectionwiththeconstructionofGigafactoryTexas,weenteredintoa20-yearagreementwithTravisCountyinTexaspursuanttowhichwewould

receivegrantfundingequalto70-80%ofpropertytaxespaidbyustoTravisCountyandaseparate10-yearagreementwiththeDelValleIndependentSchoolDistrictinTexaspursuanttowhichaportionofthetaxablevalueofourpropertywouldbecappedataspecifiedamount,ineachcasesubjecttoourmeetingcertainminimumeconomicdevelopmentmetricsthroughourconstructionandoperationsatGigafactoryTexas.

RegulatoryCreditsWeearntradablecreditsintheoperationofourbusinessundervariousregulationsrelatedtozero-emissionvehicles(“ZEVs”),greenhousegas,fuel

economy,renewableenergyandcleanfuel.Wesellthesecreditstootherregulatedentitieswhocanusethecreditstocomplywithemissionstandards,renewableenergyprocurementstandardsandotherregulatoryrequirements.

EnergyStorageSystemIncentivesandPoliciesWhiletheregulatoryregimeforenergystorageprojectsisstillunderdevelopment,therearevariouspolicies,incentivesandfinancialmechanismsatthe

federal,stateandlocallevelsthatsupporttheadoptionofenergystorage.

Forexample,energystoragesystemsthatarechargedusingsolarenergymaybeeligibleforthesolarenergy-relatedU.S.federaltaxcreditsdescribedbelow.TheFederalEnergyRegulatoryCommission(“FERC”)hasalsotakenstepstoenabletheparticipationofenergystorageinwholesaleenergymarkets.Inaddition,Californiaandanumberofotherstateshaveadoptedprocurementtargetsforenergystorage,andbehind-the-meterenergystoragesystemsqualifyforfundingundertheCaliforniaSelfGenerationIncentiveProgram.

SolarEnergySystemIncentivesandPoliciesU.S.federal,stateandlocalgovernmentshaveestablishedvariouspolicies,incentivesandfinancialmechanismstoreducethecostofsolarenergyand

toacceleratetheadoptionofsolarenergy.Theseincentivesincludetaxcredits,cashgrants,taxabatementsandrebates.

Inparticular,Sections48and25DoftheU.S.InternalRevenueCodecurrentlyprovideataxcreditof26%ofqualifiedcommercialorresidentialexpendituresforsolarenergysystems,whichmaybeclaimedbyourcustomersforsystemstheypurchase,orbyusforarrangementswhereweownthesystems.Thesetaxcreditsarecurrentlyscheduledtodeclineand/orexpirein2023andbeyond.

RegulationsVehicleSafetyandTestingIntheU.S.,ourvehiclesaresubjecttoregulationbytheNationalHighwayTrafficSafetyAdministration(“NHTSA”),includingallapplicableFederal

MotorVehicleSafetyStandards(“FMVSS”)andtheNHTSAbumperstandard.NumerousFMVSSapplytoourvehicles,suchascrash-worthinessrequirements,crashavoidancerequirementsandelectricvehiclerequirements.WhileourcurrentvehiclesfullycomplyandweexpectthatourvehiclesinthefuturewillfullycomplywithallapplicableFMVSSwithlimitedornoexemptions,FMVSSaresubjecttochangefromtimetotime.Asamanufacturer,wemustself-certifythatourvehiclesmeetallapplicableFMVSSandtheNHTSAbumperstandard,orotherwiseareexempt,beforethevehiclesmaybeimportedorsoldintheU.S.

WearealsorequiredtocomplywithotherfederallawsadministeredbyNHTSA,includingtheCAFEstandards,TheftPreventionActrequirements,consumerinformationlabelingrequirements,EarlyWarningReportingrequirementsregardingwarrantyclaims,fieldreports,deathandinjuryreportsandforeignrecalls,owner’smanualrequirementsandadditionalrequirementsforcooperatingwithsafetyinvestigationsanddefectandrecallreporting.TheU.S.AutomobileInformationandDisclosureActalsorequiresmanufacturersofmotorvehiclestodisclosecertaininformationregardingthemanufacturer’ssuggestedretailprice,optionalequipmentandpricing.Inaddition,federallawrequiresinclusionoffueleconomyratings,asdeterminedbytheU.S.DepartmentofTransportationandtheEnvironmentalProtectionAgency(the“EPA”),and5-starsafetyratingsasdeterminedbyNHTSA,ifavailable.

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OurvehiclessoldoutsideoftheU.S.aresubjecttosimilarforeignsafety,environmentalandotherregulations.ManyofthoseregulationsaredifferentfromthoseapplicableintheU.S.andmayrequireredesignand/orretesting.Someofthoseregulationsimpactorpreventtherolloutofnewvehiclefeatures.Additionally,theEuropeanUnionhasestablishednewrulesregardingadditionalcomplianceoversightthatcommencedin2020,andthereisalsoregulatoryuncertaintyrelatedtotheUnitedKingdom’swithdrawalfromtheEuropeanUnion.

Self-DrivingVehiclesGenerally,lawspertainingtoself-drivingvehiclesareevolvingglobally,andinsomecasesmaycreaterestrictionsonself-drivingfeaturesthatwe

develop.WhiletherearecurrentlynofederalU.S.regulationsspecificallypertainingtoself-drivingvehiclesorself-drivingequipment,NHTSAhaspublishedrecommendedguidelinesonself-drivingvehicles,andretainstheauthoritytoinvestigateand/ortakeactiononthesafetyofanyvehicle,equipmentorfeaturesoperatingonpublicroads.CertainU.S.stateshavelegalrestrictionsontheoperation,registrationorlicensureofself-drivingvehicles,andmanyotherstatesareconsideringthem.Thisregulatorypatchworkincreasesthelegalcomplexitywithrespecttoself-drivingvehiclesintheU.S.

InmarketsthatfollowtheregulationsoftheUnitedNationsEconomicCommissionforEurope,somerequirementsrestrictthedesignofadvanceddriver-assistanceorself-drivingfeatures,whichcancompromiseorpreventtheiruseentirely.Otherapplicablelaws,bothcurrentandproposed,mayhinderthepathandtimelinetointroducingself-drivingvehiclesforsaleanduseinthemarketswheretheyapply.

Otherkeymarkets,includingChina,continuetoconsiderself-drivingregulation.AnyimplementedregulationsmaydiffermateriallyfromthoseintheU.S.andEurope,whichmayfurtherincreasethelegalcomplexityofself-drivingvehiclesandlimitorpreventcertainfeatures.

AutomobileManufacturerandDealerRegulationIntheU.S.,statelawsregulatethemanufacture,distribution,saleandserviceofautomobiles,andgenerallyrequiremotorvehiclemanufacturersand

dealerstobelicensedinordertosellvehiclesdirectlytoresidents.Certainstateshaveassertedthatthelawsinsuchstatesdonotpermitautomobilemanufacturerstobelicensedasdealersortoactinthecapacityofadealer,orthattheyotherwiserestrictamanufacturer’sabilitytodeliverorservicevehicles.Tosellvehiclestoresidentsofstateswherewearenotlicensedasadealer,wegenerallyconductthetransferoftitleoutofthestate.Incertainsuchstates,wehaveopened“galleries”thatserveaneducationalpurposeandwherethetitletransfermaynotoccur.

Someautomobiledealertradeassociationshavebothchallengedthelegalityofouroperationsincourtandusedadministrativeandlegislativeprocessestoattempttoprohibitorlimitourabilitytooperateexistingstoresorexpandtonewlocations.Certaindealerassociationshavealsoactivelylobbiedstatelicensingagenciesandlegislatorstointerpretexistinglawsorenactnewlawsinwaysnotfavorabletoourownershipandoperationofourownretailandservicelocations.Weexpectsuchchallengestocontinue,andweintendtoactivelyfightanysuchefforts.

BatterySafetyandTestingOurbatterypacksaresubjecttovariousU.S.andinternationalregulationsthatgoverntransportof“dangerousgoods,”definedtoincludelithium-ion

batteries,whichmaypresentariskintransportation.Weconducttestingtodemonstrateourcompliancewithsuchregulations.

Weuselithium-ioncellsinourhighvoltagebatterypacksinourvehiclesandenergystorageproducts.Theuse,storageanddisposalofourbatterypacksareregulatedunderexistinglawsandarethesubjectofongoingregulatorychangesthatmayaddadditionalrequirementsinthefuture.Wehaveagreementswiththirdpartybatteryrecyclingcompaniestorecycleourbatterypacksandwearealsopilotingourownrecyclingtechnology.

SolarEnergy—GeneralWearenota“regulatedutility”intheU.S.,althoughwearesubjecttocertainstateandfederalregulationsapplicabletosolarandbatterystorage

providers.Tooperateoursystems,weenterintostandardinterconnectionagreementswithapplicableutilities.Salesofelectricityandnon-saleequipmentleasesbythirdparties,suchasourleases,PPAsandsubscriptionagreements,havefacedregulatorychallengesinsomestatesandjurisdictions.

SolarEnergy—NetMeteringMoststatesintheU.S.makenetenergymetering,ornetmetering,availabletosolarcustomers.Netmeteringtypicallyallowssolarcustomersto

interconnecttheirsolarenergysystemstotheutilitygridandoffsettheirutilityelectricitypurchasesbyreceivingabillcreditforexcessenergygeneratedbytheirsolarenergysystemthatisexportedtothegrid.Incertainjurisdictions,regulatorsorutilitieshavereducedoreliminatedthebenefitavailableundernetmeteringorhaveproposedtodoso.

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CompetitionAutomotive

Theworldwideautomotivemarketishighlycompetitiveandweexpectitwillbecomeevenmorecompetitiveinthefutureasweintroduceadditionalvehiclesinabroadercross-sectionofthepassengerandcommercialvehiclemarketandexpandourvehicles’capabilities.

Webelievethatourvehiclescompeteinthemarketbothbasedontheirtraditionalsegmentclassificationaswellasbasedontheirpropulsiontechnology.Forexample,ModelSandModelXcompeteprimarilywithpremiumsedansandpremiumSUVsandModel3andModelYcompetewithsmalltomedium-sizedsedansandcompactSUVs,whichareextremelycompetitivemarkets.Competingproductstypicallyincludeinternalcombustionvehiclesfrommoreestablishedautomobilemanufacturers;however,manyestablishedandnewautomobilemanufacturershaveenteredorhaveannouncedplanstoenterthemarketforelectricandotheralternativefuelvehicles.Overall,webelievetheseannouncementsandvehicleintroductionspromotethedevelopmentoftheelectricvehiclemarketbyhighlightingtheattractivenessofelectricvehiclesrelativetotheinternalcombustionvehicle.ManymajorautomobilemanufacturershaveelectricvehiclesavailabletodayinmajormarketsincludingtheU.S.,ChinaandEurope,andothercurrentandprospectiveautomobilemanufacturersarealsodevelopingelectricvehicles.Inaddition,severalmanufacturersofferhybridvehicles,includingplug-inversions.

Wealsobelievethatthereisincreasingcompetitionforourvehicleofferingsasaplatformfordeliveringself-drivingtechnologies,chargingsolutionsandotherfeaturesandservices,andweexpecttocompeteinthisdevelopingmarketthroughcontinuedprogressonourAutopilot,FSDandneuralnetworkcapabilities,Superchargernetworkandourinfotainmentofferings.

EnergyGenerationandStorageEnergyStorageSystemsThemarketforenergystorageproductsisalsohighlycompetitive,andbothestablishedandemergingcompanieshaveintroducedproductsthatare

similartoourproductportfolioorthatarealternativestotheelementsofoursystems.Wecompetewiththesecompaniesbasedonprice,energydensityandefficiency.Webelievethatthespecificationsandfeaturesofourproducts,ourstrongbrandandthemodular,scalablenatureofourenergystorageproductsgiveusacompetitiveadvantageinourmarkets.

SolarEnergySystemsTheprimarycompetitorstooursolarenergybusinessarethetraditionallocalutilitycompaniesthatsupplyenergytoourpotentialcustomers.We

competewiththesetraditionalutilitycompaniesprimarilybasedonpriceandtheeasebywhichcustomerscanswitchtoelectricitygeneratedbyoursolarenergysystems.Wealsocompetewithsolarenergycompaniesthatprovideproductsandservicessimilartoours.Manysolarenergycompaniesonlyinstallsolarenergysystems,whileothersonlyprovidefinancingfortheseinstallations.Webelievewehaveasignificantexpansionopportunitywithourofferingsandthattheregulatoryenvironmentisincreasinglyconducivetotheadoptionofrenewableenergysystems.

IntellectualPropertyWeplaceastrongemphasisonourinnovativeapproachandproprietarydesignswhichbringintrinsicvalueanduniquenesstoourproductportfolio.As

partofourbusiness,weseektoprotecttheunderlyingintellectualpropertyrightsoftheseinnovationsanddesignssuchaswithrespecttopatents,trademarks,copyrights,tradesecretsandothermeasures,includingthroughemployeeandthird-partynondisclosureagreementsandothercontractualarrangements.Forexample,weplaceahighpriorityonobtainingpatentstoprovidethebroadestandstrongestpossibleprotectiontoenableourfreedomtooperateourinnovationsanddesignswithinourproductsandtechnologiesintheelectricvehiclemarketaswellastoprotectanddefendourproductportfolio.Wehavealsoadoptedapatentpolicyinwhichweirrevocablypledgedthatwewillnotinitiatealawsuitagainstanypartyforinfringingourpatentsthroughactivityrelatingtoelectricvehiclesorrelatedequipmentforsolongassuchpartyisactingingoodfaith.Wemadethispledgeinordertoencouragetheadvancementofacommon,rapidly-evolvingplatformforelectricvehicles,therebybenefitingourselves,othercompaniesmakingelectricvehiclesandtheworld.

HumanCapitalResourcesAsofDecember31,2020,ourfull-timecountforourandoursubsidiaries’employeesworldwidewas70,757.Todate,wehavenotexperiencedanywork

stoppagesasaresultoflabordisputes,andweconsiderourrelationshipwithouremployeestobegood.Ourkeyhumancapitalobjectivesinmanagingourbusinessincludeattracting,developingandretainingtoptalentwhileintegratingdiversity,equityandinclusionprinciplesandpracticesintoourcorevalues.

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Wewanttoattractapoolofdiverseandexceptionalcandidatesandsupporttheircareergrowthoncetheybecomeemployees.Oureffortsbeginattheentrylevelwithdevelopment,apprenticeshipandinternshipprogramsinlocalhighschools,communitycollegesandfour-yearcolleges.Inaddition,weseektohirebasedontalentratherthansolelyoneducationalpedigree,andhaveprovidedthousandsofjobopenings,includinginourlocalcommunities,forcapableworkersfromvariousbackgroundstolearnvaluableskillsincriticaloperationssuchasinmanufacturing,vehicleserviceandenergyproductinstallation.Wealsoemphasizeinourevaluationandcareerdevelopmenteffortsinternalmobilityopportunitiesforemployeestodriveprofessionaldevelopment.Ourgoalisalong-term,upward-boundcareeratTeslaforeveryemployee,whichwebelievealsodrivesourretentionefforts.

Wealsobelievethatourabilitytoretainourworkforceisdependentonourabilitytofosteranenvironmentthatissustainablysafe,respectful,fairandinclusiveofeveryoneandpromotesdiversity,equityandinclusioninsideandoutsideofourbusiness.FromouroutreachtoHistoricallyBlackCollegesandUniversitiesandHispanicServingInstitutionstosponsoringemployeeresourcegroupsacrossnumerouslocations,includingAsianPacificIslandersatTesla,BlackatTesla,Intersectionality,LatinosatTesla,LGBTQatTesla,VeteransatTeslaandWomeninTesla,weengagethesenetworksaskeybusinessresourcesandsourcesofactionablefeedback.Wearealsoworkingondiversityeffortsinoursupplychaintoexpandouroutreachandsupporttosmall-andlarge-scalesuppliersfromunderrepresentedcommunitiestoemphasizethisculturewithourownemployees.

AvailableInformationWefileorfurnishperiodicreportsandamendmentsthereto,includingourAnnualReportsonForm10-K,ourQuarterlyReportsonForm10-Qand

CurrentReportsonForm8-K,proxystatementsandotherinformationwiththeSecuritiesandExchangeCommission(“SEC”).Inaddition,theSECmaintainsawebsite(www.sec.gov)thatcontainsreports,proxyandinformationstatements,andotherinformationregardingissuersthatfileelectronically.Ourwebsiteislocatedatwww.tesla.com,andourreports,amendmentsthereto,proxystatementsandotherinformationarealsomadeavailable,freeofcharge,onourinvestorrelationswebsiteatir.tesla.comassoonasreasonablypracticableafterweelectronicallyfileorfurnishsuchinformationwiththeSEC.TheinformationpostedonourwebsiteisnotincorporatedbyreferenceintothisAnnualReportonForm10-K.

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ITEM1A.RISKFACTORS

Youshouldcarefullyconsidertherisksdescribedbelowtogetherwiththeotherinformationsetforthinthisreport,whichcouldmateriallyaffectourbusiness,financialconditionandfutureresults.Therisksdescribedbelowarenottheonlyrisksfacingourcompany.Risksanduncertaintiesnotcurrentlyknowntousorthatwecurrentlydeemtobeimmaterialalsomaymateriallyadverselyaffectourbusiness,financialconditionandoperatingresults.

RisksRelatedtoOurAbilitytoGrowOurBusinessWemaybeimpactedbymacroeconomicconditionsresultingfromtheglobalCOVID-19pandemic.Sincethefirstquarterof2020,therehasbeenaworldwideimpactfromtheCOVID-19pandemic.Governmentregulationsandshiftingsocialbehaviors

havelimitedorclosednon-essentialtransportation,governmentfunctions,businessactivitiesandperson-to-personinteractions.Insomecases,therelaxationofsuchtrendshasrecentlybeenfollowedbyactualorcontemplatedreturnstostringentrestrictionsongatheringsorcommerce,includinginpartsoftheU.S.andanumberofareasinEurope.

Wetemporarilysuspendedoperationsateachofourmanufacturingfacilitiesworldwideforapartofthefirsthalfof2020.Someofoursuppliersandpartnersalsoexperiencedtemporarysuspensionsbeforeresuming,includingPanasonic,whichmanufacturesbatterycellsforourproductsatourGigafactoryNevada.WealsoinstitutedtemporaryemployeefurloughsandcompensationreductionswhileourU.S.operationswerescaledback.Reducedoperationsorclosuresatmotorvehicledepartments,vehicleauctionhousesandmunicipalandutilitycompanyinspectorshaveresultedinchallengesinorpostponementsforournewvehicledeliveries,usedvehiclesalesandenergyproductdeployments.Globaltradeconditionsandconsumertrendsmayfurtheradverselyimpactusandourindustries.Forexample,pandemic-relatedissueshaveexacerbatedportcongestionandintermittentsuppliershutdownsanddelays,resultinginadditionalexpensestoexpeditedeliveryofcriticalparts.Similarly,increaseddemandforpersonalelectronicshascreatedashortfallofmicrochipsupply,anditisyetunknownhowwemaybeimpacted.Sustainingourproductiontrajectorywillrequirethereadinessandsolvencyofoursuppliersandvendors,astableandmotivatedproductionworkforceandongoinggovernmentcooperation,includingfortravelandvisaallowances.ThecontingenciesinherentintheconstructionofandrampatnewfacilitiessuchasGigafactoryShanghai,GigafactoryBerlinandGigafactoryTexasmaybeexacerbatedbythesechallenges.

Wecannotpredictthedurationordirectionofcurrentglobaltrends,thesustainedimpactofwhichislargelyunknown,israpidlyevolvingandhasvariedacrossgeographicregions.Ultimately,wecontinuetomonitormacroeconomicconditionstoremainflexibleandtooptimizeandevolveourbusinessasappropriate,andwewillhavetoaccuratelyprojectdemandandinfrastructurerequirementsgloballyanddeployourproduction,workforceandotherresourcesaccordingly.Ifcurrentglobalmarketconditionscontinueorworsen,orifwecannotordonotmaintainoperationsatascopethatiscommensuratewithsuchconditionsorarelaterrequiredtoorchoosetosuspendsuchoperationsagain,ourbusiness,prospects,financialconditionandoperatingresultsmaybeharmed.

Wemayexperiencedelaysinlaunchingandrampingtheproductionofourproductsandfeatures,orwemaybeunabletocontrolourmanufacturingcosts.Wehavepreviouslyexperiencedandmayinthefutureexperiencelaunchandproductionrampdelaysfornewproductsandfeatures.Forexample,we

encounteredunanticipatedsupplierissuesthatledtodelaysduringtherampofModelXandexperiencedchallengeswithasupplierandwithrampingfullautomationforcertainofourinitialModel3manufacturingprocesses.Inaddition,wemayintroduceinthefutureneworuniquemanufacturingprocessesanddesignfeaturesforourproducts.Thereisnoguaranteethatwewillbeabletosuccessfullyandtimelyintroduceandscalesuchprocessesorfeatures.

Inparticular,ourfuturebusinessdependsinlargepartonincreasingtheproductionofmass-marketvehiclesincludingModel3andModelY,whichweareplanningtoachievethroughmultiplefactoriesworldwide.WehaverelativelylimitedexperiencetodateinmanufacturingModel3andModelYathighvolumesandevenlessexperiencebuildingandrampingvehicleproductionlinesacrossmultiplefactoriesindifferentgeographies.Inordertobesuccessful,wewillneedtoimplement,maintainandrampefficientandcost-effectivemanufacturingcapabilities,processesandsupplychainsandachievethedesigntolerances,highqualityandoutputrateswehaveplannedatourmanufacturingfacilitiesinCalifornia,Nevada,Texas,ChinaandGermany.Wewillalsoneedtohire,trainandcompensateskilledemployeestooperatethesefacilities.Bottlenecksandotherunexpectedchallengessuchasthoseweexperiencedinthepastmayariseduringourproductionramps,andwemustaddressthempromptlywhilecontinuingtoimprovemanufacturingprocessesandreducingcosts.Ifwearenotsuccessfulinachievingthesegoals,wecouldfacedelaysinestablishingand/orsustainingourModel3andModelYrampsorbeunabletomeetourrelatedcostandprofitabilitytargets.

Wemayalsoexperiencesimilarfuturedelaysinlaunchingand/orrampingproductionofourenergystorageproductsandSolarRoof;newproductversionsorvariants;newvehiclessuchasTeslaSemi,CybertruckandthenewTeslaRoadster;andfuturefeaturesandservicessuchasnewAutopilotorFSDfeaturesandtheautonomousTeslaride-hailingnetwork.Likewise,wemayencounterdelayswiththedesign,constructionandregulatoryorotherapprovalsnecessarytobuildandbringonlinefuturemanufacturingfacilitiesandproducts.

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Anydelayorothercomplicationinrampingtheproductionofourcurrentproductsorthedevelopment,manufacture,launchandproductionrampofourfutureproducts,featuresandservices,orindoingsocost-effectivelyandwithhighquality,mayharmourbrand,business,prospects,financialconditionandoperatingresults.

Wemaybeunabletogrowourglobalproductsales,deliveryandinstallationcapabilitiesandourservicingandvehiclechargingnetworks,orwemaybeunabletoaccuratelyprojectandeffectivelymanageourgrowth.Oursuccesswilldependonourabilitytocontinuetoexpandoursalescapabilities.Wealsofrequentlyadjustourretailoperationsandproductofferings

inordertooptimizeourreach,costs,productline-upandmodeldifferentiationandcustomerexperience.However,thereisnoguaranteethatsuchstepswillbeacceptedbyconsumersaccustomedtotraditionalsalesstrategies.Forexample,marketingmethodssuchastouchlesstestdrivesthatwehavepioneeredincertainmarketshavenotbeenprovenatscale.WearetargetingwithModel3andModelYaglobalmassdemographicwithabroadrangeofpotentialcustomers,inwhichwehaverelativelylimitedexperienceprojectingdemandandpricingourproducts.Wecurrentlyproducenumerousinternationalvariantsatalimitednumberoffactories,andifourspecificdemandexpectationsforthesevariantsproveinaccurate,wemaynotbeabletotimelygeneratedeliveriesmatchedtothevehiclesthatweproduceinthesametimeframeorthatarecommensuratewiththesizeofouroperationsinagivenregion.Likewise,aswedevelopandgrowourenergyproductsandservicesworldwide,oursuccesswilldependonourabilitytocorrectlyforecastdemandinvariousmarkets.

Becausewedonothaveindependentdealernetworks,weareresponsiblefordeliveringallofourvehiclestoourcustomers.Whilewehaveimprovedourdeliverylogistics,wemayfacedifficultieswithdeliveriesatincreasingvolumes,particularlyininternationalmarketsrequiringsignificanttransittimes.Forexample,wesawchallengesinrampingourlogisticschannelsinChinaandEuropetoinitiallydeliverModel3thereinthefirstquarterof2019.Wehavedeployedanumberofdeliverymodels,suchasdeliveriestocustomers’homesandworkplacesandtouchlessdeliveries,butthereisnoguaranteethatsuchmodelswillbescalableorbeacceptedglobally.Likewise,aswerampSolarRoof,weareworkingtosubstantiallyincreaseinstallationpersonnelanddecreaseinstallationtimes.Ifwearenotsuccessfulinmatchingsuchcapabilitieswithactualproduction,orifweexperienceunforeseenproductiondelaysorinaccuratelyforecastdemandfortheSolarRoof,ourbusiness,financialconditionandoperatingresultsmaybeharmed.

Moreover,becauseofouruniqueexpertisewithourvehicles,werecommendthatourvehiclesbeservicedbyusorbycertainauthorizedprofessionals.Ifweexperiencedelaysinaddingsuchservicingcapacityorservicingourvehiclesefficiently,orexperienceunforeseenissueswiththereliabilityofourvehicles,particularlyhigher-volumeandneweradditionstoourfleetsuchasModel3andModelY,itcouldoverburdenourservicingcapabilitiesandpartsinventory.Similarly,theincreasingnumberofTeslavehiclesalsorequiresustocontinuetorapidlyincreasethenumberofourSuperchargerstationsandconnectorsthroughouttheworld.

Thereisnoassurancethatwewillbeabletorampourbusinesstomeetoursales,delivery,installation,servicingandvehiclechargingtargetsglobally,thatourprojectionsonwhichsuchtargetsarebasedwillproveaccurateorthatthepaceofgrowthorcoverageofourcustomerinfrastructurenetworkwillmeetcustomerexpectations.Theseplansrequiresignificantcashinvestmentsandmanagementresourcesandthereisnoguaranteethattheywillgenerateadditionalsalesorinstallationsofourproducts,orthatwewillbeabletoavoidcostoverrunsorbeabletohireadditionalpersonneltosupportthem.Asweexpand,wewillalsoneedtoensureourcompliancewithregulatoryrequirementsinvariousjurisdictionsapplicabletothesale,installationandservicingofourproducts,thesaleordispatchofelectricityrelatedtoourenergyproductsandtheoperationofSuperchargers.Ifwefailtomanageourgrowtheffectively,itmayharmourbrand,business,prospects,financialconditionandoperatingresults.

Ourfuturegrowthandsuccessaredependentuponconsumers’demandforelectricvehiclesandspecificallyourvehiclesinanautomotiveindustrythatisgenerallycompetitive,cyclicalandvolatile.IfthemarketforelectricvehiclesingeneralandTeslavehiclesinparticulardoesnotdevelopasweexpect,developsmoreslowlythanweexpect,orif

demandforourvehiclesdecreasesinourmarketsorourvehiclescompetewitheachother,ourbusiness,prospects,financialconditionandoperatingresultsmaybeharmed.

Wearestillatanearlierstageandhavelimitedresourcesandproductionrelativetoestablishedcompetitorsthatofferinternalcombustionenginevehicles.Inaddition,electricvehiclesstillcompriseasmallpercentageofoverallvehiclesales.Asaresult,themarketforourvehiclescouldbenegativelyaffectedbynumerousfactors,suchas: • perceptionsaboutelectricvehiclefeatures,quality,safety,performanceandcost; • perceptionsaboutthelimitedrangeoverwhichelectricvehiclesmaybedrivenonasinglebatterycharge,andaccesstochargingfacilities; • competition,includingfromothertypesofalternativefuelvehicles,plug-inhybridelectricvehiclesandhighfuel-economyinternalcombustion

enginevehicles; • volatilityinthecostofoilandgasoline,suchaswidefluctuationsincrudeoilpricesduring2020;

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• governmentregulationsandeconomicincentives;and • concernsaboutourfutureviability.

Finally,thetargetdemographicsforourvehicles,particularlyModel3andModelY,arehighlycompetitive.Salesofvehiclesintheautomotiveindustrytendtobecyclicalinmanymarkets,whichmayexposeustofurthervolatilityasweexpandandadjustouroperationsandretailstrategies.Moreover,theCOVID-19pandemicmaynegativelyimpactthetransportationandautomotiveindustrieslong-term.Itisuncertainastohowsuchmacroeconomicfactorswillimpactusasacompanythathasbeenexperiencinggrowthandincreasingmarketshareinanindustrythathasgloballybeenexperiencingarecentdeclineinsales.

Oursuppliersmayfailtodelivercomponentsaccordingtoschedules,prices,qualityandvolumesthatareacceptabletous,orwemaybeunabletomanagethesecomponentseffectively.Ourproductscontainthousandsofpartsthatwepurchasegloballyfromhundredsofmostlysingle-sourcedirectsuppliers,generallywithoutlong-term

supplyagreements.Thisexposesustomultiplepotentialsourcesofcomponentshortages,suchasthosethatweexperiencedin2012and2016withourModelSandModelXramps.Unexpectedchangesinbusinessconditions,materialspricing,laborissues,wars,governmentalchanges,tariffs,naturaldisasterssuchastheMarch2011earthquakesinJapan,healthepidemicssuchastheglobalCOVID-19pandemic,tradeandshippingdisruptionsandotherfactorsbeyondouroroursuppliers’controlcouldalsoaffectthesesuppliers’abilitytodelivercomponentstousortoremainsolventandoperational.Forexample,aglobalshortageofmicrochipshasbeenreportedsinceearly2021,andtheimpacttousisyetunknown.Theunavailabilityofanycomponentorsuppliercouldresultinproductiondelays,idlemanufacturingfacilities,productdesignchangesandlossofaccesstoimportanttechnologyandtoolsforproducingandsupportingourproducts.Moreover,significantincreasesinourproduction,suchasforModel3andModelY,orproductdesignchangesbyushaverequiredandmayinthefuturerequireustoprocureadditionalcomponentsinashortamountoftime.Oursuppliersmaynotbewillingorabletosustainablymeetourtimelinesorourcost,qualityandvolumeneeds,ortodosomaycostusmore,whichmayrequireustoreplacethemwithothersources.Finally,wehavelimitedvehiclemanufacturingexperienceoutsideoftheFremontFactoryandwemayexperienceissuesincreasingtheleveloflocalizedprocurementatourGigafactoryShanghaiandatfuturefactoriessuchasGigafactoryBerlinandGigafactoryTexas.Whilewebelievethatwewillbeabletosecureadditionaloralternatesourcesordevelopourownreplacementsformostofourcomponents,thereisnoassurancethatwewillbeabletodosoquicklyoratall.Additionally,wemaybeunsuccessfulinourcontinuouseffortstonegotiatewithexistingsupplierstoobtaincostreductionsandavoidunfavorablechangestoterms,sourcelessexpensivesuppliersforcertainpartsandredesigncertainpartstomakethemlessexpensivetoproduce.Anyoftheseoccurrencesmayharmourbusiness,prospects,financialconditionandoperatingresults.

Asthescaleofourvehicleproductionincreases,wewillalsoneedtoaccuratelyforecast,purchase,warehouseandtransportcomponentsathighvolumestoourmanufacturingfacilitiesandservicinglocationsinternationally.Ifweareunabletoaccuratelymatchthetimingandquantitiesofcomponentpurchasestoouractualneedsorsuccessfullyimplementautomation,inventorymanagementandothersystemstoaccommodatetheincreasedcomplexityinoursupplychainandpartsmanagement,wemayincurunexpectedproductiondisruption,storage,transportationandwrite-offcosts,whichmayharmourbusinessandoperatingresults.

Wemaybeunabletomeetourprojectedconstructiontimelines,costsandproductionrampsatnewfactories,orwemayexperiencedifficultiesingeneratingandmaintainingdemandforproductsmanufacturedthere.Ourabilitytoincreaseproductionofourvehiclesonasustainedbasis,makethemaffordablegloballybyaccessinglocalsupplychainsandworkforces

andstreamlinedeliverylogisticsisdependentontheconstructionandrampofGigafactoryShanghai,GigafactoryBerlinandGigafactoryTexas.Theconstructionofandcommencementandrampofproductionatthesefactoriesaresubjecttoanumberofuncertaintiesinherentinallnewmanufacturingoperations,includingongoingcompliancewithregulatoryrequirements,procurementandmaintenanceofconstruction,environmentalandoperationallicensesandapprovalsforadditionalexpansion,potentialsupplychainconstraints,hiring,trainingandretentionofqualifiedemployeesandthepaceofbringingproductionequipmentandprocessesonlinewiththecapabilitytomanufacturehigh-qualityunitsatscale.Forexample,wearecurrentlyconstructingGigafactoryBerlinunderconditionalpermits.Moreover,weintendtoincorporatesequentialdesignandmanufacturingchangesintovehiclesmanufacturedateachnewfactory.WehavelimitedexperiencetodatewithdevelopingandimplementingvehiclemanufacturinginnovationsoutsideoftheFremontFactory,asweonlyrecentlybeganproductionatGigafactoryShanghai.Inparticular,themajorityofourdesignandengineeringresourcesarecurrentlylocatedinCalifornia.Inordertomeetourexpectationsforournewfactories,wemustexpandandmanagelocalizeddesignandengineeringtalentandresources.Ifweexperienceanyissuesordelaysinmeetingourprojectedtimelines,costs,capitalefficiencyandproductioncapacityforournewfactories,expandingandmanagingteamstoimplementiterativedesignandproductionchangesthere,maintainingandcomplyingwiththetermsofanydebtfinancingthatweobtaintofundthemorgeneratingandmaintainingdemandforthevehicleswemanufacturethere,ourbusiness,prospects,operatingresultsandfinancialconditionmaybeharmed.

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Wewillneedtomaintainandsignificantlygrowouraccesstobatterycells,includingthroughthedevelopmentandmanufactureofourowncells,andcontrolourrelatedcosts.Wearedependentonthecontinuedsupplyoflithium-ionbatterycellsforourvehiclesandenergystorageproducts,andwewillrequiresubstantially

morecellstogrowourbusinessaccordingtoourplans.Currently,werelyonsupplierssuchasPanasonicforthesecells.However,wehavetodatefullyqualifiedonlyaverylimitednumberofsuchsuppliersandhavelimitedflexibilityinchangingsuppliers.Anydisruptioninthesupplyofbatterycellsfromoursupplierscouldlimitproductionofourvehiclesandenergystorageproducts.Inthelongterm,weintendtosupplementcellsfromoursupplierswithcellsmanufacturedbyus,whichwebelievewillbemoreefficient,manufacturableatgreatervolumesandcost-effectivethancurrentlyavailablecells.However,oureffortstodevelopandmanufacturesuchbatterycellshaverequiredandmayrequiresignificantinvestments,andtherecanbenoassurancethatwewillbeabletoachievethesetargetsinthetimeframesthatwehaveplannedoratall.Ifweareunabletodoso,wemayhavetocurtailourplannedvehicleandenergystorageproductproductionorprocureadditionalcellsfromsuppliersatpotentiallygreatercosts,eitherofwhichmayharmourbusinessandoperatingresults.

Inaddition,thecostofbatterycells,whethermanufacturedbyoursuppliersorbyus,dependsinpartuponthepricesandavailabilityofrawmaterialssuchaslithium,nickel,cobaltand/orothermetals.Thepricesforthesematerialsfluctuateandtheiravailablesupplymaybeunstable,dependingonmarketconditionsandglobaldemandforthesematerials,includingasaresultofincreasedglobalproductionofelectricvehiclesandenergystorageproducts.Anyreducedavailabilityofthesematerialsmayimpactouraccesstocellsandanyincreasesintheirpricesmayreduceourprofitabilityifwecannotrecouptheincreasedcoststhroughincreasedvehicleprices.Moreover,anysuchattemptstoincreaseproductpricesmayharmourbrand,prospectsandoperatingresults.

Wefacestrongcompetitionforourproductsandservicesfromagrowinglistofestablishedandnewcompetitors.Theworldwideautomotivemarketishighlycompetitivetodayandweexpectitwillbecomeevenmoresointhefuture.Forexample,Model3andModel

Yfacecompetitionfromexistingandfutureautomobilemanufacturersintheextremelycompetitiveentry-levelpremiumsedanandcompactSUVmarkets.Asignificantandgrowingnumberofestablishedandnewautomobilemanufacturers,aswellasothercompanies,haveenteredorarereportedtohaveplanstoenterthemarketforelectricandotheralternativefuelvehicles,includinghybrid,plug-inhybridandfullyelectricvehicles,aswellasthemarketforself-drivingtechnologyandothervehicleapplicationsandsoftwareplatforms.Insomecases,ourcompetitorsofferorwillofferelectricvehiclesinimportantmarketssuchasChinaandEurope,and/orhaveannouncedanintentiontoproduceelectricvehiclesexclusivelyatsomepointinthefuture.Manyofourcompetitorshavesignificantlygreaterorbetter-establishedresourcesthanwedotodevotetothedesign,development,manufacturing,distribution,promotion,saleandsupportoftheirproducts.Increasedcompetitioncouldresultinourlowervehicleunitsales,pricereductions,revenueshortfalls,lossofcustomersandlossofmarketshare,whichmayharmourbusiness,financialconditionandoperatingresults.

Wealsofacecompetitioninourenergygenerationandstoragebusinessfromothermanufacturers,developers,installersandserviceprovidersofcompetingenergysystems,aswellasfromlargeutilities.Decreasesintheretailorwholesalepricesofelectricityfromutilitiesorotherrenewableenergysourcescouldmakeourproductslessattractivetocustomersandleadtoanincreasedrateofresidentialcustomerdefaultsunderourexistinglong-termleasesandPPAs.RisksRelatedtoOurOperations

Wemayexperienceissueswithlithium-ioncellsorothercomponentsmanufacturedatGigafactoryNevada,whichmayharmtheproductionandprofitabilityofourvehicleandenergystorageproducts.Ourplantogrowthevolumeandprofitabilityofourvehiclesandenergystorageproductsdependsonsignificantlithium-ionbatterycellproductionby

ourpartnerPanasonicatGigafactoryNevada.AlthoughPanasonichasalongtrackrecordofproducinghigh-qualitycellsatsignificantvolumeatitsfactoriesinJapan,ithasrelativelylimitedexperiencewithcellproductionatGigafactoryNevada,whichbeganin2017.Moreover,althoughPanasonicisco-locatedwithusatGigafactoryNevada,itisfreetomakeitsownoperationaldecisions,suchasitsdeterminationtotemporarilysuspenditsmanufacturingthereinresponsetotheCOVID-19pandemic.Inaddition,weproduceseveralvehiclecomponents,suchasbatterymodulesandpacksincorporatingthecellsproducedbyPanasonicforModel3andModelYanddriveunits(includingtosupportGigafactoryShanghaiproduction),atGigafactoryNevada,andwealsomanufactureenergystorageproductsthere.Inthepast,someofthemanufacturinglinesforcertainproductcomponentstooklongerthananticipatedtoramptotheirfullcapacity,andadditionalbottlenecksmayariseinthefutureaswecontinuetoincreasetheproductionrateandintroducenewlines.IfweorPanasonicareunabletoorotherwisedonotmaintainandgrowourrespectiveoperationsatGigafactoryNevadaproduction,orifweareunabletodosocost-effectivelyorhireandretainhighly-skilledpersonnelthere,ourabilitytomanufactureourproductsprofitablywouldbelimited,whichmayharmourbusinessandoperatingresults.

Finally,thehighvolumesoflithium-ioncellsandbatterymodulesandpacksmanufacturedatGigafactoryNevadaarestoredandrecycledatourvariousfacilities.Anymishandlingofbatterycellsmaycausedisruptiontotheoperationofsuchfacilities.While

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wehaveimplementedsafetyproceduresrelatedtothehandlingofthecells,therecanbenoassurancethatasafetyissueorfirerelatedtothecellswouldnotdisruptouroperations.Anysuchdisruptionsorissuesmayharmourbrandandbusiness.

Wefacerisksassociatedwithmaintainingandexpandingourinternationaloperations,includingunfavorableanduncertainregulatory,political,economic,taxandlaborconditions.Wearesubjecttolegalandregulatoryrequirements,politicaluncertaintyandsocial,environmentalandeconomicconditionsinnumerousjurisdictions,

overwhichwehavelittlecontrolandwhichareinherentlyunpredictable.Ouroperationsinsuchjurisdictions,particularlyasacompanybasedintheU.S.,createrisksrelatingtoconformingourproductstoregulatoryandsafetyrequirementsandchargingandotherelectricinfrastructures;organizinglocaloperatingentities;establishing,staffingandmanagingforeignbusinesslocations;attractinglocalcustomers;navigatingforeigngovernmenttaxes,regulationsandpermitrequirements;enforceabilityofourcontractualrights;traderestrictions,customsregulations,tariffsandpriceorexchangecontrols;andpreferencesinforeignnationsfordomesticallymanufacturedproducts.Suchconditionsmayincreaseourcosts,impactourabilitytosellourproductsandrequiresignificantmanagementattention,andmayharmourbusinessifweunabletomanagethemeffectively.

Ourbusinessmaysufferifourproductsorfeaturescontaindefects,failtoperformasexpectedortakelongerthanexpectedtobecomefullyfunctional.Ifourproductscontaindesignormanufacturingdefectsthatcausethemnottoperformasexpectedorthatrequirerepair,orcertainfeaturesofour

vehiclessuchasnewAutopilotorFSDfeaturestakelongerthanexpectedtobecomeenabled,arelegallyrestrictedorbecomesubjecttoonerousregulation,ourabilitytodevelop,marketandsellourproductsandservicesmaybeharmed,andwemayexperiencedeliverydelays,productrecalls,productliability,breachofwarrantyandconsumerprotectionclaimsandsignificantwarrantyandotherexpenses.Inparticular,ourproductsarehighlydependentonsoftware,whichisinherentlycomplexandmaycontainlatentdefectsorerrorsorbesubjecttoexternalattacks.IssuesexperiencedbyourcustomershaveincludedthoserelatedtotheModelSandModelX17-inchdisplayscreen,thepanoramicroofandthe12-voltbatteryintheModelS,theseatsanddoorsintheModelXandtheoperationofsolarpanelsinstalledbyus.Althoughweattempttoremedyanyissuesweobserveinourproductsaseffectivelyandrapidlyaspossible,sucheffortsmaynotbetimely,mayhamperproductionormaynotcompletelysatisfyourcustomers.Whilewehaveperformedextensiveinternaltestingonourproductsandfeatures,wecurrentlyhavealimitedframeofreferencebywhichtoevaluatetheirlong-termquality,reliability,durabilityandperformancecharacteristics.Therecanbenoassurancethatwewillbeabletodetectandfixanydefectsinourproductspriortotheirsaletoorinstallationforcustomers.

Wemayberequiredtodefendorinsureagainstproductliabilityclaims.Theautomobileindustrygenerallyexperiencessignificantproductliabilityclaims,andassuchwefacetheriskofsuchclaimsintheeventourvehicles

donotperformorareclaimedtonothaveperformedasexpected.Asistrueforotherautomakers,ourvehicleshavebeeninvolvedandweexpectinthefuturewillbeinvolvedinaccidentsresultingindeathorpersonalinjury,andsuchaccidentswhereAutopilotorFSDfeaturesareengagedarethesubjectofsignificantpublicattention.Wehaveexperiencedandweexpecttocontinuetofaceclaimsarisingfromorrelatedtomisuseorclaimedfailuresofsuchnewtechnologiesthatwearepioneering.Inaddition,thebatterypacksthatweproducemakeuseoflithium-ioncells.Onrareoccasions,lithium-ioncellscanrapidlyreleasetheenergytheycontainbyventingsmokeandflamesinamannerthatcanignitenearbymaterialsaswellasotherlithium-ioncells.Whilewehavedesignedourbatterypackstopassivelycontainanysinglecell’sreleaseofenergywithoutspreadingtoneighboringcells,therecanbenoassurancethatafieldortestingfailureofourvehiclesorotherbatterypacksthatweproducewillnotoccur,inparticularduetoahigh-speedcrash.Likewise,asoursolarenergysystemsandenergystorageproductsgenerateandstoreelectricity,theyhavethepotentialtofailorcauseinjurytopeopleorproperty.Anyproductliabilityclaimmaysubjectustolawsuitsandsubstantialmonetarydamages,productrecallsorredesignefforts,andevenameritlessclaimmayrequireustodefendit,allofwhichmaygeneratenegativepublicityandbeexpensiveandtime-consuming.Inmostjurisdictions,wegenerallyself-insureagainsttheriskofproductliabilityclaimsforvehicleexposure,meaningthatanyproductliabilityclaimswilllikelyhavetobepaidfromcompanyfundsandnotbyinsurance.

Wewillneedtomaintainpubliccredibilityandconfidenceinourlong-termbusinessprospectsinordertosucceed.Inordertomaintainandgrowourbusiness,wemustmaintaincredibilityandconfidenceamongcustomers,suppliers,analysts,investors,ratings

agenciesandotherpartiesinourlong-termfinancialviabilityandbusinessprospects.Maintainingsuchconfidencemaybechallengingduetoourlimitedoperatinghistoryrelativetoestablishedcompetitors;customerunfamiliaritywithourproducts;anydelayswemayexperienceinscalingmanufacturing,deliveryandserviceoperationstomeetdemand;competitionanduncertaintyregardingthefutureofelectricvehiclesorourotherproductsandservices;ourquarterlyproductionandsalesperformancecomparedwithmarketexpectations;andotherfactorsincludingthoseoverwhichwehavenocontrol.Inparticular,Tesla’sproducts,business,resultsofoperations,statementsandactionsarewell-publicizedbyarangeofthirdparties.Suchattentionincludesfrequentcriticism,whichisoftenexaggeratedorunfounded,suchasspeculationregardingthesufficiencyorstabilityofourmanagementteam.Anysuchnegativeperceptions,whethercausedbyusornot,mayharmourbusinessandmakeitmoredifficulttoraiseadditionalfundsifneeded.

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Wemaybeunabletoeffectivelygrow,ormanagethecompliance,residualvalue,financingandcreditrisksrelatedto,ourvariousfinancingprograms.WeofferfinancingarrangementsforourvehiclesinNorthAmerica,EuropeandAsiaprimarilythroughvariousfinancialinstitutions.Wealsocurrently

offervehiclefinancingarrangementsdirectlythroughourlocalsubsidiariesincertainmarkets.Dependingonthecountry,sucharrangementsareavailableforspecifiedmodelsandmayincludeoperatingleasesdirectlywithusunderwhichwetypicallyreceiveonlyaverysmallportionofthetotalvehiclepurchasepriceatthetimeoflease,followedbyastreamofpaymentsoverthetermofthelease.Wehavealsoofferedvariousarrangementsforcustomersofoursolarenergysystemswherebytheypayusafixedpaymenttoleaseorfinancethepurchaseofsuchsystemsorpurchaseelectricitygeneratedbythem.Ifwedonotsuccessfullymonitorandcomplywithapplicablenational,stateand/orlocalfinancialregulationsandconsumerprotectionlawsgoverningthesetransactions,wemaybecomesubjecttoenforcementactionsorpenalties.

Theprofitabilityofanydirectly-leasedvehiclesreturnedtousattheendoftheirleasesdependsonourabilitytoaccuratelyprojectourvehicles’residualvaluesattheoutsetoftheleases,andsuchvaluesmayfluctuatepriortotheendoftheirtermsdependingonvariousfactorssuchassupplyanddemandofourusedvehicles,economiccyclesandthepricingofnewvehicles.Wehavemadeinthepastandmaymakeinthefuturecertainadjustmentstoourpricesfromtimetotimeintheordinarycourseofbusiness,whichmayimpacttheresidualvaluesofourvehiclesandreducetheprofitabilityofourvehicleleasingprogram.Thefundingandgrowthofthisprogramalsoreliesonourabilitytosecureadequatefinancingand/orbusinesspartners.Ifweareunabletoadequatelyfundourleasingprogramthroughinternalfunds,partnersorotherfinancingsources,andcompellingalternativefinancingprogramsarenotavailableforourcustomerswhomayexpectorneedsuchoptions,wemaybeunabletogrowourvehicledeliveries.Furthermore,ifourvehicleleasingbusinessgrowssubstantially,ourbusinessmaysufferifwecannoteffectivelymanagetheresultinggreaterlevelsofresidualrisk.

Similarly,wehaveprovidedresalevalueguaranteestovehiclecustomersandpartnersforcertainfinancingprograms,underwhichsuchcounterpartiesmayselltheirvehiclesbacktousatcertainpointsintimeatpre-determinedamounts.However,actualresalevaluesaresubjecttofluctuationsoverthetermofthefinancingarrangements,suchasfromthevehiclepricingchangesdiscussedabove.Iftheactualresalevaluesofanyvehiclesresoldorreturnedtouspursuanttotheseprogramsaremateriallylowerthanthepre-determinedamountswehaveoffered,ourfinancialconditionandoperatingresultsmaybeharmed.

Finally,ourvehicleandsolarenergysystemfinancingprogramsandourenergystoragesalesprogramsalsoexposeustocustomercreditrisk.Intheeventofawidespreadeconomicdownturnorothercatastrophicevent,ourcustomersmaybeunableorunwillingtosatisfytheirpaymentobligationstousonatimelybasisoratall.Ifasignificantnumberofourcustomersdefault,wemayincursubstantialcreditlossesand/orimpairmentchargeswithrespecttotheunderlyingassets.

WemustmanageongoingobligationsunderouragreementwiththeResearchFoundationfortheStateUniversityofNewYorkrelatingtoourGigafactoryNewYork.WearepartytoanoperatingleaseandaresearchanddevelopmentagreementthroughtheSUNYFoundation.Theseagreementsprovideforthe

constructionanduseofourGigafactoryNewYork,whichwehaveprimarilyusedforthedevelopmentandproductionofourSolarRoofandothersolarproductsandcomponents,energystoragecomponentsandSuperchargercomponents,andforotherlessor-approvedfunctions.Underthisagreement,weareobligatedto,amongotherthings,meetemploymenttargetsaswellasspecifiedminimumnumbersofpersonnelintheStateofNewYorkandinBuffalo,NewYorkandspendorincur$5.00billionincombinedcapital,operationalexpenses,costsofgoodssoldandothercostsintheStateofNewYorkduringthe10-yearperiodbeginningApril30,2018.AswetemporarilysuspendedmostofourmanufacturingoperationsatGigafactoryNewYorkpursuanttoaNewYorkStateexecutiveorderissuedinMarch2020asaresultoftheCOVID-19pandemic,weweregrantedaone-yeardeferralofourobligationtobecompliantwithourapplicabletargetsundersuchagreementonApril30,2020,whichwasmemorializedinanamendmenttoouragreementwiththeSUNYFoundationinJuly2020.WhileweexpecttohaveandgrowsignificantoperationsatGigafactoryNewYorkandthesurroundingBuffaloarea,anyfailurebyusinanyyearoverthecourseofthetermoftheagreementtomeetallapplicablefutureobligationsmayresultinourobligationtopaya“programpayment”of$41milliontotheSUNYFoundationforsuchyear,theterminationofourleaseatGigafactoryNewYorkwhichmayrequireustopayadditionalpenaltiesand/ortheneedtoadjustcertainofouroperations,inparticularourproductionrampoftheSolarRooforothercomponents.Anyoftheforegoingeventsmayharmourbusiness,financialconditionandoperatingresults.

Ifweareunabletoattract,hireandretainkeyemployeesandqualifiedpersonnel,ourabilitytocompetemaybeharmed.Thelossoftheservicesofanyofourkeyemployeesoranysignificantportionofourworkforcecoulddisruptouroperationsordelaythedevelopment,

introductionandrampofourproductsandservices.Inparticular,wearehighlydependentontheservicesofElonMusk,ourChiefExecutiveOfficer.Noneofourkeyemployeesisboundbyanemploymentagreementforanyspecifictermandwemaynotbeabletosuccessfullyattractandretainseniorleadershipnecessarytogrowourbusiness.Ourfuturesuccessalsodependsuponourabilitytoattract,hireandretainalargenumberofengineering,manufacturing,marketing,salesanddelivery,service,installation,technologyandsupportpersonnel,especiallytosupportourplannedhigh-volumeproductsales,marketandgeographical

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expansionandtechnologicalinnovations.Recruitingefforts,particularlyforsenioremployees,maybetime-consuming,whichmaydelaytheexecutionofourplans.Ifwearenotsuccessfulinmanagingtheserisks,ourbusiness,financialconditionandoperatingresultsmaybeharmed.

EmployeesmayleaveTeslaorchooseotheremployersoverTesladuetovariousfactors,suchasaverycompetitivelabormarketfortalentedindividualswithautomotiveortechnologyexperience,oranynegativepublicityrelatedtous.InCalifornia,Nevadaandotherregionswherewehaveoperations,thereisincreasingcompetitionforindividualswithskillsetsneededforourbusiness,includingspecializedknowledgeofelectricvehicles,softwareengineering,manufacturingengineeringandelectricalandbuildingconstructionexpertise.Moreover,wemaybeimpactedbyperceptionsrelatingtoreductionsinforcethatwehaveconductedinthepastinordertooptimizeourorganizationalstructureandreducecostsandthedepartureofcertainseniorpersonnelforvariousreasons.Likewise,asaresultofourtemporarysuspensionofvariousU.S.manufacturingoperationsinthefirsthalfof2020,inApril2020wetemporarilyfurloughedcertainhourlyemployeesandreducedmostsalariedemployees’basesalaries.Wealsocompetewithbothmatureandprosperouscompaniesthathavefargreaterfinancialresourcesthanwedoandstart-upsandemergingcompaniesthatpromiseshort-termgrowthopportunities.

Finally,ourcompensationphilosophyforallofourpersonnelreflectsourstartuporigins,withanemphasisonequity-basedawardsandbenefitsinordertocloselyaligntheirincentiveswiththelong-terminterestsofourstockholders.Weperiodicallyseekandobtainapprovalfromourstockholdersforfutureincreasestothenumberofawardsavailableunderourequityincentiveandemployeestockpurchaseplans.Ifweareunabletoobtaintherequisitestockholderapprovalsforsuchfutureincreases,wemayhavetoexpendadditionalcashtocompensateouremployeesandourabilitytoretainandhirequalifiedpersonnelmaybeharmed.

WearehighlydependentontheservicesofElonMusk,ourChiefExecutiveOfficer.WearehighlydependentontheservicesofElonMusk,ourChiefExecutiveOfficerandlargeststockholder.AlthoughMr.Muskspendssignificanttime

withTeslaandishighlyactiveinourmanagement,hedoesnotdevotehisfulltimeandattentiontoTesla.Mr.MuskalsocurrentlyservesasChiefExecutiveOfficerandChiefTechnicalOfficerofSpaceExplorationTechnologiesCorp.,adeveloperandmanufacturerofspacelaunchvehicles,andisinvolvedinotheremergingtechnologyventures.

Wemustmanagerisksrelatingtoourinformationtechnologysystemsandthethreatofintellectualpropertytheft,databreachesandcyber-attacks.Wemustcontinuetoexpandandimproveourinformationtechnologysystemsasouroperationsgrow,suchasproductdatamanagement,procurement,

inventorymanagement,productionplanningandexecution,sales,serviceandlogistics,dealermanagement,financial,taxandregulatorycompliancesystems.ThisincludestheimplementationofnewinternallydevelopedsystemsandthedeploymentofsuchsystemsintheU.S.andabroad.Wemustalsocontinuetomaintaininformationtechnologymeasuresdesignedtoprotectusagainstintellectualpropertytheft,databreaches,sabotageandotherexternalorinternalcyber-attacksormisappropriation.However,theimplementation,maintenance,segregationandimprovementofthesesystemsrequiresignificantmanagementtime,supportandcost,andthereareinherentrisksassociatedwithdeveloping,improvingandexpandingourcoresystemsaswellasimplementingnewsystemsandupdatingcurrentsystems,includingdisruptionstotherelatedareasofbusinessoperation.Theserisksmayaffectourabilitytomanageourdataandinventory,procurepartsorsuppliesormanufacture,sell,deliverandserviceproducts,adequatelyprotectourintellectualpropertyorachieveandmaintaincompliancewith,orrealizeavailablebenefitsunder,taxlawsandotherapplicableregulations.

Moreover,ifwedonotsuccessfullyimplement,maintainorexpandthesesystemsasplanned,ouroperationsmaybedisrupted,ourabilitytoaccuratelyand/ortimelyreportourfinancialresultscouldbeimpairedanddeficienciesmayariseinourinternalcontroloverfinancialreporting,whichmayimpactourabilitytocertifyourfinancialresults.Moreover,ourproprietaryinformationorintellectualpropertycouldbecompromisedormisappropriatedandourreputationmaybeadverselyaffected.Ifthesesystemsortheirfunctionalitydonotoperateasweexpectthemto,wemayberequiredtoexpendsignificantresourcestomakecorrectionsorfindalternativesourcesforperformingthesefunctions.

Anyunauthorizedcontrolormanipulationofourproducts’systemscouldresultinlossofconfidenceinusandourproducts.Ourproductscontaincomplexinformationtechnologysystems.Forexample,ourvehiclesandenergystorageproductsaredesignedwithbuilt-indata

connectivitytoacceptandinstallperiodicremoteupdatesfromustoimproveorupdatetheirfunctionality.Whilewehaveimplementedsecuritymeasuresintendedtopreventunauthorizedaccesstoourinformationtechnologynetworks,ourproductsandtheirsystems,maliciousentitieshavereportedlyattempted,andmayattemptinthefuture,togainunauthorizedaccesstomodify,alterandusesuchnetworks,productsandsystemstogaincontrolof,ortochange,ourproducts’functionality,userinterfaceandperformancecharacteristicsortogainaccesstodatastoredinorgeneratedbyourproducts.Weencouragereportingofpotentialvulnerabilitiesinthesecurityofourproductsthroughoursecurityvulnerabilityreportingpolicy,andweaimtoremedyanyreportedandverifiedvulnerability.However,therecanbenoassurancethatanyvulnerabilitieswillnotbeexploitedbeforetheycanbeidentified,orthatourremediationeffortsareorwillbesuccessful.

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Anyunauthorizedaccesstoorcontrolofourproductsortheirsystemsoranylossofdatacouldresultinlegalclaimsorgovernmentinvestigations.Inaddition,regardlessoftheirveracity,reportsofunauthorizedaccesstoourproducts,theirsystemsordata,aswellasotherfactorsthatmayresultintheperceptionthatourproducts,theirsystemsordataarecapableofbeinghacked,mayharmourbrand,prospectsandoperatingresults.Wehavebeenthesubjectofsuchreportsinthepast.

Ourbusinessmaybeadverselyaffectedbyanydisruptionscausedbyunionactivities.Itisnotuncommonforemployeesofcertaintradesatcompaniessuchasustobelongtoaunion,whichcanresultinhigheremployeecostsand

increasedriskofworkstoppages.Moreover,regulationsinsomejurisdictionsoutsideoftheU.S.mandateemployeeparticipationinindustrialcollectivebargainingagreementsandworkcouncilswithcertainconsultationrightswithrespecttotherelevantcompanies’operations.Althoughweworkdiligentlytoprovidethebestpossibleworkenvironmentforouremployees,theymaystilldecidetojoinorseekrecognitiontoformalaborunion,orwemayberequiredtobecomeaunionsignatory.Fromtimetotime,laborunionshaveengagedincampaignstoorganizecertainofouroperations,aspartofwhichsuchunionshavefiledunfairlaborpracticechargesagainstuswiththeNationalLaborRelationsBoard,andtheymaydosointhefuture.InSeptember2019,anadministrativelawjudgeissuedarecommendeddecisionforTeslaoncertainissuesandagainstusoncertainothers.TheNationalLaborRelationsBoardhasnotyetadoptedtherecommendationandwehaveappealedcertainaspectsoftherecommendeddecision.AnyunfavorableultimateoutcomeforTeslamayhaveanegativeimpactontheperceptionofTesla’streatmentofouremployees.Furthermore,wearedirectlyorindirectlydependentuponcompanieswithunionizedworkforces,suchassuppliersandtruckingandfreightcompanies.Anyworkstoppagesorstrikesorganizedbysuchunionscoulddelaythemanufactureandsaleofourproductsandmayharmourbusinessandoperatingresults.

Wemaychoosetoorbecompelledtoundertakeproductrecallsortakeothersimilaractions.Asamanufacturingcompany,wemustmanagetheriskofproductrecallswithrespecttoourproducts.Recallsforourvehicleshaveresultedfrom,for

example,industry-wideissueswithairbagsfromaparticularsupplier,concernsofcorrosioninModelSandModelXpowersteeringassistmotorbolts,certainsuspensionfailuresinModelSandModelXandissueswithModelSandModelXmediacontrolunits.Inadditiontorecallsinitiatedbyusforvariouscauses,testingoforinvestigationsintoourproductsbygovernmentregulatorsorindustrygroupsmaycompelustoinitiateproductrecallsormayresultinnegativepublicperceptionsaboutthesafetyofourproducts,evenifwedisagreewiththedefectdeterminationorhavedatathatshowstheactualsafetyrisktobenon-existent.Inthefuture,wemayvoluntarilyorinvoluntarilyinitiaterecallsifanyofourproductsaredeterminedbyusoraregulatortocontainasafetydefectorbenoncompliantwithapplicablelawsandregulations,suchasU.S.federalmotorvehiclesafetystandards.Suchrecalls,whethervoluntaryorinvoluntaryorcausedbysystemsorcomponentsengineeredormanufacturedbyusoroursuppliers,couldresultinsignificantexpense,supplychaincomplicationsandserviceburdens,andmayharmourbrand,business,prospects,financialconditionandoperatingresults.

Ourcurrentandfuturewarrantyreservesmaybeinsufficienttocoverfuturewarrantyclaims.Weprovideamanufacturer’swarrantyonallnewandusedTeslavehicleswesell.Wealsoprovidecertainwarrantieswithrespecttotheenergy

generationandstoragesystemswesell,includingontheirinstallationandmaintenance,andforcomponentsnotmanufacturedbyus,wegenerallypassthroughtoourcustomerstheapplicablemanufacturers’warranties.Aspartofourenergygenerationandstoragesystemcontracts,wemayprovidethecustomerwithperformanceguaranteesthatwarrantthattheunderlyingsystemwillmeetorexceedtheminimumenergygenerationorotherenergyperformancerequirementsspecifiedinthecontract.Undertheseperformanceguarantees,webeartheriskofelectricityproductionorotherperformanceshortfalls,eveniftheyresultfromfailuresincomponentsfromthirdpartymanufacturers.Theserisksareexacerbatedintheeventsuchmanufacturersceaseoperationsorfailtohonortheirwarranties.

Ifourwarrantyreservesareinadequatetocoverfuturewarrantyclaimsonourproducts,ourfinancialconditionandoperatingresultsmaybeharmed.Warrantyreservesincludeourmanagement’sbestestimatesoftheprojectedcoststorepairortoreplaceitemsunderwarranty,whicharebasedonactualclaimsincurredtodateandanestimateofthenature,frequencyandcostsoffutureclaims.Suchestimatesareinherentlyuncertainandchangestoourhistoricalorprojectedexperience,especiallywithrespecttoproductssuchasModel3,ModelYandSolarRoofthatwehaverecentlyintroducedand/orthatweexpecttoproduceatsignificantlygreatervolumesthanourpastproducts,maycausematerialchangestoourwarrantyreservesinthefuture.

Ourinsurancecoveragestrategymaynotbeadequatetoprotectusfromallbusinessrisks.Wemaybesubject,intheordinarycourseofbusiness,tolossesresultingfromproductsliability,accidents,actsofGodandotherclaimsagainstus,for

whichwemayhavenoinsurancecoverage.Asageneralmatter,wedonotmaintainasmuchinsurancecoverageasmanyothercompaniesdo,andinsomecases,wedonotmaintainanyatall.Additionally,thepoliciesthatwedohavemayincludesignificantdeductiblesorself-insuredretentions,policylimitationsandexclusions,andwecannotbecertainthatourinsurancecoveragewillbesufficienttocoverallfuturelossesorclaimsagainstus.Alossthatisuninsuredorwhichexceedspolicylimitsmayrequireustopaysubstantialamounts,whichmayharmourfinancialconditionandoperatingresults.

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Thereisnoguaranteethatwewillhavesufficientcashflowfromourbusinesstopayoursubstantialindebtednessorthatwewillnotincuradditionalindebtedness.AsofDecember31,2020,weandoursubsidiarieshadoutstanding$10.57billioninaggregateprincipalamountofindebtednes

Download - Tesla, Inc. · 12/31/2020 · PART III. Item 10. Directors, Executive Officers and Corporate Governance 108 Item 11. Executive Compensation 108 Item 12. Security Ownership of Certain

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