Tesla Motors Investor Presentation

Spring 2012
Copyright 2012 Tesla Motors, Inc.

Forward-Looking Statements
Certain statements in this presentation, including statements relating to the development, testing, performance, pricing, attributes, schedule of development, launch, and volume expectations of Model S, Model X and Gen III; the ability to achieve revenue, gross margin, spending and profitability targets; the ability of Tesla to produce vehicles at its factory; the products and schedules related to, and the financial results expected from, Teslas development programs with Daimler and Toyota; the sufficiency of current available funds to develop Model S and Model X; and the ability of Tesla to execute on its new interactive retail strategy and future store opening plans are forward-looking statements that are subject to risks and uncertainties. These forward-looking statements are based on managements 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: market acceptance of electric vehicles in general and new Tesla vehicle models, specifically Model S and Model X; delays in the design, manufacture, launch and financing of Model S, including the build-out of its manufacturing facility; the risk associated with a decline in revenues prior to the launch of Model S; achieving expected results from powertrain systems; competition in the automotive market; Teslas ability to establish, maintain and strengthen the Tesla brand; the unavailability, reduction or elimination of governmental and economic incentives for electric vehicles; Teslas ability to execute on its plans for its new interactive retail strategy and for new store openings as well as the risks and uncertainties identified under the sections captioned Risk Factors and MD&A in its Form 10-K filed on February 27, 2012. Tesla disclaims any obligation to update information contained in these forwardlooking statements.

Copyright 2012 Tesla Motors, Inc.

Progress Timeline

Foundation for Success

Focused Value Creation

Lead the Way Forward

Past Success Enables our Future

Copyright 2012 Tesla Motors, Inc.

Past Success Enables our Future

Electric Vehicle Intellectual Property

Range Leader (single charge) Cost Leader (battery pack) Proven battery pack safety, reliability and life

Roadster Success
Branded Tesla as EV leader Safety & reliability validated Proved EV driving could be exciting & preferable

Partnerships
Investments from Daimler, Toyota & Panasonic (10% combined) Sales to Daimler & Toyota validates our technology

Platform For Growth

Tesla-owned stores & service centers Tesla Factory

World Class Tech & Auto Management Team

Copyright 2012 Tesla Motors, Inc.

Progress Timeline

Foundation for Success

Focused Value Creation

Lead the Way Forward

Past Success Enables our Future

Deliver an Exceptional Model S by July 2012

Copyright 2012 Tesla Motors, Inc.

Model S Better By Design

Battery Pack

Powertrain

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Designed to be a better vehicle from the ground up Harnessing ALL the benefits of an EV approach

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Stunning Interior
Seats 5 Adults + 2 Children Storage Front & Back 17 Touchscreen Console

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Leading Performance & Handling
060mph in 4.4 seconds (Performance Model) Low Cg + High Torsional Rigidity Smooth & Quiet

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Model S Redefines the Premium Sedan

Goal: 5 Star Safety Rating

Superior Frontal Crumple Zones Minimal Side Impact Intrusion Alum. Body = Strong & Lightweight

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Improved Reliability
Fewer Moving Parts & Modular Design = Service That Comes to You No Oil Changes Longer Brake Life

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

Lower Operating Cost

Saves $2,000*/yr in Fuel Cost No Oil Changes
* - Operating Cost Assumptions 300 mi. range Model S operating cost is 3.3 cents/mi. (based on DoE Natl. avg. elec. cost of 11.8 cents/kWh ) Sports sedan operating cost is $0.20 (based on $4/gal gasoline / 20mpg = 20 cents/mi.) ($0.20 - $0.033) x 12,000 miles/yr = $2,000 /yr.

Copyright 2012 Tesla Motors, Inc.

Model S Redefines the Premium Sedan

More Efficient = Eco-friendly

Significantly More Efficient than Gasoline Power Zero Tailpipe Emissions Recyclable Battery Pack

Copyright 2012 Tesla Motors, Inc.

Model X A New Vehicle Category

Functionality, Style & Performance Worlds First 2-Motor All Wheel Drive Over 500 Reservations in 24 Hours

Tesla Motors Model X

Copyright 2012 Tesla Motors, Inc.

Falcon Wing Doors Deployed

Progress Timeline

Foundation for Success

Focused Value Creation

Lead the Way Forward

Past Success Enables our Future

Deliver an Exceptional Model S by July Demonstrate Economic Potential

Copyright 2012 Tesla Motors, Inc.

Demonstrate Economic Potential

Long Term Growth Targets Vehicle Units 5,300+ 20,000 30,000+ Global Segment Mkt. Share* < 1% 1% 2%

Year 2012 2013 2014 Future

Vehicles Roadster & S Model S S and X

Lower Priced Third Generation Platform

Long Term Operating Margins Targets Gross Margin Operating Margin 25% Low Mid teens %
Historical Plant Capacity Exceeded 400,000 Vehicles per Year!
Copyright 2012 Tesla Motors, Inc.

* - similar vehicles including Mercedes E-Class, BMW 5 Series, Audi A6, Porsche Cayenne, Land Rover, Audi Q7

Reservations Show Strong Demand

9,000

Cumulative Model S Reservations U.S. Signature Series Sold Out in Q411

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Q2 11

Q3 11

Q4 11

Minimum $5,000 refundable reservation price Limited marketing effort

Copyright 2012 Tesla Motors, Inc.

Sufficient Liquidity to Reach Our Goals

$493M of Total Liquidity
As of 12/31/11

Remaining DoE Facility $189M Cash & Restricted Cash $304M

Sufficient liquidity to reach profitability

Copyright 2012 Tesla Motors, Inc.

Progress Timeline

Foundation for Success

Focused Value Creation

Lead the Way Forward

Past Success Enables our Future

Deliver an Exceptional Model S by July Demonstrate Economic Potential

Tesla: Built to Win

Copyright 2012 Tesla Motors, Inc.

Electric Powertrain - Leadership on Range & Cost

Tesla Leads on Range (maximum miles per single charge)
Tesla Model S *+ Tesla Roadster + Ford Focus Nissan Leaf Chevy Volt

300 245 76 73 35

* - Estimated + - EPA 2-cycle city/highway test - EPA derived 5-cycle test

Tesla Leads on Cost (battery pack cost $/kWh)

$700 $600 $500 $400
[1] Cost Survey: Roland Berger Study LiB Value Chain and Cost Model (March 2011)

$650+

$345

[2]

$300
$200 $100 $2010 [1] 2020 [1] Tesla Model S

[2] Tesla Model S Projected cost not disclosed. Includes all cells, electronics, packaging and labor costs

Copyright 2012 Tesla Motors, Inc.

Tesla Powertrain Proprietary from End-to-End

Integration = A System that is Greater than Sum-of-the-Parts

18650 Cells

Battery Pack

Power Electronics

Motor

Gear Box

Intellectual Property and Patent Protection Throughout

Unique Chemistry Proprietary Cathode Geometry Automotive-Grade Construction Passive Safety Features Modified Cell Case High Energy Density Active Cooling Mfg Trade Secrets Charge Balancing Active Safety Features Power Mgmt Software 2 Way Inverter Charge Mgmt Software On Board Charger Flux Phasing & Mgmt Compact Design Thermal Mgmt Software Instant Peak Torque A/C Induction Motor No Rare Earth Metals 87% Avg Efficiency In House Mfg Proprietary Design Up to 18,000 RPM No Shifting In House Mfg

Over 50 Patents Awarded Over 230 Patent Applications Pending

Copyright 2012 Tesla Motors, Inc.

EV Powertrain Business World Leader

Worlds Largest Vendor of EV Powertrains Toyota RAV4 EV Available 2012
Providing full powertrain under multi-year agreement

Expanding Relationship with Mercedes-Benz

Successful Smart fortwo and A-Class programs Starting development program for a new M-B vehicle with a full Tesla powertrain

Copyright 2012 Tesla Motors, Inc.

EV Platform = Rapid, Low-Cost Development

Model S Common Powertrain

Model X Fewer Parts No Transmission No Emissions Control Systems

Revolutionary Packaging
Adaptable Chassis Platform

Leveraging the unique benefits of the electric powertrain

Copyright 2012 Tesla Motors, Inc.

High Product Refresh Rate

Shipping since 2008 Over 2,100 sold in over 30 countries Over 20 million miles driven
Tesla Roadster

Modified Lotus Elise Platform

Available by July 2012* - Release Candidate phase in progress 20,000 units per year, pricing starting at $49,900* Worlds first, production intent all-EV vehicle
Tesla Model S

Teslas S Platform
Production begins late 2013/Deliveries early 2014* 10,000 15,000 units per year* Based on Model S platform

Tesla Model X

Smaller vehicle platform; pricing starting at $30,000* Positioned for mass-premium market appeal and volume Availability TBD
Tesla Gen III * - Estimated dates, volumes & pricing (net of US tax credit of $7,500 for purchase of alt. fuel vehicles; credit may expire)
Copyright 2012 Tesla Motors, Inc.

Teslas Gen III Platform

Fremont Facility Room for Significant Growth

Offices Paint Shop

5 million ft2 / 200+ acres

Final Assembly

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

Body In White

Material Handling

Tesla Factory Fremont, CA

Planned Model S Facilities Future Programs

Copyright 2012 Tesla Motors, Inc.

Agile Manufacturing Latest Technology

Body Assembly Center Press Center Model S & Paint Center

Model S on Automated Guided Vehicle Indoor Test Track

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Plastics Injection Molding

Tesla-Owned Distribution & Service

Manage the entire customer experience; Accelerate time to market

Sales at retail price; Lower costs of facilities, inventory & service

2011: 20 Stores 2012: 30 stores 2013: 50 stores
(store totals exclude additional service centers)

Existing
Copyright 2012 Tesla Motors, Inc.

Planned

Better Customer Experience

Storefront

Stores designed to: Engage Excite Inform

Interior

Test Drive Cars

Transparent and inviting Affluent, high-traffic locations Technology that informs customers

Product Specialists to answer questions

Display vehicles open for customers to sit in
Copyright 2012 Tesla Motors, Inc.

Conveniently located parking area for test-drives and Tesla vehicle charging

Summary

Foundation for Success

Focused Value Creation

Lead the Way Forward

Past Success Enables our Future

Deliver an Exceptional Model S by July Demonstrate Economic Potential

Tesla: Built to Win

Copyright 2012 Tesla Motors, Inc.