We design, develop, manufacture, sell and lease high-performance fully electric vehicles and energy generation and storage systems, and offer services related to our products.
−Removed: We generally sell our products directly to customers, including through our website and retail locations.
−Removed: We also continue to grow our customer-facing infrastructure through a global network of vehicle service centers, Mobile Service technicians, body shops, Supercharger stations and Destination Chargers to accelerate the widespread adoption of our products.
+Added: We generally sell our products directly to customers, and continue to grow our customer-facing infrastructure through a global network of vehicle service centers, Mobile Service, body shops, Supercharger stations and Destination Chargers to accelerate the widespread adoption of our products.
We emphasize performance, attractive styling and the safety of our users and workforce in the design and manufacture of our products and are continuing to develop full self-driving technology for improved safety.
We also strive to lower the cost of ownership for our customers through continuous efforts to reduce manufacturing costs and by offering financial and other services tailored to our products.
−Removed: Our mission to accelerate the world’s transition to sustainable energy, engineering expertise, vertically integrated business model and focus on user experience differentiate us from other companies.
+Added: Our mission is to accelerate the world’s transition to sustainable energy.
+Added: We believe that this mission, along with our engineering expertise, vertically integrated business model and focus on user experience differentiate us from other companies.
Segment Information
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(i) automotive and (ii) energy generation and storage.
−Removed: The automotive segment includes the design, development, manufacturing, sales and leasing of electric vehicles as well as sales of automotive regulatory credits.
−Removed: Additionally, the automotive segment is also comprised of services and other, which includes non-warranty after-sales vehicle services, sales of used vehicles, retail merchandise, sales by our acquired subsidiaries to third party customers and vehicle insurance revenue.
+Added: The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles as well as sales of automotive regulatory credits.
+Added: Additionally, the automotive segment also includes services and other, which includes non-warranty after-sales vehicle services and parts, sales of used vehicles, retail merchandise, paid Supercharging and vehicle insurance revenue.
The energy generation and storage segment includes the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives.
Our Products and Services
+Added: We currently manufacture four different consumer vehicles –
+Added: the Model 3, Y, S and X.
Model 3 is a four-door mid-size sedan that we designed for manufacturability with a base price for mass-market appeal.
−Removed: We currently manufacture Model 3 at the Fremont Factory and at Gigafactory Shanghai.
Model Y is a compact sport utility vehicle (“SUV”) built on the Model 3 platform with seating for up to seven adults.
−Removed: We currently manufacture Model Y at the Fremont Factory and at Gigafactory Shanghai.
−Removed: Model S and Model X
Model S is a four-door full-size sedan and Model X is a mid-size SUV with seating for up to seven adults.
−Removed: Model S and Model X feature the highest performance characteristics and longest ranges that we offer in a sedan and SUV, respectively, and we manufacture both models at the Fremont Factory.
−Removed: In 2021, we began delivering new versions of the Model S and Model X, which offer higher performance and range.
−Removed: Future Consumer and Commercial Electric Vehicles
−Removed: We have also announced several planned electric vehicles to address additional vehicle markets, including specialized consumer electric vehicles in Cybertruck and the new Tesla Roadster and a commercial electric vehicle in Tesla Semi.
+Added: Model S and Model X feature the highest performance characteristics and longest ranges that we offer in a sedan and SUV, respectively.
+Added: In December 2022, we began early production and deliveries of the Tesla Semi, our first commercial electric vehicle.
+Added: We have also announced several planned electric vehicles to address additional vehicle markets, including specialized consumer electric vehicles in Cybertruck and the new Tesla Roadster.
We plan to continue leveraging developments in our proprietary Full Self-Driving (“FSD”), battery cell and other technologies.
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We have designed our proprietary powertrain systems to be adaptable, efficient, reliable and cost-effective while withstanding the rigors of an automotive environment.
−Removed: We offer dual motor powertrain vehicles, which use two electric motors to maximize traction and performance in an all-wheel drive configuration, as well as vehicle powertrain technology featuring three electric motors for further increased performance in certain versions of Model S and Model X.
−Removed: Among other things, we maintain extensive testing and R&D capabilities for battery cells, packs and systems, and have built an expansive body of knowledge on lithium-ion cell chemistry types and performance characteristics.
−Removed: In order to enable a greater supply of cells for our products with higher energy density at lower costs, we are currently using our expertise to develop a new proprietary lithium-ion battery cell and improved manufacturing processes.
+Added: We offer dual motor powertrain vehicles, which use two electric motors to maximize traction and performance in an all-wheel drive configuration, as well as vehicle powertrain technology featuring three electric motors for further increased performance in certain versions of Model S and Model X and the Tesla Semi.
+Added: We maintain extensive testing and R&D capabilities for battery cells, packs and systems, and have built an expansive body of knowledge on lithium-ion cell chemistry types and performance characteristics.
+Added: In order to enable a greater supply of cells for our products with higher energy density at lower costs, we have developed a new proprietary lithium-ion battery cell and improved manufacturing processes.
Vehicle Control and Infotainment Software
−Removed: The performance and safety systems of our vehicles and their battery packs require sophisticated control software.
+Added: The performance and safety systems of our vehicles and their battery packs utilize sophisticated control software.
Control systems in our vehicles optimize performance, customize vehicle behavior, manage charging and control all infotainment functions.
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software regularly through over-the-air updates.
−Removed: Self-Driving Development
−Removed: We have expertise in developing technologies, systems and software to enable self-driving vehicles using primarily vision-based sensors.
+Added: Self-Driving Development and Artificial Intelligence
+Added: We have expertise in developing technologies, systems and software to enable self-driving vehicles using primarily vision-based technologies.
Our FSD Computer runs our neural networks in our vehicles, and we are also developing additional computer hardware to better enable the massive amounts of field data captured by our vehicles to continually train and improve these neural networks for real-world performance.
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We intend to establish in the future an autonomous Tesla ride-hailing network, which we expect would also allow us to access a new customer base even as modes of transportation evolve.
+Added: We are also applying our artificial intelligence learnings from self-driving technology to the field of robotics.
+Added: For example, in 2022 we previewed Optimus, a robotic humanoid which is controlled by the same AI system.
Energy Generation and Storage
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We have engineered Solar Roof over numerous iterations to combine aesthetic appeal and durability with power generation.
−Removed: The efficiency of our solar energy products is aided by our own solar inverter, which also incorporates our power electronics technologies.
+Added: The efficiency of our solar energy products is aided by our own solar inverter, which incorporates our power electronics technologies.
We designed both products to integrate with Powerwall.
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We have established significant in-house capabilities in the design and test engineering of electric vehicles and their components and systems.
−Removed: Our team has core competencies in computer aided design as well as durability, strength and crash test simulations, which reduces the product development time of new models.
−Removed: Additionally, our team has expertise in selecting and working with a range of materials for our vehicles to balance performance, cost and durability in ways that are best suited for our vehicles’
−Removed: target demographics and utility.
−Removed: We have also used our capabilities to achieve complex engineering feats in stamping, casting and thermal systems, and are currently developing designs that integrate batteries directly with vehicle body structures without separate battery packs to optimize manufacturability, weight, range and cost characteristics.
+Added: Our team has significant experience in computer-aided design as well as durability, strength and crash test simulations, which reduces the product development time of new models.
+Added: We have also achieved complex engineering feats in stamping, casting and thermal systems, and developed a method to integrate batteries directly with vehicle body structures without separate battery packs to optimize manufacturability, weight, range and cost characteristics.
We are also expanding our manufacturing operations globally while taking action to localize our vehicle designs and production for particular markets, including country-specific market demands and factory optimizations for local workforces.
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Energy Generation and Storage
−Removed: Our expertise in electrical, mechanical, civil and software engineering allows us to design and manufacture our energy generation and storage products and components.
−Removed: We also employ our design and engineering expertise to customize solutions including our energy storage products, solar energy systems and/or Solar Roof for customers to meet their specific needs.
−Removed: We have developed software that simplifies and expedites the design process, as well as mounting hardware that facilitates solar panel installation.
+Added: Our expertise in electrical, mechanical, civil and software engineering allows us to design, engineer, manufacture and install energy generating and storage products and components, including at the residential through utility scale.
+Added: For example, the modular design of our Megapack utility-scale battery line is intended to significantly reduce the amount of assembly required in the field.
+Added: We also customize solutions including our energy storage products, solar energy systems and/or Solar Roof for customers to meet their specific needs.
Sales and Marketing
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Our vehicle sales channels currently include our website and an international network of company-owned stores.
−Removed: In some jurisdictions, we also have galleries to educate and inform customers about our products, but such locations do not actually transact in the sale of vehicles.
+Added: In some jurisdictions, we also have galleries to educate and inform customers about our products, but such locations do not transact in the sale of vehicles.
We believe this infrastructure enables us to better control costs of inventory, manage warranty service and pricing, educate consumers about electric vehicles, maintain and strengthen the Tesla brand and obtain rapid customer feedback.
−Removed: We reevaluate our sales strategy both globally and at a location-by-location level from time to time to optimize our current sales channels.
−Removed: Sales of vehicles in the automobile industry tend to be cyclical in many markets, which may expose us to volatility from time to time.
+Added: We reevaluate our sales strategy both globally and at a location-by-location level from time to time to optimize our sales channels.
+Added: However, sales of vehicles in the automobile industry tend to be cyclical in many markets, which may expose us to volatility from time to time.
Used Vehicle Sales
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Where possible, we co-locate Superchargers with our solar and energy storage systems to reduce costs and promote renewable power.
−Removed: Supercharger stations are typically placed along well-traveled routes and in and around dense city centers to allow vehicle owners the ability to enjoy quick, reliable and ubiquitous charging with convenient, minimal stops.
+Added: Supercharger stations are typically placed along well-traveled routes and in and around dense city centers to allow vehicle owners the ability to enjoy quick, reliable charging along an extensive network with convenient stops.
Use of the Supercharger network either requires payment of a fee or is free under certain sales programs.
−Removed: We also work with a wide variety of hospitality, retail and public destinations, as well as businesses with commuting employees, to offer additional charging options for our customers.
−Removed: These Destination Charging and workplace locations deploy Tesla Wall Connectors to provide charging to Tesla vehicle owners who patronize or are employed at their businesses.
−Removed: We also work with single-family homeowners and multi-family residential entities to deploy home charging solutions.
+Added: In November 2021, we began to offer Supercharger access to non-Tesla vehicles in certain locations in support of our mission to accelerate the world’s transition to sustainable energy.
+Added: We also work with a wide variety of hospitality, retail and public destinations, as well as businesses with commuting employees, to offer additional charging options for our customers, as well as single-family homeowners and multi-family residential entities, to deploy home charging solutions.
In-App Upgrades
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Energy Generation and Storage
−Removed: We market and sell our solar and energy storage products to residential, commercial and industrial customers and utilities through a variety of channels.
+Added: We market and sell our solar and energy storage products to residential, commercial and industrial customers and utilities through a variety of channels, including through our website, stores and galleries, as well as through our network of channel partners, and in the case of some commercial customers, through PPA transactions.
We emphasize simplicity, standardization and accessibility to make it easy and cost-effective for customers to adopt clean energy, while reducing our customer acquisition costs.
−Removed: In the U.S., we offer residential solar and energy storage products directly through our website, stores and galleries, as well as through our network of channel partners.
−Removed: Outside of the U.S., we use our international sales organization and a network of channel partners to market and sell these products for the residential market.
−Removed: We also sell Powerwall directly to utilities.
−Removed: In the case of products sold to utilities or channel partners, such partners typically sell the product to residential customers and manage the installation in customer homes.
−Removed: We sell our commercial and utility-scale energy storage systems to customers through our U.S.
−Removed: and international sales organization and our channel partner network.
−Removed: In certain jurisdictions, we also sell installed solar energy systems (with or without energy storage) to commercial customers through PPA transactions.
Service and Warranty
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homes or other locations.
−Removed: Performing vehicle service ourselves provides us with the capability to identify problems and implement solutions and improvements faster, and optimize logistics and inventory better, than traditional automobile manufacturers and their dealer networks.
+Added: Performing vehicle service ourselves allows us to identify problems and implement solutions and improvements faster, and optimize logistics and inventory better, than traditional automobile manufacturers and their dealer networks.
The connectivity of our vehicles also allows us to diagnose and remedy many problems remotely and proactively.
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We provide service and repairs to our energy product customers, including under warranty where applicable.
−Removed: We generally provide manufacturer’s limited warranties with our energy storage product and offer certain extended limited warranties that are available at the time of purchase of the system.
+Added: We generally provide manufacturer’s limited warranties with our energy storage products and offer certain extended limited warranties that are available at the time of purchase of the system.
If we install a system, we also provide certain limited warranties on our installation workmanship.
−Removed: As part of our energy storage system contracts, we may provide the customer with performance guarantees that commit that the underlying system will meet or exceed the minimum energy performance requirements specified in the contract.
For retrofit solar energy systems, we provide separate limited warranties for workmanship and against roof leaks, and for Solar Roof, we also provide limited warranties for defects and weatherization.
For components not manufactured by us, we generally pass-through the applicable manufacturers’
−Removed: As part of our solar energy system contracts, we may provide the customer with performance guarantees that commit that the underlying system will meet or exceed the minimum energy generation requirements specified in the contract.
+Added: As part of our solar energy system and energy storage contracts, we may provide the customer with performance guarantees that commit that the underlying system will meet or exceed the minimum energy generation or performance requirements specified in the contract.
Financial Services
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Under certain of such programs, we have provided resale value guarantees or buyback guarantees that may obligate us to repurchase the subject vehicles at pre-determined values.
−Removed: In August 2019, we launched an insurance product designed for our customers in California.
In 2021, we launched our insurance product using real-time driving behavior in select states, which offers rates that are often better than other alternatives and promotes safer driving.
−Removed: Our insurance products are currently available in Arizona, California, Illinois, Ohio and Texas and we plan to expand the markets in which we offer insurance products, as part of our ongoing effort to decrease the total cost of ownership for our customers.
+Added: Our insurance products are currently available in 12 states and we plan to expand the markets in which we offer insurance products, as part of our ongoing effort to decrease the total cost of ownership for our customers.
Energy Generation and Storage
−Removed: We currently offer certain loan and PPA options to residential or commercial customers who pair energy storage systems with solar energy systems.
We offer certain financing options to our solar customers, which enable the customer to purchase and own a solar energy system, Solar Roof or integrated solar and Powerwall system.
−Removed: Our solar PPAs, offered to commercial customers, charges a fee per kilowatt-hour based on the amount of electricity produced by our solar energy systems.
+Added: Our solar PPAs, offered primarily to commercial customers, charge a fee per kilowatt-hour based on the amount of electricity produced by our solar energy systems.
Manufacturing
−Removed: Manufacturing Facilities in the Bay Area, California
−Removed: We manufacture and test our vehicles at our manufacturing facilities in the Bay Area in California, including the Fremont Factory and other local manufacturing facilities.
−Removed: We also manufacture and develop certain parts and components that are critical to our intellectual property and quality standards, such as Model S and Model X battery packs and our proprietary lithium-ion battery cells, at these locations.
−Removed: Gigafactory Nevada near Reno, Nevada
−Removed: Our battery material, cell, module and battery pack production for Model 3, Model Y and our energy products are manufactured in one location at Gigafactory Nevada.
−Removed: In addition, we manufacture vehicle drive units and energy storage components there.
−Removed: Gigafactory Nevada allows us to access high volumes of lithium-ion battery cells manufactured by our partner Panasonic there while achieving a significant reduction in the cost of our battery packs.
−Removed: We continue to invest in Gigafactory Nevada to achieve additional output there.
−Removed: Gigafactory New York in Buffalo, New York
−Removed: We use Gigafactory New York for the development and production of our Solar Roof and other solar products and components, energy storage components and Supercharger components and for other functions.
−Removed: Gigafactory Shanghai in China
−Removed: We established Gigafactory Shanghai to increase the affordability of our vehicles for customers in local markets by reducing transportation and manufacturing costs and eliminating the impact of unfavorable tariffs.
−Removed: We continue to increase the degree of localized procurement and manufacturing there.
−Removed: Gigafactory Shanghai is representative of our plan to iteratively improve our manufacturing operations as we establish new factories, as we implemented the learnings from our Model 3 and Model Y ramp at the Fremont Factory to commence and ramp our production at Gigafactory Shanghai quickly and cost-effectively.
−Removed: Other Manufacturing
+Added: We currently have manufacturing facilities in the US in Northern California, in Buffalo, New York, Gigafactory New York;
+Added: in Austin, Texas, Gigafactory Texas and near Reno, Nevada, Gigafactory Nevada.
+Added: At these facilities, we manufacture and assemble, among other things, vehicles, certain vehicle parts and components, such as our battery packs and battery cells, energy storage components and solar products and components.
+Added: Internationally, we also have manufacturing facilities in China (Gigafactory Shanghai) and Germany (Gigafactory Berlin-Brandenburg), which allows us to increase the affordability of our vehicles for customers in local markets by reducing transportation and manufacturing costs and eliminating the impact of unfavorable tariffs.
Generally, we continue to expand production capacity at our existing facilities.
−Removed: We also intend to further increase cost-competitiveness in our significant markets by strategically adding local manufacturing, including at Gigafactory Berlin in Germany and Gigafactory Texas in Austin, Texas, which will begin production in 2022.
−Removed: Our products use thousands of purchased parts that are sourced from hundreds of suppliers across the world.
+Added: We also intend to further increase cost-competitiveness in our significant markets by strategically adding local manufacturing.
+Added: Our products use thousands of parts that are sourced from hundreds of suppliers across the world.
We have developed close relationships with vendors of key parts such as battery cells, electronics and complex vehicle assemblies.
Certain components purchased from these suppliers are shared or are similar across many product lines, allowing us to take advantage of pricing efficiencies from economies of scale.
−Removed: As is the case for most automotive companies, most of our procured components and systems are sourced from single suppliers.
−Removed: Where multiple sources are available for certain key components, we work to qualify multiple suppliers for them where it is sensible to do so in order to minimize production risks owing to disruptions in their supply.
+Added: As is the case for some automotive companies, some of our procured components and systems are sourced from single suppliers.
+Added: Where multiple sources are available for certain key components, we work to qualify multiple suppliers for them where it is sensible to do so in order to minimize potential production risks due to disruptions in their supply.
We also mitigate risk by maintaining safety stock for key parts and assemblies and die banks for components with lengthy procurement lead times.
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Pricing for these materials is governed by market conditions and may fluctuate due to various factors outside of our control, such as supply and demand and market speculation.
−Removed: We strive to execute long-term supply contracts for such materials at competitive pricing when feasible, and we currently believe that we have adequate access to raw materials supplies in order to meet the needs of our operations.
+Added: We strive to execute long-term supply contracts for such materials at competitive pricing when feasible, and we currently believe that we have adequate access to raw materials supplies to meet the needs of our operations.
Governmental Programs, Incentives and Regulations
−Removed: Globally, both the operation of our business by us and the ownership of our products by our customers are impacted by various government programs, incentives and other arrangements.
+Added: Globally, the ownership of our products by our customers is impacted by various government credits, incentives, and policies.
Our business and products are also subject to numerous governmental regulations that vary among jurisdictions.
+Added: The operation of our business is also impacted by various government programs, incentives, and other arrangements.
+Added: See Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K for further details.
Programs and Incentives
−Removed: California Alternative Energy and Advanced Transportation Financing Authority Tax Incentives
−Removed: We have agreements with the California Alternative Energy and Advanced Transportation Financing Authority that provide multi-year sales tax exclusions on purchases of manufacturing equipment that will be used for specific purposes, including the expansion and ongoing development of electric vehicles and powertrain production in California, thus reducing our cost basis in the related assets in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: Gigafactory Nevada—Nevada Tax Incentives
−Removed: In connection with the construction of Gigafactory Nevada, we entered into agreements with the State of Nevada and Storey County in Nevada that provide abatements for specified taxes, discounts to the base tariff energy rates and transferable tax credits in consideration of capital investment and hiring targets that were met at Gigafactory Nevada.
−Removed: These incentives are available until June 2024 or June 2034, depending on the incentive and primarily offset related costs in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: Gigafactory New York—New York State Investment and Lease
−Removed: We have a lease through the Research Foundation for the State University of New York (the “SUNY Foundation”) with respect to Gigafactory New York.
−Removed: Under the lease and a related research and development agreement, we are continuing to designate further buildouts at the facility.
−Removed: We are required to comply with certain covenants, including hiring and cumulative investment targets.
−Removed: This incentive offsets the related lease costs of the facility in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: As we temporarily suspended most of our manufacturing operations at Gigafactory New York pursuant to a New York State executive order issued in March 2020 as a result of the COVID-19 pandemic, we were granted a deferral of our obligation to be compliant with our applicable targets through December 31, 2021 in an amendment memorialized in August 2021.
−Removed: As of December 31, 2021, we are in excess of such targets relating to investments and personnel in the State of New York and Buffalo.
−Removed: Gigafactory Shanghai—Land Use Rights and Economic Benefits
−Removed: We have an agreement with the local government of Shanghai for land use rights at Gigafactory Shanghai.
−Removed: Under the terms of the arrangement, we are required to meet a cumulative capital expenditure target and an annual tax revenue target starting at the end of 2023.
−Removed: In addition, the Shanghai government has granted to our Gigafactory Shanghai subsidiary certain incentives to be used in connection with eligible capital investments at Gigafactory Shanghai.
−Removed: These incentives offset the related costs of our facilities in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: Finally, the Shanghai government granted a beneficial corporate income tax rate of 15% to certain eligible enterprises, which is lower than the 25% statutory corporate income tax rate in China.
−Removed: Our Gigafactory Shanghai subsidiary was granted this lower rate for 2019 through 2023.
−Removed: This lower tax rate reduces the income tax provision in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
−Removed: Gigafactory Texas –
−Removed: Tax Incentives
−Removed: In connection with the construction of Gigafactory Texas, we entered into a 20-year agreement with Travis County in Texas pursuant to which we would receive grant funding equal to 70-80% of property taxes paid by us to Travis County and a separate 10-year agreement with the Del Valle Independent School District in Texas pursuant to which a portion of the taxable value of our property would be capped at a specified amount, in each case subject to our meeting certain minimum economic development metrics through our construction and operations at Gigafactory Texas.
−Removed: These incentives will offset the related costs in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
+Added: Inflation Reduction Act
+Added: On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted into law and is effective for taxable years beginning after December 31, 2022, and remains subject to future guidance releases.
+Added: The IRA includes multiple incentives to promote clean energy, electric vehicles, battery and energy storage manufacture or purchase, including through providing tax credits to consumers.
+Added: For example, qualifying Tesla customers may receive up to $7,500 in federal tax credits for the purchase of qualified electric vehicles in the U.S through 2032.
Automotive Regulatory Credits
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In such transactions, they are included as a component of energy generation and storage revenues in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
+Added: Pursuant to the IRA, under Sections 48, 48E and 25D of the Internal Revenue Code (”IRC”), standalone energy storage technology is eligible for a tax credit between 6% and 50% of qualified expenditures, regardless of the source of energy, which may be claimed by our customers for storage systems they purchase or by us for arrangements where we own the systems.
+Added: These tax credits are primarily for the benefit of our customers and are currently scheduled to phase-out starting in 2032 or later.
Solar Energy System Incentives and Policies
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These incentives include tax credits, cash grants, tax abatements and rebates.
−Removed: In particular, Sections 48 and 25D of the U.S.
−Removed: Internal Revenue Code currently provide a tax credit of 26% of qualified commercial or residential expenditures for solar energy systems, which may be claimed by our customers for systems they purchase, or by us for arrangements where we own the systems.
−Removed: These tax credits are primarily for the direct benefit of our customers and are currently scheduled to decline and/or expire in 2023 and beyond.
+Added: In particular, pursuant to the IRA, Sections 48, 48E and 25D of the IRC provides a tax credit between 6% and 70% of qualified commercial or residential expenditures for solar energy systems, which may be claimed by our customers for systems they purchase, or by us for arrangements where we own the systems for properties that meet statutory requirements.
+Added: These tax credits are primarily for the direct benefit of our customers and are currently scheduled to phase-out starting in 2023 or later.
Vehicle Safety and Testing
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Numerous FMVSS apply to our vehicles, such as crash-worthiness and occupant protection requirements.
−Removed: While our current vehicles fully comply and we expect that our vehicles in the future will fully comply with all applicable FMVSS with limited or no exemptions, FMVSS are subject to change from time to time.
+Added: Our current vehicles fully comply and we expect that our vehicles in the future will fully comply with all applicable FMVSS with limited or no exemptions, however, FMVSS are subject to change from time to time.
As a manufacturer, we must self-certify that our vehicles meet all applicable FMVSS and the NHTSA bumper standard, or otherwise are exempt, before the vehicles may be imported or sold in the U.S.
−Removed: We are also required to comply with other federal laws administered by NHTSA, including the CAFE standards, Theft Prevention Act requirements, labeling requirements and other information provided to customers in writing, Early Warning Reporting requirements regarding warranty claims, field reports, death and injury reports and foreign recalls and additional requirements for cooperating with compliance and safety investigations and recall reporting.
+Added: We are also required to comply with other federal laws administered by NHTSA, including the Corporate Average Fuel Economy standards, Theft Prevention Act requirements, labeling requirements and other information provided to customers in writing, Early Warning Reporting requirements regarding warranty claims, field reports, death and injury reports and foreign recalls, a Standing General Order requiring reports regarding crashes involving vehicles equipped with advanced driver assistance systems, and additional requirements for cooperating with compliance and safety investigations and recall reporting.
Automobile Information and Disclosure Act also requires manufacturers of motor vehicles to disclose certain information regarding the manufacturer’s suggested retail price, optional equipment and pricing.
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While there are currently no federal U.S.
−Removed: regulations specifically pertaining to self-driving vehicles or self-driving equipment, NHTSA has published recommended guidelines on self-driving vehicles, and retains the authority to investigate and/or take action on the safety of any vehicle, equipment or features operating on public roads.
+Added: regulations pertaining specifically to self-driving vehicles or self-driving equipment, NHTSA has published recommended guidelines on self-driving vehicles, apart from the FMVSS and manufacturer reporting obligations, and retains the authority to investigate and/or take action on the safety or compliance of any vehicle, equipment or features operating on public roads.
states also have legal restrictions on the operation, registration or licensure of self-driving vehicles, and many other states are considering them.
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In the U.S., state laws regulate the manufacture, distribution, sale and service of automobiles, and generally require motor vehicle manufacturers and dealers to be licensed in order to sell vehicles directly to residents.
−Removed: Certain states have asserted that the laws in such states do not permit automobile manufacturers to be licensed as dealers or to act in the capacity of a dealer, or that they otherwise restrict a manufacturer’s ability to deliver or service vehicles.
+Added: Certain states have asserted that the laws in such states do not permit automobile manufacturers to be licensed as dealers or to act in the capacity of a dealer, or that they otherwise restrict a manufacturer’s ability to deliver or perform warranty repairs on vehicles.
To sell vehicles to residents of states where we are not licensed as a dealer, we generally conduct the sale out of the state.
In certain such states, we have opened “galleries”
−Removed: that serve an educational purpose and where the title transfer may not occur.
+Added: that serve an educational purpose and where sales may not occur.
Some automobile dealer trade associations have both challenged the legality of our operations in court and used administrative and legislative processes to attempt to prohibit or limit our ability to operate existing stores or expand to new locations.
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capabilities.
−Removed: We believe that our vehicles compete in the market both based on their traditional segment classification as well as based on their propulsion technology.
+Added: We believe that our vehicles compete in the market based on both their traditional segment classification as well as their propulsion technology.
For example, Model S and Model X compete primarily with premium sedans and premium SUVs and Model 3 and Model Y compete with small to medium-sized sedans and compact SUVs, which are extremely competitive markets.
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In addition, several manufacturers offer hybrid vehicles, including plug-in versions.
−Removed: We also believe that there is increasing competition for our vehicle offerings as a platform for delivering self-driving technologies, charging solutions and other features and services, and we expect to compete in this developing market through continued progress on our Autopilot, FSD and neural network capabilities, Supercharger network and our infotainment offerings.
+Added: We believe that there is also increasing competition for our vehicle offerings as a platform for delivering self-driving technologies, charging solutions and other features and services, and we expect to compete in this developing market through continued progress on our Autopilot, FSD and neural network capabilities, Supercharger network and our infotainment offerings.
Energy Generation and Storage
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We believe the world cannot reduce carbon emissions without addressing both energy generation and consumption, and we are designing and manufacturing a complete energy and transportation ecosystem to achieve this goal.
−Removed: As we expand, we are building each new factory to be more efficient and sustainably designed than the previous one, including with respect to waste reduction and water usage, and we are focused on reducing the carbon footprint of our supply chain.
−Removed: We are committed to only sourcing responsibly produced materials, and our suppliers are required to provide evidence of management systems that ensure social, environmental and sustainability best practices in their own operations, as well as to demonstrate a commitment to responsible sourcing into their supply chains.
+Added: As we expand, we are building each new factory to be more efficient and sustainably designed than the previous one, including with respect to per-unit waste reduction and resource consumption, including water and energy usage.
+Added: We are focused on further enhancing sustainability of operations outside of our direct control, including reducing the carbon footprint of our supply chain.
+Added: We are committed to sourcing only responsibly produced materials, and our suppliers are required to provide evidence of management systems that ensure social, environmental and sustainability best practices in their own operations, as well as to demonstrate a commitment to responsible sourcing into their supply chains.
We have a zero-tolerance policy when it comes to child or forced labor and human trafficking by our suppliers and we look to the Organization for Economic Co-operation and Development Due Diligence Guidelines to inform our process and use feedback from our internal and external stakeholders to find ways to continually improve.
We are also driving safety in our own factories by focusing on worker engagement.
−Removed: As our production volumes increase, our incidents per vehicle continue to drop.
+Added: Our incidents per vehicle continue to drop even as our production volumes increase.
+Added: We also strive to be an employer of choice by offering compelling, impactful jobs with best in-industry benefits.
We believe that sound corporate governance is critical to helping us achieve our goals, including with respect to ESG.
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Human Capital Resources
+Added: Our greatest asset is our people and we continue to attract the best and brightest with our competitive pay and benefits package which starts with ownership.
+Added: We offer employees the opportunity to receive equity during their employment and share in the success of Tesla.
As of December 31, 2022, our full-time count for our and our subsidiaries’
−Removed: employees worldwide was 99,290.
−Removed: To date, we have not experienced any work stoppages as a result of labor disputes, and we consider our relationship with our employees to be good.
−Removed: Our key human capital objectives in managing our business include attracting, developing and retaining top talent while integrating diversity, equity and inclusion principles and practices into our core values.
−Removed: We want to attract a pool of diverse and exceptional candidates and support their career growth once they become employees.
−Removed: Our efforts begin at the entry level with development, apprenticeship and internship programs in local high schools, community colleges and four-year colleges.
−Removed: In addition, we seek to hire based on talent rather than solely on educational pedigree, and have provided thousands of job openings, including in our local communities, for capable workers from various backgrounds to learn valuable skills in critical operations such as in manufacturing, vehicle service and energy product installation.
−Removed: We also emphasize in our evaluation and career development efforts internal mobility opportunities for employees to drive professional development.
−Removed: Our goal is a long-term, upward-bound career at Tesla for every employee, which we believe also drives our retention efforts.
−Removed: Our ability to retain our talented workforce is correlated to our compensation practices and culture of open communication.
−Removed: We provide a highly competitive wage that meets or exceeds that of comparable manufacturing roles, even before equity and benefits are factored in.
−Removed: In addition, the majority of our employees have the opportunity to receive additional Tesla equity each year based on their performance.
−Removed: We continue to review salary and wages against benchmarks and adjust to ensure wages are competitive, and have instituted a robust process for ensuring pay equity across our organization.
−Removed: In addition, we provide a comprehensive range of benefits options, including no-cost paycheck contributions for medical, dental and vision plan options for employees and family members.
−Removed: Our employees have the right to freely discuss their wages, benefits and terms and conditions of employment and to raise complaints internally and externally.
−Removed: We encourage our employees to bring any concerns or complaints they have to any member of management, and any employee who is subjected to, a witness or has knowledge of any conduct that violates Tesla policies is asked to immediately report the conduct.
−Removed: Our employees can report concerns to their supervisor or human resources partner, as well as an integrity line to report concerns anonymously and without fear of retaliation that is available 24 hours a day, seven days a week.
−Removed: Concerns are reviewed in accordance with established protocols by investigators with expertise, who also periodically review for trends and outcomes for remediation and appropriate controls.
−Removed: Tesla provides employee training on workplace conduct at least annually and in 2021 implemented a campaign to re-highlight different reporting mechanisms available to employees.
−Removed: We also believe that our ability to retain our workforce is dependent on our ability to foster an environment that is sustainably safe, respectful, fair and inclusive of everyone and promotes diversity, equity and inclusion inside and outside of our business.
−Removed: From our outreach to Historically Black Colleges and Universities and Hispanic Serving Institutions to sponsoring employee resource groups across numerous locations, including Asian Pacific Islanders at Tesla, Black at Tesla, Intersectionality, Latinos at Tesla, LGBTQ at Tesla, Veterans at Tesla and Women in Tesla, we engage these networks as key business resources and sources of actionable feedback.
−Removed: We are also working on diversity efforts in our supply chain to expand our outreach and support to small- and large-scale suppliers from underrepresented communities to emphasize this culture with our own employees.
+Added: employees worldwide was 127,855, a 29,000 year over year increase.
+Added: We are committed to providing a workplace where our employees feel respected and appreciated.
+Added: Human Resource (“HR”) Partners for each functional area are introduced in new hire orientation so employees know whom to contact with questions or concerns.
+Added: HR Partners are visible throughout facilities and are actively involved in driving culture and engagement alongside business leaders.
+Added: Our policies are designed to promote fairness and respect for everyone.
+Added: We hire, evaluate, and promote employees based on their skills and performance.
+Added: Everyone is expected to be trustworthy, demonstrate excellence in their performance, and collaborate with others.
+Added: With this in mind, we will not tolerate certain behaviors.
+Added: These include harassment, retaliation, violence, intimidation, and discrimination of any kind on the basis of race, color, religion, national origin, gender, sexual orientation, gender identity, gender expression, age, disability or veteran status.
+Added: To ensure this, anti-harassment training is conducted on day one of new hire orientation for all employees.
+Added: In addition, we run various leadership development programs throughout the year aimed at enhancing leaders’
+Added: skills, and in particular, helping them to understand how to appropriately respond to employee concerns.
+Added: Through our See Something, Say Something program, employees are encouraged to speak up both in regard to misconduct and safety concerns.
+Added: They can do so by contacting the integrity line, submitting concerns through our Take Charge process, or notifying their HR Partner or any member of management.
+Added: Concerns are reviewed in accordance with established protocols by investigators with expertise, who also review for trends and outcomes for remediation and appropriate controls.
+Added: Responding to questions timely is key so we implemented HR Answer Bars in the factories where employees can easily access and speak with an HR representative immediately regarding career advice, benefits or any concerns the employee may have.
+Added: We have also implemented an HR Chatbot for 24x7 answers to team members’
+Added: To continue innovating and changing the world for the better, we must ensure we have a talented and engaged workforce with ample opportunity to contribute to our mission and grow professionally.
+Added: We are focused on intentionally creating pathways to career opportunities across Tesla through strategic initiatives such as:
+Added: Internships and Apprenticeships - Over 3,000 university and community college students from around the world are hired into internship and apprenticeship opportunities at Tesla annually.
+Added: We recruit from over 100 collegiate institutions and diverse student organizations, attracting top talent passionate about accelerating the world’s transition to sustainable energy.
+Added: Tesla START - Tesla START is an intensive training program providing individuals with the skills necessary for a successful technician role at Tesla.
+Added: We partner with 13 colleges across the country to integrate Tesla START into automotive, collision and manufacturing curriculums to provide individuals with a smooth transition from college to full-time employment.
+Added: In 2022, we had over 200 graduates from Tesla START programs, with an additional 100+ graduating in the coming weeks from our winter classes.
+Added: High School Graduate Pathways - Tesla's Manufacturing Development Program is designed to provide graduating high school seniors with the financial resources, coursework and experience they need to start a successful manufacturing career at Tesla.
+Added: We hired 144 graduates through this program in 2022, and our goal in 2023 is to grow this program 2.5X to over 360 students annually across our Fremont Factory, Gigafactory Nevada, Gigafactory Texas, and Gigafactory New York.
+Added: At Tesla, our employees show up passionate about making a difference in the world and for each other.
+Added: With a majority-minority workforce, empowering our employee resource groups to take charge in driving initiatives that attract, develop and retain our passionate workforce is vital to our continued success.
Available Information
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.