TESLA CSR

2017 CSR REPORT

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“Electric cars, batteries, storages and renewable energy generation already exist independently, but when combined, they will become more powerful–that’s the future that we want.”

-The Tesla Team

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CONTENTS

LETTER FROM THE CEO

07

WHO WE ARE

11

CORPORATE SOCIAL RESPONSIBILITY

13

PEOPLE

15

ENVIRONMENT

19

COMPANY COMPETITOR

23

EMPLOYEES

27

THANK YOU

31

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“I COULD EITHER WATCH IT HAPPEN OR BE PART OF IT ” — Elon Musk

LETTER FROM THE CEO Tesla’s mission is to create a zero-emission

The impact of today’s economic growth

community worldwide as soon as possible.

and rapid changes in technology creates its

We care deeply about how we can achieve

own challenges for the environment as well

our mission as quickly as possible and also

as the society. For years, there have been

the communities who has lent us a hand in

many concerns to the efficiency and the

realizing our mission.

negative impact of fossil fuels to the envi-

In this year’s annual letter to shareholders,

ronment as well as the society.

I am devoting my thoughts to the impor-

To address those concerns that have been

tant role that Tesla’s technology as well as

around for decades, we are working closely

our subsidiaries can play in spreading the

with industry partners to harness the social

use of sustainable energy. I believe that we

and the economical benefits of sustainable

must continue to dedicate ourselves to the

energy in a way that would ensure people

challenges that humankind are presented

that sustainable energy is able to replace

that has never been developed before, the

the need for fossil fuels. From the first day

role that technology can play and the con-

Tesla was established, we have been work-

tributions that Tesla could make.

ing diligently to realize our mission.

We live in the time of rapid technological

As we share these ideas with others, we do

transformation. Our many breakthroughs

recognize that all these concepts start with

in innovative technology will advance our

us, manufacturers. This past year, we have

transition to the operation of sustainable

been able to successfully develop batteries

energy as opposed to our dependence on

that larger in capacity and more stable with

fossil fuels. We have taken the responsibil-

shorter charging times for our cars as well

ity to ensure that the world would benefit.

as for residential purposes. Tesla has also

We must make a difference in the lives of

succeded in acquiring Solarcity, a residen-

everyone to truly live up to our mission.

tial solar energy equipment producer.

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We believe that Solarcity will enable Tesla

I am also deeply humbled and inspired by

to transform to be a truly integrated sus-

the commitment of our employees to real-

tainable energy company who is capable of

ize our mission. As we are still a very young

developing, producing, selling, installing,

company, Tesla’s small team of employees

and servicing sustainable products in the

had to work on frequent overtimes to meet

most seamless way possible.

our yearly goal and to create the Tesla that

With our continued success in innovation

you see today. As our company grew and

as well as constant breakthroughs, we can see a great progress towards our mission.

Already, we are seeing many existing large

the number of our employees increased, we are now able to provide more benefits and a more comfortable working environ-

brand automotive manufacturers start to

ment and hours for them.

enter and explore the world of sustainable

It is truly amazing to see the achievements

energy and its endless possibilities.

that we can accomplish together when all

In addition to our work creating a positive

our employees, customers and private and

impact towards competing manufacturers

public partners share the same mission, that

to challenge themselves to innovate more

is to create a zero-emission society.

sustainable energy technology, we have

Tesla sincerely welcomes and thank you

also been advancing our services for our

for your interest, feedback and continued

current and future Tesla owners and the

partnership as we continue our journey to

wellbeing of all our employees. Within this

transform the world into a better place.

year alone, we have been able to expand our supercharger territory in major parts of the United States and part of Europe as well as improve the power output of our superchargers to allow shorter charging times.

We have also successfully cooperated with many countries to provide added benefits to all Tesla users.

Elon Musk Chief Executive Officer

TeslaTesla 2016CSR Model 9 S

WHO WE ARE Founded in 2003 by engineers determined

Since the begining, our mission has always

to prove that compromise is not neces-

been the same, which is to accelerate the

sary to drive electric, Tesla has been very

world’s transition to rely more on sustain-

committed to its mission. This unwavering

able energy starting with cars.

passion towards making a greener future

In 2008, Tesla finally proved to the world

has allowed Tesla to become the only premium pure electric vehicle producers.

that compromise is indeed not needed to drive electric when Tesla launched its very

Today, Tesla produce electric vehicles and

own Roadster equipped with cutting-edge

technologies to help generate and store

battery technology and an electric pow-

sustainable energies. We are always chal-

ertrain. Since then, Tesla has added three

lenging ourselves to creating cheaper and

more models, the latest being the Model 3

better sustainable energy products for as

which is a low-priced, high-volume electric

many people as soon as possible.

vehicle that began production this year.

The 2016 Tesla Model X

In 2012, Tesla changed the world’s pers-

Topping monthly new car sales worldwide,

pective about electric cars again when the

the Model S became the second most elec-

Model S was introduced. Equipped with

tric cars sold in history by the end of 2016.

our signature battery packs, the Model S

Tesla always believed that a zero-emission

boasts the longest range that any electric vehicle can go. In addition to winning many awards while scoring a perfect 5.0 NHTSA automobile safety rating, the Model S has also made an acceleration record of 0-60 mph in only 2.28 seconds.

future is not far off. By achieving countless breakthroughs in innovating various technologies to support sustainable energies, Tesla’s next step is to make our innovative sustainable energy technologies be even more accessible and affordable to people

With the right combination of high safety,

worldwide so that we can accelerate the

performance, and efficiency, the Model S

society’s transition to a zero-emission soci-

has redefined the definition of electric cars.

ety as quickly as possible.

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CORPORATE SOCIA

L RESPONSIBILITY

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PEOPLE Tesla continues to research and implement innovation to our products so that we can reduce consumer cost significantly while maintaining and improving the qualities of our products. Over the years, we have been: •

Rapidly increasing the quantity of our charging sta-

2.5 sec For the Model S to reach 0-60 mph

tions starting with North America followed by the major countries in Europe and Asia by adding more chargers on major streets as well as partnering with hotels, resorts, etc to provide chargers.

•

Partners with various companies to search for more ways to make our cars and all of our products to be more efficient and more affordable to people.

•

Increasing the capacity of powerwalls from 2.2 kw to

250 miles The average range of a fully charged model X

5 kw while keeping the price of the base model the same as before.

•

Constantly innovating for better battery packs while reducing the charging time required to charge Tesla cars. Currently our cars can be fully charged in less than three hours depending on usage.

•

Provides many exemptions, tax incentives and other perks to Tesla owners.

•

Provides exclusive parking spots in some places.

•

Rewarding owners of certain Tesla models with free charging credit annually.

30 min For a model S or X to charge to 170 mile at a supercharger

455 miles The maximum range from a fully charged model S90D

Increased capacity to 5kw without price increase

The model X is equipped with a biohazard air filter

$13.66 It cost only $13.66 to charge your Model X at home.

Partners with companies to create better batteries

P Many tax incentives for Tesla owners

Exclusive parking spot at certain places

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17 S Tesla CSR Tesla solar tiles and Tesla model

ENVIRONMENT Tesla is comitted to creating and providing people with products that are emission free and runs on alternative energy that are comparable to products that are currently running on fuel. Tesla hopes that one day, fuel usage could be entirely replaced by alternative energy.

•

Tesla makes zero emission premium cars with many

For every 500,000 electric cars, 192 million gallons of gas can be saved each year

recycleable materials.

•

Prioritizes to address the various sustainability and resource depletion concerns when developing our current and future products.

•

Rapidly expanding our product line to include solar power systems for homes and many more to come.

•

Solar roof tiles are the latest addition to our product line, as well as the hyperloop system.

•

Tesla’s new Gigafactory in Nevada will be powered solely by renewable energy. (right)

•

Tesla aims for the Gigafactory to be able to produce 50GWh of batteries by 2020, enough for 500,000 cars while achieving a net zero energy for the factory.

•

The Gigafactory will have a state of the art recycling system where even entire trains can be recycled to produce batteries.

•

192 million gallons of gas can be saved each year for every 500,000 electric cars used. With the addition of coal power and pollution, driving a Tesla is already better for the environment.

•

Battery prices will reduce by 30%, which will make the cars more affordable.

Capable of making 50GWh worth of batteries in 2020

The factory will be entirely powered by renewable energy

State of the art recycling system and technology

Tesla’s Gigafactory will be the second largest building in the world by volume

The new Gigafactory

The factory will be able to produce 500,000 cars yearly.

The factory will see a 30% reduction in battery prices

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Tesla powerpack grid currently under construction inTesla SouthCSR Australia 21

1,025 Supercharger Stations with 7,204 Superchargers worldwide

Tesla stocks has risen to more than 1000%

$

Tesla revenue increased to $4.05 billion by 2015

COMPANY COMPETITORS With Tesla’s success in developing many sustainable energy technologies, Tesla’s direct and indirect competitors i.e the automotive manufactureres who are in Tesla’s price range becomes motivated in entering and exploring the alternative fuel market to challenge Tesla.

• Tesla is the first and currently the largest pure electric automotive manufacturer.

• Produced the world’s first pure electric premium car.

• Encourages fellow manufacturers to enter the alternative fuel powered automotive market by not suing anyone who would like to use Tesla’s technology to produce electric cars.

• Tesla cars can be charged anywhere but charges the fastest with Tesla’s powerwall and superchargers.

• Since Tesla’s first listing in the stock market in 2010, Tesla’s stocks have risen to more than 1000% • Tesla’s revenue alone increased from $3.2 billion to $4.05 billion by the end of the year in 2015.

• As of September 2017, Tesla has already opened 995 charging stations with a total of 6,910 chargers globally and more coming soon.

More automotive producers are moving towards electric

Tesla current market value is $57.59 billion

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Teslatechnology CSR 25 Tesla advanced assembling

EMPLOYEES Since Tesla is still a very young company our employees had to work overtime to make Tesla to the company it is today. Tesla grew rapidly from having only a small team of experts to thousands of employees worldwide. With the success of Tesla’s products, Tesla is now able to provide better benefits towards our precious employees.

•

We have added more shifts to elevate the burden on our employees who had to work overtime frequently

60% reduction in the amount of overtime

(usually a total of 12 hours per day, 6 days a week).

•

The average amount of hours worked by our production team members has dropped to about 42 hours per week, and the level of overtime decreased by more than 60%.

•

In 2015, we established an Ergonomics Team dedicated to improving both the wellbeing and safety of our employees and reducing ergonomic risk for the current and future production.

10,000 created more than 10,000 jobs

• Today, each department have its own team that is dedicated to creating awareness, oversee and make improvements.

• 52% reduction in lost time incidents and a 30% reduction in recordable incidents from the first quarter of 2016 to the first quarter of 2017.

6,500

• Tesla has created more than 10,000 high-quality production jobs.

The Gigafactory will create an additional 6,500 jobs

• Tesla’s new Gigafactory will create 6,500 jobs.

52% reduction in lost time incidents

30% reduction in recordable incidents

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29 Tesla CSR Tesla current factory in Fremont, California

THANK YOU

-The Tesla Team Tesla CSR 31