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# Q4 and FY 2025 Update

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Highlights 03

Financial Summary 04

Operational Summary 06

Manufacturing & Hardware 08

Supporting Infrastructure 09

AI & Software 10

Services 11

Other Updates 12

Outlook 13

Photos & Charts 14

Key Metrics 24

Financial Statements 27

Additional Information 34

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# HIGHLIGHTS

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<table><tr><td rowspan="3">Profitability</td><td>$4.4B GAAP operating income in 2025; $1.4B in Q4</td><td rowspan="3">2025 marked a critical year for Tesla as we further expanded our mission and continued our transition from a hardware-centric business to a physical AI company. We laid the foundation for the future of Tesla as we further advanced FSD (Supervised) $^{4}$ , launched our Robotaxi service, began installing production lines for Cybercab and fine-tuned our production-primed Optimus design while expanding our AI training infrastructure.</td></tr><tr><td>$3.8B GAAP net income in 2025; $0.8B in Q4</td></tr><tr><td>$5.9B non-GAAP net income $^{1}$  in 2025; $1.8B in Q4</td></tr><tr><td rowspan="3">Cash</td><td>Operating cash flow of $14.7B in 2025; $3.8B in Q4</td><td>Our approach to autonomous vehicles and humanoid robots mirrors the way we approached electric vehicles and energy storage – at the system level where we identify the limiting factor and develop bespoke and scalable solutions (batteries, power electronics, inverters, software, AI silicon, etc.) to optimize for cost, functionality, efficiency and safety. Our vertical integration has enabled us to achieve economies of scale in a profitable manner, quickly troubleshoot bottlenecks in production and iteratively optimize our technologies more rapidly than others.</td></tr><tr><td>Free cash flow $^{2}$  of $6.2B in 2025; $1.4B in Q4</td><td rowspan="2">In 2025, we completed the refresh of our vehicle lineup with the launch of the new Model Y, including additional variants. We believe that maintaining an optimized and efficient product portfolio, with a continued focus on high-value features such as long range, best-in-class software and autonomy, is the correct strategy to win the autos market of the future. Similarly, we continued to evolve our energy offerings for commercial, utility and retail customers, as we position ourselves as a supplier of choice for clean, affordable and rapidly deployable energy capacity ahead of expected sustained demand growth for electricity.</td></tr><tr><td>$7.5B increase in our cash and investments $^{3}$  in 2025 to $44.1B</td></tr><tr><td rowspan="3">Operations</td><td>Began removing safety monitor from our Robotaxis in Austin in January</td><td rowspan="3">In 2026, we will further invest in the infrastructure needed to support clean energy and transport and autonomous robots, including the ramp of six new production lines across vehicle, robots, energy storage and battery manufacturing, while further leveraging our existing factory, charging and service center footprint to support future growth.</td></tr><tr><td>Record Q4 &amp; FY&#x27;25 energy storage deployments</td></tr><tr><td>Record vehicle deliveries in APAC</td></tr></table>

# SUMMARY

FINANCIAL SUMMARY
(Unaudited)

<table><tr><td>($ in millions, except percentages and per share data)</td><td>Q4-2024</td><td>Q1-2025</td><td>Q2-2025</td><td>Q3-2025</td><td>Q4-2025</td><td>YoY</td></tr><tr><td>Total automotive revenues</td><td>19,798</td><td>13,967</td><td>16,661</td><td>21,205</td><td>17,693</td><td>-11%</td></tr><tr><td>Energy generation and storage revenue</td><td>3,061</td><td>2,730</td><td>2,789</td><td>3,415</td><td>3,837</td><td>25%</td></tr><tr><td>Services and other revenue</td><td>2,848</td><td>2,638</td><td>3,046</td><td>3,475</td><td>3,371</td><td>18%</td></tr><tr><td colspan="7"></td></tr><tr><td>Total revenues</td><td>25,707</td><td>19,335</td><td>22,496</td><td>28,095</td><td>24,901</td><td>-3%</td></tr><tr><td>Total gross profit</td><td>4,179</td><td>3,153</td><td>3,878</td><td>5,054</td><td>5,009</td><td>20%</td></tr><tr><td>Total GAAP gross margin</td><td>16.3%</td><td>16.3%</td><td>17.2%</td><td>18.0%</td><td>20.1%</td><td>386 bp</td></tr><tr><td colspan="7"></td></tr><tr><td>Operating expenses</td><td>2,596</td><td>2,754</td><td>2,955</td><td>3,430</td><td>3,600</td><td>39%</td></tr><tr><td>Income from operations</td><td>1,583</td><td>399</td><td>923</td><td>1,624</td><td>1,409</td><td>-11%</td></tr><tr><td>Operating margin</td><td>6.2%</td><td>2.1%</td><td>4.1%</td><td>5.8%</td><td>5.7%</td><td>-50 bp</td></tr><tr><td colspan="7"></td></tr><tr><td>Adjusted EBITDA (1) (2)</td><td>4,333</td><td>2,814</td><td>3,401</td><td>4,227</td><td>4,154</td><td>-4%</td></tr><tr><td>Adjusted EBITDA margin (1) (2)</td><td>16.9%</td><td>14.6%</td><td>15.1%</td><td>15.0%</td><td>16.7%</td><td>-17 bp</td></tr><tr><td colspan="7"></td></tr><tr><td>Net income attributable to common stockholders (GAAP) (1)</td><td>2,128</td><td>409</td><td>1,172</td><td>1,373</td><td>840</td><td>-61%</td></tr><tr><td>Net income attributable to common stockholders (non-GAAP) (1) (3)</td><td>2,107</td><td>934</td><td>1,393</td><td>1,770</td><td>1,761</td><td>-16%</td></tr><tr><td colspan="7"></td></tr><tr><td>EPS attributable to common stockholders, diluted (GAAP) (1)</td><td>0.60</td><td>0.12</td><td>0.33</td><td>0.39</td><td>0.24</td><td>-60%</td></tr><tr><td>EPS attributable to common stockholders, diluted (non-GAAP) (1) (3)</td><td>0.60</td><td>0.27</td><td>0.40</td><td>0.50</td><td>0.50</td><td>-17%</td></tr><tr><td colspan="7"></td></tr><tr><td>Net cash provided by operating activities</td><td>4,814</td><td>2,156</td><td>2,540</td><td>6,238</td><td>3,813</td><td>-21%</td></tr><tr><td>Capital expenditures (4)</td><td>(2,780)</td><td>(1,492)</td><td>(2,394)</td><td>(2,248)</td><td>(2,393)</td><td>-14%</td></tr><tr><td>Free cash flow (4)</td><td>2,034</td><td>664</td><td>146</td><td>3,990</td><td>1,420</td><td>-30%</td></tr><tr><td>Cash, cash equivalents and investments</td><td>36,563</td><td>36,996</td><td>36,782</td><td>41,647</td><td>44,059</td><td>21%</td></tr></table>

(1) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast.
(2) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.
(3) Beginning in Q1'25, Net income attributable to common stockholders (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.
(4) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted.

FINANCIAL SUMMARY
(Unaudited)

<table><tr><td>($ in millions, except percentages and per share data)</td><td>2021</td><td>2022</td><td>2023</td><td>2024</td><td>2025</td><td>YoY</td></tr><tr><td>Total automotive revenues</td><td>47,232</td><td>71,462</td><td>82,419</td><td>77,070</td><td>69,526</td><td>-10%</td></tr><tr><td>Energy generation and storage revenue</td><td>2,789</td><td>3,909</td><td>6,035</td><td>10,086</td><td>12,771</td><td>27%</td></tr><tr><td>Services and other revenue</td><td>3,802</td><td>6,091</td><td>8,319</td><td>10,534</td><td>12,530</td><td>19%</td></tr><tr><td colspan="7"></td></tr><tr><td>Total revenues</td><td>53,823</td><td>81,462</td><td>96,773</td><td>97,690</td><td>94,827</td><td>-3%</td></tr><tr><td>Total gross profit</td><td>13,606</td><td>20,853</td><td>17,660</td><td>17,450</td><td>17,094</td><td>-2%</td></tr><tr><td>Total GAAP gross margin</td><td>25.3%</td><td>25.6%</td><td>18.2%</td><td>17.9%</td><td>18.0%</td><td>16 bp</td></tr><tr><td colspan="7"></td></tr><tr><td>Operating expenses</td><td>7,083</td><td>7,197</td><td>8,769</td><td>10,374</td><td>12,739</td><td>23%</td></tr><tr><td>Income from operations</td><td>6,523</td><td>13,656</td><td>8,891</td><td>7,076</td><td>4,355</td><td>-38%</td></tr><tr><td>Operating margin</td><td>12.1%</td><td>16.8%</td><td>9.2%</td><td>7.2%</td><td>4.6%</td><td>-265 bp</td></tr><tr><td colspan="7"></td></tr><tr><td>Adjusted EBITDA (1)</td><td>11,722</td><td>19,390</td><td>16,631</td><td>16,056</td><td>14,596</td><td>-9%</td></tr><tr><td>Adjusted EBITDA margin (1)</td><td>21.8%</td><td>23.8%</td><td>17.2%</td><td>16.4%</td><td>15.4%</td><td>-104 bp</td></tr><tr><td colspan="7"></td></tr><tr><td>Net income attributable to common stockholders (GAAP)</td><td>5,519</td><td>12,556</td><td>14,997</td><td>7,091</td><td>3,794</td><td>-46%</td></tr><tr><td>Net income attributable to common stockholders (non-GAAP) (2)</td><td>7,719</td><td>14,276</td><td>10,882</td><td>7,960</td><td>5,858</td><td>-26%</td></tr><tr><td colspan="7"></td></tr><tr><td>EPS attributable to common stockholders, diluted (GAAP)</td><td>1.63</td><td>3.62</td><td>4.30</td><td>2.04</td><td>1.08</td><td>-47%</td></tr><tr><td>EPS attributable to common stockholders, diluted (non-GAAP) (2)</td><td>2.28</td><td>4.12</td><td>3.12</td><td>2.29</td><td>1.66</td><td>-28%</td></tr><tr><td colspan="7"></td></tr><tr><td>Net cash provided by operating activities</td><td>11,497</td><td>14,724</td><td>13,256</td><td>14,923</td><td>14,747</td><td>-1%</td></tr><tr><td>Capital expenditures (3)</td><td>(6,514)</td><td>(7,163)</td><td>(8,899)</td><td>(11,342)</td><td>(8,527)</td><td>-25%</td></tr><tr><td>Free cash flow (3)</td><td>4,983</td><td>7,561</td><td>4,357</td><td>3,581</td><td>6,220</td><td>74%</td></tr><tr><td>Cash, cash equivalents and investments</td><td>17,707</td><td>22,185</td><td>29,094</td><td>36,563</td><td>44,059</td><td>21%</td></tr></table>

(1) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.
(2) Beginning in Q1'25, Net income attributable to common stockholders (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.
(3) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted.

OPERATIONAL SUMMARY
(Unaudited)

<table><tr><td></td><td>Q4-2024</td><td>Q1-2025</td><td>Q2-2025</td><td>Q3-2025</td><td>Q4-2025</td><td>YoY</td></tr><tr><td>Model 3/Y production</td><td>436,718</td><td>345,454</td><td>396,835</td><td>435,826</td><td>422,652</td><td>-3%</td></tr><tr><td>Other models production</td><td>22,727</td><td>17,161</td><td>13,409</td><td>11,624</td><td>11,706</td><td>-48%</td></tr><tr><td>Total production</td><td>459,445</td><td>362,615</td><td>410,244</td><td>447,450</td><td>434,358</td><td>-5%</td></tr><tr><td colspan="7"></td></tr><tr><td>Model 3/Y deliveries</td><td>471,930</td><td>323,800</td><td>373,728</td><td>481,166</td><td>406,585</td><td>-14%</td></tr><tr><td>Other models deliveries</td><td>23,640</td><td>12,881</td><td>10,394</td><td>15,933</td><td>11,642</td><td>-51%</td></tr><tr><td>Total deliveries</td><td>495,570</td><td>336,681</td><td>384,122</td><td>497,099</td><td>418,227</td><td>-16%</td></tr><tr><td>of which subject to operating lease accounting</td><td>26,962</td><td>13,721</td><td>6,670</td><td>10,230</td><td>10,996</td><td>-59%</td></tr><tr><td colspan="7"></td></tr><tr><td>Cumulative  $deliveries^{(1)}$  (all-time; mil)</td><td>7.3</td><td>7.6</td><td>8.0</td><td>8.5</td><td>8.9</td><td>22%</td></tr><tr><td>Active FSD  $Subscriptions^{(2)}$  (mil)</td><td>0.8</td><td>0.8</td><td>0.9</td><td>1.0</td><td>1.1</td><td>38%</td></tr><tr><td colspan="7"></td></tr><tr><td>Total end of quarter operating lease (new vehicle)  $count^{(3)}$ </td><td>180,523</td><td>179,930</td><td>172,882</td><td>167,163</td><td>163,075</td><td>-10%</td></tr><tr><td>Global vehicle inventory (days of supply) $^{(4)}$ </td><td>12</td><td>22</td><td>24</td><td>10</td><td>15</td><td>25%</td></tr><tr><td colspan="7"></td></tr><tr><td>Storage deployed (GWh)</td><td>11.0</td><td>10.4</td><td>9.6</td><td>12.5</td><td>14.2</td><td>29%</td></tr><tr><td colspan="7"></td></tr><tr><td>Tesla locations</td><td>1,359</td><td>1,390</td><td>1,454</td><td>1,498</td><td>1,553</td><td>14%</td></tr><tr><td colspan="7"></td></tr><tr><td>Supercharger stations</td><td>6,975</td><td>7,131</td><td>7,377</td><td>7,753</td><td>8,182</td><td>17%</td></tr><tr><td>Supercharger connectors</td><td>65,495</td><td>67,316</td><td>70,228</td><td>73,817</td><td>77,682</td><td>19%</td></tr></table>

OPERATIONAL SUMMARY
(Unaudited)

<table><tr><td></td><td>2021</td><td>2022</td><td>2023</td><td>2024</td><td>2025</td><td>YoY</td></tr><tr><td>Model 3/Y production</td><td>906,032</td><td>1,298,434</td><td>1,775,159</td><td>1,679,338</td><td>1,600,767</td><td>-5%</td></tr><tr><td>Other models production</td><td>24,390</td><td>71,177</td><td>70,826</td><td>94,105</td><td>53,900</td><td>-43%</td></tr><tr><td>Total production</td><td>930,422</td><td>1,369,611</td><td>1,845,985</td><td>1,773,443</td><td>1,654,667</td><td>-7%</td></tr><tr><td colspan="7"></td></tr><tr><td>Model 3/Y deliveries</td><td>911,242</td><td>1,247,146</td><td>1,739,707</td><td>1,704,093</td><td>1,585,279</td><td>-7%</td></tr><tr><td>Other models deliveries</td><td>24,980</td><td>66,705</td><td>68,874</td><td>85,133</td><td>50,850</td><td>-40%</td></tr><tr><td>Total deliveries</td><td>936,222</td><td>1,313,851</td><td>1,808,581</td><td>1,789,226</td><td>1,636,129</td><td>-9%</td></tr><tr><td>of which subject to operating lease accounting</td><td>60,912</td><td>47,582</td><td>72,226</td><td>60,003</td><td>41,617</td><td>-31%</td></tr><tr><td colspan="7"></td></tr><tr><td>Cumulative  $deliveries^{(1)}$  (all-time; mil)</td><td>2.3</td><td>3.7</td><td>5.5</td><td>7.3</td><td>8.9</td><td>22%</td></tr><tr><td>Active FSD  $Subscriptions^{(2)}$  (mil)</td><td>0.4</td><td>0.5</td><td>0.6</td><td>0.8</td><td>1.1</td><td>38%</td></tr><tr><td colspan="7"></td></tr><tr><td>Total end of year operating lease (new vehicle) count</td><td>120,342</td><td>140,667</td><td>176,564</td><td>180,523</td><td>163,075</td><td>-10%</td></tr><tr><td>Global vehicle inventory (days of supply) $^{(3)}$ </td><td>6</td><td>16</td><td>16</td><td>13</td><td>15</td><td>15%</td></tr><tr><td colspan="7"></td></tr><tr><td>Storage deployed (GWh)</td><td>4.0</td><td>6.5</td><td>14.7</td><td>31.4</td><td>46.7</td><td>49%</td></tr><tr><td colspan="7"></td></tr><tr><td>Tesla locations</td><td>644</td><td>963</td><td>1,208</td><td>1,359</td><td>1,553</td><td>14%</td></tr><tr><td colspan="7"></td></tr><tr><td>Supercharger stations</td><td>3,476</td><td>4,678</td><td>5,952</td><td>6,975</td><td>8,182</td><td>17%</td></tr><tr><td>Supercharger connectors</td><td>31,498</td><td>42,419</td><td>54,892</td><td>65,495</td><td>77,682</td><td>19%</td></tr></table>

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# Automotive

While automotive sales declined sequentially, gross margin (even when excluding the impact of regulatory credits) improved. The APAC region continued to show strength across multiple markets and set a record for deliveries in the quarter. We continued the rollout of Model Y variants across markets in Q4, including the standard and performance versions.

Preparations continue in North America for the production ramps of Tesla Semi and Cybercab, both commencing 1H26, and production of the next-generation Roadster.

# Energy generation and storage

We achieved our highest quarterly energy storage deployments, driven by record Megapack deployments. Total gross profit rose, both sequentially and year-over-year, to a record \$1.1 billion, marking the fifth consecutive record quarter. We plan to begin Megapack 3 and Megablock production at Megafactory Houston in 2026. In 2025, our global Powerwall network supported more than 89,000 Virtual Power Plant events across over 1 million installed units, allowing homeowners to save over \$1 billion in electricity bills as Virtual Power Plant participation continues to scale rapidly.

# Robotics

We made further progress on the Optimus program in 2025. In Q1 of this year, we plan to unveil the Gen 3 version of Optimus, which will include major upgrades from version 2.5, including our latest hand design. The Gen 3 is our first design meant for mass production. Preparations are underway for the first production line, including supply chain readiness, with start of production planned before the end of 2026 and eventual planned capacity of 1 million robots per year.

Installed Annual Manufacturing Capacity

<table><tr><td>Region</td><td>Product</td><td>Capacity</td><td>Status</td></tr><tr><td colspan="4">Automotive</td></tr><tr><td>California</td><td>Model 3 / Model Y</td><td>&gt;550,000</td><td>Production</td></tr><tr><td></td><td>Model S / Model X</td><td>100,000</td><td>Production</td></tr><tr><td>Shanghai</td><td>Model 3 / Model Y</td><td>&gt;950,000</td><td>Production</td></tr><tr><td>Berlin</td><td>Model Y</td><td>&gt;375,000</td><td>Production</td></tr><tr><td>Texas</td><td>Model Y</td><td>&gt;250,000</td><td>Production</td></tr><tr><td></td><td>Cybertruck</td><td>&gt;125,000</td><td>Production</td></tr><tr><td></td><td>Cybercab</td><td>-</td><td>Tooling</td></tr><tr><td>Nevada</td><td>Tesla Semi</td><td>-</td><td>Tooling</td></tr><tr><td>TBD</td><td>Roadster</td><td>-</td><td>Design development</td></tr><tr><td colspan="4">Energy Generation and Storage</td></tr><tr><td>California</td><td>Megapack</td><td>40 GWh</td><td>Production</td></tr><tr><td>Nevada</td><td>Powerwall</td><td>&gt;6 GWh</td><td>Production</td></tr><tr><td>Shanghai</td><td>Megapack</td><td>40 GWh</td><td>Production</td></tr><tr><td>Texas</td><td>Megapack</td><td>-</td><td>Construction</td></tr><tr><td colspan="4">Robotics</td></tr><tr><td>California</td><td>Optimus</td><td>-</td><td>Construction</td></tr></table>

Installed capacity ≠ current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. Construction includes factory and infrastructure buildout as well as tool installation.

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# AI Training Compute

We are currently building Cortex 2 at Gigafactory Texas to further increase our AI training compute capacity. In the first half of 2026, we plan to more than double the size of onsite compute in Texas (in terms of H100 equivalents). We aim to maximize capital efficiency by scaling training compute judiciously, including when the training backlog gets too long or in anticipation of greater demand from our engineers to support our AI-related offerings.

# Battery

Our lithium refinery commenced pilot production and is the first spodumene to lithium hydroxide refinery in North America, leveraging a simpler, cheaper and more environmentally friendly process. This refinery enables us to domestically produce critical minerals in support of energy storage, battery manufacturing and ultimately for EV growth.

We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks. We now produce dry-electrode for 4680 cells with both anode and cathode made in Austin. We expect both domestic cathode material in Texas and LFP lines in Nevada to begin production in 2026.

# Other Supporting Infrastructure

We continue to efficiently utilize our existing physical footprint in North America, with targeted augmentation to support the rollout of Robotaxi. While in the short-term, operational workstreams such as charging, cleaning and maintenance can be managed through our existing charging network, service centers and sales and delivery locations, we will have to add more capacity as the service expands. We added over 3,800 net new Supercharging stalls, growing the network 19% year-over-year.

Installed Annual Capacity

<table><tr><td>Region</td><td>Product</td><td>Capacity</td><td>Status</td></tr><tr><td colspan="4">AI Training Compute</td></tr><tr><td>Texas</td><td>Cortex 1</td><td>&gt;100k H100e</td><td>Production</td></tr><tr><td></td><td>Cortex 2</td><td>-</td><td>Construction</td></tr><tr><td colspan="4">Battery Manufacturing</td></tr><tr><td>Nevada</td><td>LFP</td><td>7 GWh</td><td>Early Ramp</td></tr><tr><td>Texas</td><td>4680</td><td>40 GWh</td><td>Production</td></tr><tr><td></td><td>Cathode Materials</td><td>10 GWh</td><td>Early Ramp</td></tr><tr><td></td><td>Lithium Refining</td><td>30 GWh</td><td>Early Ramp</td></tr></table>

Installed capacity ≠ current production rate and there may be limitations discovered as production rates approach capacity. Production rates depend on a variety of factors, including equipment uptime, component supply, downtime related to factory upgrades, regulatory considerations and other factors. Construction includes factory and infrastructure buildout as well as tool installation.

![](images/c5419b096d319ebffb59e266e803a4f96d687486c0d5acf1ddbd4ac05c322704.jpg)
Tesla AI Training Capacity Ramp (H100 equivalent GPUs)

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# AI Software

We continue to enhance FSD (Supervised) $^{1}$ via our end-to-end foundation model trained on both customer and Robotaxi real-world data with our latest version, v14. FSD (Supervised) $^{1}$ increasingly provides safety and convenience functionality that can relieve drivers of many tedious and potentially dangerous aspects of road travel, including giving access to personal transport for those who otherwise have difficulty driving. V14 offers unparalleled driver assistance to safely drive to the customer's destination, find a free parking spot and park at that location. Our global fleet can collect the equivalent of over 500 years of continuous driving data per day $^{2}$ , allowing us to safely deploy and scale capabilities that can handle the long and fat tail of corner cases across diverse geographies and driving environments.

# AI Inference Compute

Development of our in-house, custom designed AI5 and AI6 inference chips for autonomy progressed during the quarter, with production planned for 2027 and 2028, respectively. We are targeting a 50x improvement in performance for AI5 relative to AI4 thanks to 10x raw compute, 9x memory capacity and 5x hardened block quantization and softmax function (the latter enabling efficient low-precision computing without sacrificing model accuracy).

# Automotive and Other Software

The Robotaxi iOS app no longer has a waitlist in the areas we serve. Our vehicles keep getting better with our over-the-air updates, including: Grok (an AI companion) which now supports navigation commands (allowing users to find, add and edit navigation destinations hands-free); Tesla Photobooth which enables users to take photos in their car and download or share via the Tesla mobile app; Supercharger Site Maps which displays Supercharger layouts, nearby businesses and live availability details; Automatic HOV Lane Routing based on interior camera occupancy detection; Phone Left Behind Chime and SpaceX ISS Docking Simulator Game.

![](images/9f4063992747fdc3132e661986a68e701bee9186c21a5a3fde658ed89f9e81e6.jpg)

Cumulative Miles Driven with FSD (Supervised) $^{1}$ (billions)
![](images/48fc2d9f835f11c1f7727e32e63c14619355a55be1227aa504a3bc4c8fb80df7.jpg)
Targeting Step-Function Improvement for our Next-Generation Inference Chip, AI5

(1) Active driver supervision required; does not make the vehicle autonomous
(2) Calculated based on continuous hours of driving at an average of 30 miles per hour

# Robotaxi

We began testing driverless Robotaxis in Austin in December and began removing the safety monitor from customer rides in January on a limited basis, which will unlock further expansion of our Robotaxi fleet and coverage area in the Austin-metro. Our Bay Area ride-hailing service began serving the San Jose Airport in October, with plans to expand to other major airports in the Bay Area upon receiving required permitting.

# FSD (Supervised) $^{1}$

We launched FSD (Supervised) $^{1}$ in South Korea, where customers drove over 1 million kilometers using the software in just one month. While we continue to pursue regulatory approval in China and Europe, we began offering ride-along experiences to consumers in Italy, Germany, France and Switzerland.

Monthly subscriptions to FSD (Supervised) $^{1}$ continued to grow sequentially and more than doubled in 2025. Starting this quarter, we are transitioning access to FSD (Supervised) $^{1}$ to monthly subscriptions only as we begin to sunset the up-front payment option.

# Automotive Services

Services and Other gross profit of approximately \$300 million was partly driven by Part Sales and Supercharging. We now offer Tesla Insurance in Florida, as we continue to expand our insurance product to new states. In certain states, customers receive a discount on their insurance premiums when using FSD (Supervised) $^{1}$ . The more you drive with FSD (Supervised) $^{1}$ enabled, the bigger the discount is on your insurance premium – helping, in certain cases, to completely offset the monthly subscription cost for FSD (Supervised) $^{1}$ .

![](images/0988c8ad6fe18ff5072a2abf6a77a630f3902fcc1d80846fbf065e7811b99e87.jpg)

Cumulative Paid Robotaxi Miles

<table><tr><td>State</td><td>Metro</td><td>Status</td></tr><tr><td>California</td><td>SF Bay Area</td><td>Safety Driver</td></tr><tr><td>Texas</td><td>Austin</td><td>Ramping Unsupervised</td></tr><tr><td></td><td>Dallas</td><td>1H 2026</td></tr><tr><td></td><td>Houston</td><td>1H 2026</td></tr><tr><td>Arizona</td><td>Phoenix</td><td>1H 2026</td></tr><tr><td>Florida</td><td>Miami</td><td>1H 2026</td></tr><tr><td></td><td>Orlando</td><td>1H 2026</td></tr><tr><td></td><td>Tampa</td><td>1H 2026</td></tr><tr><td>Nevada</td><td>Las Vegas</td><td>1H 2026</td></tr></table>

Planned Robotaxi Coverage

<!-- page 12 -->
# OTHER UPDATES

On January 16, 2026, Tesla entered into an agreement to invest approximately \$2 billion to acquire shares of Series E Preferred Stock of xAI as part of their recent publicly-disclosed financing round. Tesla’s investment was made on market terms consistent with those previously agreed to by other investors in the financing round. As set forth in Master Plan Part IV, Tesla is building products and services that bring AI into the physical world. Meanwhile, xAI is developing leading digital AI products and services, such as its large language model (Grok).

In that context, and as part of Tesla's broader strategy under Master Plan Part IV, Tesla and xAI also entered into a framework agreement in connection with the investment. Among other things, the framework agreement builds upon the existing relationship between Tesla and xAI by providing a framework for evaluating potential AI collaborations between the companies. Together, the investment and the related framework agreement are intended to enhance Tesla's ability to develop and deploy AI products and services into the physical world at scale. This investment is subject to customary regulatory conditions with the expectation to close in Q1'2026.

<!-- page 13 -->
# OUTLOOK

# Volume

We are focused on maximum capacity utilization at our factories. Deliveries and deployments will be impacted by aggregate demand for our products, supply chain readiness and allocation decisions between sale to customers or use for our owned and operated fleet.

# Cash

We will manage the businesses such that we ensure a strong balance sheet, maintaining sufficient liquidity to fund our product roadmap, long-term capacity expansion plans – including further vertical integration – and other expenses.

# Profit

While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware-related profits to be accompanied by an acceleration of AI, software and fleet-based profits.

# Product

We continue to evolve and augment our product lineup with a focus on cost, scale and future monetization opportunities via services powered by our AI software. We remain focused on growing our sales volumes through a differentiated and efficiently managed product portfolio, which includes leveraging and optimizing our existing production capacity before building new factories and production lines.

Cybercab, Tesla Semi and Megapack 3 are on schedule for volume production starting in 2026. First generation production lines for Optimus are being installed in anticipation of volume production.

<!-- page 14 -->
PHOTOS & CHARTS

<!-- page 15 -->
# MODEL Y - 2025 BEST IN CLASS EURO NCAP $^{(1)}$ SMALL SUV

![](images/158a8cd9950de369e065221dc0e852dbc1e830dc0f883a496bd9be77d6029db3.jpg)

<!-- page 16 -->
# MODEL 3 - 2025 BEST IN CLASS EURO NCAP $^{(1)}$ LARGE FAMILY CAR

![](images/07ce9a96f3e5d92fa1641b00312412b3deaf22189aa8904659176fa2bcd62e75.jpg)

<!-- page 17 -->
# FSD (SUPERVISED) $^{1}$ – V14 OFFERS UNPARALLELED DRIVER ASSISTANCE

![](images/b1f1448eab61493236c1530fcc2c05a7365b9ef91af9be38d3faf74ec71b5ae9.jpg)

<!-- page 18 -->
# DRIVERLESS ROBOTAXI - TESTING IN AUSTIN

![](images/cda4f95399f8a58b55750a199bb9434e1b7806478b1ca775e4c7c0737656b5de.jpg)

<!-- page 19 -->
# CYBERCAB - COLD WEATHER TESTING IN ALASKA

![](images/d4e7263d8fb8951d59a0c80292c412f4b75d36fb36a35fe058140095dddfbce1.jpg)

![](images/ade7e435748c90f4f859d0d36b9856e2ba25bcb3de67e173f6a38e70039d9c2c.jpg)

<!-- page 35 -->
TESLA SEMI - MEGACHARGER NETWORK PLANNED SITES FOR 2026
![](images/8e2b663e678f56be153dc891d3913f90ed7e90060ca0b164434d28336d2c8820.jpg)

<!-- page 22 -->
# GIGAFACTORY SHANGHAI - 9 MILLIONTH VEHICLE PRODUCED (GLOBALLY)

![](images/0ec324caa888be92ff136948d030c18f5dba98b8d91fcdfe7a3a6f6f5b8660af.jpg)

<!-- page 23 -->
# GIGAFACTORY NEVADA - 6 MILLIONTH DRIVE UNIT PRODUCED

![](images/960786f1a7ef3448079eafcc69ce08cef09109fa0577b30c08f8fda23c394483.jpg)

![](images/920fc64098ae7b1ce10f289ec9513682e5581ac225922fd4b75ba9c45125a352.jpg)

![](images/1e7cdefaaf215c38ac82a80e892bd3bb9f87b0b2dfc423b6ec2e3525fb99d11f.jpg)

![](images/afc60e5cf57f455cd6fa8ffafb95cb736170fcaef6b76d4e10c394bf81cb7849.jpg)

<!-- page 25 -->
# KEY METRICS TRAILING 12 MONTHS (TTM) (Unaudited)

![](images/12044b68a9c0ec6bd1c5e10a65a295f2ca643bce67aff18015086f71bfc4a5e7.jpg)

![](images/a701d35afba0dcc13ebd0a273857f53b6c616039fae2341a2b927075ac37f64e.jpg)

![](images/ff5078d01c1a41d45496ab1b851b69109387b3f2b158681ce7b326707f6716ba.jpg)

<!-- page 26 -->
# Revenue

Total quarterly revenue decreased 3% YoY to \$24.9B. YoY, revenue was impacted by the following items $^{(1)}$ :

- decrease in vehicle deliveries
- lower regulatory credit revenue
+ growth in Energy Generation and Storage
+ growth in Services and Other
+ positive FX impact of \$0.3B $^{1}$

\+ growth in other automotive ancillary sales, partly driven by an increase in FSD subscriptions

\+ higher vehicle average selling price (ASP) (excl. FX impact $^{1}$ ), inclusive of mix impact

# Profitability

Our quarterly operating income decreased 11% YoY to \$1.4B, resulting in a 5.7% operating margin. YoY, operating income was primarily impacted by the following items $^{(1)}$ :

- increase in SBC and Restructuring and Other charges
- increase in operating expenses (excl. SBC and Restructuring and Other) driven by AI and other R&D projects and SG&A
- higher average cost per vehicle due to lower fixed cost absorption for certain models and an increase in tariffs
- decrease in vehicle deliveries
- lower regulatory credit revenue
+ higher vehicle average gross profit due to mix and pricing impacts
+ growth in Energy Generation and Storage gross profit
+ growth in Services and Other gross profit
+ growth in other automotive ancillary sales, partly driven by an increase in FSD subscriptions

# Cash

Quarter-end cash, cash equivalents and investments was \$44.1B. The sequential increase of \$2.4B was primarily the result of positive free cash flow.

<!-- page 27 -->
# FINANCIAL STATEMENTS

STATEMENT OF OPERATIONS
(Unaudited)

<table><tr><td>In millions of USD or shares as applicable, except per share data</td><td>Q4-2024</td><td>Q1-2025</td><td>Q2-2025</td><td>Q3-2025</td><td>Q4-2025</td></tr><tr><td colspan="6">REVENUES</td></tr><tr><td>Automotive sales</td><td>18,659</td><td>12,925</td><td>15,787</td><td>20,359</td><td>16,750</td></tr><tr><td>Automotive regulatory credits</td><td>692</td><td>595</td><td>439</td><td>417</td><td>542</td></tr><tr><td>Automotive leasing</td><td>447</td><td>447</td><td>435</td><td>429</td><td>401</td></tr><tr><td>Total automotive revenues</td><td>19,798</td><td>13,967</td><td>16,661</td><td>21,205</td><td>17,693</td></tr><tr><td>Energy generation and storage</td><td>3,061</td><td>2,730</td><td>2,789</td><td>3,415</td><td>3,837</td></tr><tr><td>Services and other</td><td>2,848</td><td>2,638</td><td>3,046</td><td>3,475</td><td>3,371</td></tr><tr><td>Total revenues</td><td>25,707</td><td>19,335</td><td>22,496</td><td>28,095</td><td>24,901</td></tr><tr><td colspan="6">COST OF REVENUES</td></tr><tr><td>Automotive sales</td><td>16,268</td><td>11,461</td><td>13,567</td><td>17,365</td><td>13,874</td></tr><tr><td>Automotive leasing</td><td>242</td><td>239</td><td>228</td><td>225</td><td>206</td></tr><tr><td>Total automotive cost of revenues</td><td>16,510</td><td>11,700</td><td>13,795</td><td>17,590</td><td>14,080</td></tr><tr><td>Energy generation and storage</td><td>2,289</td><td>1,945</td><td>1,943</td><td>2,342</td><td>2,739</td></tr><tr><td>Services and other</td><td>2,729</td><td>2,537</td><td>2,880</td><td>3,109</td><td>3,073</td></tr><tr><td>Total cost of revenues</td><td>21,528</td><td>16,182</td><td>18,618</td><td>23,041</td><td>19,892</td></tr><tr><td>Gross profit</td><td>4,179</td><td>3,153</td><td>3,878</td><td>5,054</td><td>5,009</td></tr><tr><td colspan="6">OPERATING EXPENSES</td></tr><tr><td>Research and development</td><td>1,276</td><td>1,409</td><td>1,589</td><td>1,630</td><td>1,783</td></tr><tr><td>Selling, general and administrative</td><td>1,313</td><td>1,251</td><td>1,366</td><td>1,562</td><td>1,655</td></tr><tr><td>Restructuring and other</td><td>7</td><td>94</td><td>—</td><td>238</td><td>162</td></tr><tr><td>Total operating expenses</td><td>2,596</td><td>2,754</td><td>2,955</td><td>3,430</td><td>3,600</td></tr><tr><td>INCOME FROM OPERATIONS</td><td>1,583</td><td>399</td><td>923</td><td>1,624</td><td>1,409</td></tr><tr><td>Interest income</td><td>442</td><td>400</td><td>392</td><td>439</td><td>449</td></tr><tr><td>Interest expense</td><td>(96)</td><td>(91)</td><td>(86)</td><td>(76)</td><td>(85)</td></tr><tr><td>Other income (expense), net (1)</td><td>595</td><td>(119)</td><td>320</td><td>(28)</td><td>(592)</td></tr><tr><td>INCOME BEFORE INCOME TAXES (1)</td><td>2,524</td><td>589</td><td>1,549</td><td>1,959</td><td>1,181</td></tr><tr><td>Provision for income taxes (1)</td><td>381</td><td>169</td><td>359</td><td>570</td><td>325</td></tr><tr><td>NET INCOME (1)</td><td>2,143</td><td>420</td><td>1,190</td><td>1,389</td><td>856</td></tr><tr><td>Net income attributable to noncontrolling interests and redeemable noncontrolling interests in subsidiaries</td><td>15</td><td>11</td><td>18</td><td>16</td><td>16</td></tr><tr><td>NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS (1)</td><td>2,128</td><td>409</td><td>1,172</td><td>1,373</td><td>840</td></tr><tr><td>Less: Buy-out of noncontrolling interest</td><td>3</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>NET INCOME USED IN COMPUTING NET INCOME PER SHARE OF COMMON STOCK (1)</td><td>2,125</td><td>409</td><td>1,172</td><td>1,373</td><td>840</td></tr><tr><td colspan="6">Net income per share of common stock attributable to common stockholders</td></tr><tr><td>Basic (1)</td><td>$ 0.66</td><td>$ 0.13</td><td>$ 0.36</td><td>$ 0.43</td><td>$ 0.26</td></tr><tr><td>Diluted (1)</td><td>$ 0.60</td><td>$ 0.12</td><td>$ 0.33</td><td>$ 0.39</td><td>$ 0.24</td></tr><tr><td colspan="6">Weighted average shares used in computing net income per share of common stock</td></tr><tr><td>Basic</td><td>3,213</td><td>3,218</td><td>3,223</td><td>3,227</td><td>3,231</td></tr><tr><td>Diluted</td><td>3,517</td><td>3,521</td><td>3,519</td><td>3,526</td><td>3,539</td></tr></table>

BALANCE SHEET
(Unaudited)

<table><tr><td>In millions of USD</td><td>31-Dec-24</td><td>31-Mar-25</td><td>30-Jun-25</td><td>30-Sep-25</td><td>31-Dec-25</td></tr><tr><td colspan="6">ASSETS</td></tr><tr><td colspan="6">Current assets</td></tr><tr><td>Cash, cash equivalents and investments</td><td>36,563</td><td>36,996</td><td>36,782</td><td>41,647</td><td>44,059</td></tr><tr><td>Accounts receivable, net</td><td>4,418</td><td>3,782</td><td>3,838</td><td>4,703</td><td>4,576</td></tr><tr><td>Inventory</td><td>12,017</td><td>13,706</td><td>14,570</td><td>12,276</td><td>12,392</td></tr><tr><td>Prepaid expenses and other current assets</td><td>5,362</td><td>4,905</td><td>5,943</td><td>6,027</td><td>7,615</td></tr><tr><td>Total current assets</td><td>58,360</td><td>59,389</td><td>61,133</td><td>64,653</td><td>68,642</td></tr><tr><td>Operating lease vehicles, net</td><td>5,581</td><td>5,477</td><td>5,230</td><td>5,019</td><td>4,912</td></tr><tr><td>Energy generation and storage systems, net</td><td>4,924</td><td>4,855</td><td>4,788</td><td>4,673</td><td>4,604</td></tr><tr><td>Property, plant and equipment, net</td><td>35,836</td><td>37,088</td><td>38,574</td><td>39,407</td><td>40,643</td></tr><tr><td>Operating lease right-of-use assets</td><td>5,160</td><td>5,330</td><td>5,633</td><td>5,783</td><td>6,027</td></tr><tr><td>Digital assets (2)</td><td>1,076</td><td>951</td><td>1,235</td><td>1,315</td><td>1,008</td></tr><tr><td>Deferred tax assets (2)</td><td>6,524</td><td>6,687</td><td>6,721</td><td>6,637</td><td>6,925</td></tr><tr><td>Other non-current assets</td><td>4,609</td><td>5,334</td><td>5,253</td><td>6,248</td><td>5,045</td></tr><tr><td>Total assets (2)</td><td>122,070</td><td>125,111</td><td>128,567</td><td>133,735</td><td>137,806</td></tr><tr><td colspan="6">LIABILITIES AND EQUITY</td></tr><tr><td colspan="6">Current liabilities</td></tr><tr><td>Accounts payable</td><td>12,474</td><td>13,471</td><td>13,212</td><td>12,819</td><td>13,371</td></tr><tr><td>Accrued liabilities and other</td><td>10,723</td><td>10,802</td><td>11,519</td><td>12,791</td><td>13,279</td></tr><tr><td>Deferred revenue</td><td>3,168</td><td>3,243</td><td>3,237</td><td>3,756</td><td>3,424</td></tr><tr><td>Current portion of debt and finance leases (1)</td><td>2,456</td><td>2,237</td><td>2,040</td><td>1,924</td><td>1,640</td></tr><tr><td>Total current liabilities</td><td>28,821</td><td>29,753</td><td>30,008</td><td>31,290</td><td>31,714</td></tr><tr><td>Debt and finance leases, net of current portion (1)</td><td>5,757</td><td>5,292</td><td>5,180</td><td>5,778</td><td>6,736</td></tr><tr><td>Deferred revenue, net of current portion</td><td>3,317</td><td>3,610</td><td>3,764</td><td>3,746</td><td>3,631</td></tr><tr><td>Other long-term liabilities</td><td>10,495</td><td>11,038</td><td>11,543</td><td>12,205</td><td>12,860</td></tr><tr><td>Total liabilities</td><td>48,390</td><td>49,693</td><td>50,495</td><td>53,019</td><td>54,941</td></tr><tr><td>Redeemable noncontrolling interests in subsidiaries</td><td>63</td><td>62</td><td>61</td><td>59</td><td>58</td></tr><tr><td>Total stockholders&#x27; equity (2)</td><td>72,913</td><td>74,653</td><td>77,314</td><td>79,970</td><td>82,137</td></tr><tr><td>Noncontrolling interests in subsidiaries</td><td>704</td><td>703</td><td>697</td><td>687</td><td>670</td></tr><tr><td>Total liabilities and equity (2)</td><td>122,070</td><td>125,111</td><td>128,567</td><td>133,735</td><td>137,806</td></tr><tr><td colspan="6">(1) Breakdown of our debt is as follows:</td></tr><tr><td>Non-recourse debt</td><td>7,871</td><td>7,238</td><td>6,953</td><td>7,458</td><td>8,150</td></tr><tr><td>Recourse debt</td><td>7</td><td>6</td><td>3</td><td>3</td><td>3</td></tr><tr><td colspan="6"></td></tr><tr><td>Days sales outstanding</td><td>14</td><td>19</td><td>15</td><td>14</td><td>17</td></tr><tr><td>Days payable outstanding</td><td>58</td><td>72</td><td>65</td><td>52</td><td>61</td></tr></table>

STATEMENT OF CASH FLOWS
(Unaudited)

<table><tr><td>In millions of USD</td><td>Q4-2024</td><td>Q1-2025</td><td>Q2-2025</td><td>Q3-2025</td><td>Q4-2025</td></tr><tr><td colspan="6">CASH FLOWS FROM OPERATING ACTIVITIES</td></tr><tr><td>Net income (1)</td><td>2,143</td><td>420</td><td>1,190</td><td>1,389</td><td>856</td></tr><tr><td colspan="6">Adjustments to reconcile net income to net cash provided by operating activities:</td></tr><tr><td>Depreciation, amortization and impairment</td><td>1,496</td><td>1,447</td><td>1,433</td><td>1,625</td><td>1,643</td></tr><tr><td>Stock-based compensation</td><td>579</td><td>573</td><td>635</td><td>663</td><td>954</td></tr><tr><td>Deferred income taxes (1)</td><td>6</td><td>(43)</td><td>52</td><td>225</td><td>(111)</td></tr><tr><td>Digital assets (gain) loss, net (1)</td><td>(347)</td><td>125</td><td>(284)</td><td>(80)</td><td>307</td></tr><tr><td>Other</td><td>(93)</td><td>188</td><td>187</td><td>333</td><td>378</td></tr><tr><td>Changes in operating assets and liabilities</td><td>1030</td><td>(554)</td><td>(673)</td><td>2,083</td><td>(214)</td></tr><tr><td>Net cash provided by operating activities</td><td>4,814</td><td>2,156</td><td>2,540</td><td>6,238</td><td>3,813</td></tr><tr><td colspan="6">CASH FLOWS FROM INVESTING ACTIVITIES</td></tr><tr><td>Capital expenditures (2)</td><td>(2,780)</td><td>(1,492)</td><td>(2,394)</td><td>(2,248)</td><td>(2,393)</td></tr><tr><td>Purchases of investments</td><td>(15,158)</td><td>(6,015)</td><td>(7,485)</td><td>(11,402)</td><td>(12,207)</td></tr><tr><td>Proceeds from maturities of investments</td><td>10,335</td><td>5,856</td><td>6,935</td><td>9,295</td><td>8,072</td></tr><tr><td>Net cash used in investing activities</td><td>(7,603)</td><td>(1,651)</td><td>(2,944)</td><td>(4,355)</td><td>(6,528)</td></tr><tr><td colspan="6">CASH FLOWS FROM FINANCING ACTIVITIES</td></tr><tr><td>Net cash flows from other debt activities</td><td>(108)</td><td>(50)</td><td>(23)</td><td>410</td><td>963</td></tr><tr><td>Net borrowings (repayments) under vehicle and energy product financing</td><td>677</td><td>(674)</td><td>(400)</td><td>81</td><td>(377)</td></tr><tr><td>Net cash flows from noncontrolling interests – Solar</td><td>(37)</td><td>(22)</td><td>(14)</td><td>(20)</td><td>(22)</td></tr><tr><td>Other</td><td>453</td><td>414</td><td>215</td><td>512</td><td>146</td></tr><tr><td>Net cash provided by (used in) financing activities</td><td>985</td><td>(332)</td><td>(222)</td><td>983</td><td>710</td></tr><tr><td colspan="6"></td></tr><tr><td>Effect of exchange rate changes on cash and cash equivalents and restricted cash</td><td>(133)</td><td>40</td><td>111</td><td>(17)</td><td>37</td></tr><tr><td>Net (decrease) increase in cash and cash equivalents and restricted cash</td><td>(1,937)</td><td>213</td><td>(515)</td><td>2,849</td><td>(1,968)</td></tr><tr><td>Cash and cash equivalents and restricted cash at beginning of period</td><td>18,974</td><td>17,037</td><td>17,250</td><td>16,735</td><td>19,584</td></tr><tr><td>Cash and cash equivalents and restricted cash at end of period</td><td>17,037</td><td>17,250</td><td>16,735</td><td>19,584</td><td>17,616</td></tr></table>

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION (Unaudited)

<table><tr><td>In millions of USD or shares as applicable, except per share data</td><td>Q4-2024</td><td>Q1-2025</td><td>Q2-2025</td><td>Q3-2025</td><td>Q4-2025</td></tr><tr><td>Net income attributable to common stockholders (GAAP) (1)</td><td>2,128</td><td>409</td><td>1,172</td><td>1,373</td><td>840</td></tr><tr><td>Stock-based compensation expense, net of tax</td><td>249</td><td>428</td><td>443</td><td>459</td><td>682</td></tr><tr><td>Digital assets (gain) loss, net of tax (1)</td><td>(270)</td><td>97</td><td>(222)</td><td>(62)</td><td>239</td></tr><tr><td>Net income attributable to common stockholders (non-GAAP) (1) (2)</td><td>2,107</td><td>934</td><td>1,393</td><td>1,770</td><td>1,761</td></tr><tr><td>Less: Buy-outs of noncontrolling interests</td><td>3</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net income used in computing diluted EPS attributable to common stockholders (non-GAAP) (1) (2)</td><td>2,104</td><td>934</td><td>1,393</td><td>1,770</td><td>1,761</td></tr><tr><td>EPS attributable to common stockholders, diluted (GAAP) (1)</td><td>0.60</td><td>0.12</td><td>0.33</td><td>0.39</td><td>0.24</td></tr><tr><td>Stock-based compensation expense, net of tax, per share</td><td>0.08</td><td>0.12</td><td>0.13</td><td>0.13</td><td>0.19</td></tr><tr><td>Digital assets (gain) loss, net of tax, per share (1)</td><td>(0.08)</td><td>0.03</td><td>(0.06)</td><td>(0.02)</td><td>0.07</td></tr><tr><td>EPS attributable to common stockholders, diluted (non-GAAP) (1) (2)</td><td>0.60</td><td>0.27</td><td>0.40</td><td>0.50</td><td>0.50</td></tr><tr><td>Shares used in EPS calculation, diluted (GAAP and non-GAAP)</td><td>3,517</td><td>3,521</td><td>3,519</td><td>3,526</td><td>3,539</td></tr><tr><td>Net income attributable to common stockholders (GAAP) (1)</td><td>2,128</td><td>409</td><td>1,172</td><td>1,373</td><td>840</td></tr><tr><td>Interest expense</td><td>96</td><td>91</td><td>86</td><td>76</td><td>85</td></tr><tr><td>Provision for income taxes (1)</td><td>381</td><td>169</td><td>359</td><td>570</td><td>325</td></tr><tr><td>Depreciation, amortization and impairment</td><td>1,496</td><td>1,447</td><td>1,433</td><td>1,625</td><td>1,643</td></tr><tr><td>Stock-based compensation expense</td><td>579</td><td>573</td><td>635</td><td>663</td><td>954</td></tr><tr><td>Digital assets (gain) loss, net (1)</td><td>(347)</td><td>125</td><td>(284)</td><td>(80)</td><td>307</td></tr><tr><td>Adjusted EBITDA (non-GAAP) (1) (3)</td><td>4,333</td><td>2,814</td><td>3,401</td><td>4,227</td><td>4,154</td></tr><tr><td>Total revenues</td><td>25,707</td><td>19,335</td><td>22,496</td><td>28,095</td><td>24,901</td></tr><tr><td>Adjusted EBITDA margin (non-GAAP) (1) (3)</td><td>16.9%</td><td>14.6%</td><td>15.1%</td><td>15.0%</td><td>16.7%</td></tr><tr><td>Automotive gross margin (GAAP)</td><td>16.6%</td><td>16.2%</td><td>17.2%</td><td>17.0%</td><td>20.4%</td></tr><tr><td>Less: Total regulatory credit revenue recognized</td><td>3.0%</td><td>3.7%</td><td>2.2%</td><td>1.6%</td><td>2.5%</td></tr><tr><td>Automotive gross margin excluding regulatory credit sales (non-GAAP)</td><td>13.6%</td><td>12.5%</td><td>15.0%</td><td>15.4%</td><td>17.9%</td></tr></table>

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)

<table><tr><td>In millions of USD or shares as applicable, except per share data</td><td>2021</td><td>2022</td><td>2023</td><td>2024</td><td>2025</td></tr><tr><td>Net income attributable to common stockholders (GAAP)</td><td>5,519</td><td>12,556</td><td>14,997</td><td>7,091</td><td>3,794</td></tr><tr><td>Stock-based compensation expense, net of tax</td><td>2,121</td><td>1,560</td><td>1,812</td><td>1,328</td><td>2,012</td></tr><tr><td>Digital assets loss (gain), net of tax</td><td>79</td><td>160</td><td>—</td><td>(459)</td><td>52</td></tr><tr><td>Release of valuation allowance on deferred tax assets</td><td>—</td><td>—</td><td>(5,927)</td><td>—</td><td>—</td></tr><tr><td>Net income attributable to common stockholders (non-GAAP)(1)</td><td>7,719</td><td>14,276</td><td>10,882</td><td>7,960</td><td>5,858</td></tr><tr><td>Less: Buy-outs of noncontrolling interests</td><td>(5)</td><td>(27)</td><td>(2)</td><td>(39)</td><td>—</td></tr><tr><td>Less: Dilutive convertible debt</td><td>(9)</td><td>(1)</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net income used in computing diluted EPS attributable to common stockholders (non-GAAP)(1)</td><td>7,733</td><td>14,304</td><td>10,884</td><td>7,999</td><td>5,858</td></tr><tr><td>EPS attributable to common stockholders, diluted (GAAP)</td><td>1.63</td><td>3.62</td><td>4.30</td><td>2.04</td><td>1.08</td></tr><tr><td>Stock-based compensation expense, net of tax, per share</td><td>0.63</td><td>0.45</td><td>0.52</td><td>0.38</td><td>0.57</td></tr><tr><td>Digital assets loss (gain), net of tax, per share</td><td>0.02</td><td>0.05</td><td>—</td><td>(0.13)</td><td>0.01</td></tr><tr><td>Release of valuation allowance on deferred tax assets</td><td>—</td><td>—</td><td>(1.70)</td><td>—</td><td>—</td></tr><tr><td>EPS attributable to common stockholders, diluted (non-GAAP)(1)</td><td>2.28</td><td>4.12</td><td>3.12</td><td>2.29</td><td>1.66</td></tr><tr><td>Shares used in EPS calculation, diluted (GAAP and non-GAAP)</td><td>3,386</td><td>3,475</td><td>3,485</td><td>3,498</td><td>3,528</td></tr><tr><td>Net income attributable to common stockholders (GAAP)</td><td>5,519</td><td>12,556</td><td>14,997</td><td>7,091</td><td>3,794</td></tr><tr><td>Interest expense</td><td>371</td><td>191</td><td>156</td><td>350</td><td>338</td></tr><tr><td>Provision for (benefit from) income taxes</td><td>699</td><td>1132</td><td>(5,001)</td><td>1,837</td><td>1,423</td></tr><tr><td>Depreciation, amortization and impairment</td><td>2,911</td><td>3,747</td><td>4,667</td><td>5,368</td><td>6,148</td></tr><tr><td>Stock-based compensation expense</td><td>2,121</td><td>1,560</td><td>1,812</td><td>1,999</td><td>2,825</td></tr><tr><td>Digital assets loss (gain), net</td><td>101</td><td>204</td><td>—</td><td>(589)</td><td>68</td></tr><tr><td>Adjusted EBITDA (non-GAAP)(2)</td><td>11,722</td><td>19,390</td><td>16,631</td><td>16,056</td><td>14,596</td></tr><tr><td>Total revenues</td><td>53,823</td><td>81,462</td><td>96,773</td><td>97,690</td><td>94,827</td></tr><tr><td>Adjusted EBITDA margin (non-GAAP)(2)</td><td>21.8%</td><td>23.8%</td><td>17.2%</td><td>16.4%</td><td>15.4%</td></tr><tr><td>Automotive gross margin (GAAP)</td><td>29.3%</td><td>28.5%</td><td>19.4%</td><td>18.4%</td><td>17.8%</td></tr><tr><td>Less: Total regulatory credit revenue recognized</td><td>2.3%</td><td>1.8%</td><td>1.7%</td><td>3.0%</td><td>2.4%</td></tr><tr><td>Automotive gross margin excluding regulatory credit sales (non-GAAP)</td><td>27.0%</td><td>26.7%</td><td>17.7%</td><td>15.4%</td><td>15.4%</td></tr></table>

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)

<table><tr><td>In millions of USD</td><td>2Q-2022</td><td>3Q-2022</td><td>4Q-2022</td><td>1Q-2023</td><td>2Q-2023</td><td>3Q-2023</td><td>4Q-2023</td><td>1Q-2024</td><td>2Q-2024</td><td>3Q-2024</td><td>4Q-2024</td><td>1Q-2025</td><td>2Q-2025</td><td>3Q-2025</td><td>4Q-2025</td></tr><tr><td>Net cash provided by operating activities (GAAP)</td><td>2,351</td><td>5,100</td><td>3,278</td><td>2,513</td><td>3,065</td><td>3,308</td><td>4,370</td><td>242</td><td>3,612</td><td>6,255</td><td>4,814</td><td>2,156</td><td>2,540</td><td>6,238</td><td>3,813</td></tr><tr><td>Capital expenditures (1)</td><td>(1,730)</td><td>(1,803)</td><td>(1,858)</td><td>(2,073)</td><td>(2,060)</td><td>(2,459)</td><td>(2,307)</td><td>(2,777)</td><td>(2,272)</td><td>(3,513)</td><td>(2,780)</td><td>(1,492)</td><td>(2,394)</td><td>(2,248)</td><td>(2,393)</td></tr><tr><td>Free cash flow (non-GAAP) (1)</td><td>621</td><td>3,297</td><td>1,420</td><td>440</td><td>1,005</td><td>849</td><td>2,063</td><td>(2,535)</td><td>1,340</td><td>2,742</td><td>2,034</td><td>664</td><td>146</td><td>3,990</td><td>1,420</td></tr><tr><td>In millions of USD</td><td>2Q-2022</td><td>3Q-2022</td><td>4Q-2022</td><td>1Q-2023</td><td>2Q-2023</td><td>3Q-2023</td><td>4Q-2023</td><td>1Q-2024</td><td>2Q-2024</td><td>3Q-2024</td><td>4Q-2024</td><td>1Q-20 25</td><td>2Q-2025</td><td>3Q-2025</td><td>4Q-2025</td></tr><tr><td>Net income attributable to common stockholders (GAAP) (2)</td><td>2,259</td><td>3,292</td><td>3,687</td><td>2,513</td><td>2,703</td><td>1,853</td><td>7,928</td><td>1,390</td><td>1,400</td><td>2,173</td><td>2,128</td><td>409</td><td>1,172</td><td>1,373</td><td>840</td></tr><tr><td>Interest expense</td><td>44</td><td>53</td><td>33</td><td>29</td><td>28</td><td>38</td><td>61</td><td>76</td><td>86</td><td>92</td><td>96</td><td>91</td><td>86</td><td>76</td><td>85</td></tr><tr><td>Provision for (benefit from) income taxes (2)</td><td>205</td><td>305</td><td>276</td><td>261</td><td>323</td><td>167</td><td>(5,752)</td><td>483</td><td>371</td><td>602</td><td>381</td><td>169</td><td>359</td><td>570</td><td>325</td></tr><tr><td>Depreciation, amortization and impairment</td><td>922</td><td>956</td><td>989</td><td>1,046</td><td>1,154</td><td>1,235</td><td>1,232</td><td>1,246</td><td>1,278</td><td>1,348</td><td>1,496</td><td>1,447</td><td>1,433</td><td>1,625</td><td>1,643</td></tr><tr><td>Stock-based compensation expense</td><td>361</td><td>362</td><td>419</td><td>418</td><td>445</td><td>465</td><td>484</td><td>524</td><td>439</td><td>457</td><td>579</td><td>573</td><td>635</td><td>663</td><td>954</td></tr><tr><td>Digital assets loss (gain), net (2)</td><td>170</td><td>—</td><td>34</td><td>—</td><td>—</td><td>—</td><td>—</td><td>(335)</td><td>100</td><td>(7)</td><td>(347)</td><td>125</td><td>(284)</td><td>(80)</td><td>307</td></tr><tr><td>Adjusted EBITDA (non-GAAP) (2) (3)</td><td>3,961</td><td>4,968</td><td>5,438</td><td>4,267</td><td>4,653</td><td>3,758</td><td>3,953</td><td>3,384</td><td>3,674</td><td>4,665</td><td>4,333</td><td>2,814</td><td>3,401</td><td>4,227</td><td>4,154</td></tr></table>

<table><tr><td>In millions of USD</td><td>1Q-2023</td><td>2Q-2023</td><td>3Q-2023</td><td>4Q-2023</td><td>1Q-2024</td><td>2Q-2024</td><td>3Q-2024</td><td>4Q-2024</td><td>1Q-2025</td><td>2Q-2025</td><td>3Q-2025</td><td>4Q-2025</td><td></td></tr><tr><td>Net cash provided by operating activities – TTM (GAAP)</td><td>13,242</td><td>13,956</td><td>12,164</td><td>13,256</td><td>10,985</td><td>11,532</td><td>14,479</td><td>14,923</td><td>16,837</td><td>15,765</td><td>15,748</td><td>14,747</td><td></td></tr><tr><td>Capital expenditures – TTM (1)</td><td>(7,464)</td><td>(7,794)</td><td>(8,450)</td><td>(8,899)</td><td>(9,603)</td><td>(9,815)</td><td>(10,869)</td><td>(11,342)</td><td>(10,057)</td><td>(10,179)</td><td>(8,914)</td><td>(8,527)</td><td></td></tr><tr><td>Free cash flow – TTM (non-GAAP) (1)</td><td>5,778</td><td>6,162</td><td>3,714</td><td>4,357</td><td>1,382</td><td>1,717</td><td>3,610</td><td>3,581</td><td>6,780</td><td>5,586</td><td>6,834</td><td>6,220</td><td></td></tr><tr><td>In millions of USD</td><td>1Q-2023</td><td>2Q-2023</td><td>3Q-2023</td><td>4Q-2023</td><td>1Q-2024</td><td>2Q-2024</td><td>3Q-2024</td><td>4Q-2024</td><td>1Q-2025</td><td>2Q-2025</td><td>3Q-2025</td><td>4Q-20</td><td></td></tr><tr><td>Net income attributable to common stockholders – TTM (GAAP) (2)</td><td>11,751</td><td>12,195</td><td>10,756</td><td>14,997</td><td>13,874</td><td>12,571</td><td>12,891</td><td>7,091</td><td>6,110</td><td>5,882</td><td>5,082</td><td>3,794</td><td></td></tr><tr><td>Interest expense – TTM</td><td>159</td><td>143</td><td>128</td><td>156</td><td>203</td><td>261</td><td>315</td><td>350</td><td>365</td><td>365</td><td>349</td><td>338</td><td></td></tr><tr><td>Provision for (benefit from) income taxes – TTM (2)</td><td>1,047</td><td>1,165</td><td>1,027</td><td>(5,001)</td><td>(4,779)</td><td>(4,731)</td><td>(4,296)</td><td>1,837</td><td>1,523</td><td>1,511</td><td>1,479</td><td>1,423</td><td></td></tr><tr><td>Depreciation, amortization and impairment – TTM</td><td>3,913</td><td>4,145</td><td>4,424</td><td>4,667</td><td>4,867</td><td>4,991</td><td>5,104</td><td>5,368</td><td>5,569</td><td>5,724</td><td>6,001</td><td>6,148</td><td></td></tr><tr><td>Stock-based compensation expense – TTM</td><td>1,560</td><td>1,644</td><td>1,747</td><td>1,812</td><td>1,918</td><td>1,912</td><td>1,904</td><td>1,999</td><td>2,048</td><td>2,244</td><td>2,450</td><td>2,825</td><td></td></tr><tr><td>Digital assets loss (gain), net – TTM (2)</td><td>204</td><td>34</td><td>34</td><td>—</td><td>(335)</td><td>(235)</td><td>(242)</td><td>(589)</td><td>(129)</td><td>(513)</td><td>(586)</td><td>68</td><td></td></tr><tr><td>Adjusted EBITDA – TTM (non-GAAP) (2) (3)</td><td>18,634</td><td>19,326</td><td>18,116</td><td>16,631</td><td>15,748</td><td>14,769</td><td>15,676</td><td>16,056</td><td>15,486</td><td>15,213</td><td>14,775</td><td>14,596</td><td></td></tr></table>

TTM = Trailing twelve months
(1) Beginning in Q1'25, Capital expenditures is presented inclusive of purchases of energy generation and storage systems and all prior periods have been adjusted.
(2) As a result of the adoption of the new crypto assets standard, the previously reported quarterly periods in 2024 have been recast.
(3) Beginning in Q1'25, Adjusted EBITDA (non-GAAP) is presented net of digital assets gains and losses and all prior periods have been adjusted.

<!-- page 34 -->
# WEBCAST INFORMATION

Tesla will provide a live webcast of its fourth quarter 2025 financial results conference call beginning at 4:30 p.m. CT on January 28, 2026 at ir.tesla.com. This webcast will also be available for replay for approximately one year thereafter.

# CERTAIN TERMS

When used in this update, certain terms have the following meanings. Our vehicle deliveries include only vehicles that have been transferred to end customers with all paperwork correctly completed. Our energy product deployment volume includes both customer units when installed and equipment sales at time of delivery. "Net income attributable to common stockholders (non-GAAP)" is equal to (i) net income attributable to common stockholders before (ii)(a) stock-based compensation expense, net of tax, (b) digital assets (gain) loss, net of tax and (c) release of valuation allowance on deferred tax assets. "Adjusted EBITDA (non-GAAP)" is equal to (i) net income attributable to common stockholders before (ii)(a) interest expense, (b) provision for (benefit from) income taxes, (c) depreciation, amortization and impairment, (d) stock-based compensation expense and (e) digital assets loss (gain), net. "Free cash flow" is operating cash flow less capital expenditures. Average cost per vehicle is cost of automotive sales divided by new vehicle deliveries (excluding operating leases). "Days sales outstanding" is equal to (i) average accounts receivable, net for the period divided by (ii) total revenues and multiplied by (iii) the number of days in the period. "Days payable outstanding" is equal to (i) average accounts payable for the period divided by (ii) total cost of revenues and multiplied by (iii) the number of days in the period. "Days of supply" is calculated by dividing new car ending inventory by the relevant period's deliveries and using trading days. Constant currency impacts are calculated by comparing actuals against current results converted into USD using average exchange rates from the prior period.

# NON-GAAP FINANCIAL INFORMATION

Consolidated financial information has been presented in accordance with GAAP as well as on a non-GAAP basis to supplement our consolidated financial results. Our non-GAAP financial measures include non-GAAP net income (loss) attributable to common stockholders, non-GAAP net income (loss) attributable to common stockholders on a diluted per share basis (calculated using weighted average shares for GAAP diluted net income (loss) attributable to common stockholders), Adjusted EBITDA margin, non-GAAP automotive gross margin and free cash flow. These non-GAAP financial measures also facilitate management's internal comparisons to Tesla's historical performance as well as comparisons to the operating results of other companies. Management believes that it is useful to supplement its GAAP financial statements with this non-GAAP information because management uses such information internally for its operating, budgeting and financial planning purposes. Management also believes that presentation of the non-GAAP financial measures provides useful information to our investors regarding our financial condition and results of operations, so that investors can see through the eyes of Tesla management regarding important financial metrics that Tesla uses to run the business and allowing investors to better understand Tesla's performance. Non-GAAP information is not prepared under a comprehensive set of accounting rules and therefore, should only be read in conjunction with financial information reported under U.S. GAAP when understanding Tesla's operating performance. A reconciliation between GAAP and non-GAAP financial information is provided above.

# FORWARD-LOOKING STATEMENTS

Certain statements in this update, including, but not limited to, statements in the “Outlook” section; statements relating to the development, strategy, ramp, production and capacity, demand and market growth, cost, pricing and profitability, investment, deliveries, deployment, availability and other features and improvements and timing of existing and future Tesla products and services and supporting infrastructure; statements regarding operating margin, operating profits, spending and liquidity; and statements regarding expansion, improvements and/or ramp and related timing at our facilities are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions and management’s current expectations, involve certain risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statement. The following important factors, without limitation, could cause actual results to differ materially from those in the forward-looking statements: the risk of delays in launching and/or manufacturing our products, services and features cost-effectively; our ability to build and/or grow our products and services, sales, delivery, installation, servicing and charging capabilities and effectively manage this growth; our ability to successfully and timely develop, introduce and scale, as well as our consumers’ demand for, products and services based on artificial intelligence, robotics and automation, electric vehicles, advanced driver assistance systems, and ride-hailing services generally and our vehicles and services specifically; the ability of suppliers to deliver components according to schedules, prices, quality and volumes acceptable to us, and our ability to manage such components effectively; any issues with lithium-ion cells or other components manufactured at our factories; our ability to ramp our factories in accordance with our plans; our ability to procure supply of battery cells, including through our own manufacturing; risks relating to international operations and expansion, including unfavorable and uncertain regulatory, political, economic, tax, tariff, export controls and labor conditions; any failures by Tesla products to perform as expected or if product recalls occur; the risk of product liability claims; competition in the automotive, transportation and energy product and services and robotics markets; our ability to maintain public credibility and confidence in our long-term business prospects; our ability to manage risks relating to our various product financing programs; the status of government and economic incentives for electric vehicles and energy products; our ability to attract, hire and retain key employees and qualified personnel; our ability to maintain the security of our information and production and product systems; our compliance with various regulations and laws applicable to our operations and products, which may evolve from time to time; risks relating to our indebtedness and financing strategies; and adverse foreign exchange movements. More information on potential factors that could affect our financial results is included from time to time in our Securities and Exchange Commission filings and reports, including the risks identified under the section captioned “Risk Factors” in our annual report on Form 10-K filed with the SEC on January 30, 2025 and subsequent quarterly reports on Form 10-Q. Tesla disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events or otherwise.

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