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T

Diversity,EquityandInclusion

ImpactReport2020(U.S.)

Teslaisonamissiontoacceleratetheworld’stransition

tosustainableenergy.Wefocusrelentlesslyon

innovationandrelyonteamworkandcollaboration

tohelpachievethisgoal.Alongtheway,weare

continuingtobuildaculturethatissafe,respectful,

fairandinclusiveforallofouremployees.

Asweworktoachieveourmissionwereaffirmour

commitmenttoDiversity,EquityandInclusion(DEI).

Weareproudtoemploypeopleofallbackgrounds

whopossessthetalent,energyandfocustoaccelerateourvisionforward.Eachemployeeisencouragedto

bringtheirwholeselftowork,knowingthatTesla

valuesindividualityasmuchaswevaluecollaboration.

2Diversity,Equity,&InclusionImpactReport2020

WhoWeAre

OurCommitmentto

Diversity,EquityandInclusion

Wevaluetalentedindividualsatallexperienceandcareerlevelswhoarepassionatelycommittedtoourmission.

Weinsistonequitablepracticesnotjustbecauseit’s

therightthingtodo,butbecausefairprocessesallowourteammemberstobringtheirwholeselvestowork.

Wevalueandincludeunderrepresentedcommunitiesatalllevelsofourcompany.

Wedotheworkrequiredtoensurethatourculture

isasdiverseandinclusiveasitiscollaborativeanddriven.

Weleverageourdifferencestobuildthemostinnovative

productsintheworldandoursharedmissiontoaccelerate

theworld’stransitiontosustainableenergyunitesusinour

commitmenttocreatingafuturethatisgoodforallhumanity.

04

Diversity,Equity,&InclusionImpactReport2020

OurDiversity,Equity

andInclusionPrinciples

OurDEIteamusesapeople-firstanddata-drivenapproachtochampiondiversity,equityandinclusioninourbusinessandinourcommunities.Werelyontheseguidingprinciplesinourworktoinformcompanypoliciesandpractices:

?ProvidetransparencyinourDEIprogramsandresultsto

setgoals,measureourprogress,identifyareasofimprovementandcelebratesuccesses.

?Integrateaccountabilitymeasuresfororganizational,teamandindividualprogressandresultsintoour

businessoperations.

?Focusonsustainablesolutionsthatsolveproblemsat

therootcauseandreimaginenewprogramswithdiversity,equityandinclusionprinciplesembeddedinthedesign.

?Shareknowledgetoaidinpersonalandprofessionallearninganddevelopment.

05

Diversity,Equity,&InclusionImpactReport2020

PrinciplesinAction

06Diversity,Equity,&InclusionImpactReport2020

Theroadtosuccessispavedwithaction–especiallyindifficulttimes.WearebackingupourcommitmenttoDEIbyexpanding

ourteam,addingcompany-widetalentdevelopmentand

learningprogramstoourfunctionandembeddingDEIprinciplesineverythingthatwedo.Fromourengagementwithcandidatestoouroutreachtocommunitymembers,weareintentionalasweworktoencouragepeoplefromallbackgroundstojoinusonourmissiontoacceleratetheworld’stransitiontosustainableenergy.

WeareinvestingincommunitieslikeReno,Nevada,Buffalo,NewYork,andAustin,Texas,tosupporttheaccelerationofrobotics,STEAMandsustainabilityprogrammingwithintheeducation

systemsandweofferfirst-in-lineemploymentopportunitiesto

programparticipants.WeinspirestudentstoseethepossibilitiesofanamazingcareerwithTesla.Wearecontinuingtoprovide

employeeswiththeprograms,tools,resourcesandsupportthathavebeenproventofosterinclusion.Weinspireouremployeestoprogressintheircareersasfarastheirtalentwilltakethem.

Wearereachingouttofurtherengagethecommunitieswhereouremployeesresideandweworktoinspirecommunity

memberstojoinusonourmission.

“Teslaisnotacompanythatrestsonpastsuccessesorsettlesforthestatusquo.WesethighstandardsforeverythingwedoandwearecommittedtobringingthatsamebiasforexcellencetoDiversity,EquityandInclusionatTesla.”

KristenKavanaugh

Director,Inclusion,TalentandLearning

WhereWeAreToday

08

Underrepresented

CommunitiesintheU.S.

Wesetourownhighstandardsforexcellence,includinghowweevaluateourDEIpracticesandprograms.

Wherewearetodayrepresentstheprogressthatwehavemadeandthestepswehavetakenuptothispoint.WeknowwehavemoreworktodotoberepresentativeoftheevolvingU.S.populationandwearecommittedtoimplementingtheplanswe’vedesignedtogetusthere.

UnderrepresentedCommunities

RepresentationinourU.S.Workforce

White34%

UnderrepresentedCommunities

60%

Asian

21%

Black10%

Hispanic

22%

AdditionalGroups7%

UnderrepresentedCommunities

inLeadershipinourU.S.Workforce

White59%

UnderrepresentedCommunities

33%

Asian

25%

Black

4%

AdditionalGroups1%

Hispanic

4%

Dataisrepresentativeof2020asofthewritingofthisreport.Totalsmaynot

addto100%duetoroundingorindividualswhoselected“declinetostate”or

leftthecategoryblank.

Black,AfricanAmerican,Hispanic,Latinx,Asian,PacificIslander,

NativeAmerican,NativeHawaiianandAlaskaNativecommunities

aretypicallyunderrepresentedintheU.S.Thisgroupcollectively

represents60%ofourworkforce.Thesamegroupistypicallyeven

moreunderrepresentedincorporateleadership.Currently,33%of

ourDirectorsandVicePresidentsandarefromunderrepresented

communities.Thisisalargepercentageofaverysmallcohort-lessthan.4%ofemployeesareDirectorlevelandaboveatTesla.Similarly,

43%ofourexecutivesreportingdirectlytotheCEOarefrom

underrepresentedcommunities.Finally,68%ofallnewhiresand65%ofthisyear’spromotionswerefromunderrepresentedcommunities.

Weareproudtobeamajority-minoritycompany,andweare

proudtoreportthatourbusinessreflectstheunderrepresented

communitiesthathavestruggledtobreakthroughtheroadblockstoequalopportunity.

BlackandAfricanAmericanemployeesare10%ofourU.S.

workforce.Thisgrouphasexperienceda60%increasein

representationinmanagement,representing4%ofourDirector

levelandaboveemployees.BlackandAfricanAmericansemployeescomprise12%ofnewhiresand10%ofpromotionsrespectively–a

9%and11%increasefrom2019.Weknowthatournumbersdonot

representthedeeptalentpoolsofBlackandAfricanAmericantalentthatexistintheU.Sateverylevel–fromhighschoolgraduatesto

professionals.Manyofourprogramsin2021willfocusonincreasingBlackandAfricanAmericanrepresentation,especiallyinleadership,whilecontinuingtheupwardtrendinnewhiresandpromotions.

Asianemployeesare21%ofourU.S.workforceandhavealsoseenanupwardtrendinrepresentationinmanagement,representing25%ofourDirectorlevelandaboveemployees.Asianemployeescomprise20%ofallnewhiresand23%ofallpromotions–a15%increasefromlastyear.Wewanttoseethesetrendscontinuein

2021andbeyond.

HispanicandLatinxemployeesare22%ofourU.S.workforce,andwhiletheycurrentlyrepresentonly4%ofourDirectorleveland

aboveemployees,theyrepresent24%ofallpromotionsthisyear–reflectinga14%increaseandTesla’sactiveeffortsatcultivatinganddevelopingdiversetalent.Additionally,27%ofallnewhiresin2020wereHispanicandLatinx.Wewanttocontinuetheupwardtrendsweareexperiencingacrosshiring,promotions,andoverallrepresentationforourHispanicandLatinxemployees.

GenderRepresentationintheU.S.

GenderRepresentation

inourU.S.Workforce

Male79%

Female

21%

GenderinLeadership

inourU.S.Workforce

Male83%

Female

17%

Womenrepresent21%ofouroverallU.S.workforceand23%

ofallpromotions–a5%increasefromlastyear.Theyrepresent17%ofourDirectorsandVicePresidents.In2020,nearly25%ofallU.S.hireshavebeenwomen.

Whilewomenarehistoricallyunderrepresentedinthetechand

automotiveindustries,werecognizewehaveworktodointhis

area.Wearecommittedtoworkingalongsidecompaniesin

theseindustriestomakeimprovements.Wearetakingactive

stepstoincreaseouroutreachtowomenandbuildaninclusive

culturethatsupportstheirdevelopmentandretention.Increasingwomen’srepresentationatalllevels,especiallyinleadership,isatoppriorityin2021.

09

Diversity,Equity,&InclusionImpactReport2020

FindingLeadersIn-House

ValerieCapersWorkman

10Diversity,Equity,&InclusionImpactReport2020

Weprideourselvesonidentifyingmanyofourleadersby

recognizingtheirperformanceinkeyrolesinsidethecompany.ManyofourexecutivesstartedatTeslaasindividualcontributorsandarenowleadingsomeofourmostinnovativeteams.

ValerieWorkmanwashiredin2018.Inlessthantwoyearsshe

waspromotedfromAssociateGeneralCounsel,Compliance,totheHeadofHumanResourcesforallofNorthAmerica,EMEA

andtheAsianPacific(excludingChina)–movingfromtheLegalteamtoHR.JusteightmonthslaterinJuly2020Valeriewas

promotedagaintobecomeTesla’sVicePresidentofPeople.

ReportingdirectlytotheCEO,Valerieplaysacriticalroleas

partoftheexecutiveleadershipteamandleadsTesla’sHumanResources,Recruiting,Workplace,Benefits,DiversityEquity

&InclusionandEmployeeRelationsprograms.Asamember

ofTesla’sCOVID-19CORETEAM,Valerieledtheteamsthat

developedinnovative,employee-focusedprogramsinresponsetothepandemic.

“MypromotionsareillustrativeofoneofthethingsIlovemostaboutTesla;hereyouarenevertype-castintodoingjustone

thing.AtTesla,excellenceisseenasthecorecompetencyfor

anyroleandthisperspectivegivesleadershiptheflexibility

toprovideemployeeswithnewopportunitiestoplugintotheareaswheretheirtalentsareneeded.Ialsolovethefactthat

weareaflatorganization.Anyone,anywhereinthecompany

isempoweredtoconnectwitheveryone,includingElon,if

employeesarefacingroadblocks.Wedon’tbelieveinhierarchy.Webelieveingettingthingsdone.”

ValerieCapersWorkman,Esq.

VicePresident,People

RecruitingIndustryExperts

LaurieShelby

LaurieShelby,aself-describedSTEMfanaticwithdegreesin

ChemistryandIndustrialHygiene,joinedTeslaasthecompany’sfirstVPofEnvironment,HealthandSafetyafterworkingin

thealuminumindustryfortwenty-fiveyears.Sheandherteammakesurecontrolsareinplaceandverifiedtokeepourpeopleandtheenvironmentsafe.NowhereisLaurie’sexpertisemoreevidentthaninthewayshehasledTesla’sresponsetothe

COVID-19pandemic.LauriecreatedTesla’sCOVID-19CORE

TEAMinJanuary2020andimplementedtheearlyadoptionofcomprehensivesafetyprotocolsatTeslalocationsworldwide.

“AtTesla,Leaderslead.Elonexpectsustobeexcellentandthere’snomicromanaging.Thisallowsmetodowhatneedstoget

donequicklyforthehealthandsafetyofouremployeesandourcustomers.Thatkindofautonomy,evenatthislevel,isveryrare.”

11Diversity,Equity,&InclusionImpactReport2020

OpportunityforAll

RocioMendez

Injustunderfiveyears,RocioMendezhasmadeahugeimpact

atTesla.She’sbeenpromotedtwice,fromPowertrainIndustrialEngineertoAssociateManagerforIndustrialEngineeringtoStaffProcessEngineer,whereshecontinuestomanageateamontheModelSandModelXbatterypacklines.Sheisalsoanewmom.AccordingtoRocio,accessibilitytoleadershiphasbeenkeyto

herthrivingatTesla.It’snotonlythatthey’reeasytotalkto,theyalsosupportherasaworkingparent.

“Thisisamale-dominatedindustry,butasawomananda

workingmom,itfeelslikeanextraaccomplishmenttohavetheopportunitiesIdo.It’snicetohavemanagementthatsupportsaworkingmom.Mymanagerisverysupportiveofmyfamily.”

12

Diversity,Equity,&InclusionImpactReport2020

PrideinOurEmployees

ZachKirkhorn

WetakeprideinhavingleadersfromtheLGBTQcommunityasleadersatalllevelsandrolesatTesla.

ZachKirkhornjoinedTeslain2010asaSeniorFinancialAnalyst.InhistimeatTesla,he’sbeenpromotedfivetimes,mostrecentlytoCFO.

“ThroughoutmyjourneyatTesla,I’vealwaysfeltheard

andempoweredbymymanagersandtheleadershipteam.

It’simportantwecontinuetobringthosemostknowledgeableonatopictothetable,asultimatelythebestideasmake

ourcompanystronger.”

Empoweringandlisteningtoouremployeeshelpsthecompanystayonmission.“Thereisnothingmoremotivatingthantoworkwithsomanytalentedanddedicatedpeople.Everyone’s100%focusedonachievingthemissionofthecompany.”

MembersofthecommunityalsoserveasleadersinourEmployee

ResourceGroups.Forthesecondyearinarow,weoffered

additionalsupporttoourtransgenderemployeesthroughthe

TransgenderInclusionGroup,asubsetofourLGBTQatTesla

EmployeeResourceGroup.WearealsotakingstepstoprovidemoreinclusiveopportunitiesforourLGBTQemployeesto

self-identifysothatwemayprovideappropriatesupport.This

includesaddingnon-binaryandgendernon-conformingoptionsinourpeoplemanagementsystem.

13Diversity,Equity,&InclusionImpactReport2020

OpportunityforSecondService

GerryWilliams

Veteransrepresent4%ofourtotalU.S.workforce.Teslaisa

naturalnextstepfortransitioningveteranslookingtocontinuetheirpassionforserviceintheciviliansector.

GerryWilliamswasamechanicintheU.S.Armyforthirteen

yearsbeforehedecidedtogototradeschool.GerrystartedhiscareeratTeslaasaProductionAssociatein2009andbuiltthebatterypackforthefirstRoadster.HewaspromotedtoTrainingCoordinatorthenpromotedagaintoQualityTechnician,Cell

Engineering.Gerryactivelysupportsthenextgenerationof

associatesandtransitioningveterans.“I’vealwaysbeenabletoaccessleadership.ThedoorhasbeenopensinceIstarted.”

In2019,weestablishedapartnershipwiththeSecretaryof

theNavy‘TourwithIndustry’program.OurfirstFellow,aNavyhelicopterpilot,spentayearassignedtotheNorthAmericanChargingInfrastructureteamwherehefocusedonexpandingLevel2charginginfrastructureinNorthernCalifornia.

WeexpandedourpartnershipthisyeartoincludetheAirForce

‘EducationwithIndustry’program.Today,ourFellows

aresupportingFleetOperations,Construction,andSolarHardwareEngineering.

14

Diversity,Equity,&InclusionImpactReport2020

WhereWeAreGoing

OurRoadmap

OurDEIRoadmap–outlinedbelow–highlightsthesteps

wewillcontinuetotakeinordertoimproveonourdiversity

andinclusionmetricsandintegrateDEIbestpracticesintoour

businessoperations.Ourapproachissimple:

Focus.Integrate.Connect.

Focus

onattracting,developing,andretainingtalent

Integrate

diversity,equityandinclusionprinciples

andpracticesintotheDNAofourcompany

Connect

communitiesinternallyandexternally

toopportunitieswithTesla

Focusequallyonattracting,developingandretainingtalent.

Wewillfocusequallyondevelopingadeeperpipelineofdiverseandexceptionalcandidateswhilefosteringaninclusiveculturethatsupportsthemoncethey

becomeemployees.

Weareintentionallyseekingoutexcellenttalentthat

reflectstherichdiversityofthecommunitieswherewe

arelocated,andweactivelyrecruitfromspacesthatofferaccesstotalentfromunderrepresentedcommunities.

Toensurethatourhiringeffortsresultinaworkforcethatismorediverse,wearecommittedtothefollowing:

?RecruitingatHistoricallyBlackCollegesandUniversities(HBCUs)andbuildingdirectandmeaningfulrelationshipswiththeirleadershipandfacultytosupportasustained

pipelineoftalentedcollegegraduates.Forexample,we

haveaformalrelationshipwithHuston-TillotsonUniversityinAustin,TexasaspartofthelaunchofGigafactoryTexas.WelookforwardtowelcomingHuston-TillotsonUniversitystudentsandalumnitotheTeslateam.

?ExpandingourInternshipProgramtobecomeourdrivingforceinattractingdiversetalentatourprofessionalentry

level.Ouryear-roundprogramplacesstudentsinpositionswheretheycangrowbothtechnicallyandprofessionally.Ourrecruitingstrategyfocusesoncommunitieswhere

Teslaispresent,thenwedivedeeperbyengagingsmalleraudienceswithinspecificclubsliketheNationalSocietyofBlackEngineers(NSBE),SocietyofHispanicProfessional

Engineers(SHPE),SocietyofWomenEngineers(SWE)andSocietyofAsianScientistsandEngineers(SASE)andothercampusaffinitygroups.

16

Diversity,Equity,&InclusionImpactReport2020

InternshipsandApprenticeships

OfferaPipeline

JoeChen,ErinHughes

andJusticeFevella-Potes

JoeChenjoinedTeslain2018,duringModel3production,asa

CapitalExpenditureinternatGigaNevada.Itwasn’tlongbefore

hewashiredasafull-timeemployee,asGlobalSupplyManager.

Thequalityofhisworkwasimpressivefromdayone,andaftera

year,hewaspromotedtoSeniorGlobalSupplyManager.

ErinHughesstartedasaninternfortheEnvironmentalAffairs

groupwithEnvironmentalHealthandSafety(EHS).Sheended

herinternshiphavingdevelopedanewmobileemissionsprogram.

AfterreturningtoTeslafull-time,Erinnowworkscloselywith

LaurieShelby,VicePresidentofEHS.ErindescribesTesla’s

leadershipasbeingaccessibleandsupportive,“thementorship

I’vereceivedatTeslahasbeeninvaluable.”

JusticeFevella-PotesgraduatedfromourManufacturing

DevelopmentProgram,atwo-yearapprenticeshipthatprovides

recentgraduatestheopportunitytoacceleratetheircareers

bygivingthemaccesstohands-oneducationandmentorship.

InjustayearandtwomonthssincejoiningTesla,Justicehas

beenpromotedtwice,withnosignsofslowingdown.

WhenJusticewasinhighschool,Teslatouredherschool’s

roboticslabandpresentedtheManufacturingDevelopment

Program,atwo-yearapprenticeshipthatgivesrecentgraduates

theopportunitytoacceleratetheircareersbygivingthemaccess

tohands-oneducationandmentorshipatthecompany.

“Mysupervisorswantmetosucceed.IlovewhatIdobecauseI’m

aroundpeoplewhoIfeelcareaboutmycareer.”

17Diversity,Equity,&InclusionImpactReport2020

Retainingdiversetalentrequiresthatwemakeevery

efforttodevelop,promoteandsupportouremployees.

Everyemployee,regardlessofbackground,mustbeabletoenvisionalong-term,upwardtrajectoryfortheircareeratTesla.

Careergrowthandopportunityofteneludeswomen

andmembersofunderrepresentedcommunitieswhen

companiesarenotintentionalaboutinclusion.Toensure

thatourdevelopmenteffortsareinclusiveandhelpusretainwomenandtalentfromunderrepresentedcommunities,

wearecommittedtothefollowing:

?IncreasingaccesstoourInternalMobilityProgram.

Theprogramisinplacetodrivepersonalandprofessionalgrowthanddevelopmentandexpectsallemployeestoplayanactiveroleinmanagingtheircareer.Wecreatedinternalmobilityguidelinestodriveafair,consistent,transparent

processforemployeesinterestedinapplyingforjobsacrosstheorganization.Employeesareencouragedtoexplore

internalopportunitiesusingourinternalmobilitytoolanddiscusstheircareerdevelopmentwiththemanager.

?OfferingadditionalapprenticeshipslikeourManufacturingDevelopmentProgramand

LeadershipDevelopmentopportunities.

18

Diversity,Equity,&InclusionImpactReport2020

19Diversity,Equity,&InclusionImpactReport2020

Integratediversity,equity,andinclusionprinciples

andpracticesintotheDNAofourcompany.

WeareintentionallybuildingourDEIteamwithastructurethatremovesbarriersandpermitsimplementationmorequickly.Wecontinuetoeducateouremployeesaboutunconsciousbiasandtheimpactithasonouroperations.Championingdiversityandinclusionforouremployeesisnotenough.Wemustalsofocusoureffortsonfair,equitableandsustainablesystemsinour

businessandsupportsimilargoalswithinourcommunities.

Tobuildequityandinclusionintoourbusinesspractices,wearecommittedtothefollowing:

?Doublingdownonoureffortsbyhavingourtalentand

learningorganizationsreportintoourDirectorofDiversityandInclusion.OurnewleaderofInclusion,Talent,andLearning,

togetherwithourorganization,areensuringthatequitablelearningresourcesandcareerdevelopmentprogramsareinplaceforallemployees.

?Deployingourunconsciousbiastrainingsthroughouttherecruitingorganizationandwithallpeoplemanagers.

?FormalizingcollaborationbetweentheDiversity,Equityand

Inclusion,SupplyChainandGovernmentAffairsteamstoensurelocalminority,women,LGBTQ,disabledandveteranownedbusinessesareconnectedtoopportunitieswithTesla.Teslapartnerswith

thousandsofsmallandlargescalesuppliersintheU.S.which

representsatremendousopportunitytomakeanimpactinlocalcommunitiesbyexpandingoursupplierdiversityoutreach.

ERGsareBuildingCommunity

andLeaders

Connectinternalandexternalcommunities

toopportunitywithTesla.

Weareconnectingcommunitiestooneanotherto

createasenseofbelongingandfosteringaccess

toopportunitytojoinusonourmission.Internally,

ourEmployeeResourceGroups(ERG)arebuilding

communityandleaders.Thevoluntary,employee-led

communitygroupsthatpromoteadiverse,inclusive

workplace.Theyofferemployeesconnectionand

createaforumforemployeeswhosharecommon

interestsandgoalstoworkwithandsupportone

another.

WehavesevenERGs–AsianPacificIslandersat

Tesla,BlackatTesla,Intersectionality,LatinosatTesla,

LGBTQatTesla,VeteransatTeslaandWomeninTesla

–collectivelyrepresentedat32locationsacrossTesla.

OurERGsareledbymanagersandsponsoredby

companyexecutives.

Toexpandourcommunityandcreateasenseof

belongingwearecommittedtothefollowing:

ContinuingtogrowandsupportourERGnetworkand

engagethemasakeybusinessresource.

LGBTQ

AsianPacificIslandersatTesla

Executivesponsor:

NageshSaldi,ChiefInformationOfficer

BlackatTesla

Executivesponsor:

CarolynGarner,Director,Payroll

LatinosatTesla

Executivesponsor:

OscarMoncada,DirectorITOperations

LGBTQatTesla

Executivesponsor:

JeromeGuillen,PresidentAutomotive

WomeninTesla

Executivesponsor:

DrewBaglino,

SVPPowertrain&EnergyEngineering

VeteransatTesla

Executivesponsor:

LaurieShelby,

VP,EnvironmentalHealth&Safety

20

Diversity,Equity,&InclusionImpactReport2020

ExecutiveSponsorsLead

CarolynGarner

CarolynGarnerwasrecruitedtojoinTeslaastheDirectorofPayrollinApril2018.RecentlyCarolyn’srolewasexpandedtoinclude

oversightofpayrollprocessesinEMEA.CarolynisalsoservingastheBusinessOwneronTesla’sinternaldevelopmentofacompany-wideHROperatingSystem.Inadditiontoherexpandedrole,Carolynis

alsotheexecutivesponsorofBlackatTesla,anEmployeeResourceGroupthatsupportsBlackemployees.

“Were-builtBlackatTeslafromthegroundup.Iwantedtogivepeopleanopportunitytoletthemselvesshine.”

21

Diversity,Equity,&InclusionImpactReport2020

Weprovidetensofthousandsofentrylevel,full-time

positionswithzero-costhealthcareandbenefits

–somethingthathasvirtuallyceasedtoexistin

California,especiallyinSiliconValley.WewillcontinuetoofferopportunitiesatTeslaasachanceforsocial

andeconomicmobilityforfamiliesacrossthecountry.

TofosteraccesstoopportunitywithTesla,weare

committedtothefollowing:

?Contin

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