Tesla’s Mission: To accelerate the world’s transition to

sustainable energy.
Tesla’s mission is more than just a statement, it is a guiding principle for how we govern ourselves
as a company. As a company at the forefront of innovation for energy and transportation we live
by the principles of hard work, exceptional performance, integrity, and fairness.
Our Supplier Code of Conduct (“Code”) as well as our Human Rights & Responsible Materials
policies are the foundation for ensuring social, environmental responsibility and ethical conduct
throughout our supply chain, from raw materials to the doors of our facilities. The principles
outlined in this Code govern our suppliers’ (defined as all companies or individuals from which
Tesla is receiving goods and services as well as their personnel, agents and subcontractors)
relationship with Tesla and how we expect them to operate their own business. The Code
represents a minimum standard which our suppliers must follow and where there are differences
between the Code and applicable local or national laws and regulations, Tesla expects the
supplier to follow the stricter standard.
Tesla will take steps to ensure that our suppliers’ business practices are consistent with the Code.
This applies both in our selection of new suppliers and in our on-going relationships with our
existing suppliers. We expect our suppliers to not just conduct business consistent with this Code,
but also to set similar expectations with their own supply chain.
Suppliers must maintain accurate and up-to-date records of their compliance with this Code and
all applicable laws and regulations. Upon request from Tesla to provide such records or internal
policies and procedures, documentation must be shared promptly. While suppliers are expected
to demonstrate their compliance with the Code upon request, Tesla also reserves the right to
audit supplier facilities and practices to confirm compliance. Suppliers are encouraged to develop
and make public their own code of business practices and supplier code of conduct policies and
to report publicly on their own efforts to monitor and enforce these standards of conduct and
compliance throughout their supply chains.

A. LABOR
Suppliers are committed to uphold the human rights of workers, and to treat them with dignity and
respect as understood by the international community. This applies to all workers including
temporary, migrant, student, contract, direct employees, and any other type of worker. The
recognized standards, as set out in the References, were used in preparing the Code and may
be useful sources of additional information. The labor standards are:

1) Freely Chosen Employment

Forced, bonded (including debt bondage) or indentured labor, involuntary or exploitative prison
labor, slavery or trafficking of persons is not permitted. This includes transporting, harboring,
recruiting, transferring, or receiving persons by means of threat, force, coercion, abduction, or
fraud for labor or services. There shall be no unreasonable restrictions on workers’ freedom of
movement in the facility in addition to unreasonable restrictions on entering or exiting company-
provided facilities including, if applicable, workers’ dormitories or living quarters. As part of the
hiring process, all workers must be provided with a written employment agreement in their native
language that contains a description of terms and conditions of employment. Foreign migrant
workers must receive the employment agreement prior to the worker departing from his or her
country of origin and there shall be no substitution or change(s) allowed in the employment
agreement upon arrival in the receiving country unless these changes are made to meet local law
and provide equal or better terms. All work must be voluntary, and workers shall be free to leave
work at any time or terminate their employment without penalty if reasonable notice is given as
per worker’s contract. Employers, agents, and sub-agents’ may not hold or otherwise destroy,
conceal, or confiscate identity or immigration documents, such as government-issued
identification, passports, or work permits. Employers can only hold documentation if such holdings
are required by law. In this case, at no time should workers be denied access to their documents.
Workers shall not be required to pay employers’ agents or sub-agents’ recruitment fees or other
related fees for their employment. If any such fees are found to have been paid by workers, such
fees shall be repaid to the worker within 30 days.

2) Young Workers
Child labor is not to be used in any stage of manufacturing. The term “child” refers to any person
under the greater of (i) the age of 15, (ii) the minimum applicable legal age for completing
compulsory education in a country, or (iii) under the minimum legal age for employment in the
country. Suppliers shall implement an appropriate mechanism to verify the age of workers. The
use of legitimate workplace learning programs, which comply with all laws and regulations, is
supported. Workers under the age of 18 (Young Workers) shall not perform work that is likely to
jeopardize their health or safety, including night shifts and overtime. Suppliers shall ensure proper
management of student workers through proper maintenance of student records, rigorous due
diligence of educational partner, and protection of students’ rights in accordance with applicable
laws and regulations. Suppliers shall provide appropriate support and training to all student
workers. In the absence of local law, the wage rate for student workers, interns, and apprentices
shall be at least the same wage rate as other entry-level workers performing equal or similar
tasks. If child labor is identified, assistance and remediation according to the stricter of
international standards or local standards shall be provided.

3) Working Hours
Studies of business practices clearly link worker strain to reduced productivity, increased turnover,
and increased injury and illness. Working hours are not to exceed the maximum set by local law.
Further, a workweek should not be more than 60 hours per week, including overtime, except in
emergency or uncommon circumstances. All overtime must be voluntary. Workers shall be
allowed at least one day off every seven days, defined as a rest period of at least 24 consecutive
hours every seven days. Suppliers must keep employee working hour and pay records in
accordance with local and national laws and provide records to Tesla upon request.
4) Wages and Benefits
Compensation paid to workers shall comply with all applicable wage laws, including those relating
to minimum wages, overtime hours and legally mandated benefits. In compliance with local laws,
workers shall be compensated for overtime at pay rates greater than regular hourly rates.
Deductions from wages as a disciplinary measure shall not be permitted. For each pay period,
workers shall be provided with a timely and understandable wage statement that includes
sufficient information to verify accurate compensation for work performed. All use of temporary,
dispatch and outsourced labor will be within the limits of the local law.

5) Humane Treatment
There is to be no harsh or inhumane treatment including violence, gender-based violence, sexual
harassment, sexual abuse, corporal punishment, mental or physical coercion, bullying, public
shaming, or verbal abuse of workers; nor is there to be the threat of any such treatment.
Disciplinary policies and procedures in support of these requirements shall be clearly defined and
communicated to workers.
 6) Non-Discrimination/Non-Harassment
Suppliers should be committed to a workplace free of harassment and unlawful discrimination.
Companies shall not engage in discrimination or harassment based on race, color, age, gender,
sexual orientation, gender identity and expression, ethnicity or national origin, disability,
pregnancy, religion, political affiliation, union membership, covered veteran status, protected
genetic information or marital status in hiring and employment practices such as wages,
promotions, rewards, and access to training. Workers shall be provided with reasonable
accommodation for religious practices. In addition, workers or potential workers should not be
subjected to medical tests, including pregnancy or virginity tests, or physical exams that could be
used in a discriminatory way. This was drafted in consideration of ILO Discrimination
(Employment and Occupation) Convention (No.111).

7) Freedom of Association
In conformance with local law, suppliers shall respect the right of all workers to form and join trade
unions of their own choosing, to bargain collectively, and to engage in peaceful assembly as well
as respect the right of workers to refrain from such activities. Workers and/or their representatives
shall be able to openly communicate and share ideas and concerns with management regarding
working conditions and management practices without fear of discrimination, reprisal,
intimidation, or harassment.

B. HEALTH AND SAFETY

Suppliers recognize that in addition to minimizing the incidence of work-related injury and illness,
a safe and healthy work environment enhances the quality of products and services, consistency
of production and worker retention and morale. Suppliers also recognize that ongoing worker
input and education are essential to identifying and solving health and safety issues in the
workplace. Recognized management systems such as ISO 45001and ILO Guidelines on
Occupational Safety and Health were used as references in preparing the Code and may be
useful sources of additional information. The health and safety standards are:

1) Occupational Safety
Worker potential for exposure to health and safety hazards (chemical, electrical and other energy
sources, fire, vehicles, and fall hazards, etc.) are to be identified and assessed, mitigated using
the Hierarchy of Controls, which includes eliminating the hazard, substituting processes or
materials, controlling through proper design, implementing engineering and administrative
controls, preventative maintenance and safe work procedures (including lockout/tagout), and
providing ongoing occupational health and safety training. Where hazards cannot be adequately
controlled by these means, workers are to be provided with appropriate, well-maintained, personal
protective equipment, and educational materials about risks to them associated with these
hazards. Reasonable steps must also be taken to remove pregnant women and nursing mothers
from working conditions with high hazards, remove or reduce any workplace health and safety
risks to pregnant women and nursing mothers, including those associated with their work
assignments, and provide reasonable accommodations for nursing mothers.

2) Emergency Preparedness
Potential emergency situations and events are to be identified and assessed, and their impact
minimized by implementing emergency plans and response procedures including emergency
reporting, employee notification and evacuation procedures, worker training, and drills.
Emergency drills must be executed at least annually or as required by local law, whichever is
more stringent. Emergency plans should also include appropriate fire detection and suppression
equipment, clear and unobstructed egress, adequate exit facilities, contact information for
emergency responders, and recovery plans. Such plans and procedures shall focus on minimizing
harm to life, the environment, and property.

3) Occupational Injury and Illness

Procedures and systems are to be in place to prevent, manage, track and report occupational
injury and illness, including provisions to encourage worker reporting, classify and record injury
and illness cases, provide necessary medical treatment, investigate cases and implement
corrective actions to eliminate their causes, and facilitate the return of workers to work.

4) Industrial Hygiene
Worker exposure to chemical, biological, and physical agents is to be identified, evaluated, and
controlled according to the Hierarchy of Controls. If any potential hazards were identified,
suppliers shall look for opportunities to eliminate and/or reduce the potential hazards. If
elimination or reduction of the hazards is not feasible, potential hazards are to be controlled
through proper design, engineering, and administrative controls. When hazards cannot be
adequately controlled by such means, workers are to be provided with and use appropriate, well-
maintained, personal protective equipment free of charge. Protective programs shall be ongoing
and include educational materials about the risks associated with these hazards.

5) Physically Demanding Work

Worker exposure to the hazards of physically demanding tasks, including manual material
handling and heavy or repetitive lifting, prolonged standing, and highly repetitive or forceful
assembly tasks is to be identified, evaluated, and controlled.

6) Machine Safeguarding
Production and other machinery shall be evaluated for safety hazards. Physical guards,
interlocks, and barriers are to be provided and properly maintained where machinery presents an
injury hazard to workers.

7) Sanitation, Food, and Housing

Workers are to be provided with ready access to clean toilet facilities, potable water and sanitary
food preparation, storage, and eating facilities. Worker dormitories provided by the Supplier or a
labor agent are to be maintained to be clean and safe, and provided with appropriate emergency
egress, hot water for bathing and showering, adequate lighting and heat and ventilation,
individually secured accommodations for storing personal and valuable items, and reasonable
personal space along with reasonable entry and exit privileges.

8) Health and Safety Communication

Suppliers shall provide workers with appropriate workplace health and safety information and
training in the language of the worker or in a language the worker can understand for all identified
workplace hazards that workers are exposed to, including but not limited to mechanical, electrical,
chemical, fire, physical hazards, pathogens, toxins, and other health related risks. Health and
safety related information shall be clearly posted in the facility or placed in a location identifiable
and accessible by workers. Training is provided to all workers prior to the beginning of work and
regularly thereafter. Workers shall be encouraged to raise any health and safety concerns without
retaliation.

C. ENVIRONMENT
Suppliers recognize that environmental responsibility is integral to producing world-class
products. Suppliers shall identify the environmental impacts and minimize adverse effects on the
community, environment, and natural resources within their manufacturing operations, while
safeguarding the health and safety of the public. Recognized management systems such as
ISO14001 and the Eco Management and Audit System (EMAS) were used as references in
preparing the Code and may be a useful source of additional information. Relevant environmental
standards to be followed are:

1) Environmental Permits and Reporting

All required environmental permits (e.g. discharge monitoring), approvals, and registrations are
to be obtained, maintained, and kept current and their operational and reporting requirements are
to be followed.

2) Pollution Prevention and Resource Reduction

Emissions and discharges of pollutants and generation of waste are to be minimized or eliminated
at the source or by practices such as adding pollution control equipment; modifying production,
maintenance, and facility processes; or by other means. The use of natural resources, including
water, fossil fuels, minerals, and virgin forest products, is to be conserved by practices such as
modifying production, maintenance and facility processes, materials substitution, re-use,
conservation, recycling, or other means.

3) Hazardous Substances
Chemicals, waste, and other materials posing a hazard to humans or the environment are to be
identified, labeled, and managed to ensure their safe handling, movement, storage, use, recycling
or reuse, and disposal.

4) Solid Waste
Suppliers shall implement a systematic approach to identify, manage, reduce, and responsibly
dispose of or recycle solid waste (non-hazardous). They shall supply the data for all products and
related services to Tesla upon request.

5) Air Emissions
Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone depleting
substances, and combustion byproducts generated from operations are to be characterized,
routinely monitored, controlled, and treated as required prior to discharge. Ozone-depleting
substances are to be effectively managed in accordance with the Montreal Protocol and
applicable regulations. Suppliers shall conduct routine monitoring of the performance of its air
emission control systems. They shall supply the data for all products and related services to Tesla
upon request.

6) Materials Restrictions
Suppliers are to adhere to all applicable laws, regulations, and customer requirements regarding
the prohibition or restriction of specific substances in products and manufacturing, including
labeling for recycling and disposal.

7) Water Management
Suppliers shall implement a water management program that documents, characterizes, and
monitors water sources, use and discharge, seeks opportunities to conserve water, and controls
channels of contamination. All wastewater is to be characterized, monitored, controlled, and
treated as required prior to discharge or disposal. Suppliers shall conduct routine monitoring of
the performance of its wastewater treatment and containment systems to ensure optimal
performance and regulatory compliance. They shall supply the data for all products and related
services to Tesla upon request.

8) Energy Consumption and Greenhouse Gas Emissions

Suppliers are to establish a greenhouse gas (“GHG”) data or all products and related services
supplied to Tesla upon request. Energy consumption and all relevant Scopes 1 and 2 greenhouse
gas emissions (using the GHG protocol) are to be tracked, documented, and publicly reported.
Where such tracking is not currently available Suppliers should establish a plan to implement
tracking within one-year and provide the data and/or components required to calculate GHG
emissions. Suppliers are to look for methods to improve energy efficiency and to minimize their
energy consumption and greenhouse gas emissions.

D. ETHICS
To meet social responsibilities and to achieve success in the marketplace, Suppliers and their
agents are to uphold the highest standards of ethics including:

1) Business Integrity
The highest standards of integrity are to be upheld in all business interactions. Suppliers shall
have a zero-tolerance policy to prohibit any and all forms of bribery, corruption, extortion, and
embezzlement.

2) No Improper Advantage
Bribes or other means of obtaining undue or improper advantage are not to be promised, offered,
authorized, given, or accepted. This prohibition covers promising, offering, authorizing, giving, or
accepting anything of value, either directly or indirectly through a third party, in order to obtain or
retain business, direct business to any person, or otherwise gain an improper advantage.
Monitoring, record keeping, and enforcement procedures shall be implemented to ensure
compliance with anti-corruption laws. Suppliers should refer to Tesla’s Worldwide Bribery and
Anti-Corruption Policy for additional guidance on acceptable gift giving.

3) Disclosure of Information
All business dealings should be transparently performed and accurately reflected on the
Supplier’s business books and records. Information regarding Supplier’s labor, health and safety,
environmental practices, business activities, structure, financial situation, and performance is to
be disclosed in accordance with applicable regulations and prevailing industry practices.
Falsification of records or misrepresentation of conditions or practices in the supply chain are
unacceptable.
 4) Intellectual Property
Intellectual property rights are to be respected, transfer of technology and know-how is to be done
in a manner that protects intellectual property rights, and customer and supplier information is to
be safeguarded.

5) Fair Business, Advertising and Competition

Suppliers shall understand and comply with all applicable fair business, advertising and
competition laws including fair trading and competition laws in the jurisdictions in which they
operate.

6) Protection of Identity and Non-Retaliation

Programs that ensure the confidentiality, anonymity, and protection of supplier and employee
whistleblowers are to be maintained, unless prohibited by law. Suppliers should have a
communicated process for their personnel to be able to raise any concerns without fear of
retaliation.

7) Responsible Sourcing of Minerals

Suppliers shall adopt a policy and exercise due diligence on the source and chain of custody of
the cobalt, tantalum, tin, tungsten, and gold in the products they manufacture to reasonably
assure that they are sourced in a way consistent with the Organization for Economic Co-operation
and Development (OECD) Guidance for Responsible Supply Chains of Minerals from Conflict-
Affected and High-Risk Areas or an equivalent and recognized due diligence framework.
Suppliers should also refer to our Human Rights & Responsible Materials policies for further
guidance.

8) Privacy
Suppliers are to commit to protecting the reasonable privacy expectations of personal information
of everyone they do business with, including suppliers, customers, consumers, and employees.
Suppliers are to comply with privacy and information security laws and regulatory requirements
when personal information is collected, stored, processed, transmitted, and shared.

E. MANAGEMENT SYSTEMS
Suppliers shall adopt or establish a management system with a scope that is related to the content
of this Code. The management system shall be designed to ensure: (a) compliance with
applicable laws, regulations and customer requirements related to the Supplier’s operations and
products; (b) conformance with this Code; and (c) identification and mitigation of operational risks
related to this Code. It should also facilitate continual improvement. The management system
should contain the following elements:

1) Company Commitment
Corporate social and environmental responsibility policy statements affirming Supplier’s
commitment to compliance and continual improvement, endorsed by executive management, and
posted in the facility in the local language.

2) Management Accountability and Responsibility

The Supplier clearly identifies senior executive and company representative(s) responsible for
ensuring implementation of the management systems and associated programs. Senior
management reviews the status of the management systems on a regular basis.

3) Legal and Customer Requirements

A process to identify, monitor and understand applicable laws, regulations, and customer
requirements, including the requirements of this Code.

4) Risk Assessment and Risk Management

A process to identify the legal compliance, environmental, health and safety labor practice and
ethics risks associated with Supplier’s operations. Determination of the relative significance for
each risk and implementation of appropriate procedural and physical controls to control the
identified risks and ensure regulatory compliance.

5) Improvement Objectives
Written performance objectives, targets and implementation plans to improve the Supplier’s
social, environmental, and health and safety performance, including a periodic assessment of
Supplier’s performance in achieving those objectives.

6) Training
Programs for training managers and workers to implement Supplier’s policies, procedures, and
improvement objectives and to meet applicable legal and regulatory requirements.
7) Communication
A process for communicating clear and accurate information about Supplier’s policies, practices,
expectations, and performance to workers, suppliers, and customers.

8) Worker Feedback, Participation and Grievance

Ongoing processes, including an effective grievance mechanism, to assess workers’
understanding of and obtain feedback on or violations against practices and conditions covered
by this Code and to foster continuous improvement. Workers must be given a safe environment
to provide grievance and feedback without fear of reprisal or retaliation. Suppliers must
periodically provide workers with information on all grievance procedures. No retaliation against
workers for raising workplace concerns may be tolerated, including personal attacks, intimidation,
or other threats against workers.

9) Audits and Assessments

Periodic self-evaluations to ensure conformity to legal and regulatory requirements, the content
of the Code, and customer contractual requirements related to social and environmental
responsibility.

10) Corrective Action Process

A process for timely correction of deficiencies identified by internal or external assessments,
inspections, investigations, and reviews.
11) Documentation and Records
Creation and maintenance of documents and records to ensure regulatory compliance and
conformity to company requirements along with appropriate confidentiality to protect privacy.

12) Supplier Responsibility

A process to communicate Code requirements to suppliers and to monitor supplier compliance
to the Code.

Last update July 2021