ITEM 1A. RISK FACTORS Our operations and financial results are subject to various risks and uncertainties, including the factors discussed in Part I, Item 1A, Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A, Risk Factors in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, which could adversely affect our business, financial conditions and future results. Other than the risk factors set forth below, there have been no material changes from the risk factors discussed in our Annual Report. We face risks associated with maintaining and expanding Quarterly Reports. Demand for our international operations, including unfavorable and uncertain regulatory, political, economic, tax, tariff, export controls and labor conditions. We are subject to legal and regulatory requirements, political uncertainty and social, environmental and economic conditions in numerous jurisdictions, including markets in which we generate significant sales. We have little control over these matters which are inherently unpredictable. Our operations in such jurisdictions, particularly as a company based in the U.S., with additional manufacturing operations in China and Europe, create risks relating to conforming our products to regulatory and safety requirements services and charging and other electric infrastructures; organizing local operating entities; establishing, staffing and managing foreign business locations; attracting local customers; navigating U.S. and foreign government taxes, regulations and permit requirements; enforceability of our contractual rights; trade restrictions, customs regulations, tariffs and price or exchange controls; and preferences in foreign nations for domestically manufactured products. For example, we monitor tax legislation changes on a global basis, including changes arising as a result of financial results may be impacted by the Organization for Economic Cooperation and Developments multi-jurisdictional plan status of action to address base erosion government and profit shifting. Further, economic incentives supporting the United States has recently announced changes to U.S. trade policy, including increasing tariffs on imports, in many cases significantly, development and potentially renegotiating or terminating existing trade agreements. The exact scope adoption of any such tariffs that will ultimately be implemented is not known at this time, products. Government and economic incentives that support the impacts on our business development and costs adoption of our products is uncertain. Retaliatory tariffs imposed by other countries on U.S. exports, further increases electric vehicles in the U.S. tariffs, and the uncertainties surrounding domestic abroad, including certain tax exemptions, tax credits and foreign tariffs could also adversely impact demand for our products. We cannot predict whether, and to what extent, there rebates, may be changes to international trade agreements, such as those with China, reduced, eliminated, amended or whether, or exhausted from time to what extent, quotas, duties, additional tariffs, export controls time. For example, previously available incentives favoring electric vehicles in certain areas have expired or other restrictions will be changed were cancelled or imposed by the United States temporarily unavailable, and in some cases were not eventually replaced or by other countries. Historically, past U.S. special tariff reinstituted, which may have negatively impacted sales. Specifically, recent governmental and regulatory actions have increased repealed and/or restricted consumer, manufacturing and charging infrastructure tax credits, and certain regulatory credit programs tied to our costs for vehicles manufactured products. These, and any similar actions in the United States and increased costs future, may affect demand for those same vehicles when exported from the United States. Further, as it pertains to electric vehicles our vehicles, and lithium-ion batteries for harm our energy storage products, while the Company has continuously aimed for a strong domestic supply chain, certain parts growth, prospects and components are difficult or impossible to source within operating results, and the United States. A change on any loss of these conditions previously available tax credits and carbon offset mechanisms may increase our costs, further negatively impact our ability to sell our products financial results. In addition, certain government and require significant management attention, and economic incentives may harm also be implemented or amended to provide benefits to manufacturers who assemble domestically, have local suppliers or have other characteristics that may not apply to Tesla. Such developments could negatively impact demand for our business, prospects, financial condition vehicles, and operating results if we are unable to manage them effectively. We will need to maintain public credibility and confidence in our long-term business prospects in order customers may have to succeed. In order adjust to maintain them, including through pricing modifications. In addition, certain governmental rebates, tax credits and grow other financial incentives that are currently available with respect to our business, we must maintain credibility solar and confidence among customers, suppliers, analysts, investors, ratings agencies and other parties in energy storage product businesses allow us to lower our long-term financial viability costs and business prospects. Maintaining such confidence may be challenging due encourage customers to buy our limited operating history relative products and investors to established competitors; customer unfamiliarity with invest in our products; any delays we solar financing funds. However, these incentives may experience expire when the allocated funding is exhausted, reduced or terminated as renewable energy adoption rates increase, sometimes without warning. For example, provisions of the OBBBA could affect battery cell expenses and impact costs for our consumers, negatively impacting demand. Likewise, in scaling manufacturing, delivery jurisdictions where net metering is currently available, our customers receive bill credits from utilities for energy that their solar energy systems generate and service operations export to meet demand; competition and uncertainty regarding the future grid in excess of the electric vehicles load they use. The benefit available under net metering has been or our other products has been proposed to be reduced, altered or eliminated in several jurisdictions, and services; our quarterly production has also been contested and sales performance compared with market expectations; and other factors including those over which we have no control. In particular, Teslas products, business, results of operations, and statements and actions of Tesla and its management are subject to significant amounts of commentary by a range of third parties. Such attention can include criticism, which may continue to be exaggerated or unfounded, such as speculation regarding contested before the sufficiency Federal Energy Regulatory Commission. Any reductions or stability terminations of such incentives may harm our management team, business, prospects, financial condition and has incited protests, some escalating to violence targeting operating results by making our operations, products and personnel. Any such negative perceptions, whether caused by us or not, may harm less competitive for customers, increasing our brand cost of capital and adversely impacting our business (including sales) ability to attract investment partners and make it more difficult to raise additional form new financing funds if needed. for our solar and energy storage assets.