Organization: Tesla, Inc.

Year: 2015

Resolved: Resolved: That TM consider establishing goals that: 1. Reduce the use of animal-sourced materials by 5% in 2016, 30% in 2017, and 60% in 2018, with complete elimination by EOY 2019 (baseline: 2014); and, 2. Cease the practice of penalizing customers who choose the most environmentally conscious, non-animal sourced interior choices, by EOY 2015. (Under current ordering protocols, if a leather interior is not ordered, Next-Generation seats, door panel, footwell and trunk lighting become unavailable or are downgraded.)

Supporting Statement:Supporting Statement: Tesla Motors (TM) was created, in part, to address the significant environmental impact inherent in fossil-fuel powered transportation. While the Company seeks environmentally sustainable solutions, TM has made choices which conflict with these goals. This proposal highlights the significant negative environmental impact of using animal-sourced products in TM's products, and suggests TM minimize and then eliminate their use. Negative Environmental Impact In 2006 the UN Food and Agriculture Organization reported: With rising temperatures, rising sea levels, melting icecaps and glaciers, shifting ocean currents and weather patterns, climate change is the most serious challenge facing the human race. The livestock sector is a major player, responsible for 18 percent of greenhouse gas emissions measured in C02 equivalent. This is a higher share than transport. [ftp.fao.org/docrep/fao/010/a0701e/a0701eOO.pdf] This has also been supported in other research and was highlighted m the 2014 documentary, Cowspiracy. Consumer Acceptance of Alternatives Daimler AG, an early TM investor, has demonstrated high customer acceptance of the comfort, appearance, and durability of non-animal sourced interiors. The non-profit Consumer Reports, which accepts no advertising and anonymously purchases their test vehicles, stated the following in reviewing the 2014 Mercedes-Benz E-Class: Expectations are high for a Mercedes interior and this one doesn't disappoint. Almost every dashboard and door panel surface is covered with soft-touch materials. Swaths of wood encircle the interior and run down the center console. Lots of chrome bits liven up the cabin as does a fancy analog clock in the center dashboard. The faux leather perforated MB-Tex seats are convincing. [www.consumerreports.org/cro/mercedes-benz/e-class/sedan-e250-bluetec-4-cyl/road-test.htm] Their review of the 2015 C-Class was similar: Inside you'll find the expected Mercedes upscale execution, with a high-quality feel to every surface, switch, and button, and nothing garish or flashy. The artificial-leather upholstery, called MB-Tex, is the most believable fake leather you'll find anywhere, and honestly, it can pass for the real thing. -15- [www.consumerreports.org/cro/news/2014/08/all-new-2015-mercedes-benz-c-class-looks-to-be-a-luxurious- crowd-pleaser/index.htm] Audi, BMW, Lexus, Infiniti, among others, also offer non-animal interiors in many markets. Tesla Motors Guidance Given these facts, it is in both the shareholders' and our planet's best interests to eliminate the use of animal-sourced materials in TM's products. This proposal encourages TM to consider establishing goals that: 1. Reduce the use of animal-sourced materials by 5% in 2016, 30% in 2017, and 60% in 2018, with complete elimination by EOY 2019 (baseline: 2014); and, 2. Cease the practice of penalizing customers who choose the most environmentally conscious, non-animal sourced interior choices, by EOY 2015. (Under current ordering protocols, if a leather interior is not ordered, Next-Generation seats, door panel, footwell and trunk lighting become unavailable or are downgraded.) Conclusion I ask for your support of this proposal because the evidence is overwhelming: GHG emissions from animal sources are a major threat. The elimination of animal-sourced materials from TM's products will decrease the company's environmental impact without penalty to our customers' wants, needs or tastes. It is the right thing to do for TM, the planet, and all beings that live on it.