TSLATesla, Inc.

We note your response in your letter dated April 27, 2021 to our prior comment. You disclose that you earn tradeable credits in the operation of your business for zero-emission vehicles, greenhouse gas, fuel economy and clean fuel.

Rest of the question

It appears the sales of regulatory credits may be a revenue stream that is distinct from your automotive sales and appears to have a material impact on your consolidated gross margin, automotive sales gross margin and net income. As such, it continues to be unclear why you have chosen to include regulatory credit sales in your presentation of automotive sales on the face of your financial statements and automotive gross margin disclosed outside your financial statements. Please address the following items regarding your sales of regulatory credits: • In your response to our comment you state that you “have chosen to combine regulatory credit sales in the “Automotive sales” financial statement line item because: The regulatory credit sales included in the automotive sales revenue line item relate solely to, and are the direct outcome of, the production and sale of our new vehicles”. Please provide us with a fulsome analysis that supports your choice to present the sale of regulatory credits within the Automotive sales line item. Specifically address and compare and contrast automotive sales and the sale of regulatory credits. Without limitation, address the nature of the underlying item sold, the timing of when the item is available for internal use and/ to be sold to a third party and the conditions and timing of when you recognize the sale. • Please quantify for us your sales of other regulatory credits or incentives (e.g. Solar/renewable energy) not included in your Automotive Sales line item of your Statement of Operations. In addition, clarify for us where sales of non-automotive credits and incentives are presented in the Statement of Operations. Without limitation, specifically address the Governmental Programs, Incentives and Regulations noted in your disclosures on page 9 and page 73. • In future filings, expand your Results of Operations in MD&A to separately address the impact the sale of all regulatory credits and incentives had on your gross profit and net income. You should emphasize that the sales of regulatory credits have no associated cost and the timing of such sales is not necessarily correlated to the actual sales of automobiles.

On behalf of Tesla,

Inc. (“Tesla” “us,” “we” or “our”), we acknowledge receipt of the letter dated December 23, 2021 (the “Comment Letter”) from the staff (the “Staff”) of the Securities and Exchange relating to the above-referenced filing.

We are working to respond to the Comment Letter. However, we will require additional time to consider and respond to the Staff’s comments. Accordingly, we respectfully request an extension of ten business days to respond to the Comment Letter such that we would respond by January 25, 2022.

We are grateful for the Staff’s accommodation in this matter.

Rest of the answer

Please do not hesitate to call me at 510-946-6441 with any questions you may have.

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