Risk Factors Update Summary

• Net losses increased from $6.8 billion to $5.4 billion for the year ended December 31, 2022 and 2023, respectively.
• Construction of Stanton Springs North Facility in 2024 requires substantial capital and permits.
• We have experienced and may in the future experience work stoppages, which can hamper production.
• We have increased compensation in the Normal, IL area to attract employees.
• The company transitioned to large-scale manufacturing, incurring significant expenses and losses for the foreseeable future.
• Changes in regulations could discourage consumer demand for EVs, impacting profitability.
• New regulations may significantly increase accounting, legal, and financial compliance costs.
• The company expects to continue incurring significant costs for production, research, and development, impacting financial results.
• We initiated a voluntary recall impacting 1,500 vehicles due to a software update issue.
• The company faces challenges in managing growth, including hiring skilled personnel and controlling costs.
• We may face higher costs if we are unable to hire employees at the Normal Factory.
• The company may face opposition from local anti-expansion groups, leading to unforeseen challenges.
• We may be impacted by delays or denials in obtaining permits for our Stanton Springs North Facility.
• The company's success depends on effectively managing expansion and growth to avoid adverse financial impacts.
• Our financial results may vary significantly due to seasonality and external factors.
• The company's ability to attract and retain skilled personnel is crucial for supporting expansion and growth.
• Failure to comply with IT and IP policies may lead to public disclosure of sensitive information.