Note 5 – Inventory

Our inventory consisted of the following (in thousands):


	September 30, 2018		December 31, 2017
Raw materials	$	997,476	$	821,396
Work in process		358,113		243,181
Finished goods		1,657,339		1,013,909
Service parts		301,199		185,051
Total	$	3,314,127	$	2,263,537

Finished goods inventory included vehicles in transit to fulfill customer orders, new vehicles available for immediate sale at our retail and service center locations, used Tesla vehicles and energy storage products. During the third quarter of 2018, we made the decision to utilize some of our fleet cars as service loaners on a long-term basis. As a result, we reclassified $72.8 million of finished goods inventory to property, plant and equipment.

For solar energy systems, leased and to be leased, we commence transferring component parts from inventory to construction in progress, a component of solar energy systems, leased and to be leased, once a lease contract with a customer has been executed and installation has been initiated. Additional costs incurred on the leased systems, including labor and overhead, are recorded within construction in progress.

We write-down inventory for any excess or obsolete inventories or when we believe that the net realizable value of inventories is less than the carrying value. During the three and nine months ended September 30, 2018, we recorded write-downs of $12.4 million and $54.3 million, respectively, in cost of revenues. During the three and nine months ended September 30, 2017, we recorded write-downs of $26.2 million and $93.0 million, respectively, in cost of revenues.