Property and Equipment, Net

6 Months Ended

Jun. 30, 2023

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following (in thousands):


	As of June 30, 2023		As of December 31, 2022
Tooling	$	415,411	$	—
Machinery and equipment	107,444		9,298
Furniture and fixtures	595		470
IT hardware and software	11,311		6,427
Leasehold improvements	646		634
Construction in progress	16,950		372,789
Total property and equipment	552,357		389,618
Less: Accumulated depreciation and amortization	(12,615)		(2,481)
Property and equipment, net	$	539,742	$	387,137

Construction in progress is comprised primarily of costs incurred to construct serial production tooling located at affiliates of Magna and our suppliers. Assets of $415.4 million that are ready for their intended use have changed categories from Construction in progress to Tooling during the six-months ended June 30, 2023. Assets of $79.9 million have also changed categories from Construction in progress to Machinery and equipment during the six-months ended June 30, 2023. Depreciation expense for the three and six-months ended June 30, 2023 was $11.6 million and $12.9 million, respectively, and $0.4 million and $0.6 million , respectively, for the three and six-months ended June 30, 2022.

As of June 30, 2023, accounts payable and accrued expenses includes acquired property and equipment of $172.8 million compared to $144.8 million as of December 31, 2022, which is excluded from net cash used in investing activities as reported in the condensed consolidated statement of cash flows for the six-months ended June 30, 2023.