Property and Equipment, net

12 Months Ended

Dec. 31, 2023

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following as of December 31, 2023 and 2022 (in thousands):


	As of December 31,
	2023		2022
Tooling	$	483,685	$	—
Machinery and equipment	95,974		9,298
Vehicles	27,442		—
Furniture and fixtures	844		470
IT hardware and software	12,905		6,427
Leasehold improvements	2,477		634
Construction in progress	6,760		372,789
Total property and equipment	630,087		389,618
Less: Accumulated depreciation and amortization	(59,180)		(2,481)
Property and equipment, net	$	570,907	$	387,137

Construction in progress is comprised primarily of costs incurred to construct serial production tooling located at affiliates of Magna and our suppliers. Such assets will be depreciated over the estimated useful lives of the assets once the asset is in the condition necessary for it to operate as intended. Property and equipment is primarily located in Europe.

Depreciation and amortization for the years ended December 31, 2023, 2022, and 2021 was $56.7 million, $1.9 million and $0.8 million, respectively. As of December 31, 2023 and 2022, accounts payable and accrued liabilities includes property and equipment of $161.5 million and $144.8 million, respectively, which is excluded from net cash used in investing activities as reported in the Consolidated Statement of Cash Flows. Total depreciation expense capitalized to inventory for the years ended December 31, 2023 and 2022 was $43.8 million and nil, respectively.

In 2023, the Company recognized an asset retirement obligation (“ARO”) totaling $0.5 million, which represents the estimated costs to remove tooling at the Magna facility at the end of the contractual arrangement with Magna. The ARO is recorded in Other non-current liabilities in the Consolidated Balance Sheets, while a comparable amount is capitalized as part of the cost of the tooling asset above and depreciated over its useful life.

The amounts in the table above as of December 31, 2022 have been updated to correct a disclosure classification error between fixed asset categories such that Machinery and equipment was overstated and Construction in progress was understated by $33.0 million. The Company determined the error was not material to its previously issued financial statements as it did not affect the Company's financial position as of December 31, 2022 or its results from operations and cash flows for the year ended December 31, 2022.