Property and Equipment, net

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment, Net [Abstract]

Property and Equipment, net

Property and Equipment, net

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

	September 30, 2024		December 31, 2023
Tooling, machinery, and equipment	$	51,450	$	44,025
Computer hardware	8,925		8,921
Computer software	9,835		9,835
Vehicles	1,695		1,528
Building	28,475		28,475
Land	5,800		5,800
Furniture and fixtures	877		788
Leasehold improvements	2,095		17,470
Construction-in-progress	312,030		307,489
Total property and equipment	421,182		424,331
Less: Accumulated depreciation	(52,442)		(47,231)
Total property and equipment, net	$	368,740	$	377,100

Construction-in-progress is primarily related to the development of manufacturing lines as well as equipment and tooling necessary in the production of the Company’s vehicles. Completed tooling assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use.

As a result of the Torrance reorganization discussed in Note 5, the Company re-evaluated its asset grouping and recognized an impairment loss of $9.2 million related to its leasehold improvements.

Depreciation expense for property and equipment was $3.8 million and $10.6 million for the three and nine months ended September 30, 2024 respectively, of which a nominal amount is included in Cost of revenue. Depreciation expense for property and equipment was $1.5 million and $10.6 million for the three and nine months ended September 30, 2023, respectively.