Property and Equipment, Net

9 Months Ended

Sep. 30, 2021

Property, Plant and Equipment [Abstract]

Property and equipment, net, consists of the following:


	September 30, 2021		December 31, 2020
Land	$	13,043	$	13,043
Buildings	21,899		21,899
Building improvements	8,940		8,940
Computer hardware	4,058		4,058
Tooling, machinery, and equipment	8,435		5,451
Vehicles	583		583
Computer software	7,095		7,095
Leasehold improvements	298		298
Construction in process	218,332		251,633
Less: Accumulated depreciation	(21,121)		(19,067)
Total property and equipment, net	$	261,562	$	293,933

During the nine months ended September 30, 2021, the Company acquired fixed assets of $37,264, and recorded substantially all as construction in process property and equipment. The change in Property and Equipment, net balance as of September 30, 2021, includes disposals of $70,851 of construction in process relating to the abandonment of certain FF 91 program assets, primarily vendor tooling and machinery and equipment, due to the redesign of the related FF 91 components and implementation of the Company’s cost reduction program. Disposals of construction in process property and equipment that the Company paid for in the amount of $62,342 and $62,987 was charged to operating expenses in the unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2021, respectively. Other disposals of construction in process property and equipment in the amount of $7,864 reduced Accounts Payable in the unaudited Condensed Consolidated Balance Sheet as of September 30, 2021.

Due to the build out of the Company’s manufacturing facility in Hanford, California, the Company established an asset retirement obligation (“ARO”) of $2,974 during the three months ended September 30, 2021. The Company recorded an ARO liability and a corresponding ARO asset, within tooling, machinery, and equipment. The ARO asset will be depreciated to operating expenses over the remaining term of the lease through December 2027.Depreciation expense related to property and equipment totaled $659 and $2,529 for the three and nine months ended September 30, 2021, respectively. Depreciation expense related to property and equipment totaled $942 and $3,046 for the three and nine months ended September 30, 2020, respectively.