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 (dollars in thousands):


	2023		2022
Land, buildings and leasehold improvements	$	103,522	$	5,598
Computer hardware	2,195		3,112
Tooling, machinery and equipment	318,301		9,542
Vehicles	669		337
Lease vehicles	1,873		—
Computer software	4,301		4,212
Construction in process	36,491		393,814
Less: Accumulated depreciation	(49,540)		(10,295)
Total property and equipment, net	$	417,812	$	406,320

The Company’s CIP is primarily related to the construction of tooling, machinery and equipment for the FF ieFactory California. Tooling, machinery, and equipment are either held at Company facilities, primarily FF ieFactory California, or at the vendor’s location until the tooling, machinery and equipment is completed. Of the $36.5 million and $393.8 million of CIP, $4.8 million and $195.7 million is held at Company facilities and $31.7 million and $198.1 million is held at vendor locations as of December 31, 2023 and 2022, respectively.

Depreciation and amortization expense totaled $42.5 million and $3.0 million for the years ended December 31, 2023 and 2022, respectively.

Due to the build out of the FF ieFactory California, the Company has an asset retirement obligation (“ARO”) totaling $0.7 million and $9.4 million for the years ended December 31, 2023 and 2022, respectively. The ARO is recorded to Other liability, less current portion with a corresponding ARO asset within Land, buildings and leasehold improvements and Tooling, machinery, and equipment. The ARO asset is depreciated to operating expense over the remaining term of the lease through December 2027.

During 2023 and 2022, the Company disposed of $4.6 million and $9.6 million, respectively, of CIP relating to the abandonment of certain FF 91 program assets, primarily vendor tooling, machinery and equipment, due to the redesign of the related FF 91 components and implementation of the Company’s cost reduction program. Disposals of CIP of $4.6 million and $3.7 million were charged to operating expenses in the Consolidated Statements of Operations and Comprehensive Loss during the year ended December 31, 2023 and 2022, respectively. In addition, there were disposals of CIP of $5.9 million for the year ended December 31, 2022, which reduced Accounts payable in the Consolidated Balance Sheet as of December 31, 2022.