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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows:
•Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3—Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs may result in a significantly higher or lower measurement.
Cash, cash equivalents and investments are reported at their respective fair values on the Company’s condensed consolidated balance sheets. The Company’s short-term and long-term investments are classified as available-for-sale securities.
The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2024 and December 31, 2023 (in thousands):
June 30, 2024
Reported As:
Amortized costGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and cash equivalentsShort-Term InvestmentsLong-Term Investments
Cash$495,575 $— $— $495,575 $495,575 $— $— 
Level 1:
Money market funds661,932 — — 661,932 661,932 — — 
U.S. Treasury securities2,110,009 214 (3,054)2,107,169 162,832 1,411,255 533,082 
Subtotal2,771,941 214 (3,054)2,769,101 824,764 1,411,255 533,082 
Level 2:
Certificates of deposit23,313 6 — 23,319 — 23,319 — 
Time deposits
100,000 — — 100,000 — 100,000 — 
Commercial paper112,951 — (41)112,910 18,803 94,107 — 
Corporate debt securities403,412 211 (458)403,165 14,439 234,167 154,559 
Subtotal639,676 217 (499)639,394 33,242 451,593 154,559 
Total
$3,907,192 $431 $(3,553)$3,904,070 $1,353,581 $1,862,848 $687,641 
December 31, 2023
Reported As:
Amortized costGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and cash equivalentsShort-Term InvestmentsLong-Term Investments
Cash $516,673 $— $— $516,673 $516,673 $— $— 
Level 1:
Money market funds698,702 — — 698,702 698,702 — — 
U.S. Treasury securities2,033,711 2,480 (2,073)2,034,118 104,572 1,638,537 291,009 
Subtotal2,732,413 2,480 (2,073)2,732,820 803,274 1,638,537 291,009 
Level 2:
Certificates of deposit105,993 97 (22)106,068 — 106,068 — 
Time Deposits
50,000 — — 50,000 50,000 — — 
Commercial paper299,248 191 (8)299,431 — 299,431 — 
Corporate debt securities615,350 1,101 (669)615,782 — 445,762 170,020 
Subtotal1,070,591 1,389 (699)1,071,281 50,000 851,261 170,020 
Total$4,319,677 $3,869 $(2,772)$4,320,774 $1,369,947 $2,489,798 $461,029 

During the three and six months ended June 30, 2024 and 2023, there were immaterial realized gains or losses on the sale of available-for-sale securities. Accrued interest receivable excluded from both the fair value and amortized cost basis of the available-for-sale securities was $12.0 million and $11.1 million as of June 30, 2024 and December 31, 2023, respectively, and was recorded in other current assets on its condensed consolidated balance sheets. As of June 30, 2024 and December 31, 2023, no allowance for credit losses was recorded related to an impairment of available-for-sale securities.

The following table summarizes our available-for-sale securities by contractual maturity:

June 30, 2024
Amortized costEstimated Fair Value
Within one year$1,864,118 $1,862,848 
After one year through three years689,493 687,641 
Total$2,553,611 $2,550,489 

On November 6, 2023, the Company received 28,352,273 ordinary shares of Aston Martin with an initial fair value of $73.2 million. The Company remeasured the shares and recorded fair values of $51.5 million and $81.5 million within investments in equity securities of a related party in the condensed consolidated balance sheets as of June 30, 2024 and December 31, 2023, respectively. These equity securities are publicly traded stocks (where shares are denominated in GBP) measured at fair value on a recurring basis and classified within level 1 in the fair value hierarchy. During the three and six months ended June 30, 2024, the Company recognized unrealized losses of $9.4 million and $29.3 million in change of fair value of equity securities of a related party in the condensed consolidated statement of operations and comprehensive loss, respectively. During the three and six months ended June 30, 2024, the Company also recognized an unrealized foreign currency gain of $0.1 million and an unrealized foreign currency loss of $0.7 million related to these equity securities in other expense, net in the condensed consolidated statement of operations and comprehensive loss, respectively. See Note 16 “Related Party Transactions” for more information.

Level 3 liabilities consist of the common stock warrant liability and the derivative liability associated with the Series A Redeemable Convertible Preferred Stock, of which the fair values were measured upon issuance of the Private Placement Warrants and the Series A Redeemable Convertible Preferred Stock, respectively, and are remeasured at each reporting period. The valuation methodology and underlying assumptions are discussed further in Note 7 “Common Stock Warrant Liability” and Note 8 “Redeemable Convertible Preferred Stock”, respectively. Level 3 liabilities also consist of residual value guarantee liabilities, of which the fair value is measured initially upon delivery of vehicles and assessed subsequently for any changes on a quarterly basis. Significant changes in the unobservable inputs used in determining the fair value would result in significant changes to the fair value measurement. The following table presents a reconciliation of the common stock warrant liability and derivative liability measured and recorded at fair value on a recurring basis (in thousands):
Three Months Ended June 30,Six Months Ended June 30
2024
2023
20242023
Derivative Liability
Common Stock Warrant Liability
Common Stock Warrant Liability
Derivative LiabilityCommon Stock Warrant LiabilityCommon Stock Warrant Liability
Fair value-beginning of period$497,100 $26,610 $181,392 $— $53,664 $140,590 
Issuance
— — — 497,100 — — 
Change in fair value(103,000)(7,539)(42,133)(103,000)(34,593)(1,331)
Fair value-end of period$394,100 $19,071 $139,259 $394,100 $19,071 $139,259