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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
 6 Months Ended
Jun. 30, 2025
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 certain 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. Carrying amounts of accounts receivable, accounts payable, and other current liabilities approximate their estimated fair values.
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, 2025 and December 31, 2024 (in thousands):
June 30, 2025
Reported As:
Amortized costGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and cash equivalentsShort-Term InvestmentsLong-Term Investments
Cash$684,563 $— $— $684,563 $684,563 $— $— 
Level 1:
Money market funds858,305 — — 858,305 858,305 — — 
U.S. Treasury securities1,051,568 3,769 (33)1,055,304 155,475 555,793 344,036 
Subtotal1,909,873 3,769 (33)1,913,609 1,013,780 555,793 344,036 
Level 2:
Time deposits(1)
405,000 — — 405,000 75,000 300,000 30,000 
Commercial paper27,863 — (3)27,860 22,376 5,484 — 
Corporate debt securities568,353 3,161 (10)571,504 — 168,863 402,641 
Subtotal1,001,216 3,161 (13)1,004,364 97,376 474,347 432,641 
Total
$3,595,652 $6,930 $(46)$3,602,536 $1,795,719 $1,030,140 $776,677 
(1) Included $35.0 million and $30.0 million of time deposits with GIB in short-term investments and long-term investments, respectively. GIB is a related party of the PIF, which is an affiliate of Ayar. See Note 16 “Related Party Transactions” for more information.
December 31, 2024
Reported As:
Amortized costGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and cash equivalentsShort-Term InvestmentsLong-Term Investments
Cash $610,201 $— $— $610,201 $610,201 $— $— 
Level 1:
Money market funds677,712 — — 677,712 677,712 — — 
U.S. Treasury securities2,310,538 2,820 (531)2,312,827 173,341 1,605,369 534,117 
Subtotal2,988,250 2,820 (531)2,990,539 851,053 1,605,369 534,117 
Level 2:
Certificates of deposit3,998 1 — 3,999 — 3,999 — 
Time deposits(1)
515,000 — — 515,000 60,000 435,000 20,000 
Commercial paper141,525 25 (4)141,546 75,442 66,104 — 
Corporate debt securities781,178 1,281 (553)781,906 10,169 313,631 458,106 
Subtotal1,441,701 1,307 (557)1,442,451 145,611 818,734 478,106 
Total$5,040,152 $4,127 $(1,088)$5,043,191 $1,606,865 $2,424,103 $1,012,223 
(1) Included $15.0 million and $20.0 million of time deposits with GIB in short-term investments and long-term investments, respectively. See Note 16 “Related Party Transactions” for more information.
During the three and six months ended June 30, 2025 and 2024, there were immaterial gross 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 $22.7 million and $19.6 million as of June 30, 2025 and December 31, 2024, respectively, and was recorded in other current assets on its condensed consolidated balance sheets. As of June 30, 2025 and December 31, 2024, 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, 2025
Amortized cost
Estimated Fair Value
Within one year$1,028,547 $1,030,140 
After one year through three years771,387 776,677 
Total$1,799,934 $1,806,817 
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 $31.1 million and $37.8 million within investments in equity securities of a related party in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, 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. The Company recognized an unrealized gain of $3.9 million and an unrealized loss of $9.5 million during the three and six months ended June 30, 2025, respectively, and unrealized losses of $9.4 million and $29.3 million for the same periods in the prior year, respectively, in change of fair value of equity securities of a related party in the condensed consolidated statement of operations and comprehensive loss. The Company also recognized unrealized foreign currency gains of $1.6 million and $2.8 million during the three and six months ended June 30, 2025, respectively, and an unrealized foreign currency gain of $0.1 million and an unrealized foreign currency loss of $0.7 million for the same periods in the prior year, respectively, related to these equity securities in other income (expense), net in the condensed consolidated statement of operations and comprehensive loss. See Note 16 “Related Party Transactions” for more information.
Level 3 liabilities consist of the common stock warrant liability and the derivative liabilities associated with the Redeemable Convertible Preferred Stock, of which the fair values were measured upon issuance of the Private Placement Warrants and the Redeemable Convertible Preferred Stock 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 measured and recorded at fair value on a recurring basis (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Fair value-beginning of period$6,653 $26,610 $19,514 $53,664 
Change in fair value(5,322)(7,539)(18,183)(34,593)
Fair value-end of period$1,331 $19,071 $1,331 $19,071 
The following table presents a reconciliation of the derivative liabilities associated with the Redeemable Convertible Preferred Stock measured and recorded at fair value on a recurring basis (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Series A Derivative LiabilitySeries B Derivative Liability
Series A Derivative Liability
Series A Derivative LiabilitySeries B Derivative Liability
Series A Derivative Liability
Fair value-beginning of period$232,100 $125,625 $497,100 $408,800 $230,625 $— 
Issuance
— — — — — 497,100 
Change in fair value(76,900)(34,575)(103,000)(253,600)(139,575)(103,000)
Fair value-end of period$155,200 $91,050 $394,100 $155,200 $91,050 $394,100