LEASES

6 Months Ended

Jun. 30, 2025

Leases [Abstract]

LEASES

LEASES

The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide.

In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classifies this lease as a finance lease because the Lease Agreement contains a purchase option which the Company is reasonably certain to exercise. As of June 30, 2025 and December 31, 2024, assets associated with the finance lease were $79.3 million. As of June 30, 2025 and December 31, 2024, liabilities associated with the finance lease were $79.7 million and $80.0 million, respectively.

Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other long-term liabilities in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s condensed consolidated balance sheets (in thousands):

	June 30, 2025		December 31, 2024
Operating leases:
Right-of-use assets	$	235,821	$	211,886
Other current liabilities	$	50,800	$	35,596
Other long-term liabilities	233,637		229,835
Total operating lease liabilities	$	284,437	$	265,431
Finance leases:
Property, plant and equipment, net(1)	$	183,472	$	82,823
Total finance lease assets	$	183,472	$	82,823
Finance lease liabilities, current portion	$	8,141	$	6,788
Finance lease liabilities, net of current portion	176,113		76,096
Total finance lease liabilities(1)	$	184,254	$	82,884

(1) As of June 30, 2025, the Company recorded $98.0 million of finance lease assets and $99.0 million of finance lease liabilities related to certain facility leases assumed in connection with the assets acquisition from Nikola Corporation.

The components of lease expense were as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease expense:
Operating lease expense(1)	$	19,217	$	15,419	$	35,698	$	30,429
Variable lease expense	$	607	$	463	$	1,177	$	910
Finance lease expense:
Amortization of leased assets	$	1,745	$	808	$	2,294	$	1,827
Interest on lease liabilities	2,746		1,165		3,935		2,334
Total finance lease expense	$	4,491	$	1,973	$	6,229	$	4,161
Total lease expense	$	24,315	$	17,855	$	43,104	$	35,500

(1) Excluded short-term leases, which were not material.

Other information related to leases where the Company is the lessee was as follows:

	June 30, 2025		December 31, 2024
Weighted-average remaining lease term (in years):
Operating leases	5.7		6.2
Finance leases	10.6		1.6
Weighted-average discount rate:
Operating leases	11.62	%	11.87	%
Finance leases	7.29	%	5.73	%

As of June 30, 2025, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):

	Operating Leases		Finance Leases
2025 (remainder of the year)	$	38,666	$	8,092
2026	81,362		92,377
2027	62,168		10,077
2028	58,419		8,784
2029	51,821		8,577
Thereafter	104,130		188,406
Total minimum lease payments	396,566		316,313
Less: Interest	(112,129)		(132,059)
Present value of lease obligations	284,437		184,254
Less: Current portion	(50,800)		(8,141)
Long-term portion of lease obligations	$	233,637	$	176,113

As of June 30, 2025, the Company entered into an additional lease for a facility that has not yet commenced with undiscounted future lease payments of $11.2 million. The lease is expected to commence in 2026.

LEASES

LEASES

The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide.

In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classifies this lease as a finance lease because the Lease Agreement contains a purchase option which the Company is reasonably certain to exercise. As of June 30, 2025 and December 31, 2024, assets associated with the finance lease were $79.3 million. As of June 30, 2025 and December 31, 2024, liabilities associated with the finance lease were $79.7 million and $80.0 million, respectively.

Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other long-term liabilities in the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024.

The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s condensed consolidated balance sheets (in thousands):

	June 30, 2025		December 31, 2024
Operating leases:
Right-of-use assets	$	235,821	$	211,886
Other current liabilities	$	50,800	$	35,596
Other long-term liabilities	233,637		229,835
Total operating lease liabilities	$	284,437	$	265,431
Finance leases:
Property, plant and equipment, net(1)	$	183,472	$	82,823
Total finance lease assets	$	183,472	$	82,823
Finance lease liabilities, current portion	$	8,141	$	6,788
Finance lease liabilities, net of current portion	176,113		76,096
Total finance lease liabilities(1)	$	184,254	$	82,884

(1) As of June 30, 2025, the Company recorded $98.0 million of finance lease assets and $99.0 million of finance lease liabilities related to certain facility leases assumed in connection with the assets acquisition from Nikola Corporation.

The components of lease expense were as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease expense:
Operating lease expense(1)	$	19,217	$	15,419	$	35,698	$	30,429
Variable lease expense	$	607	$	463	$	1,177	$	910
Finance lease expense:
Amortization of leased assets	$	1,745	$	808	$	2,294	$	1,827
Interest on lease liabilities	2,746		1,165		3,935		2,334
Total finance lease expense	$	4,491	$	1,973	$	6,229	$	4,161
Total lease expense	$	24,315	$	17,855	$	43,104	$	35,500

(1) Excluded short-term leases, which were not material.

Other information related to leases where the Company is the lessee was as follows:

	June 30, 2025		December 31, 2024
Weighted-average remaining lease term (in years):
Operating leases	5.7		6.2
Finance leases	10.6		1.6
Weighted-average discount rate:
Operating leases	11.62	%	11.87	%
Finance leases	7.29	%	5.73	%

As of June 30, 2025, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):

	Operating Leases		Finance Leases
2025 (remainder of the year)	$	38,666	$	8,092
2026	81,362		92,377
2027	62,168		10,077
2028	58,419		8,784
2029	51,821		8,577
Thereafter	104,130		188,406
Total minimum lease payments	396,566		316,313
Less: Interest	(112,129)		(132,059)
Present value of lease obligations	284,437		184,254
Less: Current portion	(50,800)		(8,141)
Long-term portion of lease obligations	$	233,637	$	176,113

As of June 30, 2025, the Company entered into an additional lease for a facility that has not yet commenced with undiscounted future lease payments of $11.2 million. The lease is expected to commence in 2026.