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Inventory

6 Months Ended

Jun. 30, 2019

Note 6 – Inventory

Our inventory consisted of the following (in thousands):

	June 30,		December 31,
	2019		2018
Raw materials	$	1,095,888	$	931,828
Work in process		334,641		296,991
Finished goods		1,600,214		1,581,763
Service parts		351,615		302,864
Total	$	3,382,358	$	3,113,446

Finished goods inventory included vehicles in transit to fulfill customer orders, new vehicles available for immediate sale at our retail and service center locations, used vehicles and energy storage products

For solar energy systems, we commence transferring component parts from inventory to construction in progress, a component of solar energy systems, once a lease contract with a customer has been executed and installation has been initiated. Additional costs incurred on the leased systems, including labor and overhead, are recorded within construction in progress.

We write-down inventory for any excess or obsolete inventories or when we believe that the net realizable value of inventories is less than the carrying value. During the three and six months ended June 30, 2019, we recorded write-downs of $24.8 million and $89.0 million, respectively, in cost of revenues. During the three and six months ended June 30, 2018, we recorded write-downs of $24.6 million and $41.9 million, respectively, in cost of revenues.