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BALANCE SHEETS COMPONENTS | 6 Months Ended
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Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
BALANCE SHEETS COMPONENTS | BALANCE SHEETS COMPONENTS Inventory Inventory as of June 30, 2026 and December 31, 2025 was as follows (in thousands):
| June 30, 2026 |  | December 31, 2025
Raw materials | $ | 487,482 |  |  | $ | 479,754 |
Work in progress | 268,422 |  |  | 146,575 |
Finished goods | 622,749 |  |  | 483,200 |
Total Inventory | $ | 1,378,653 |  |  | $ | 1,109,529 |
Inventory as of June 30, 2026 and December 31, 2025 was comprised of raw materials, work in progress related to the production of vehicles for sale and SKD units for final assembly in Saudi Arabia, and finished goods inventory including new vehicles available for sale, vehicles in transit to fulfill customer orders, and used vehicles which the Company intends to sell. The Company recorded write-downs of $299.7 million and $537.6 million for the three and six months ended June 30, 2026, respectively, and $184.7 million and $336.3 million for the same periods in the prior year, respectively, to reduce its inventories to its net realizable values and for any excess or obsolete inventories, as well as losses from firm purchase commitments (“LCNRV”). While the final scope and application of recently announced changes in trade policy remain uncertain at this time, higher tariffs on imports and subsequent retaliatory tariffs could adversely impact the Company’s financial results. Property, plant and equipment, net Property, plant and equipment, net as of June 30, 2026 and December 31, 2025 was as follows (in thousands):
| June 30, 2026 |  | December 31, 2025
Land and land improvements | $ | 70,967 |  |  | $ | 70,967 |
Building and improvements(1) | 1,102,446 |  |  | 1,099,186 |
Machinery, tooling and vehicles(2)(3) | 2,393,770 |  |  | 2,363,263 |
Computer equipment and software | 159,288 |  |  | 140,419 |
Leasehold improvements | 306,925 |  |  | 304,609 |
Furniture and fixtures | 60,309 |  |  | 57,921 |
Finance leases | 113,647 |  |  | 193,137 |
Construction in progress | 1,449,228 |  |  | 970,960 |
Total Property, plant and equipment | 5,656,580 |  |  | 5,200,462 |
Less accumulated depreciation and amortization | (1,433,739) |  |  | (1,222,330) |
Property, plant and equipment, net | $ | 4,222,841 |  |  | $ | 3,978,132 |
(1) As of June 30, 2026 and December 31, 2025, $127.5 million of capital expenditure support received from Ministry of Investment of Saudi Arabia (“MISA”) was primarily recorded as a deduction to the AMP-2 building balance. See Note 15 “Related Party Transactions” for more information. (2) Included $28.4 million and $47.2 million of service loaner vehicles as of June 30, 2026 and December 31, 2025, respectively. (3) Included $32.8 million and $33.7 million of operating lease vehicles sold to rental companies as of June 30, 2026 and December 31, 2025, respectively. Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities, including tooling with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset, installation of the asset, and bringing it to the location and the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the asset is completed and is ready for its intended use. Construction in progress consisted of the following (in thousands):
| June 30, 2026 |  | December 31, 2025
Machinery and tooling | $ | 635,554 |  |  | $ | 418,426 |
Construction of AMP-1 and AMP-2(1) | 749,325 |  |  | 512,502 |
Leasehold improvements and other | 64,349 |  |  | 40,032 |
Total construction in progress | $ | 1,449,228 |  |  | $ | 970,960 |
(1) As of June 30, 2026 and December 31, 2025, $67.3 million of capital expenditure support received from MISA was recorded primarily as a deduction to the AMP-2 facility construction in progress balance. See Note 15 “Related Party Transactions” for more information. Depreciation and amortization expense was $122.2 million and $238.6 million for the three and six months ended June 30, 2026, respectively, and $111.1 million and $209.0 million for the same periods in the prior year, respectively. The amount of interest capitalized on construction in progress related to significant capital asset constructions was not material for the three and six months ended June 30, 2026 and 2025. Other current liabilities Other current liabilities as of June 30, 2026 and December 31, 2025 were as follows (in thousands):
| June 30, 2026 |  | December 31, 2025
Engineering, design, and testing accrual | $ | 67,502 |  |  | $ | 56,237 |
Capital expenditures accrual | 257,076 |  |  | 234,313 |
Accrued compensation | 191,828 |  |  | 155,906 |
Accrued purchases(1) | 120,767 |  |  | 183,330 |
Retail leasehold improvements accrual | 5,375 |  |  | 5,804 |
Third-party services accrual | 46,228 |  |  | 72,083 |
Tooling liability | 59,978 |  |  | 35,138 |
Operating lease liabilities, current portion | 67,198 |  |  | 64,171 |
Reserve for loss on firm inventory purchase commitments | 63,538 |  |  | 131,904 |
Accrued warranty | 74,908 |  |  | 58,765 |
Accrued interest | 45,559 |  |  | 29,841 |
Deferred revenue(2) | 29,450 |  |  | 29,950 |
Sales incentive accrual | 21,911 |  |  | 34,626 |
RVG liabilities | 60,201 |  |  | 55,448 |
Other current liabilities | 247,582 |  |  | 245,125 |
Total other current liabilities | $ | 1,359,101 |  |  | $ | 1,392,641 |
(1) Primarily represent accruals for inventory related purchases and transportation charges that had not been invoiced. (2) Represent deferred revenue from vehicle sales primarily related to OTA and remarketing activities. Other long-term liabilities Other long-term liabilities as of June 30, 2026 and December 31, 2025 were as follows (in thousands):
| June 30, 2026 |  | December 31, 2025
Operating lease liabilities, net of current portion | $ | 228,041 |  |  | $ | 225,434 |
Other long-term liabilities(1)(2) | 371,400 |  |  | 357,305 |
Total other long-term liabilities | $ | 599,441 |  |  | $ | 582,739 |
(1) As of June 30, 2026 and December 31, 2025, $114.8 million of deferred revenue was recorded within other long-term liabilities in the condensed consolidated balance sheets, respectively, in connection with the strategic technology and supply arrangement, and integration and supply arrangements with Aston Martin Lagonda Global Holdings plc (together with its subsidiaries, “Aston Martin”). See Note 15 “Related Party Transactions” for more information. (2) Included accrued warranty balance of $98.5 million and $93.4 million as of June 30, 2026 and December 31, 2025, respectively. Accrued warranty Accrued warranty activities consisted of the following (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Accrued warranty - beginning of period(2) | $ | 164,314 |  |  | $ | 116,876 |  |  | $ | 152,201 |  |  | $ | 112,478 |
Warranty costs incurred | (9,076) |  |  | (7,445) |  |  | (16,074) |  |  | (15,359) |
Provision for warranty(1) | 18,172 |  |  | 14,960 |  |  | 37,283 |  |  | 27,272 |
Accrued warranty - end of period(2) | $ | 173,410 |  |  | $ | 124,391 |  |  | $ | 173,410 |  |  | $ | 124,391 |
(1) Provision for warranty for the three and six months ended June 30, 2026 and 2025 included estimated costs related to the recalls identified and/or special campaigns to repair or replace items under warranties. (2) Accrued warranty balance of $74.9 million and $58.8 million was recorded within other current liabilities, and $98.5 million and $93.4 million was recorded within other long-term liabilities, in the condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, respectively.

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