WORKFORCE REDUCTION

6 Months Ended

Jun. 30, 2026

Restructuring and Related Activities [Abstract]

On June 22, 2026, the Company announced a reduction of its current U.S. workforce (the “June 2026 Plan”) that was designed to advance the Company’s path toward profitability and positive cash flow generation by streamlining its organizational structure, optimizing operating expenses, and aligning production plans with anticipated demand. The Company expects to substantially complete the June 2026 Plan by the end of the third quarter of 2026, subject to local law and consultation requirements. As a result of the June 2026 Plan, the Company expects to incur total workforce reduction charges of approximately $34 million.

On February 20, 2026, the Company announced a reduction of its current U.S. workforce (the “February 2026 Plan”) that intended to align with its long-term operating goals as it focuses on the start of production of its Midsize platform, expansion into the robotaxi market and development of ADAS technologies, as well as the sale and distribution of its current models in existing and new geographies. The Company substantially completed the February 2026 Plan in the second quarter of 2026.

On May 24, 2024, the Company announced a plan (the “May 2024 Plan”) intended to optimize operating expenses in response to evolving business needs and productivity improvement through a reduction in workforce. The Company completed the May 2024 Plan during the first quarter of 2025.

During the three and six months ended June 30, 2026, the Company recorded workforce reduction charges of $33.7 million and $71.6 million, respectively, in the condensed consolidated statements of operations and comprehensive loss. The workforce reduction charges are comprised of $33.3 million related to the June 2026 Plan for the three and six months ended June 30, 2026, and $0.4 million and $38.3 million related to the February 2026 Plan for the three and six months ended June 30, 2026, respectively. The workforce reduction charges were primarily related to severance payments, employee benefits, employee transition, and acceleration of stock-based compensation expense.

A summary of accrued liabilities associated with the workforce reduction plans was as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Accrued liabilities - beginning of period	$	30,457	$	—	$	—	$	267
Workforce reduction charges excluding non-cash items(1)(2)	29,015		—		68,308		—
Cash payments	(29,340)		—		(38,176)		(267)
Accrued liabilities - end of period	$	30,132	$	—	$	30,132	$	—

(1) Excluded non-cash items of $4.7 million for the three and six months ended June 30, 2026 related to the June 2026 Plan, comprised of the acceleration of stock-based compensation expenses.

(2) Excluded non-cash items of $1.4 million credit for the six months ended June 30, 2026 related to the February 2026 Plan, which was net of accelerated stock-based compensation expense of $1.9 million and a reversal of $3.3 million related to previously recognized stock-based compensation expenses for unvested restricted stock awards.

As of June 30, 2026, the accrued liabilities of $30.1 million associated with the June 2026 Plan and February 2026 Plan were included in other current liabilities on the condensed consolidated balance sheet.