Inventory as of March 31, 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 $237.9 million and $151.6 million for the three months ended March 31, 2026 and 2025, 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.

In February 2026, the U.S. Supreme Court ruled that certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”) were unlawful. As a result of that ruling and related Court-ordered actions by the Court of International Trade (“CIT”), the Company has evaluated the recoverability of IEEPA tariffs previously paid on imported goods.

The Company had previously capitalized IEEPA tariffs as a component of inventory and subsequently recognized substantially all such amounts in cost of revenue. Based on Company’s determination that recovery was probable and reasonably estimable, the Company recognized a $53.0 million receivable within other current assets in the condensed consolidated balance sheets, with a corresponding reduction to cost of revenue in the condensed consolidated statement of operations and comprehensive loss for the three months ended March 31, 2026.

The estimate reflects Company’s judgment regarding the portion of previously recognized IEEPA tariffs expected to be recoverable through the refund process administered by U.S. Customs and Border Protection (“CBP”) and it may be subject to change based on the ultimate resolution of refund claims. The ultimate amount of recoveries may differ from the Company’s estimates, based on additional guidance from CBP, the resolution of specific entry-level claims, or other administrative developments. To the extent there are changes in amounts that become recoverable, including any associated interest, such amounts will be recognized in the period in which information about the probable and reasonably estimable amounts becomes known to the Company.


	March 31, 2026		December 31, 2025
Land and land improvements	$	70,967	$	70,967
Building and improvements(1)	1,100,748		1,099,186
Machinery, tooling and vehicles(2)(3)	2,397,599		2,363,263
Computer equipment and software	146,778		140,419
Leasehold improvements	306,320		304,609
Furniture and fixtures	58,543		57,921
Finance leases	114,414		193,137
Construction in progress	1,167,579		970,960
Total Property, plant and equipment	5,362,948		5,200,462
Less accumulated depreciation and amortization	(1,334,176)		(1,222,330)
Property, plant and equipment, net	$	4,028,772	$	3,978,132

(1) As of March 31, 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.

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):


	March 31, 2026		December 31, 2025
Machinery and tooling	$	501,574	$	418,426
Construction of AMP-1 and AMP-2(1)	622,562		512,502
Leasehold improvements and other	43,443		40,032
Total construction in progress	$	1,167,579	$	970,960

(1) As of March 31, 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 $116.4 million and $98.0 million for the three months ended March 31, 2026 and 2025, respectively. The amount of interest capitalized on construction in progress related to significant capital asset constructions was not material for the three months ended March 31, 2026 and 2025.


	March 31, 2026		December 31, 2025
Engineering, design, and testing accrual	$	61,497	$	56,237
Capital expenditures accrual	206,747		234,313
Accrued compensation	229,457		155,906
Accrued purchases(1)	182,731		183,330
Retail leasehold improvements accrual	4,337		5,804
Third-party services accrual	59,360		72,083
Tooling liability	49,214		35,138
Operating lease liabilities, current portion	69,856		64,171
Reserve for loss on firm inventory purchase commitments	137,333		131,904
Accrued warranty	68,106		58,765
Accrued interest	62,053		29,841
Deferred revenue(2)	28,744		29,950
Sales incentive accrual	13,326		34,626
RVG liabilities	55,587		55,448
Other current liabilities	268,624		245,125
Total other current liabilities	$	1,496,972	$	1,392,641

Other long-term liabilities as of March 31, 2026 and December 31, 2025 were as follows (in thousands):


	March 31, 2026		December 31, 2025
Operating lease liabilities, net of current portion	$	234,132	$	225,434
Other long-term liabilities(1)(2)	356,145		357,305
Total other long-term liabilities	$	590,277	$	582,739

(1) As of March 31, 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.


	Three Months Ended March 31,
	2026		2025
Accrued warranty - beginning of period(2)	$	152,201	$	112,478
Warranty costs incurred	(6,998)		(7,914)
Provision for warranty(1)	19,111		12,312
Accrued warranty - end of period(2)	$	164,314	$	116,876

(1) Provision for warranty for the three months ended March 31, 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 $68.1 million and $58.8 million was recorded within other current liabilities, and $96.2 million and $93.4 million was recorded within other long-term liabilities, in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively.