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FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures certain financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This hierarchy prioritizes the inputs into three broad levels as follows:
•Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.
•Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3—Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs may result in a significantly higher or lower measurement.
Cash, cash equivalents, and investments are reported at their respective fair values on the Company’s condensed consolidated balance sheets. The Company’s short-term and long-term investments are classified as available-for-sale securities. Carrying amounts of accounts receivable, accounts payable, and other current liabilities approximate their estimated fair values.
The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of March 31, 2026 and December 31, 2025 (in thousands):
March 31, 2026
Estimated Fair Value
Cash$571,167 
Level 1:
Money market funds129,189 
Cash and cash equivalents
$700,356 
December 31, 2025
Reported As:
Amortized costGross Unrealized GainsGross Unrealized LossesEstimated Fair ValueCash and cash equivalentsShort-Term InvestmentsLong-Term Investments
Cash $762,077 $— $— $762,077 $762,077 $— $— 
Level 1:
Money market funds235,750 — — 235,750 235,750 — — 
U.S. Treasury securities575,159 3,655 — 578,814 — 398,011 180,803 
Subtotal810,909 3,655 — 814,564 235,750 398,011 180,803 
Level 2:
Time deposits(1)
65,000 — — 65,000 — 65,000 — 
Corporate debt securities471,819 3,442 — 475,261 — 168,082 307,179 
Subtotal536,819 3,442 — 540,261 — 233,082 307,179 
Total$2,109,805 $7,097 $— $2,116,902 $997,827 $631,093 $487,982 
(1) Included $50.0 million of time deposits with GIB in short-term investments. GIB is a related party of the PIF, which is an affiliate of Ayar. See Note 15 “Related Party Transactions” for more information.
During the three months ended March 31, 2026, the Company recorded realized gains of $5.7 million on the sale of available-for-sale securities, and immaterial realized gains for the same period in the prior year. Accrued interest receivable excluded from both the fair value and amortized cost basis of the available-for-sale securities was nil and $13.1 million as of March 31, 2026 and December 31, 2025, respectively, and was recorded in other current assets on its condensed consolidated balance sheets. As of March 31, 2026 and December 31, 2025, no allowance for credit losses was recorded related to an impairment of available-for-sale securities.
On November 6, 2023, the Company received 28,352,273 ordinary shares of Aston Martin with an initial fair value of $73.2 million. The Company remeasured the shares and recorded fair values of $13.6 million and $24.3 million within long-term investments in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025, respectively. These equity securities are publicly traded stocks (where shares are denominated in GBP) measured at fair value on a recurring basis and classified within level 1 in the fair value hierarchy. The Company recognized unrealized losses of $10.2 million and $13.5 million during the three months ended March 31, 2026 and 2025, respectively, in change of fair value of equity securities of a related party in the condensed consolidated statement of operations and comprehensive loss. The Company also recognized an unrealized foreign currency loss of $0.5 million and an unrealized foreign currency gain of $1.3 million during the three months ended March 31, 2026 and 2025, respectively, related to these equity securities in other income (expense), net in the condensed consolidated statement of operations and comprehensive loss. See Note 15 “Related Party Transactions” for more information.
Level 3 liabilities consist of the common stock warrant liability and the derivative liabilities associated with the Redeemable Convertible Preferred Stock, of which the fair values were measured upon issuance of the Private Placement Warrants and the Redeemable Convertible Preferred Stock and are remeasured at each reporting period. The valuation methodology and underlying assumptions for the Redeemable Convertible Preferred Stock are discussed further in Note 7 “Redeemable Convertible Preferred Stock”. The fair value of the common stock warrant liability remains unchanged and was nil as of March 31, 2026 and December 31, 2025. Level 3 liabilities also consist of residual value guarantee liabilities, of which the fair value is measured initially upon delivery of vehicles and assessed subsequently for any changes on a quarterly basis. Significant changes in the unobservable inputs used in determining the fair value would result in significant changes to the fair value measurement.
The following table presents a reconciliation of the common stock warrant liability and derivative liabilities associated with the Redeemable Convertible Preferred Stock measured and recorded at fair value on a recurring basis (in thousands):
Three Months Ended March 31,
20262025
Series A Derivative LiabilitySeries B Derivative Liability
Series A Derivative Liability
Series B Derivative Liability
Common Stock Warrant Liability
Fair value-beginning of period$10,800 $5,400 $408,800 $230,625 $19,514 
Change in fair value(4,900)(2,475)(176,700)(105,000)(12,861)
Fair value-end of period$5,900 $2,925 $232,100 $125,625 $6,653