v3.26.1
LEASES
 3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
LEASES LEASES
The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide.
In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classified this lease as a finance lease because the Lease Agreement contained a purchase option which the Company was reasonably certain to exercise. As of December 31, 2025, assets and liabilities associated with the finance lease were $79.3 million and $79.4 million, respectively. During the three months ended March 31, 2026, the Company elected not to exercise the purchase option. As a result, the Company remeasured the lease‑related assets and liabilities, and the remaining balances were immaterial as of March 31, 2026.
Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other current liabilities in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.
The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s condensed consolidated balance sheets (in thousands):
March 31,
2026		December 31,
2025
Operating leases:
Right-of-use assets
$258,414 $241,974 
Other current liabilities$69,856 $64,171 
Other long-term liabilities234,132 225,434 
Total operating lease liabilities
$303,988 $289,605 
Finance leases:
Property, plant and equipment, net(1)
$104,584 $185,721 
Total finance lease assets$104,584 $185,721 
Finance lease liabilities, current portion
$5,029 $84,222 
Finance lease liabilities, net of current portion103,833 104,559 
Total finance lease liabilities(1)
$108,862 $188,781 
(1) As of March 31, 2026 and December 31, 2025, the Company recorded $94.0 million and $95.3 million of finance lease assets, respectively, and $98.9 million of finance lease liabilities related to certain facility leases assumed in connection with the assets acquisition from Nikola Corporation.
The components of lease expense were as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
Three Months Ended March 31,
20262025
Operating lease expense:
Operating lease expense(1)
$23,320 $16,481 
Variable lease expense$593 $570 
Finance lease expense:
Amortization of leased assets$2,414 $549 
Interest on lease liabilities3,291 1,189 
Total finance lease expense$5,705 $1,738 
Total lease expense$29,618 $18,789 
(1) Excluded short-term leases, which were not material.
Other information related to leases where the Company is the lessee was as follows:
March 31,
2026		December 31,
2025
Weighted-average remaining lease term (in years):
Operating leases5.35.2
Finance leases16.59.9
Weighted-average discount rate:
Operating leases11.56 %11.50 %
Finance leases8.04 %7.33 %
As of March 31, 2026, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):
Operating LeasesFinance Leases
2026 (remainder of the year)$74,526 $9,895 
202780,707 12,855 
202871,250 10,972 
202959,035 8,621 
203046,111 8,752 
203124,192 8,915 
Thereafter59,850 170,750 
Total minimum lease payments415,671 230,760 
Less: Interest(111,683)(121,898)
Present value of lease obligations303,988 108,862 
Less: Current portion(69,856)(5,029)
Long-term portion of lease obligations$234,132 $103,833 
As of March 31, 2026, the Company entered into additional leases for facilities that have not yet commenced with undiscounted future lease payments of $17.9 million. The leases are expected to commence in 2026.
LEASES LEASES
The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment and vehicles, worldwide.
In August 2022, the Company entered into a four-year agreement (“Lease Agreement”) to lease land in Casa Grande, Arizona adjacent to our manufacturing facility. The Company classified this lease as a finance lease because the Lease Agreement contained a purchase option which the Company was reasonably certain to exercise. As of December 31, 2025, assets and liabilities associated with the finance lease were $79.3 million and $79.4 million, respectively. During the three months ended March 31, 2026, the Company elected not to exercise the purchase option. As a result, the Company remeasured the lease‑related assets and liabilities, and the remaining balances were immaterial as of March 31, 2026.
Contemporaneously with the execution of the Lease Agreement, the Company entered into a sale agreement, pursuant to which the Company sold certain parcels of land for $31.7 million to the lessor and leased back these parcels of land under the Lease Agreement. The sale of the land and subsequent lease did not result in change in the transfer of control of the land; therefore, the sale-leaseback transaction is accounted for as a failed sale and leaseback financing obligation. The Company recorded $31.7 million of sales proceeds received as a financial liability within other current liabilities in the condensed consolidated balance sheets as of March 31, 2026 and December 31, 2025.
The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s condensed consolidated balance sheets (in thousands):
March 31,
2026		December 31,
2025
Operating leases:
Right-of-use assets
$258,414 $241,974 
Other current liabilities$69,856 $64,171 
Other long-term liabilities234,132 225,434 
Total operating lease liabilities
$303,988 $289,605 
Finance leases:
Property, plant and equipment, net(1)
$104,584 $185,721 
Total finance lease assets$104,584 $185,721 
Finance lease liabilities, current portion
$5,029 $84,222 
Finance lease liabilities, net of current portion103,833 104,559 
Total finance lease liabilities(1)
$108,862 $188,781 
(1) As of March 31, 2026 and December 31, 2025, the Company recorded $94.0 million and $95.3 million of finance lease assets, respectively, and $98.9 million of finance lease liabilities related to certain facility leases assumed in connection with the assets acquisition from Nikola Corporation.
The components of lease expense were as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands):
Three Months Ended March 31,
20262025
Operating lease expense:
Operating lease expense(1)
$23,320 $16,481 
Variable lease expense$593 $570 
Finance lease expense:
Amortization of leased assets$2,414 $549 
Interest on lease liabilities3,291 1,189 
Total finance lease expense$5,705 $1,738 
Total lease expense$29,618 $18,789 
(1) Excluded short-term leases, which were not material.
Other information related to leases where the Company is the lessee was as follows:
March 31,
2026		December 31,
2025
Weighted-average remaining lease term (in years):
Operating leases5.35.2
Finance leases16.59.9
Weighted-average discount rate:
Operating leases11.56 %11.50 %
Finance leases8.04 %7.33 %
As of March 31, 2026, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands):
Operating LeasesFinance Leases
2026 (remainder of the year)$74,526 $9,895 
202780,707 12,855 
202871,250 10,972 
202959,035 8,621 
203046,111 8,752 
203124,192 8,915 
Thereafter59,850 170,750 
Total minimum lease payments415,671 230,760 
Less: Interest(111,683)(121,898)
Present value of lease obligations303,988 108,862 
Less: Current portion(69,856)(5,029)
Long-term portion of lease obligations$234,132 $103,833 
As of March 31, 2026, the Company entered into additional leases for facilities that have not yet commenced with undiscounted future lease payments of $17.9 million. The leases are expected to commence in 2026.