Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, net

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Property and Equipment, net
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment, Net [Abstract]  
Property and Equipment, net Property and Equipment, net
Property and equipment, net consisted of the following (in thousands):
September 30,
2024		 December 31,
2023
Tooling, machinery, and equipment $ 51,450  $ 44,025 
Computer hardware 8,925 8,921 
Computer software 9,835 9,835 
Vehicles 1,695 1,528 
Building 28,475 28,475 
Land 5,800 5,800 
Furniture and fixtures 877 788 
Leasehold improvements 2,095 17,470 
Construction-in-progress 312,030 307,489 
Total property and equipment 421,182  424,331 
Less: Accumulated depreciation (52,442) (47,231)
Total property and equipment, net $ 368,740  $ 377,100 
Construction-in-progress is primarily related to the development of manufacturing lines as well as equipment and tooling necessary in the production of the Company’s vehicles. Completed tooling assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use.
As a result of the Torrance reorganization discussed in Note 5, the Company re-evaluated its asset grouping and recognized an impairment loss of $9.2 million related to its leasehold improvements.
Depreciation expense for property and equipment was $3.8 million and $10.6 million for the three and nine months ended September 30, 2024 respectively, of which a nominal amount is included in Cost of revenue. Depreciation expense for property and equipment was $1.5 million and $10.6 million for the three and nine months ended September 30, 2023, respectively.