Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39408 | |
Entity Registrant Name | Lucid Group, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-0891392 | |
Entity Address, Address Line One | 7373 Gateway Boulevard | |
Entity Address, City or Town | Newark | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94560 | |
City Area Code | 510 | |
Local Phone Number | 648-3553 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | LCID | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 1,680,431,090 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Central Index Key | 0001811210 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,264,136 | $ 6,262,905 |
Short-Term Investments | 2,078,045 | 0 |
Accounts receivable, net | 2,659 | 3,148 |
Inventory | 685,321 | 127,250 |
Prepaid expenses | 57,259 | 70,346 |
Other current assets | 69,008 | 43,328 |
Total current assets | 4,156,428 | 6,506,977 |
Property, plant and equipment, net | 1,954,310 | 1,182,153 |
Right-of-use assets | 211,844 | 161,974 |
Long-term investments | 513,735 | 0 |
Other noncurrent assets | 51,494 | 30,609 |
TOTAL ASSETS | 6,887,811 | 7,881,713 |
Current liabilities: | ||
Accounts payable | 79,781 | 41,342 |
Accrued compensation | 49,008 | 32,364 |
Finance lease liabilities, current portion | 9,780 | 4,183 |
Other current liabilities | 686,555 | 318,212 |
Total current liabilities | 825,124 | 396,101 |
Finance lease liabilities, net of current portion | 79,371 | 6,083 |
Common stock warrant liability | 396,489 | 1,394,808 |
Long-term debt | 1,990,571 | 1,986,791 |
Other long-term liabilities | 365,009 | 188,575 |
Total liabilities | 3,656,564 | 3,972,358 |
Commitments and contingencies (Note 15) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value $0.0001; 10,000,000 shares authorized as of September 30, 2022 and December 31, 2021; no shares issued and outstanding as of September 30, 2022 and December 31, 2021 | 0 | 0 |
Common stock, par value $0.0001; 15,000,000,000 shares authorized as of September 30, 2022 and December 31, 2021; 1,681,005,163 and 1,648,413,415 shares issued and 1,680,147,338 and 1,647,555,590 shares outstanding as of September 30, 2022 and December 31, 2021, respectively | 168 | 165 |
Additional paid-in capital | 10,162,745 | 9,995,778 |
Treasury stock, at cost, 857,825 shares at September 30, 2022 and December 31, 2021 | (20,716) | (20,716) |
Accumulated other comprehensive loss | (13,266) | 0 |
Accumulated deficit | (6,897,684) | (6,065,872) |
Total stockholders’ equity | 3,231,247 | 3,909,355 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 6,887,811 | $ 7,881,713 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 15,000,000,000 | 15,000,000,000 |
Common stock, shares, issued (in shares) | 1,681,005,163 | 1,648,413,415 |
Common stock, shares outstanding (in shares) | 1,680,147,338 | 1,647,555,590 |
Treasury stock (in shares) | 857,825 | 857,825 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | $ 195,457 | $ 232 | $ 350,468 | $ 719 |
Costs and expenses | ||||
Cost of revenue | 492,483 | 3,320 | 1,030,795 | 3,424 |
Research and development | 213,761 | 242,408 | 600,218 | 586,579 |
Selling, general and administrative | 176,736 | 251,554 | 563,707 | 455,478 |
Total cost and expenses | 882,980 | 497,282 | 2,194,720 | 1,045,481 |
Loss from operations | (687,523) | (497,050) | (1,844,252) | (1,044,762) |
Other income (expense), net | ||||
Change in fair value of forward contracts | 0 | 0 | 0 | (454,546) |
Transaction costs expensed | 0 | (2,717) | 0 | (2,717) |
Interest income | 24,373 | 0 | 27,284 | 0 |
Interest expense | (7,613) | (76) | (22,521) | (111) |
Other income (expense), net | 665 | 249 | 9,898 | (151) |
Total other income (expense), net | 157,571 | (27,331) | 1,012,980 | (489,288) |
Loss before provision for income taxes | (529,952) | (524,381) | (831,272) | (1,534,050) |
Provision for income taxes | 149 | 22 | 540 | 31 |
Net loss | (530,101) | (524,403) | (831,812) | (1,534,081) |
Deemed dividend related to the issuance of Series E convertible preferred stock | 0 | 0 | 0 | (2,167,332) |
Net loss attributable to common stockholders, basic | (530,101) | (524,403) | (831,812) | (3,701,413) |
Change in fair value of dilutive warrants | (140,146) | 0 | (998,319) | 0 |
Net loss attributable to common stockholders, diluted | $ (670,247) | $ (524,403) | $ (1,830,131) | $ (3,701,413) |
Weighted average shares outstanding used in computing net loss per share attributable to common stockholders, basic (in shares) | 1,676,048,504 | 1,217,032,285 | 1,666,693,217 | 432,654,607 |
Weighted average shares outstanding used in computing net loss per share attributable to common stockholders, diluted (in shares) | 1,690,963,548 | 1,217,032,285 | 1,686,576,589 | 432,654,607 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.32) | $ (0.43) | $ (0.50) | $ (8.56) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.40) | $ (0.43) | $ (1.09) | $ (8.56) |
Other comprehensive loss | ||||
Net unrealized losses on investments, net of tax | $ (12,575) | $ 0 | $ (13,266) | $ 0 |
Comprehensive loss | (542,676) | (524,403) | (845,078) | (1,534,081) |
Deemed dividend related to the issuance of Series E convertible preferred stock | 0 | 0 | 0 | (2,167,332) |
Comprehensive loss attributable to common stockholders | (542,676) | (524,403) | (845,078) | (3,701,413) |
Change in fair value of convertible preferred stock warrant liability | ||||
Other income (expense), net | ||||
Change in fair value of stock warrants liability | 0 | 0 | 0 | (6,976) |
Change in fair value of common stock warrant liability | ||||
Other income (expense), net | ||||
Change in fair value of stock warrants liability | $ 140,146 | $ (24,787) | $ 998,319 | $ (24,787) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Series B | Series D | Series E | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Issuance of Series E convertible preferred stock (in shares) | 167,273,525 | ||||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2020 | [1] | 957,159,704 | |||||||||
Preferred stock, beginning balance at Dec. 31, 2020 | $ 2,494,076 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Repurchase of convertible preferred stock (in shares) | [1] | (3,525,365) | |||||||||
Issuance of Series D convertible preferred shares upon exercise of warrants (in shares) | [1] | 1,546,799 | |||||||||
Issuance of Series D convertible preferred stock upon exercise of warrants | $ 12,936 | ||||||||||
Issuance of Series E convertible preferred stock (in shares) | [1] | 200,728,229 | |||||||||
Issuance of Series E convertible preferred stock | $ 3,206,159 | ||||||||||
Stock-based compensation related to Series E convertible preferred stock | $ 123,614 | ||||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization (in shares) | [1] | (1,155,909,367) | |||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization | $ (5,836,785) | ||||||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2021 | [2] | 0 | |||||||||
Preferred stock, ending balance at Sep. 30, 2021 | $ 0 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | [1] | 28,791,702 | |||||||||
Beginning balance at Dec. 31, 2020 | (1,318,777) | $ 3 | $ 38,113 | $ (1,356,893) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (1,534,081) | (1,534,081) | |||||||||
Net unrealized losses on investments, net of tax | 0 | ||||||||||
Issuance of Series E convertible preferred stock | (2,151,613) | (22,395) | (2,129,218) | ||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization (in shares) | [1] | 1,155,909,367 | |||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization | 5,836,785 | $ 116 | 5,836,669 | ||||||||
Issuance of common stock and common stock warrants upon the reverse recapitalization, net of issuance costs (in shares) | [1] | 425,395,023 | |||||||||
Issuance of common stock and common stock warrants upon the reverse recapitalization, net of issuance costs | 3,590,956 | $ 42 | 3,590,914 | ||||||||
Issuance of common stock upon exercise of common stock warrants (in shares) | [1] | 22,651,424 | |||||||||
Issuance of common stock upon exercise of common stock warrants | 173,273 | $ 2 | 173,271 | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | [1] | 8,895,300 | |||||||||
Issuance of common stock upon exercise of stock options | 6,029 | $ 1 | 6,028 | ||||||||
Stock-based compensation | 242,586 | 242,586 | |||||||||
Ending balance (in shares) at Sep. 30, 2021 | [1] | 1,641,642,816 | |||||||||
Ending balance at Sep. 30, 2021 | $ 4,845,158 | $ 164 | 9,865,186 | (5,020,192) | |||||||
Preferred stock, beginning balance (in shares) at Jun. 30, 2021 | [2] | 1,155,909,367 | |||||||||
Preferred stock, beginning balance at Jun. 30, 2021 | $ 5,836,785 | ||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization (in shares) | [2] | (1,155,909,367) | |||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization | $ (5,836,785) | ||||||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2021 | [2] | 0 | |||||||||
Preferred stock, ending balance at Sep. 30, 2021 | $ 0 | ||||||||||
Beginning balance (in shares) at Jun. 30, 2021 | [2] | 36,799,150 | |||||||||
Beginning balance at Jun. 30, 2021 | (4,469,172) | $ 4 | 26,613 | (4,495,789) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (524,403) | (524,403) | |||||||||
Net unrealized losses on investments, net of tax | 0 | ||||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization (in shares) | [2] | 1,155,909,367 | |||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization | 5,836,785 | $ 116 | 5,836,669 | ||||||||
Issuance of common stock and common stock warrants upon the reverse recapitalization, net of issuance costs (in shares) | [2] | 425,395,023 | |||||||||
Issuance of common stock and common stock warrants upon the reverse recapitalization, net of issuance costs | 3,590,956 | $ 42 | 3,590,914 | ||||||||
Issuance of common stock upon exercise of common stock warrants (in shares) | [2] | 22,651,424 | |||||||||
Issuance of common stock upon exercise of common stock warrants | 173,273 | $ 2 | 173,271 | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | [2] | 887,852 | |||||||||
Issuance of common stock upon exercise of stock options | 763 | 763 | |||||||||
Stock-based compensation | 236,956 | 236,956 | |||||||||
Ending balance (in shares) at Sep. 30, 2021 | [1] | 1,641,642,816 | |||||||||
Ending balance at Sep. 30, 2021 | $ 4,845,158 | $ 164 | 9,865,186 | (5,020,192) | |||||||
Preferred stock, beginning balance (in shares) at Jul. 22, 2021 | 437,182,072 | ||||||||||
Beginning balance (in shares) at Jul. 22, 2021 | 451,295,965 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization (in shares) | 1,155,909,367 | ||||||||||
Ending balance (in shares) at Jul. 23, 2021 | 1,618,621,534 | ||||||||||
Preferred stock, beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||||||||
Preferred stock, ending balance (in shares) at Sep. 30, 2022 | 0 | ||||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 1,647,555,590 | 1,647,555,590 | [1] | ||||||||
Beginning balance at Dec. 31, 2021 | $ 3,909,355 | $ 165 | 9,995,778 | $ (20,716) | $ 0 | (6,065,872) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (831,812) | (831,812) | |||||||||
Net unrealized losses on investments, net of tax | (13,266) | (13,266) | |||||||||
Issuance and sale of common stock for tax withholdings of employee RSUs | (212,895) | (212,895) | |||||||||
Issuance of common stock upon vesting of employee RSUs (in shares) | [1] | 13,142,048 | |||||||||
Issuance of common stock upon vesting of employee RSUs | 0 | $ 1 | (1) | ||||||||
Issuance of common stock under employee stock purchase plan (in shares) | [1] | 751,036 | |||||||||
Issuance of common stock under employee stock purchase plan | $ 12,882 | 12,882 | |||||||||
Issuance of common stock upon exercise of stock options (in shares) | 18,698,664 | 18,698,664 | [1] | ||||||||
Issuance of common stock upon exercise of stock options | $ 14,738 | $ 2 | 14,736 | ||||||||
Stock-based compensation | $ 352,245 | 352,245 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | 1,680,147,338 | 1,680,147,338 | [1] | ||||||||
Ending balance at Sep. 30, 2022 | $ 3,231,247 | $ 168 | 10,162,745 | (20,716) | (13,266) | (6,897,684) | |||||
Preferred stock, ending balance (in shares) at Sep. 30, 2022 | 0 | ||||||||||
Beginning balance (in shares) at Jun. 30, 2022 | [2] | 1,672,543,611 | |||||||||
Beginning balance at Jun. 30, 2022 | $ 3,710,386 | $ 167 | 10,099,209 | (20,716) | (691) | (6,367,583) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net loss | (530,101) | (530,101) | |||||||||
Net unrealized losses on investments, net of tax | (12,575) | (12,575) | |||||||||
Issuance and sale of common stock for tax withholdings of employee RSUs | (21,654) | (21,654) | |||||||||
Issuance of common stock upon vesting of employee RSUs (in shares) | [2] | 5,100,389 | |||||||||
Issuance of common stock upon vesting of employee RSUs | 0 | $ 0 | 0 | ||||||||
Issuance of common stock upon exercise of stock options (in shares) | [2] | 2,503,338 | |||||||||
Issuance of common stock upon exercise of stock options | 1,889 | $ 1 | 1,888 | ||||||||
Stock-based compensation | $ 83,302 | 83,302 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | 1,680,147,338 | 1,680,147,338 | [1] | ||||||||
Ending balance at Sep. 30, 2022 | $ 3,231,247 | $ 168 | $ 10,162,745 | $ (20,716) | $ (13,266) | $ (6,897,684) | |||||
[1]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information.[2]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities | ||
Net loss | $ (831,812,000) | $ (1,534,081,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 131,343,000 | 26,621,000 |
Amortization of insurance premium | 25,188,000 | 7,184,000 |
Non-cash operating lease cost | 14,254,000 | 8,629,000 |
Stock-based compensation | 352,245,000 | 366,200,000 |
Inventory and firm purchase commitments write-downs | 364,553,000 | 0 |
Change in fair value of contingent forward contract liability | 0 | 454,546,000 |
Other non-cash items | (5,020,000) | 56,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 489,000 | (1,000) |
Inventory | (906,054,000) | (60,112,000) |
Prepaid expenses | (12,101,000) | (65,697,000) |
Other current assets | (33,262,000) | 8,299,000 |
Other noncurrent assets | (39,082,000) | (5,861,000) |
Accounts payable | 52,216,000 | (14,175,000) |
Accrued compensation | 16,644,000 | 12,752,000 |
Operating lease liability | (10,761,000) | (4,516,000) |
Other current liabilities | 281,545,000 | 17,834,000 |
Other long-term liabilities | 20,191,000 | 5,158,000 |
Net cash used in operating activities | (1,577,743,000) | (745,401,000) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (784,964,000) | (299,313,000) |
Proceeds from government grant | 97,267,000 | 0 |
Proceeds from sale of property, plant and equipment | 0 | 19,000 |
Purchases of investments | (2,726,677,000) | 0 |
Proceeds from maturities of investments | 125,353,000 | 0 |
Net cash used in investing activities | (3,289,021,000) | (299,294,000) |
Cash flows from financing activities: | ||
Payment for short-term insurance financing note | (15,330,000) | (16,819,000) |
Payment for finance lease liabilities | (3,605,000) | (1,915,000) |
Proceeds from short-term insurance financing note | 0 | 41,935,000 |
Proceeds from borrowings | 20,228,000 | 0 |
Repayments for borrowings | (6,653,000) | 0 |
Proceeds from failed sale-leaseback transaction | 31,700,000 | 0 |
Proceeds from exercise of stock options | 14,738,000 | 6,027,000 |
Proceeds from the exercise of public warrants | 0 | 173,273,000 |
Proceeds from the reverse capitalization | 0 | 4,439,153,000 |
Payment of transaction costs related to the reverse recapitalization | 0 | (4,811,000) |
Proceeds from employee stock purchase plan | 12,882,000 | 0 |
Stock repurchases from employees for tax withholdings | (212,895,000) | 0 |
Payment for credit facility issuance costs | (6,631,000) | 0 |
Net cash (used in) provided by financing activities | (165,566,000) | 5,236,843,000 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (5,032,330,000) | 4,192,148,000 |
Beginning cash, cash equivalents, and restricted cash | 6,298,020,000 | 640,418,000 |
Ending cash, cash equivalents, and restricted cash | 1,265,690,000 | 4,832,566,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 11,307,000 | 324,000 |
Cash paid for taxes | 480,000 | 0 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Increases in purchases of property, plant and equipment included in accounts payable and accrued expenses | 65,267,000 | 5,756,000 |
Property, plant and equipment and right-of-use assets obtained through leases | 143,972,000 | 70,756,000 |
Issuance of Series D convertible preferred stock upon exercise of preferred stock warrants | 0 | 9,936,000 |
Issuance of Series E convertible preferred stock contingent forward contracts | 0 | 2,167,332,000 |
Capital contribution upon forfeit of Series E awards | 0 | 15,719,000 |
Issuance of common stock upon conversion of preferred stock in connection with the reverse recapitalization | 0 | 5,836,785,000 |
Transaction costs related to the reverse recapitalization not yet paid | 0 | 34,054,000 |
Change in fair value of preferred stock warrant liability | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Change in fair value of stock warrants liability | 0 | 6,976,000 |
Change in fair value of common stock warrant liability | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Change in fair value of stock warrants liability | (998,319,000) | 24,787,000 |
Series B | ||
Cash flows from financing activities: | ||
Repurchase of Series B convertible preferred stock | 0 | (3,000,000) |
Series D | ||
Cash flows from financing activities: | ||
Proceeds from issuance of convertible preferred stock | 0 | 3,000,000 |
Series E | ||
Cash flows from financing activities: | ||
Proceeds from issuance of convertible preferred stock | 0 | 600,000,000 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Issuance of Series E convertible preferred stock upon settlement of contingent forward contracts | $ 0 | $ 2,621,878,000 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Overview Lucid Group, Inc. (“Lucid”) is a technology and automotive company focused on designing, developing, manufacturing, and selling the next generation of EV, EV powertrains and battery systems. Lucid was originally incorporated in Delaware on April 30, 2020 under the name Churchill Capital Corp IV (formerly known as Annetta Acquisition Corp) (“Churchill”) as a special purpose acquisition company with the purpose of effecting a merger with one or more operating businesses. On February 22, 2021, Churchill entered into a definitive merger agreement (the “Merger Agreement”) with Atieva, Inc. (“Legacy Lucid”) in which Legacy Lucid would become a wholly owned subsidiary of Churchill (the “Merger”). Upon the closing of the Merger on July 23, 2021 (the “Closing”), Churchill was immediately renamed to “Lucid Group, Inc.” The Merger between Churchill and Legacy Lucid was accounted for as a reverse recapitalization. See Note 3 “Reverse Recapitalization” for more information. Throughout the notes to the condensed consolidated financial statements, unless otherwise noted, the “Company,” “we,” “us” or “our” and similar terms refer to Legacy Lucid and its subsidiaries prior to the consummation of the Merger, and Lucid and its subsidiaries after the consummation of the Merger. Liquidity The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through September 30, 2022, the Company has incurred operating losses and negative cash flows from operating activities. For the nine months ended September 30, 2022 and 2021, the Company has incurred operating losses, including net losses of $831.8 million and $1.5 billion, respectively. The Company has an accumulated deficit of $6.9 billion as of September 30, 2022. During the quarter ended June 30, 2021, the Company completed the first phase of the construction of its Advanced Manufacturing Plant 1 in Casa Grande, Arizona (“AMP-1”). The Company began commercial production of its first vehicle, the Lucid Air, in September 2021 and delivered its first vehicles in late October 2021. The Company continues to expand AMP-1, construct its planned Advanced Manufacturing Plant 2 in the Kingdom of Saudi Arabia (“AMP-2”), and build a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The Company’s existing sources of liquidity include cash, cash equivalents and investments. Historically, the Company funded operations primarily with issuances of convertible preferred stock and convertible notes. Upon the completion of the Merger, the Company received $4,400.3 million in cash proceeds, net of transaction costs. In December 2021, the Company issued an aggregate of $2,012.5 million principal amount of 1.25% convertible senior notes due in December 2026. In addition, during the nine months ended September 30, 2022, the Company entered into a loan agreement with the Saudi Industrial Development Fund (“SIDF”) with an aggregate principal amount of up to approximately $1.4 billion, revolving credit facilities with Gulf International Bank (“GIB”) in an aggregate principal amount of approximately $266.2 million and a new five-year senior secured asset-based revolving credit facility (“ABL Credit Facility”) with an initial aggregate principal commitment amount of up to $1.0 billion. See Note 6 “Debt” for additional information. Certain Significant Risks and Uncertainties The Company’s current business activities consist of (i) generating sales from the deliveries and service of vehicles, (ii) research and development efforts to design, engineer and develop high-performance fully electric vehicles and advanced electric vehicle powertrain components, including battery pack systems, (iii) production and manufacturing ramps at existing manufacturing facilities in Casa Grande, Arizona, (iv) phase 2 of construction at AMP-1 in Casa Grande, Arizona, (v) the construction of AMP-2, and (vi) expansion of its retail studios and service centers capabilities throughout North America and across the globe. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including our ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high-technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property (including patents), regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. A global economic recession or other downturn, whether due to inflation, ongoing conflict in Ukraine or other geopolitical events, COVID-19 or other public health crises, interest rate increases or other policy actions by major central banks, or other factors, may have an adverse impact on the Company’s business, prospects, financial condition and results of operations. Adverse economic conditions as well as uncertainty about the current and future global economic conditions may cause the Company’s customers to defer purchases or cancel their reservations and orders in response to tighter credit, decreased cash availability, fluctuations in foreign currency exchange rates, and weakened consumer confidence. Reduced demand for the Company’s products may result in significant decreases in product sales, which in turn would have a material adverse impact on the Company’s business, prospects, financial condition and results of operations. Because of the Company’s premium brand positioning and pricing, an economic downturn is likely to have a heightened adverse effect on the Company compared to many of its electric vehicle and traditional automotive industry competitors, to the extent that consumer demand for luxury goods is reduced in favor of lower-priced alternatives. In addition, any economic recession or other downturn could also cause logistical challenges and other operational risks if any of the Company’s suppliers, sub-suppliers or partners become insolvent or are otherwise unable to continue their operations, fulfill their obligations to the Company, or meet the Company’s future demand. In addition, the deterioration of conditions in global credit markets may limit the Company’s ability to obtain external financing to fund its operations and capital expenditures on terms favorable to the Company, if at all. See “Risk Factors” in Part II, Item 1A of this Quarterly Report on Form 10-Q (the “Quarterly Report”) for additional information regarding risks associated with a global economic recession, including under the caption “ A global economic recession or other downturn may have a material adverse impact on our business, prospects, results of operations and financial condition . ” The COVID-19 pandemic continues to impact the global economy and cause significant macroeconomic uncertainty. Infection rates vary across the jurisdictions in which the Company operates. Governmental authorities have continued to implement numerous and constantly evolving measures to attempt to contain the virus, such as travel bans and restrictions, masking recommendations and mandates, vaccine recommendations and mandates, limits on gatherings, quarantines, shelter-in-place orders and business shutdowns. The Company has taken proactive action to protect the health and safety of its employees, customers, partners and suppliers, consistent with the latest and evolving governmental guidelines. Until the COVID-19 pandemic is adequately contained, the Company expects to continue to implement appropriate measures. The Company continues to monitor the rapidly evolving situation and guidance from international and domestic authorities, including federal, state and local public health authorities, and may take additional actions based on their recommendations and requirements or as the Company otherwise sees fit to protect the health and safety of its employees, customers, partners and suppliers. While certain of the Company and its suppliers’ operations have from time-to-time been temporarily affected by government-mandated restrictions, the Company was able to commence and continue deliveries of the Lucid Air to customers and to proceed with the construction of AMP-1 and AMP-2. Broader impacts of the pandemic have included inflationary pressure as well as ongoing, industry-wide challenges in logistics and supply chains, such as increased port congestion, intermittent supplier delays and a shortfall of semiconductor supply. Because the Company relies on third party suppliers for the development, manufacture, and/or provision and development of many of the key components and materials used in its vehicles, as well as provisioning and servicing equipment in its manufacturing facilities, the Company has been affected by inflation and such industry-wide challenges in logistics and supply chains. While the Company continues to focus on mitigating risks to its operations and supply chain in the current industry environment, the Company expects that these industry-wide trends will continue to impact its cost structure as well as its ability and the ability of its suppliers to obtain parts, components and manufacturing equipment on a timely basis for the foreseeable future. In the current circumstances, given the dynamic nature of the situation, any impact on the Company’s financial condition, results of operations or cash flows in the future continues to be difficult to estimate and predict, as it depends on future events that are highly uncertain and cannot be predicted with accuracy, including, but not limited to, the duration and continued spread of the outbreak, its severity, potential additional waves of infection, the emergence of more virulent or more dangerous strains of the virus, the actions taken to mitigate the virus or its impact, the development, distribution, efficacy and acceptance of vaccines worldwide, how quickly and to what extent normal economic and operating conditions can resume, the broader impact that the pandemic is having on the economy and our industry and specific implications the pandemic may have on the Company’s suppliers and on global logistics. See “Risk Factors” in Part II, Item 1A of this Quarterly Report for additional information regarding risks associated with the COVID-19 pandemic, including under the caption “ The ongoing COVID-19 pandemic has adversely affected, and we cannot predict its ultimate impact on, our business, prospects, results of operations and financial condition. ” |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10-K filed with the SEC on February 28, 2022. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2022 and the results of operations for the three and nine months ended September 30, 2022 and 2021. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, inventory valuation, warranty reserve, the determination of the useful lives of property, plant and equipment, fair value of preferred stock warrants, fair value of common stock warrants, fair value of contingent forward contracts liability, estimates of residual value guarantee (“RVG”), valuation of deferred income tax assets and uncertain tax positions, fair value of common stock and other assumptions used to measure stock-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing leases. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation in the condensed consolidated financial statements and the accompanying notes. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in other current assets and noncurrent assets is primarily related to letters of credit issued to the landlords for certain of the Company’s leasehold facilities. The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statements of cash flows (in thousands): September 30, December 31, September 30, December 31, Cash and cash equivalents $ 1,264,136 $ 6,262,905 $ 4,796,880 $ 614,412 Restricted cash included in other current assets 1,554 10,740 10,970 11,278 Restricted cash included in other noncurrent assets — 24,375 24,716 14,728 Total cash, cash equivalents, and restricted cash $ 1,265,690 $ 6,298,020 $ 4,832,566 $ 640,418 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, and investments. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Concentration of Supply Risk The Company is dependent on its suppliers, the majority of which are single-source suppliers, and the inability of these suppliers to deliver necessary components of its products according to the schedule and at prices, quality levels and volumes acceptable to the Company, or its inability to efficiently manage these components, could have a material adverse effect on the Company’s results of operations and financial condition. Summary of Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2 of the notes to the consolidated financial statements included in the Company’s Form 10-K filed with the SEC on February 28, 2022. Except for the policies described below, there have been no significant changes to the Company’s accounting policies during the three and nine months ended September 30, 2022. Investments The Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale and they are stated at fair value. The Company classifies its investments as either short-term or long-term based on each instrument’s underlying contractual maturity date. Unrealized gains and losses on our investments of available-for-sale securities are recorded in accumulated other comprehensive loss which is included within stockholders’ equity. Interest, as well as amortization and accretion of purchase premiums and discounts on our investments of available-for-sale securities are included in Interest income. The cost of securities sold is determined using the specific identification method. Realized gains and losses on the sale of available-for-sale securities are recorded in other income (expense), net. Vehicle Sales with Residual Value Guarantee The Company provides an RVG to its commercial banking partner in connection with its vehicle leasing program. Under the vehicle leasing program, the Company generally receives full payment for the vehicle sales price at the time of delivery, does not bear casualty and credit risks during the lease term, and is contractually obligated (or entitled) to share a portion of the shortfall (or excess) between the resale value realized by the commercial banking partner and a predetermined resale value. During the three and nine months ended September 30, 2022, vehicle sales with RVG totaled $10.1 million. At the lease inception, the Company is required to deposit cash collateral equal to a contractual percentage of the residual value of the leased vehicles with the commercial banking partner. The cash collateral is held in a restricted bank account owned by the commercial banking partner until it is used, as applicable, in settlement of the RVG at the end of the lease term. Cash collateral is recorded in other long-term assets, subject to asset impairment review at each reporting period. The Company accounts for the vehicle leasing program in accordance with ASC 842, Leases, ASC 460, Guarantees and ASC 606, Revenue from Contracts with Customers . The Company is the lessor at inception of a lease and immediately transfers the lease as well as the underlying vehicle to its commercial banking partner, with the transaction being accounted for as a sale under ASC 606. The Company recognizes revenue when control transfers upon delivery when the consumer-lessee takes physical possession of the vehicle, and bifurcates the RVG at fair value and accounts for it as a guarantee liability. The remaining amount of the transaction price is allocated among the performance obligations, including the vehicle, the unspecified over-the-air (“ OTA”) software updates and remarketing activities, in proportion to the standalone selling price of the Company’s performance obligations. The guarantee liability represents the estimated amount the Company expects to pay at the end of the lease term. The Company is released from residual risk upon either expiration or settlement of the RVG. The Company evaluates variables such as third-party residual value publications, risk of future price deterioration due to changes in market conditions and reconditioning costs to determine the estimated residual value guarantee liability. As we accumulate more data related to the resale value of our vehicles or as market conditions change, there could be material changes to the estimated guarantee liabilities. As of September 30, 2022, the RVG liability was immaterial. Government Grants Government grants are recognized when the grants are received, and all the conditions specified in the grant have been met. Grants related to fixed assets are recorded as a deduction in calculating the carrying amount of the related assets and are recognized in profit or loss over the life of a depreciable asset through reduced depreciation expense. Grants received in advance of the acquisition or construction of assets are recorded initially in deferred liability and then as a deduction in calculating the carrying amount of the related fixed assets upon acquisition or construction of the assets. Grant receipts are classified as investing cash inflows on a gross basis on the condensed consolidated statements of cash flows. Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The disclosure requirements include information about the nature of the transactions and the related accounting policy, the line items on the balance sheet and income statement that are affected by the transactions, the amount applicable to each financial statement line and significant terms and conditions of the transactions. The guidance is effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. The Company adopted ASU 2021-10 prospectively on January 1, 2022. The adoption of this ASU did not have an impact to the condensed consolidated financial statements and related disclosures. |
REVERSE RECAPITALIZATION
REVERSE RECAPITALIZATION | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
REVERSE RECAPITALIZATION | REVERSE RECAPITALIZATION On July 23, 2021, upon the consummation of the Merger, all holders of 451,295,965 issued and outstanding Legacy Lucid common stock received shares of Lucid common stock at a deemed value of $10.00 per share after giving effect to the exchange ratio of 2.644 (the “Exchange Ratio”) resulting in 1,193,226,511 shares of Lucid common stock issued and outstanding as of the Closing and all holders of 42,182,931 issued and outstanding Legacy Lucid equity awards received Lucid equity awards covering 111,531,080 shares of Lucid common stock at a deemed value of $10.00 per share after giving effect to the Exchange Ratio, based on the following events contemplated by the Merger Agreement: • the cancellation and conversion of all 437,182,072 issued and outstanding shares of Legacy Lucid preferred stock into 437,182,072 shares of Legacy Lucid common stock at the conversion rate as calculated pursuant to Legacy Lucid’s memorandum and articles of association at the date and time that the Merger became effective; • the surrender and exchange of all 451,295,965 issued and outstanding shares of Legacy Lucid common stock (including Legacy Lucid common stock resulting from the conversion of the Legacy Lucid preferred stock) into 1,193,226,511 shares of Lucid common stock as adjusted by the Exchange Ratio; • the cancellation and exchange of all 25,764,610 granted and outstanding vested and unvested Legacy Lucid options, which became 68,121,210 Lucid options exercisable for shares of Lucid common stock with the same terms and vesting conditions except for the number of shares exercisable and the exercise price, each of which was adjusted by the Exchange Ratio; and • the cancellation and exchange of all 16,418,321 granted and outstanding vested and unvested Legacy Lucid RSUs, which became 43,409,870 Lucid RSUs for shares of Lucid common stock with the same terms and vesting conditions except for the number of shares, which was adjusted by the Exchange Ratio. The other related events that occurred in connection with the Closing are summarized below: • Churchill entered into separate private placement subscription agreements (the “PIPE Investment”) contemporaneously with the execution of the Merger Agreement pursuant to which Churchill agreed to sell and issue an aggregate of 166,666,667 shares of common stock at a purchase price of $15.00 per share for an aggregate purchase price of $2,500.0 million. The PIPE Investment closed simultaneously with the Closing of the Merger; • Churchill Sponsor IV LLC (the “Churchill Sponsor”) exercised its right to convert the outstanding and unpaid amount of $1.5 million under the working capital loan provided by the Churchill Sponsor to Churchill into an additional 1,500,000 Private Placement Warrants at a price of $1.00 per warrant in satisfaction of such loan; • Churchill and the Churchill Sponsor entered into a letter agreement (the “Sponsor Agreement”), pursuant to which the Churchill Sponsor agreed that 17,250,000 shares of Churchill’s issued and outstanding common stock beneficially held by the Churchill Sponsor (the “Sponsor Earnback Shares”) and 14,783,333 Private Placement Warrants beneficially held by the Churchill Sponsor (the “Sponsor Earnback Warrants”) to purchase shares of the Churchill’s common stock shall become subject to transfer restrictions and contingent forfeiture provisions upon the Closing of the Merger until Lucid’s stock price exceeded certain predetermined levels in the post-Merger period. Any such shares and warrants not released from these transfer restrictions during the earnback period, which expires on the fifth anniversary of the Closing, will be forfeited back to Lucid for no consideration. See Note 12 “Earnback Shares and Warrants” for more information; and • Churchill redeemed 21,644 public shares of Churchill’s Class A common stock at approximately $10.00 per share for an aggregate payment of $0.2 million. After giving effect to the Merger and the redemption of Churchill shares as described above, the number of shares of common stock issued and outstanding immediately following the consummation of the Merger was as follows: Shares Churchill public shares, prior to redemptions 207,000,000 Less redemption of Churchill shares (21,644) Churchill public shares, net of redemptions 206,978,356 Churchill Sponsor shares (1) 51,750,000 PIPE shares (2) 166,666,667 Total shares of Churchill common stock outstanding immediately prior to the Merger 425,395,023 Legacy Lucid shares 1,193,226,511 Total shares of Lucid common stock outstanding immediately after the Merger (3)(4) 1,618,621,534 (1) The 51,750,000 shares beneficially owned by the Churchill Sponsor as of the Closing of the Merger includes the 17,250,000 Sponsor Earnback Shares. (2) Reflects the sale and issuance of 166,666,667 shares of common stock to the PIPE Investors at $15.00 per share. (3) Excludes 111,531,080 shares of common stock as of the Closing of the Merger to be reserved for potential future issuance upon the exercise of Lucid options or settlement of Lucid RSUs. (4) Excludes the 85,750,000 warrants issued and outstanding as of the Closing of the Merger, which includes the 41,400,000 public warrants and the 44,350,000 Private Placement Warrants held by the Churchill Sponsor. The 44,350,000 Private Placement Warrants beneficially owned by the Churchill Sponsor as of the consummation of the Merger includes the 14,783,333 Sponsor Earnback Warrants. The Merger has been accounted for as a reverse recapitalization under U.S. GAAP. Under this method of accounting, Churchill has been treated as the acquired company for financial reporting purposes. The reverse recapitalization accounting treatment was primarily determined based on the stockholders of Legacy Lucid having a relative majority of the voting power of Lucid and having the ability to nominate the majority of the members of the Lucid board of directors, senior management of Legacy Lucid comprise the senior management of Lucid, and the strategy and operations of Legacy Lucid prior to the Merger comprise the only ongoing strategy and operations of Lucid. Accordingly, for accounting purposes, the financial statements of Lucid represent a continuation of the financial statements of Legacy Lucid with the Merger being treated as the equivalent of Legacy Lucid issuing shares for the net assets of Churchill, accompanied by a recapitalization. The net assets of Churchill were recognized as of the Closing at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Merger are presented as those of Legacy Lucid and the accumulated deficit of Legacy Lucid has been carried forward after Closing. All periods prior to the Merger have been retrospectively adjusted using the Exchange Ratio for the equivalent number of shares outstanding immediately after the Closing to effect the reverse recapitalization. In connection with the Closing of the Merger, the Company raised $4,439.2 million of gross proceeds, including the contribution of $2,070.1 million of cash held in Churchill’s trust account from its initial public offering along with $2,500.0 million of cash raised by Churchill in connection with the PIPE Investment and $0.4 million of cash held in the Churchill operating cash account. The gross proceeds were net of $0.2 million paid to redeem 21,644 shares of Churchill Class A common stock held by public stockholders and $131.4 million in costs incurred by Churchill prior to the Closing. The Company additionally incurred $38.9 million of transaction costs, consisting of banking, legal, and other professional fees, of which $36.2 million was recorded as a reduction to additional paid-in capital of proceeds and the remaining $2.7 million was expensed in July 2021. The total net cash proceeds to the Company were $4,400.3 million. |
BALANCE SHEETS COMPONENTS
BALANCE SHEETS COMPONENTS | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEETS COMPONENTS | BALANCE SHEETS COMPONENTS Inventory Inventory as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Raw materials $ 464,854 $ 87,646 Work in progress 49,375 30,641 Finished goods 171,092 8,963 Total inventory $ 685,321 $ 127,250 Inventory as of September 30, 2022 and December 31, 2021 was comprised of raw materials, work in progress related to the production of vehicles for sale and finished goods inventory including vehicles in transit to fulfill customer orders and new vehicles available for sale. In the three and nine months ended September 30, 2022, we recorded write downs of $186.5 million and $364.6 million, respectively, to reduce our inventories to their net realizable values, for any excess or obsolete inventories, and losses from firm purchase commitments. No write-downs were recorded during the three and nine months ended September 30, 2021. Property, plant and equipment, net Property, plant and equipment as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Land and land improvements $ 64,677 $ 1,050 Building and improvements 197,254 195,952 Machinery, Tooling and Vehicles 703,350 601,791 Computer equipment and software 41,590 27,968 Leasehold improvements 163,467 135,533 Furniture and fixtures 23,499 15,352 Finance leases 94,991 13,601 Construction in progress 882,892 276,919 Total property, plant and equipment 2,171,720 1,268,166 Less accumulated depreciation and amortization (217,410) (86,013) Property, plant and equipment, net $ 1,954,310 $ 1,182,153 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, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location in the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are ready for use. Construction in progress consisted of the following (in thousands): September 30, December 31, Machinery and tooling $ 407,856 $ 132,943 Construction of AMP-1 and AMP-2 (1) 435,103 112,970 Leasehold improvements 39,933 31,006 Total construction in progress $ 882,892 $ 276,919 (1) As of September 30, 2022, $26.6 million of capital expenditure support received from Ministry of Investment of Saudi Arabia (“MISA”) was recorded as a deduction to AMP-2 construction in progress balance. See Note 2 “Summary of Significant Accounting Policies” and Note 19 “Related Party Transactions” for additional information. Depreciation and amortization expense was $50.6 million and $131.3 million, respectively, for the three and nine months ended September 30, 2022, and $14.9 million and $26.6 million, respectively, for the same periods in the prior year. The amount of interest capitalized on construction in progress related to significant capital asset construction was $1.1 million and $1.8 million, respectively, for the three and nine months ended September 30, 2022. Other current liabilities Other current liabilities as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Engineering, design, and testing accrual $ 26,925 $ 33,950 Construction in progress 213,551 92,590 Accrued purchases (1) 173,889 12,225 Retail leasehold improvements accrual 11,578 15,796 Other professional services accrual 33,643 13,944 Tooling liability 13,708 23,966 Short-term insurance financing note 2,141 15,281 Short-term borrowings 13,575 — Operating lease liabilities, current portion 7,815 11,056 Other current liabilities 189,730 99,404 Total other current liabilities $ 686,555 $ 318,212 (1) Accrued purchases primarily reflect inventory purchases and related transportation charges that had not been invoiced. Other long-term liabilities Other long-term liabilities as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Operating lease liabilities, net of current portion $ 239,173 $ 185,323 Other long-term liabilities (1) 125,836 3,252 Total other long-term liabilities $ 365,009 $ 188,575 (1) As of September 30, 2022, $70.7 million of capital expenditure support received from MISA was recorded as deferred liability within other long-term liabilities. See Note 2 “Summary of Significant Accounting Policies” and Note 19 “Related Party Transactions” for additional information. Accrued warranty Accrued warranty activities consisted of the following (in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Accrued warranty - beginning of period $ 8,311 $ 1,282 Warranty costs incurred (3,501) (5,256) Provision for warranty (1) 8,815 17,599 Accrued warranty - end of period (2) $ 13,625 $ 13,625 (1) Accrued warranty balance as of September 30, 2022 included estimated costs related to the recalls identified. (2) Accrued warranty balances were recorded within other current liabilities and other long-term liabilities on our condensed consolidated balance sheets. |
FAIR VALUE MEASUREMENTS AND FIN
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
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 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. 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Reported As: Amortized cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents Short-Term Investments Long-Term Investments Cash $ 238,623 $ — $ — $ 238,623 $ 238,623 $ — $ — Level 1: Money market funds 933,177 — — 933,177 933,177 — — U.S. Treasury securities 1,863,413 16 (10,195) 1,853,234 — 1,490,735 362,499 Subtotal 2,796,590 16 (10,195) 2,786,411 933,177 1,490,735 362,499 Level 2: Certificates of deposit 234,614 60 (248) 234,426 7,999 226,427 — Commercial paper 315,209 22 (254) 314,977 79,025 235,952 — Corporate debt securities 284,146 15 (2,682) 281,479 5,312 124,931 151,236 Subtotal 833,969 97 (3,184) 830,882 92,336 587,310 151,236 Total assets measured at fair value $ 3,869,182 $ 113 $ (13,379) $ 3,855,916 $ 1,264,136 $ 2,078,045 $ 513,735 December 31, 2021 Reported As: Cash and cash equivalents Cash $ 160,888 Level 1: Money market funds 6,102,017 Total assets measured at fair value $ 6,262,905 During the three and nine months ended September 30, 2022, there were immaterial realized gains or losses on the sale of available-for-sale securities. Accrued interest receivable excluded from both the fair value and amortized cost basis of the available-for-sale securities was $5.7 million as of September 30, 2022, and is recorded in Other current assets on our condensed consolidated balance sheets. As of September 30, 2022, no allowance for credit losses was recorded related to an impairment of available-for-sale securities. The following table summarizes our available-for-sale securities by contractual maturity: September 30, 2022 Amortized cost Estimated Fair Value Within one year $ 2,082,767 $ 2,078,045 After one year through three years 522,262 513,735 Total $ 2,605,029 $ 2,591,780 Level 3 liabilities consist of convertible preferred stock warrant liability, contingent forward contract liability and common stock warrant liability, of which the fair value was measured upon issuance and is remeasured at each reporting date. Level 3 liabilities also consist of residual value guarantee liabilities, of which the fair value measurement is nonrecurring and measured upon delivery of vehicles. The valuation methodology and underlying assumptions are discussed further in Note 2 “Summary of Significant Accounting Policies”, Note 7 “Contingent Forward Contracts,” Note 8 “Convertible Preferred Stock Warrant Liability” and Note 9 “Common Stock Warrant Liability”. Significant increases (decreases) in the unobservable inputs used in determining the fair value would result in a significantly higher (lower) fair value measurement. The following table presents a reconciliation of the contingent forward contract liability, convertible preferred stock warrant liability and common stock warrant liability measured and recorded at fair value on a recurring basis (in thousands): Three Months Ended September 30, 2022 2021 Common Stock Common Stock Warrant Liability Fair value-beginning of period $ 536,635 $ — Issuance — 812,048 Change in fair value (140,146) 24,787 Fair value-end of period $ 396,489 $ 836,835 Nine Months Ended September 30, 2022 2021 Common Stock Contingent Forward Contract Liability (1) Convertible Preferred Stock Warrant Liability (1) Common Stock Fair value-beginning of period $ 1,394,808 $ — $ 2,960 $ — Issuance — 2,167,332 — 812,048 Change in fair value (998,319) 454,546 6,976 24,787 Settlement — (2,621,878) (9,936) — Fair value-end of period $ 396,489 $ — $ — $ 836,835 (1) Convertible preferred stock warrant liability and contingent forward contract liability were fully settled during the six months ended June 30, 2021. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT 2026 Notes In December 2021, the Company issued an aggregate of $2,012.5 million principal amount of 1.25% convertible senior notes due in December 2026 (the “2026 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, at an issuance price equal to 99.5% of the principal amount of 2026 Notes. The 2026 Notes have been designated as green bonds, whose proceeds will be allocated in accordance with the Company’s green bond framework. The 2026 Notes were issued pursuant to and are governed by an indenture dated December 14, 2021, between the Company and U.S. Bank National Association as the trustee. The proceeds from the issuance of the 2026 Notes were $1,986.6 million, net of the issuance discount and debt issuance costs. The 2026 Notes are unsecured obligations which bear regular interest at 1.25% per annum and will be payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2022. The 2026 Notes will mature on December 15, 2026, unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The 2026 Notes are convertible into cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at the Company’s election, at an initial conversion rate of 18.2548 shares of Class A common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $54.78 per share of our Class A common stock. The conversion rate is subject to customary adjustments for certain dilutive events. The Company may redeem for cash all or any portion of the 2026 Notes, at the Company’s option, on or after December 20, 2024 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest up to the day before the redemption date. The holders may require the Company to repurchase the 2026 Notes upon the occurrence of certain fundamental change transactions at a redemption price equal to 100% of the principal amount of the 2026 Notes redeemed, plus accrued and unpaid interest up to the day before the redemption date. Holders of the 2026 Notes may convert all or a portion of their 2026 Notes at their option prior to September 15, 2026, in multiples of $1,000 principal amounts, only under the following circumstances: • during any calendar quarter commencing after the quarter ending on March 31, 2022 (and only during such calendar quarter), if the Company’s common stock price exceeds 130% of the conversion price for at least 20 trading days during the 30 consecutive trading days at the end of the prior calendar quarter; • during the five consecutive business days immediately after any 10 consecutive trading day period in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; • upon the occurrence of specified corporate events; or • if the Company calls any or all 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the notes called for redemption. On or after September 15, 2026, the 2026 Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the 2026 Notes who convert the 2026 Notes in connection with a make-whole fundamental change, as defined in the indenture governing the 2026 Notes, or in connection with a redemption may be entitled to an increase in the conversion rate. The Company accounted for the issuance of the 2026 Notes as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. The following is a summary of the 2026 Notes as of September 30, 2022 and December 31, 2021 (in millions): September 30, 2022 December 31, 2021 Principal Amount $ 2,012.5 $ 2,012.5 Unamortized Debt Discounts and Issuance Costs 21.9 25.7 Net Carrying Amount $ 1,990.6 $ 1,986.8 Fair Value (Level 2) $ 1,257.8 $ 1,984.6 The effective interest rate for the convertible note is 1.5%. The components of interest expense related to the 2026 Notes were as follows (in millions): Three Months Ended Nine Months Ended Contractual interest $ 6.2 $ 18.9 Amortization of debt discounts and debt issuance costs 1.4 3.8 Interest expense $ 7.6 $ 22.7 The 2026 Notes were not eligible for conversion as of September 30, 2022 and December 31, 2021. No sinking fund is provided for the 2026 Notes, which means that the Company is not required to redeem or retire them periodically. As of September 30, 2022, the Company was in compliance with applicable covenants under the indenture governing the 2026 Notes. SIDF Loan Agreement On February 27, 2022, Lucid, LLC, a limited liability company established in the Kingdom of Saudi Arabia and a subsidiary of the Company (“Lucid LLC”) entered into a loan agreement (as subsequently amended, the “SIDF Loan Agreement”) with SIDF, a related party of Public Investment Fund (“PIF”), which is an affiliate of Ayar Third Investment Company, the controlling stockholder of the Company (“Ayar”). Under the SIDF Loan Agreement, SIDF has committed to provide loans (the “SIDF Loans”) to Lucid LLC in an aggregate principal amount of up to SAR 5.19 billion (approximately $1.4 billion); provided that SIDF may reduce the availability of SIDF Loans under the facility in certain circumstances. SIDF Loans will be subject to repayment in semi-annual installments in amounts ranging from SAR 25 million (approximately $6.7 million) to SAR 350 million (approximately $93.2 million), commencing on April 3, 2026 and ending on November 12, 2038. SIDF Loans are financing and will be used to finance certain costs in connection with the development and construction of AMP-2. Lucid LLC may repay SIDF Loans earlier than the maturity date without penalty. Obligations under the SIDF Loan Agreement do not extend to the Company or any of its other subsidiaries. SIDF Loans will not bear interest. Instead, Lucid LLC will be required to pay SIDF service fees, consisting of follow-up and technical evaluation fees, ranging, in aggregate, from SAR 415 million (approximately $110.5 million) to SAR 1.77 billion (approximately $471.1 million), over the term of the SIDF Loans. SIDF Loans will be secured by security interests in the equipment, machines and assets funded thereby. The SIDF Loan Agreement contains certain restrictive financial covenants and imposes annual caps on Lucid LLC’s payment of dividends, distributions of paid-in capital or certain capital expenditures. The SIDF Loan Agreement also defines customary events of default, including abandonment of or failure to commence operations at the plant in the King Abdullah Economic City (“KAEC”), and drawdowns under the SIDF Loan Agreement are subject to certain conditions precedent. As of September 30, 2022 , no amount s were outstanding under the SIDF Loan Agreement. GIB Facility Agreement On April 29, 2022, Lucid LLC entered into a revolving credit facility agreement (the “GIB Facility Agreement”) with GIB, maturing on February 28, 2025. GIB is a related party of PIF, which is an affiliate of Ayar. The GIB Facility Agreement provides for two committed revolving credit facilities in an aggregate principal amount of SAR 1 billion (approximately $266.2 million). SAR $650 million (approximately $173.0 million) under the GIB Facility Agreement is available as bridge financing (the “Bridge Facility”) of Lucid LLC’s capital expenditures in connection with AMP-2. The remaining SAR 350 million (approximately $93.2 million) may be used for general corporate purposes (the “Working Capital Facility”). Loans under the Bridge Facility and the Working Capital Facility will have a maturity of no more than 12 months. The Bridge Facility will bear interest at a rate of 1.25% per annum over 3-month SAIBOR and the Working Capital Facility will bear interest at a rate of 1.70% per annum over 3-month SAIBOR and associated fees. The Company is required to pay a quarterly commitment fee of 0.15% per annum based on the unutilized portion of the GIB Credit Facility. Commitments under the GIB Facility Agreement will terminate, and all amounts then outstanding thereunder will become payable, on the maturity date of the GIB Facility Agreement. The GIB Facility Agreement contains certain conditions precedent to drawdowns, representations and warranties and covenants of Lucid LLC and events of default. As of September 30, 2022 , the Company had outstanding borrowings of SAR 51 million (approximately $13.6 million) from the Working Capital Facility, which was recorded within other current liabilities on the condensed consolidated balance sheets. As of September 30, 2022, available borrowings are SAR 650 million (approximately $173.0 million) and SAR 299 million (approximately $79.6 million) under the Bridge Facility and Working Capital Facility, respectively. As of September 30, 2022, the Company was in compliance with applicable covenants under the GIB Facility Agreement. ABL Credit Facility In June 2022, the Company entered into a new five-year senior secured asset-based revolving credit facility (“ABL Credit Facility”) with a syndicate of banks that may be used for working capital and general corporate purposes. The ABL Credit Facility provides for an initial aggregate principal commitment amount of up to $1.0 billion (including a $350.0 million letter of credit subfacility and a $100.0 million swingline loan subfacility) and has a stated maturity date of June 9, 2027. Borrowings under the ABL Credit Facility bear interest at the applicable interest rates specified in the credit agreement governing the ABL Credit Facility. Availability under the ABL Credit Facility is subject to the value of eligible assets in the borrowing base and is reduced by outstanding loan borrowings and issuances of letters of credit which bear customary letter of credit fees. Subject to certain terms and conditions, the Company may request one or more increases in the amount of credit commitments under the ABL Credit Facility in an aggregate amount up to the sum of $500.0 million plus certain other amounts. The Company is required to pay a quarterly commitment fee of 0.25% per annum based on the unutilized portion of the ABL Credit Facility. The ABL Credit Facility contains customary covenants that limit the ability of the Company and its restricted subsidiaries to, among other activities, pay dividends, incur debt, create liens and encumbrances, redeem or repurchase stock, dispose of certain assets, consummate acquisitions or other investments, prepay certain debt, engage in transactions with affiliates, engage in sale and leaseback transactions or consummate mergers and other fundamental changes. The ABL Credit Facility also includes a minimum liquidity covenant which, at the Company’s option following satisfaction of certain pre-conditions, may be replaced with a springing, minimum fixed charge coverage ratio (“FCCR”) financial covenant, in each case on terms set forth in the credit agreement governing the ABL Credit Facility. As of September 30, 2022, the Company was in compliance with applicable covenants under the ABL Credit Facility. |
CONTINGENT FORWARD CONTRACTS
CONTINGENT FORWARD CONTRACTS | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
CONTINGENT FORWARD CONTRACTS | CONTINGENT FORWARD CONTRACTS In September 2018, the Company entered into a securities purchase agreement with PIF. Along with the execution of the securities purchase agreement, the Company granted PIF the right to purchase the Company’s Series D convertible preferred stock in future periods. The Company determined PIF’s right to participate in future Series D convertible preferred stock financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $18.6 million as a debt discount to the Convertible Notes issued in September 2018. In March 2020, the Company received $200.0 million in exchange for 82,496,092 shares of Series D convertible preferred shares as partial settlement of the Series D contingent forward contract liability and revalued the contingent forward contract liability to the then fair value of $36.4 million and reclassified $18.2 million of the contingent forward contract liability into Series D convertible preferred stock. In June 2020, upon satisfaction of the second set of milestones (refer to Note 10 “Convertible Preferred Stock”), the Company received the remaining $200.0 million in exchange for 82,496,121 shares of Series D convertible preferred stock as final settlement of the Series D contingent forward contract liability and revalued the contingent forward contracts liability to the then fair value of $39.6 million and reclassified the liability into Series D convertible preferred stock. The Series D contingent forward contract liability incurred a total fair value loss of $8.7 million during the year ended December 31, 2020. Since the Series D contingent forward contract liability was fully settled in June 2020, there was no related outstanding contingent forward contract liability as of December 31, 2020. As discussed in Note 10 “Convertible Preferred Stock”, in September 2020, along with the execution of the Securities Purchase Agreement, the Company granted Ayar the right to purchase the Company’s additional Series E convertible preferred stock upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred stock financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $0.8 million into contingent forward contract liabilities. In December 2020, Ayar waived the Company’s remaining outstanding obligations, and the Company received $400.0 million for the issuance of Series E convertible preferred stock. Upon settlement, the Company revalued the Series E contingent forward contracts to the then fair value of $110.5 million and reclassified the contingent forward contract liability into Series E convertible preferred stock. The Company recorded a loss of $109.7 million related to fair value remeasurements of the Series E contingent forward contracts during the year ended December 31, 2020. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Stock Purchase Agreement (“Amendment No. 1”). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 133,818,821 Series E convertible preferred stock at $2.99 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred stockholders other than Ayar (“Eligible Holders”) to enter into the fourth closing to purchase up to 23,737,221 shares of Series E convertible preferred stock on a pro rata basis at $2.99 per share, aggregating to $71.0 million. In addition, the amendment allowed the Company to offer for purchase at the fourth closing at $2.99 per share, a number of Series E Preferred Stock to senior management employees, directors, consultants, advisors and/or contractors of the Company (“Additional Purchasers”) and Ayar. Refer to Note 10 “Convertible Preferred Stock”. In April 2021, the Company issued 66,909,408 Series E convertible preferred stock from the fourth closing at $2.99 per share for cash consideration of $200.0 million. The Company received $107.1 million of the total issuance proceeds in March 2021 and the remaining $92.9 million in April 2021. See Note 10 “Convertible Preferred Stock” for more information. The Company determined the right to participate in future Series E convertible preferred share financing to be a freestanding financial instrument similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $1,444.9 million and $722.4 million for the third closing and fourth closing, respectively, as contingent forward contract liabilities. Since the contingent forward contract liability related to the third closing was fully settled in the same month following the execution of the amendment, the Company recorded no related fair value remeasurements in the condensed consolidated statements of operations and comprehensive loss. The Company issued Offer Notices to certain of the Company’s management and members of the Board of Directors in March 2021 and April 2021. The Series E convertible preferred stock issued from the fourth closing included 3,034,194 shares to the Company’s management and 1,658,705 shares to members of the Board of Directors. The total issuance to the Company’s management included 535,275 shares offered to the CEO in April 2021. The offer to employees in the fourth closing to participate in future Series E convertible preferred stock financing represent a fully vested, equity classified award. The Company recorded the award’s full fair value on each recipient’s grant date as stock-based compensation, and derecognized the related contingent forward contract liability. The Company revalued the contingent forward contract liability for the remaining participants and recorded $454.5 million fair value remeasurement loss related to the contingent forward contract liability for the nine months ended September 30, 2021, with the final fair value of the contingent forward contract liability of $1.2 billion reclassified into Series E convertible preferred stock upon the fourth closing in April 2021. There was no related outstanding contingent forward contract liability as of December 31, 2021. The fair value of the Series E convertible preferred stock contingent forward contract liability for the third closing was determined using a forward payoff. The Company’s inputs used in determining the fair value on the issuance date and settlement date, were as follows: Stock Price $ 13.79 Volatility 100.00 % Expected term (in years) 0.01 Risk-free rate 0.03 % The fair value of the Series E convertible preferred stock contingent forward contract liability for the fourth closing was determined using a forward and an option payoff. The Company’s inputs used in determining the fair value on the issuance date were as follows: Fair value of Series E convertible preferred share $ 13.79 Volatility 100.00 % Expected term (in years) 0.11 Risk-free rate 0.03 % The fair value of the Series E convertible preferred stock contingent forward contract liability for the fourth closing was determined as the difference between the Series E convertible preferred stock fair value and the purchase price. The Company estimated the fair value of each of the Series E convertible preferred stock on the settlement date by taking the closing price of Churchill’s Class A common stock on April 1, 2021 of $23.78 multiplied by the expected exchange ratio at the time, and discounted for lack of marketability. |
CONVERTIBLE PREFERRED STOCK WAR
CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY | 9 Months Ended |
Sep. 30, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY | CONVERTIBLE PREFERRED STOCK WARRANT LIABILITYIn March and September 2017, the Company issued two convertible preferred stock warrants to purchase a total of 1,546,799 shares of Series D convertible preferred stock, with an exercise price of $1.94 per share. The Company recorded the convertible preferred stock warrants at fair value using a Monte-Carlo simulation at issuance, which had been subsequently remeasured to fair value each reporting period with the changes recorded in the condensed consolidated statements of operations and comprehensive loss. In February 2021, all the outstanding warrants were settled in its entirety at an exercise price of $1.94 per share for an aggregate purchase price of $3.0 million. Upon final settlement, the Company converted the warrant into $12.9 million Series D convertible preferred stock, and recorded $7.0 million losses related to fair value remeasurements of the warrants in the condensed consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2021. |
COMMON STOCK WARRANT LIABILITY
COMMON STOCK WARRANT LIABILITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
COMMON STOCK WARRANT LIABILITY | COMMON STOCK WARRANT LIABILITY On July 23, 2021, in connection with the reverse recapitalization treatment of the Merger, the Company effectively issued 44,350,000 Private Placement Warrants to purchase shares of Lucid’s common stock at an exercise price of $11.50. The Private Placement Warrants were initially recognized as a liability with a fair value of $812.0 million and was remeasured to fair value of $1,394.8 million as of December 31, 2021. The Private Placement Warrants remained unexercised and were remeasured to fair value of $396.5 million as of September 30, 2022, resulting in a gain of $140.1 million and $998.3 million, respectively, for the three and nine months ended September 30, 2022 recognized in the condensed consolidated statements of operations and comprehensive loss. The 44,350,000 Private Placement Warrants included the 14,783,333 Sponsor Earnback Warrants subject to the contingent forfeiture provisions. The earnback triggering events were satisfied during the year ended December 31, 2021 such that the 14,783,333 Sponsor Earnback Warrants vested and are no longer subject to the transfer restrictions and contingent forfeiture provisions. See Note 12 “Earnback Shares and Warrants” for more information. The Company initially estimated the fair value of the Private Placement Warrants that were subject to the contingent forfeiture provisions using a Monte-Carlo simulation which estimates a distribution of potential outcomes over the earnback period related to the achievement of the volume-weighted average trading sale price (the “VWAP”) thresholds. The present value of the payoff in each simulation is calculated, and the fair value of the liability is determined by taking the average of all present values. The fair value of the Private Placement Warrants that were subject to the contingent forfeiture provisions were as follows: July 23, 2021 Fair value of Tranche 1 with $20.00 VWAP threshold per share $ 18.16 Fair value of Tranche 2 with $25.00 VWAP threshold per share $ 18.07 Fair value of Tranche 3 with $30.00 VWAP threshold per share $ 17.92 The fair value of the Private Placement Warrants that are not subject to the contingent forfeiture provisions was estimated using a Black-Scholes option pricing model, and were as follows: September 30, 2022 December 31, 2021 Fair value of Private Placement Warrants per share $ 8.94 $ 31.45 Assumptions used in the Monte-Carlo simulation models and Black-Scholes option pricing model take into account the contract terms as well as the quoted price of the Company’s common stock in an active market. The volatility is based on the actual market activity of the Company’s peer group as well as the Company's historical volatility. The expected life is based on the remaining contractual term of the warrants, and the risk free interest rate is based on the implied yield available on U.S. Treasury securities with a maturity equivalent to the warrants’ expected life. The level 3 fair value inputs used in the Monte-Carlo simulation models and Black-Scholes option pricing models were as follows: September 30, 2022 December 31, 2021 Volatility 80.00 % 85.00 % Expected term (in years) 3.8 4.6 Risk-free rate 4.17 % 1.20 % Dividend yield — % — % |
CONVERTIBLE PREFERRED STOCK
CONVERTIBLE PREFERRED STOCK | 9 Months Ended |
Sep. 30, 2022 | |
Features of Convertible Preferred Stock [Abstract] | |
CONVERTIBLE PREFERRED STOCK | CONVERTIBLE PREFERRED STOCK Convertible Preferred Stock Upon the Closing of the Merger, the Company cancelled and converted all 1,155,909,367 shares of issued and outstanding convertible preferred stock into 1,155,909,367 shares of Lucid common stock based upon the conversion rate as calculated pursuant to Legacy Lucid’s memorandum and articles of association at the date and time that the Merger became effective. As of September 30, 2022 and December 31, 2021, there were no issued and outstanding shares of convertible preferred stock. In 2014 through April 2021, the Company had issued Series A, Series B, Series C, and Series D and Series E convertible preferred stock (“Series A,” “Series B,” “Series C,” “Series D,” “Series E,” respectively) (collectively, the “Convertible Preferred Stock”). Convertible preferred stock was carried at its issuance price, net of issuance costs. In September 2018, concurrent with the execution of the Security Purchase Agreement with PIF, the Company entered into a Stock Repurchase Agreement (the “Repurchase Agreement”) with Blitz Technology Hong Kong Co. Limited and LeSoar Holdings, Limited (the “Sellers”) to repurchase Series C convertible preferred stock. From September 2018 to December 31, 2019, the Company repurchased in aggregate 11,331,430 shares of Series C convertible preferred stock with $60.0 million at a per share price of $5.30 from the first and second Company repurchase. Third Company Repurchase (Series C - August 2020) In August 2020, the Company entered into a Stock Repurchase Agreement with the Sellers. Pursuant to the Stock Repurchase Agreement, the Company agreed to repurchase 9,656,589 shares of Series C convertible preferred stock owned by the Sellers in August 2020 at a price of $1.02 per share for total of $9.9 million. The carrying value of the repurchased Series C convertible preferred stock is $20.4 million. As such, the Company recognized $10.5 million in additional paid-in capital under stockholder’s equity in the condensed consolidated balance sheet as of December 31, 2020 related to the difference in fair value and carrying value of the Series C stock repurchased. Fourth Company Repurchase (Series C - December 2020) In December 2020, the Company entered into a Stock Repurchase Agreement with Blitz Technology Hong Kong Co. Limited (“Blitz”). The Company agreed to repurchase 1,850,800 Series C convertible preferred stock from Blitz at a price of $1.21 per share, aggregating to $2.2 million. As the carrying amount of each share of Series C was $2.42 aggregating to $4.5 million in September 2020, the Company recognized $2.2 million as additional paid-in capital under stockholders’ deficit in the condensed consolidated balance sheet as of December 31, 2020, related to the difference in fair value and carrying value of the Series C shares repurchased. Fifth Company Repurchase (Series B - December 2020) On December 22, 2020, the Company entered into an agreement with JAFCO Asia Technology Fund V (“JAFCO”) whereby the Company agreed to repurchase 3,525,332 Series B convertible preferred stock having a carrying value of $4.0 million, from JAFCO for a total consideration of $3.0 million. The agreement resulted in an extinguishment of the Series B convertible preferred stock and the Company recognized $1.0 million in additional paid-in capital being the difference in fair value of the consideration payable and the carrying value of the Series B convertible preferred stock. As of the date of extinguishment and as of December 31, 2020 the Series B convertible preferred stock subject to repurchase had been mandatorily redeemable within 45 days of the agreement and accordingly had been reclassified to other accrued liabilities on the condensed consolidated balance sheets. Series D Preferred Stock Issuance In 2018, the Security Purchase Agreement with PIF granted PIF rights to purchase the Company’s Series D convertible stock at various tranches. The first tranche of $200.0 million had been issuable upon the approval of the PIF’s equity investment into the Company by CFIUS (refer to Note 7 “Contingent Forward Contracts”). The second and third tranches of $400.0 million each had been issuable upon the Company’s satisfaction of certain milestones related to further development and enhancement in marketing, product, and administrative activities. In April 2019, upon CFIUS’s approval of PIF’s equity investment into the Company, the Company received the first $200.0 million proceeds from PIF. In October 2019, the Company received additional $400.0 million upon achieving the first set of milestones. Together with the conversion of $272.0 million Convertible Notes and accrued interest, the Company issued 374,777,280 shares of Series D convertible preferred stock at a price of $2.33 per share, for net proceeds of approximately $872.0 million during the year ended December 31, 2019. In March 2020, the Company received $200.0 million of the remaining $400.0 million in proceeds from PIF and issued 82,496,092 shares of Series D in exchange. In June 2020 the Company successfully satisfied certain of the second set of milestones related to further development and enhancement in marketing, product, and administrative activities, and received a waiver from PIF for the remaining milestones. The Company received the remaining $200 million proceeds in exchange for 82,496,121 shares of Series D convertible preferred stock. See activities related to the PIF Convertible Notes and Series D convertible preferred stock funding as below (in thousands): Conversion of Convertible Notes $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Contingent forward contract liability reclassified to Series D in March 2020 18,180 Series D received in June 2020 200,000 Contingent forward contract liability reclassified to Series D in June 2020 21,384 Conversion of preferred stock warrant to Series D in February 2021 3,000 Reclassification of preferred stock warrant liability to Series D in February 2021 9,936 Total proceeds of Series D $ 1,324,485 Series E Convertible Preferred Stock Issuance In September 2020, the Company entered into an arrangement with Ayar to issue and sell Series E convertible preferred stock pursuant to a securities purchase agreement (the “SPAE”). Along with the execution of the SPAE, the Company granted Ayar the right to purchase additional Series E convertible preferred stock upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred stock financing to be freestanding, similar to a derivative in the form of contingent forward contracts, and recorded the initial valuation of $0.8 million as a contingent forward contract liability. The contingent forward contract terms were included within the SPAE, which dictated a price of $2.99 per share of Series E convertible preferred stock. The Company needed to satisfy two sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities for Ayar to provide funding under the SPAE. Immediately upon closing of the SPAE, the Company received the full first tranche of $500.0 million in funding in exchange for 167,273,525 Series E convertible preferred stock as the requirement for the first milestones were met prior to execution of the purchase agreement. Subsequently, the Company successfully satisfied certain of the second set of milestones and received a waiver from PIF for the remaining milestones; and on December 24, 2020, the investor provided $400.0 million of funding in exchange for 133,818,821 shares as the final issuance of Series E convertible preferred stock related to the second milestones. Upon final settlement, the Company re-valued the liability associated with the contingent forward contract to the then fair value of $110.5 million from a contingent liability of $0.8 million and derecognized the liability as the contract was settled in its entirety. The Company recognized the increase in fair value of $109.7 million in the consolidated statements of operations and reclassified the liability into convertible preferred stock on the Company’s consolidated balance sheets as of December 31, 2020. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Stock Purchase Agreement (“Amendment No. 1”). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 133,818,821 shares of Series E convertible preferred stock at $2.99 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred stockholders other than Ayar (“Eligible Holders”) to enter into the fourth closing to purchase up to 23,737,221 shares of Series E convertible preferred stock on a pro rata basis at $2.99 per share, aggregating to $71.0 million. In addition, the amendment allowed the Company to offer for purchase at the fourth closing at $2.99 per share, a number of Series E Preferred Stock to senior management employees, directors, consultants, advisors and/or contractors of the Company (“Additional Purchasers”). The aggregate number of Series E Preferred Stock sold at the third closing and fourth closing would not exceed 200.7 million shares (“Extension Amount”). Ayar committed to purchase the entire Extension Amount to the extent not subscribed by Eligible Holders or Additional Purchasers. In April 2021, the Company issued 66,909,408 Series E convertible preferred stock from the fourth closing at $2.99 per share for cash consideration of $200.0 million. The Company received $107.1 million of the entire cash consideration in March 2021, and the remaining $92.9 million in April 2021. The Company issued Offer Notices to certain of the Company’s management and members of the Board of Directors in March 2021 and April 2021. The Series E convertible preferred stock issued from the fourth closing included 3,034,194 shares to the Company’s management and 1,658,705 shares to members of the Board of Directors. The total issuance to the Company’s management includes 535,275 shares offered to the CEO in April 2021. The offer to employees to participate in a future Series E convertible preferred stock financing represented a fully vested, equity classified award. The excess of the award’s fair value over the purchase price of $123.6 million on each recipient’s grant date during the year ended December 31, 2021 was recorded as stock-based compensation. Along with the execution of Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred stock to 1,316,758,889 and 1,155,909,398 stock, respectively. |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY Preferred Stock The Company has authorized the issuance of 10,000,000 shares of undesignated preferred stock with a par value of $0.0001 per share with rights and preferences, including voting rights, designated from time to time by the Board of Directors. As of September 30, 2022 and December 31, 2021, there were no issued and outstanding shares of preferred stock. Common Stock On July 23, 2021, in connection with the reverse recapitalization treatment of the Merger, the Company effectively issued 425,395,023 new shares of common stock upon the Closing. The Company also converted all 1,155,909,367 shares of its issued and outstanding convertible preferred stock into 1,155,909,367 new shares of common stock as of the Closing of the Merger based upon the conversion rate as calculated pursuant to Legacy Lucid’s memorandum and articles of association. Immediately following the Merger, there were 1,618,621,534 shares of common stock outstanding with a par value of $0.0001. The holder of each share of common stock is entitled to one vote. Common Stock Warrants On July 23, 2021, in connection with the reverse recapitalization treatment of the Merger, the Company effectively issued 41,400,000 publicly-traded warrants to purchase shares of its common stock. Each whole warrant entitled the holder to purchase one share of the Company’s common stock at a price of $11.50 per share. The public warrants were exercisable as of August 22, 2021 and expire on July 23, 2026, if not yet exercised by the holder or redeemed by the Company. During the year ended December 31, 2021, an aggregate of 41,034,197 public warrants were exercised, of which 25,966,976 were exercised on a cashless basis. The aggregate cash proceeds received from the exercise of these public warrants were $173.3 million. The Company redeemed the remaining 365,803 public warrants that were not exercised by the holders at a redemption price of $0.01 per warrant. A summary of activity of the Company’s issued and outstanding public warrants was as follows: December 31, Public warrants issued in connection with Merger on July 23, 2021 41,400,000 Number of public warrants exercised (41,034,197) Public warrants redeemed (365,803) Issued and outstanding public warrants as of December 31, 2021 — Treasury Stock In fiscal year 2021, the Company repurchased an aggregate of 857,825 shares of its common stock, including 712,742 shares from certain employees and 145,083 shares from Board of Directors of the Company’s predecessor, Atieva, Inc. at $24.15 per share. No common stock was repurchased for the three and nine months ended September 30, 2022 and 2021. Common Stock Reserved for Issuance The Company’s common stock reserved for future issuances as of September 30, 2022 and December 31, 2021, were as follows: September 30, December 31, Private warrants to purchase common stock 44,350,000 44,350,000 Stock options outstanding 43,132,157 64,119,902 Restricted stock units outstanding 39,391,043 48,234,611 Shares available for future grants under equity plans 31,283,219 16,761,960 If-converted common shares from convertible note 36,737,785 36,737,785 Total shares of common stock reserved 194,894,204 210,204,258 |
EARNBACK SHARES AND WARRANTS
EARNBACK SHARES AND WARRANTS | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
EARNBACK SHARES AND WARRANTS | EARNBACK SHARES AND WARRANTSDuring the period between the Closing and the five-year anniversary of the Closing, the Churchill Sponsor has subjected the 17,250,000 Sponsor Earnback Shares of issued and outstanding common stock and 14,783,333 Sponsor Earnback Warrants of issued and outstanding Private Placement Warrants to potential forfeiture to Lucid for no consideration until the occurrence of each tranche’s respective earnback triggering event. The earnback triggering events related to achieving a volume-weighted average trading sale price greater than or equal to $20.00, $25.00, and $30.00, respectively, for any 40 trading days within any 60 consecutive trading day period were satisfied during the year ended December 31, 2021. As a result, the 17,250,000 Sponsor Earnback Shares of issued and outstanding common stock and 14,783,333 Sponsor Earnback Warrants of issued and outstanding Private Placement Warrants were vested and no longer subject to the transfer restrictions and contingent forfeiture provisions. |
STOCK-BASED AWARDS
STOCK-BASED AWARDS | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED AWARDS | STOCK-BASED AWARDS Stock Options A summary of stock option activity for the nine months ended September 30, 2022 was as follows: Outstanding Options Number of Options Weighted Average Exercise Price Weighted-Average Remaining Contractual Term Intrinsic Value (in thousands) Balance as of December 31, 2021 64,119,902 $ 1.08 6.60 $ 2,370,666 Options exercised (18,698,664) 0.79 Options canceled (2,289,081) 1.71 Balance as of September 30, 2022 43,132,157 $ 1.17 6.69 $ 554,954 Options vested and exercisable as of September 30, 2022 31,474,979 $ 0.97 6.24 $ 410,294 As of September 30, 2022, unrecognized stock-based compensation cost related to outstanding unvested stock options that are expected to vest was $9.3 million, which is expected to be recognized over a weighted-average period of 1.9 years. Restricted Stock Units A summary of restricted stock units (“RSUs”) activity for the nine months ended September 30, 2022 was as follows: Restricted Stock Units Time-Based Shares Performance-Based Shares Total Shares Weighted-Average Grant-Date Fair Value Balance as of December 31, 2021 32,210,200 16,024,411 48,234,611 $ 20.45 Granted 16,225,356 — 16,225,356 19.11 Vested (9,001,521) (13,934,271) (22,935,792) 19.21 Cancelled/Forfeited (2,133,132) — (2,133,132) 17.20 Balance as of September 30, 2022 37,300,903 2,090,140 39,391,043 $ 20.80 As of September 30, 2022, unrecognized stock-based compensation cost related to outstanding unvested time-based RSUs that are expected to vest was $554.0 million, which is expected to be recognized over a weighted-average period of 3.0 years. All performance-based RSUs granted to the CEO are subject to performance and market conditions. The performance condition was satisfied upon the closing of the Merger. The fair value of these performance-based RSUs was measured on the grant date, March 27, 2021, using a Monte Carlo simulation model, with the following assumptions: Weighted average volatility 60.0 % Expected term (in years) 5.0 Risk-free interest rate 0.9 % Expected dividends — The Company recognizes compensation expense on a graded vesting schedule over the derived service period for the CEO performance-based awards. Stock-based compensation expense is recognized when the relevant performance condition is considered probable of achievement for the performance-based award. During the nine months ended September 30, 2022, the market condition was met for the CEO performance-based awards for four of the five tranches and certified by the Board of Directors, representing an aggregate of 13,934,271 performance RSUs. We recorded stock-based compensation expense of $85.4 million for the four tranches during the nine months ended September 30, 2022, and no such expense was recognized in the same period in the prior year. As of September 30, 2022, the unamortized expense for the fifth tranche, representing 2,090,140 RSUs, was $11.0 million which will be recognized over a period of 1.0 years. For the three and nine months ended September 30, 2022, the Company withheld approximately 0.4 million and 8.9 million shares of common stock, respectively, by net settlement to meet the related tax withholding requirements related to the CEO time-based and performance-based RSUs. Employee Stock Purchase Plan (“ESPP”) The ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to employees. The purchase price for each share purchased during an offering period will be the lesser of 85% of the fair market value of the share on the purchase date or 85% of the fair market value of the share on the offering date. As of September 30, 2022, unrecognized stock-based compensation cost related to the ESPP was $29.0 million, which is expected to be recognized over a weighted-average period of 1.7 years. Stock-Based Compensation Expense Total employee and nonemployee stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021, was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 10,836 $ — $ 29,816 $ — Research and development 34,083 59,196 123,059 85,899 Selling, general and administrative 38,383 177,760 199,370 280,301 Total $ 83,302 $ 236,956 $ 352,245 $ 366,200 Total stock-based compensation expense for the three and nine months ended September 30, 2021 included $235.6 million stock-based compensation expense related to the RSUs. The nine months ended September 30, 2021 also included $123.6 million stock-based compensation expense, respectively, related to the Series E convertible preferred stock issuance in March 2021 and April 2021. Refer to Note 7 “Contingent Forward Contracts” and Note 10 “Convertible Preferred Stock” for further detail. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2022 | |
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 contains a purchase option which the Company is reasonably certain to exercise. As of September 30, 2022, assets and liabilities associated with the finance lease were $79.3 million and $80.0 million, respectively. 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 the sales proceeds received as a financial liability within other long-term liabilities on our condensed consolidated balance sheets as of September 30, 2022. 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): September 30, December 31, Operating leases: Operating lease right-of-use assets $ 211,844 $ 161,974 Other current liabilities $ 7,815 $ 11,056 Other long-term liabilities 239,173 185,323 Total operating lease liabilities $ 246,988 $ 196,379 Finance leases: Property, plant and equipment, net $ 88,751 $ 10,567 Total finance lease assets $ 88,751 $ 10,567 Finance lease liabilities, current portion $ 9,780 $ 4,183 Finance lease liabilities, net of current portion 79,371 6,083 Total finance lease liabilities $ 89,151 $ 10,266 The components of lease expense are as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease expense: Operating lease expense (1) $ 11,888 $ 8,261 $ 32,215 $ 21,811 Variable lease expense 906 595 2,581 1,754 Finance lease expense: Amortization of leased assets $ 1,217 $ 800 $ 3,446 $ 2,032 Interest on lease liabilities 897 115 1,186 328 Total finance lease expense $ 2,114 $ 915 $ 4,632 $ 2,360 Total lease expense $ 14,908 $ 9,771 $ 39,428 $ 25,925 (1) Includes short-term leases, which are immaterial. Other information related to leases where the Company is the lessee was as follows: September 30, December 31, Weighted-average remaining lease term (in years): Operating leases 7.8 7.8 Finance leases 3.7 2.5 Weighted-average discount rate: Operating leases 10.45 % 10.98 % Finance leases 5.67 % 5.58 % As of September 30, 2022, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands): Operating Leases Finance Leases 2022 (remainder of the year) $ 5,996 $ 1,292 2023 40,795 9,941 2024 51,915 7,344 2025 51,301 5,825 2026 47,862 82,440 Thereafter 181,496 114 Total minimum lease payments 379,365 106,956 Less: Interest (132,377) (17,805) Present value of lease obligations 246,988 89,151 Less: Current portion (7,815) (9,780) Long-term portion of lease obligations $ 239,173 $ 79,371 |
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 contains a purchase option which the Company is reasonably certain to exercise. As of September 30, 2022, assets and liabilities associated with the finance lease were $79.3 million and $80.0 million, respectively. 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 the sales proceeds received as a financial liability within other long-term liabilities on our condensed consolidated balance sheets as of September 30, 2022. 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): September 30, December 31, Operating leases: Operating lease right-of-use assets $ 211,844 $ 161,974 Other current liabilities $ 7,815 $ 11,056 Other long-term liabilities 239,173 185,323 Total operating lease liabilities $ 246,988 $ 196,379 Finance leases: Property, plant and equipment, net $ 88,751 $ 10,567 Total finance lease assets $ 88,751 $ 10,567 Finance lease liabilities, current portion $ 9,780 $ 4,183 Finance lease liabilities, net of current portion 79,371 6,083 Total finance lease liabilities $ 89,151 $ 10,266 The components of lease expense are as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease expense: Operating lease expense (1) $ 11,888 $ 8,261 $ 32,215 $ 21,811 Variable lease expense 906 595 2,581 1,754 Finance lease expense: Amortization of leased assets $ 1,217 $ 800 $ 3,446 $ 2,032 Interest on lease liabilities 897 115 1,186 328 Total finance lease expense $ 2,114 $ 915 $ 4,632 $ 2,360 Total lease expense $ 14,908 $ 9,771 $ 39,428 $ 25,925 (1) Includes short-term leases, which are immaterial. Other information related to leases where the Company is the lessee was as follows: September 30, December 31, Weighted-average remaining lease term (in years): Operating leases 7.8 7.8 Finance leases 3.7 2.5 Weighted-average discount rate: Operating leases 10.45 % 10.98 % Finance leases 5.67 % 5.58 % As of September 30, 2022, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands): Operating Leases Finance Leases 2022 (remainder of the year) $ 5,996 $ 1,292 2023 40,795 9,941 2024 51,915 7,344 2025 51,301 5,825 2026 47,862 82,440 Thereafter 181,496 114 Total minimum lease payments 379,365 106,956 Less: Interest (132,377) (17,805) Present value of lease obligations 246,988 89,151 Less: Current portion (7,815) (9,780) Long-term portion of lease obligations $ 239,173 $ 79,371 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contractual Obligations As of September 30, 2022 and December 31, 2021, the Company had $697.4 million and $286.0 million, respectively, in commitments related to AMP-1 and AMP-2 plant and equipment. These commitments represent future expected payments on open purchase orders entered into as of September 30, 2022 and December 31, 2021. T he Company’s non-cancellable long-term commitments primarily related to certain inventory component purchases. The estimated future payments having a remaining term in excess of one year as of September 30, 2022 was as follows (in thousands): Years ended December 31, Minimum 2022 (remainder of the year) $ 37,551 2023 193,238 2024 58,939 2025 1,451 Total $ 291,179 Legal Matters From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. Some of these claims, lawsuits and other proceedings may involve highly complex issues that are subject to substantial uncertainties, and could result in damages, fines, penalties, non-monetary sanctions or relief. Beginning on April 18, 2021, two individual actions and two putative class actions were filed in federal courts in Alabama, California, New Jersey and Indiana, asserting claims under the federal securities laws against the Company (f/k/a Churchill Capital Corp IV), its wholly owned subsidiary, Atieva, Inc. (“Lucid Motors”), and certain current and former officers and directors of the Company, generally relating to the Merger. On September 16, 2021, the plaintiff in the New Jersey action voluntarily dismissed that lawsuit. The remaining actions were ultimately transferred to the Northern District of California and consolidated under the caption, In re CCIV / Lucid Motors Securities Litigation, Case No. 4:21-cv-09323-YGR (the “Consolidated Class Action”). On December 30, 2021, lead plaintiffs in the Consolidated Class Action filed a revised amended consolidated complaint (the “Complaint”), which asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a putative class of shareholders who purchased stock in CCIV between February 5, 2021 and February 22, 2021. The Complaint names as defendants Lucid Motors and the Company’s chief executive officer, and generally alleges that, prior to the public announcement of the Merger, defendants purportedly made false or misleading statements regarding the expected start of production for the Lucid Air and related matters. The Complaint seeks certification of the action as a class action as well as compensatory damages, interest thereon, and attorneys’ fees and expenses. The Company moved to dismiss the Complaint on February 14, 2022. The Company believes that the plaintiffs’ claims are without merit and intends to defend itself vigorously, but the Company cannot ensure that defendants’ efforts to dismiss the Complaint will be successful or that it will avoid liability in these matters. On December 3, 2021, the Company received a subpoena from the SEC requesting the production of certain documents related to an investigation by the SEC. Although there is no assurance as to the scope or outcome of this matter, the investigation appears to concern the Merger. The Company is cooperating fully with the SEC in its review. In addition, two separate purported shareholders of the Company filed shareholder derivative actions, purportedly on behalf of the Company, against certain of the Company’s officers and directors in California federal court, captioned Sahr Lebbie v. Peter Rawlinson, et al., Case No. 4:22-cv-00531-YGR (N.D. Cal.) (filed on January 26, 2022) and Zsata Williams-Spinks v. Peter Rawlinson, et al. , Case No. 4:22-cv-01115-YGR (N.D. Cal.) (filed on February 23, 2022). The complaint also names the Company as a nominal defendant. Based on allegations that are similar to those in the Consolidated Class Action, the Lebbie complaint asserts claims for unjust enrichment, breach of fiduciary duty, aiding and abetting breach of fiduciary duty, abuse of control, gross mismanagement and waste of corporate assets and a claim for contribution under Sections 10(b) and 21D of the Exchange Act in connection with the Consolidated Class Action and the Williams-Spinks complaint asserts claims for breach of fiduciary duty, gross mismanagement, abuse of control, unjust enrichment, contribution under Sections 10(b) and 21D of the Exchange Act, and aiding and abetting breach of fiduciary duty in connection with the Consolidated Class Action. The complaints seek compensatory damages, interest thereon, certain corporate governance reforms, and attorneys’ fees and expenses. The Company is advancing defendants’ fees and expenses incurred in their defense of the actions. On April 1, 2022 and May 31, 2022, two alleged shareholders filed putative class actions under the federal securities laws against Lucid Group, Inc. and certain officers of the Company relating to alleged statements, updated projections and guidance provided in the late 2021 to early 2022 timeframe. The complaints, which were filed in the Northern District of California, are captioned Victor W. Mangino v. Lucid Group, Inc., et al. , Case No. 3:22-cv-02094-JD, and Anant Goel v. Lucid Group, Inc., et al. , Case No. 3:22-cv-03176-JD. The two matters were consolidated into one action, entitled In re Lucid Group, Inc. Securities Litigation , Case No. 22-cv-02094-JD. The complaints name as defendants Lucid Group, Inc. and the Company’s chief executive officer and chief financial officer, and generally allege that defendants purportedly made false or misleading statements regarding delivery and revenue projections and related matters. The complaints in these actions seek certification of the actions as class actions, as well as compensatory damages, interest thereon, and attorneys’ fees and expenses. The Company believes that the plaintiffs’ claims are without merit and intends to defend itself vigorously, but the Company cannot ensure that defendants’ efforts to dismiss the complaint will be successful or that it will avoid liability in these matters. In addition, on July 11, 2022, a purported shareholder of the Company filed a shareholder derivative action, purportedly on behalf of the Company, against certain of the Company’s officers and directors in California state court, captioned Floyd Taylor v. Glenn August, et al. , Superior Court, Alameda County, Case No. 22CV014130. The complaint also names the Company as a nominal defendant. Based on allegations that are similar to those in the In re Lucid Group, Inc. Securities Litigation action, the Taylor complaint asserts claims for breach of fiduciary duty, unjust enrichment, waste of corporate assets and aiding and abetting breach of fiduciary duty. The complaint seeks compensatory damages, punitive damages, interest, and attorneys’ fees and expenses. The Company is advancing defendants’ fees and expenses incurred in their defense of the actions. At this time, the Company does not consider any such claims, lawsuits or proceedings that are currently pending, individually or in the aggregate, including the matters referenced above, to be material to the Company’s business or likely to result in a material adverse effect on its future operating results, financial condition or cash flows should such proceedings be resolved unfavorably. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to letters of credit and surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $51.4 million and $30.4 million as of September 30, 2022 and December 31, 2021, respectively, for which no liabilities are recorded on the condensed consolidated balance sheets. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company's provision from income taxes for interim periods is determined using its effective tax rate that arise during the period. The Company's quarterly tax provision is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, and tax law developments. The Company's effective tax rate for the three and nine months ended September 30, 2022 and the same periods in the prior year differs from the U.S. statutory rate of 21% as a result of our U.S. losses for which no benefit will be realized, as well as state taxes and our foreign operations which are subject to tax rates that differ from those in the United States. Income tax provision was $0.1 million and $0.5 million, respectively, for the three and nine months ended September 30, 2022, and immaterial for the same periods in the prior year. The increase in the income tax provision was driven by the increased activities in foreign jurisdictions. This resulted in an effective tax rate of 0.0% and (0.1)%, respectively, for the three and nine months ended September 30, 2022, and 0.0% for the same periods in the prior year. There were no material changes to the Company’s unrecognized tax benefits during the three and nine months ended September 30, 2022, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The weighted-average number of shares of common stock outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. Shares of common stock issued as a result of the conversion of Legacy Lucid convertible preferred stock in connection with the Closing have been included in the basic net loss per share calculation on a prospective basis. Basic and diluted net loss per share attributable to common stockholders are calculated as follows (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (530,101) $ (524,403) $ (831,812) $ (1,534,081) Deemed dividend related to the issuance of Series E convertible preferred stock — — — (2,167,332) Net loss attributable to common stockholders, basic (530,101) (524,403) (831,812) (3,701,413) Change in fair value of dilutive warrants (140,146) — (998,319) — Net loss attributable to common stockholders, diluted $ (670,247) $ (524,403) $ (1,830,131) $ (3,701,413) Weighted-average shares outstanding, basic 1,676,048,504 1,217,032,285 1,666,693,217 432,654,607 Private Placement Warrants using the treasury stock method 14,915,044 — 19,883,372 — Weighted-average shares outstanding, diluted 1,690,963,548 1,217,032,285 1,686,576,589 432,654,607 Net loss per share: Basic $ (0.32) $ (0.43) $ (0.50) $ (8.56) Diluted $ (0.40) $ (0.43) $ (1.09) $ (8.56) The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect: September 30, Excluded Securities 2022 2021 Private warrants to purchase common stock — 34,494,445 Public warrants to purchase common stock — 9,317,468 Options outstanding to purchase common stock 43,132,157 67,013,622 RSUs outstanding 37,300,903 27,158,866 Employee stock purchase plan 5,068,423 — If-converted common shares from convertible note 36,737,785 — Total 122,239,268 137,984,401 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLAN | EMPLOYEE BENEFIT PLANThe Company has a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. The Company made no matching contribution to the 401(k) Plan for the three and nine months ended September 30, 2022 and 2021. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Public Investment Fund Internship Agreement In July 2021, we entered into an agreement with PIF, which is an affiliate of Ayar, to implement a recruitment and talent development program pursuant to which we agreed to evaluate, employ and train participants nominated by PIF during six-month internships, and PIF agreed to reimburse us for expenses related to participant wages, visa fees, medical insurance, airfare and housing incurred by us. We expect to be reimbursed by PIF in an aggregate of approximately $1 million in 2022 for such expenses. The expenses incurred under the agreement were $0.3 million and $1.0 million, respectively, for the three and nine months ended September 30, 2022, and nil for the same periods in the prior year. Professional Services Contract In December 2021, we entered into an agreement with The Klein Group, LLC (“Klein”), an affiliate of Churchill Sponsor IV LLC who owns more than 5% of our common stock. Pursuant to the agreement, Klein will provide strategic advice and assistance in connection with capital markets and other strategic matters. The cost incurred under the agreement was $0.4 million and $1.0 million for the three and nine months ended September 30, 2022, and nil for the same periods in the prior year. Lease In February 2022, we entered into a lease agreement with KAEC, a related party of PIF, which is an affiliate of Ayar, for our first international manufacturing plant in the Kingdom of Saudi Arabia. The lease has an initial term of 25 years expiring in Year 2047. As of September 30, 2022, the right-of-use assets and lease liabilities related to this lease were $4.9 million and $5.3 million, respectively. The lease expense recorded during the three and nine months ended September 30, 2022 was immaterial. SIDF Loan Agreement In February 2022, Lucid LLC entered into the SIDF Loan Agreement with the SIDF, a related party of PIF, which is an affiliate of Ayar. Under the SIDF Loan Agreement, SIDF has committed to provide the SIDF Loans to Lucid LLC in an aggregate principal amount of up to SAR 5.19 billion (approximately $1.4 billion); provided that SIDF may reduce the availability of SIDF Loans under the facility in certain circumstances. See Note 6 “Debt” for more information. Ministry of Investment of Saudi Arabia ( “ MISA”) Agreements In February 2022, Lucid LLC entered into agreements with MISA, a related party of PIF, which is an affiliate of Ayar, pursuant to which MISA has agreed to provide economic support for certain capital expenditures in connection with Lucid LLC’s on-going design and construction of AMP-2. The support by MISA are subject to Lucid LLC’s completion of certain milestones related to the construction and operation of AMP-2. Following the commencement of construction, if operations at the plant do not commence within 30 months, or if the agreed scope of operations is not attained within 55 months, MISA may suspend availability of subsequent support. Pursuant to the agreement, MISA has the right to require Lucid LLC to transfer the ownership of AMP-2 to MISA, at the fair market value thereof, minus an amortized value of the support provided in the event of customary events of default including abandonment or material and chronic low utilization of AMP-2. Alternatively, Lucid LLC is entitled to avoid the transfer of the ownership of AMP-2 by electing to pay such amortized value. The agreements will terminate on the fifteenth anniversary of the commencement of completely-built-up (“CBU”) operations at AMP-2 at the latest. During the three and nine months ended September 30, 2022, the Company received support of SAR 366 million (approximately $97.3 million) in cash, of which $70.7 million was recorded as deferred liability within other long-term liabilities and $26.6 million was recorded as a deduction in calculating the carrying amount of the related assets on the condensed consolidated balance sheet. There are no unfulfilled conditions and contingencies attached to the payments received. Payment receipts are classified as investing cash inflows on the condensed consolidated statements of cash flows. GIB Facility Agreement In April 2022, Lucid LLC entered into the GIB Facility Agreement with GIB. GIB is a related party of PIF, which is an affiliate of Ayar. The GIB Facility Agreement provides for two committed revolving credit facilities in an aggregate principal amount of SAR 1 billion (approximately $266.2 million). See Note 6 “Debt” for more information. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS At-the-Market Offering On November 8, 2022, the Company entered into an Equity Distribution Agreement (the “Equity Distribution Agreement”) with BofA Securities, Inc., Barclays Capital Inc. and Citigroup Global Markets Inc. (collectively, the “Managers”), under which the Company may offer and sell, from time to time, shares of its common stock having an aggregate offering price up to $600 million. Subject to the terms and conditions of the Equity Distribution Agreement, the Managers may sell the shares by any method permitted by law including, without limitation, in ordinary brokers’ transactions, to or through a market maker, in privately negotiated transactions, in block trades, in transactions that are deemed to be “at the market offerings” as defined in Rule 415 under the Securities Act or through a combination of any such methods of sale. The Equity Distribution Agreement will terminate on the earlier of September 1, 2025, its termination by the parties pursuant to the terms of the Equity Distribution Agreement, or the issuance and sale of all of the shares through any Manager pursuant to the terms under the Equity Distribution Agreement. Subscription Agreement In addition, on November 8, 2022, the Company entered into a Subscription Agreement (the “Subscription Agreement”) with Ayar, pursuant to which Ayar has agreed to purchase from the Company, subject to certain conditions, up to $915 million (the “Maximum Investment Amount”) of shares of its common stock in one or more private placements through March 31, 2023 (the “Ayar Investment”). The number of shares that Ayar will purchase from the Company in the Ayar Investment will be equal to the number of shares of its common stock that the Company actually sells pursuant to the Equity Distribution Agreement, multiplied by a ratio, the numerator of which is approximately 60.4%, which is the number of shares of its common stock owned by Ayar as a percentage of the total number of shares of its common stock outstanding as of September 30, 2022, and the denominator of which is approximately 39.6%, rounded down to the nearest whole share. The Company will settle the Ayar Investment on the last trading day of each calendar quarter based on the number of shares that are actually sold pursuant to the Equity Distribution Agreement during such calendar quarter, at a price per share equal to the weighted average price to the public of the shares that are actually sold pursuant to the Equity Distribution Agreement during such calendar quarter. In addition, Ayar will have the right, but not the obligation, to enter into a subscription agreement substantially on the terms and subject to the conditions set forth in the Subscription Agreement in respect of any increase to the maximum offering amount under the Equity Distribution Agreement and/or any new at-the-market offering of the Company’s common stock made or commenced, respectively, during the term of the Subscription Agreement. The Subscription Agreement will terminate automatically upon the earlier of March 31, 2023, the date upon which the Company has sold to Ayar shares for an aggregate purchase price equal to the Maximum Investment Amount, or its termination by the parties pursuant to the terms of the Subscription Agreement. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements included herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Form 10-K filed with the SEC on February 28, 2022. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include normal recurring adjustments, necessary for the fair statement of the Company’s financial position as of September 30, 2022 and the results of operations for the three and nine months ended September 30, 2022 and 2021. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year ending December 31, 2022 or any other future interim or annual period. |
Principles of Consolidation | All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, inventory valuation, warranty reserve, the determination of the useful lives of property, plant and equipment, fair value of preferred stock warrants, fair value of common stock warrants, fair value of contingent forward contracts liability, estimates of residual value guarantee (“RVG”), valuation of deferred income tax assets and uncertain tax positions, fair value of common stock and other assumptions used to measure stock-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing leases. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Reclassifications | Reclassifications Certain prior period balances have been reclassified to conform to the current period presentation in the condensed consolidated financial statements and the accompanying notes. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in other current assets and noncurrent assets is primarily related to letters of credit issued to the landlords for certain of the Company’s leasehold facilities. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, and investments. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. |
Concentration of Supply Risk | Concentration of Supply Risk The Company is dependent on its suppliers, the majority of which are single-source suppliers, and the inability of these suppliers to deliver necessary components of its products according to the schedule and at prices, quality levels and volumes acceptable to the Company, or its inability to efficiently manage these components, could have a material adverse effect on the Company’s results of operations and financial condition. |
Investments | Investments The Company’s investments in marketable debt securities have been classified and accounted for as available-for-sale and they are stated at fair value. The Company classifies its investments as either short-term or long-term based on each instrument’s underlying contractual maturity date. Unrealized gains and losses on our investments of available-for-sale securities are recorded in accumulated other comprehensive loss which is included within stockholders’ equity. Interest, as well as amortization and accretion of purchase premiums and discounts on our investments of available-for-sale securities are included in Interest income. The cost of securities sold is determined using the specific identification method. Realized gains and losses on the sale of available-for-sale securities are recorded in other income (expense), net. |
Vehicle Sales with Residual Value Guarantee | Vehicle Sales with Residual Value Guarantee The Company provides an RVG to its commercial banking partner in connection with its vehicle leasing program. Under the vehicle leasing program, the Company generally receives full payment for the vehicle sales price at the time of delivery, does not bear casualty and credit risks during the lease term, and is contractually obligated (or entitled) to share a portion of the shortfall (or excess) between the resale value realized by the commercial banking partner and a predetermined resale value. During the three and nine months ended September 30, 2022, vehicle sales with RVG totaled $10.1 million. At the lease inception, the Company is required to deposit cash collateral equal to a contractual percentage of the residual value of the leased vehicles with the commercial banking partner. The cash collateral is held in a restricted bank account owned by the commercial banking partner until it is used, as applicable, in settlement of the RVG at the end of the lease term. Cash collateral is recorded in other long-term assets, subject to asset impairment review at each reporting period. The Company accounts for the vehicle leasing program in accordance with ASC 842, Leases, ASC 460, Guarantees and ASC 606, Revenue from Contracts with Customers . The Company is the lessor at inception of a lease and immediately transfers the lease as well as the underlying vehicle to its commercial banking partner, with the transaction being accounted for as a sale under ASC 606. The Company recognizes revenue when control transfers upon delivery when the consumer-lessee takes physical possession of the vehicle, and bifurcates the RVG at fair value and accounts for it as a guarantee liability. The remaining amount of the transaction price is allocated among the performance obligations, including the vehicle, the unspecified over-the-air (“ OTA”) software updates and remarketing activities, in proportion to the standalone selling price of the Company’s performance obligations. The guarantee liability represents the estimated amount the Company expects to pay at the end of the lease term. The Company is released from residual risk upon either expiration or settlement of the RVG. The Company evaluates variables such as third-party residual value publications, risk of future price deterioration due to changes in market conditions and reconditioning costs to determine the estimated residual value guarantee liability. As we accumulate more data related to the resale value of our vehicles or as market conditions change, there could be material changes to the estimated guarantee liabilities. As of September 30, 2022, the RVG liability was immaterial. |
Government Grants | Government GrantsGovernment grants are recognized when the grants are received, and all the conditions specified in the grant have been met. Grants related to fixed assets are recorded as a deduction in calculating the carrying amount of the related assets and are recognized in profit or loss over the life of a depreciable asset through reduced depreciation expense. Grants received in advance of the acquisition or construction of assets are recorded initially in deferred liability and then as a deduction in calculating the carrying amount of the related fixed assets upon acquisition or construction of the assets. Grant receipts are classified as investing cash inflows on a gross basis on the condensed consolidated statements of cash flows. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, which requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The disclosure requirements include information about the nature of the transactions and the related accounting policy, the line items on the balance sheet and income statement that are affected by the transactions, the amount applicable to each financial statement line and significant terms and conditions of the transactions. The guidance is effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. The Company adopted ASU 2021-10 prospectively on January 1, 2022. The adoption of this ASU did not have an impact to the condensed consolidated financial statements and related disclosures. |
Fair Value Measurement | 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 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statements of cash flows (in thousands): September 30, December 31, September 30, December 31, Cash and cash equivalents $ 1,264,136 $ 6,262,905 $ 4,796,880 $ 614,412 Restricted cash included in other current assets 1,554 10,740 10,970 11,278 Restricted cash included in other noncurrent assets — 24,375 24,716 14,728 Total cash, cash equivalents, and restricted cash $ 1,265,690 $ 6,298,020 $ 4,832,566 $ 640,418 |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the statements of cash flows (in thousands): September 30, December 31, September 30, December 31, Cash and cash equivalents $ 1,264,136 $ 6,262,905 $ 4,796,880 $ 614,412 Restricted cash included in other current assets 1,554 10,740 10,970 11,278 Restricted cash included in other noncurrent assets — 24,375 24,716 14,728 Total cash, cash equivalents, and restricted cash $ 1,265,690 $ 6,298,020 $ 4,832,566 $ 640,418 |
REVERSE RECAPITALIZATION (Table
REVERSE RECAPITALIZATION (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Reverse Recapitalization | After giving effect to the Merger and the redemption of Churchill shares as described above, the number of shares of common stock issued and outstanding immediately following the consummation of the Merger was as follows: Shares Churchill public shares, prior to redemptions 207,000,000 Less redemption of Churchill shares (21,644) Churchill public shares, net of redemptions 206,978,356 Churchill Sponsor shares (1) 51,750,000 PIPE shares (2) 166,666,667 Total shares of Churchill common stock outstanding immediately prior to the Merger 425,395,023 Legacy Lucid shares 1,193,226,511 Total shares of Lucid common stock outstanding immediately after the Merger (3)(4) 1,618,621,534 (1) The 51,750,000 shares beneficially owned by the Churchill Sponsor as of the Closing of the Merger includes the 17,250,000 Sponsor Earnback Shares. (2) Reflects the sale and issuance of 166,666,667 shares of common stock to the PIPE Investors at $15.00 per share. (3) Excludes 111,531,080 shares of common stock as of the Closing of the Merger to be reserved for potential future issuance upon the exercise of Lucid options or settlement of Lucid RSUs. (4) Excludes the 85,750,000 warrants issued and outstanding as of the Closing of the Merger, which includes the 41,400,000 public warrants and the 44,350,000 Private Placement Warrants held by the Churchill Sponsor. The 44,350,000 Private Placement Warrants beneficially owned by the Churchill Sponsor as of the consummation of the Merger includes the 14,783,333 Sponsor Earnback Warrants. |
BALANCE SHEETS COMPONENTS (Tabl
BALANCE SHEETS COMPONENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Raw materials $ 464,854 $ 87,646 Work in progress 49,375 30,641 Finished goods 171,092 8,963 Total inventory $ 685,321 $ 127,250 |
Schedule of Property, Plant and Equipment and Construction in Progress | Property, plant and equipment as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Land and land improvements $ 64,677 $ 1,050 Building and improvements 197,254 195,952 Machinery, Tooling and Vehicles 703,350 601,791 Computer equipment and software 41,590 27,968 Leasehold improvements 163,467 135,533 Furniture and fixtures 23,499 15,352 Finance leases 94,991 13,601 Construction in progress 882,892 276,919 Total property, plant and equipment 2,171,720 1,268,166 Less accumulated depreciation and amortization (217,410) (86,013) Property, plant and equipment, net $ 1,954,310 $ 1,182,153 September 30, December 31, Machinery and tooling $ 407,856 $ 132,943 Construction of AMP-1 and AMP-2 (1) 435,103 112,970 Leasehold improvements 39,933 31,006 Total construction in progress $ 882,892 $ 276,919 (1) As of September 30, 2022, $26.6 million of capital expenditure support received from Ministry of Investment of Saudi Arabia (“MISA”) was recorded as a deduction to AMP-2 construction in progress balance. See Note 2 “Summary of Significant Accounting Policies” and Note 19 “Related Party Transactions” for additional information. |
Schedule of Other Current Liabilities | Other current liabilities as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Engineering, design, and testing accrual $ 26,925 $ 33,950 Construction in progress 213,551 92,590 Accrued purchases (1) 173,889 12,225 Retail leasehold improvements accrual 11,578 15,796 Other professional services accrual 33,643 13,944 Tooling liability 13,708 23,966 Short-term insurance financing note 2,141 15,281 Short-term borrowings 13,575 — Operating lease liabilities, current portion 7,815 11,056 Other current liabilities 189,730 99,404 Total other current liabilities $ 686,555 $ 318,212 (1) Accrued purchases primarily reflect inventory purchases and related transportation charges that had not been invoiced. |
Schedule of Other Noncurrent Liabilities | Other long-term liabilities as of September 30, 2022 and December 31, 2021 were as follows (in thousands): September 30, December 31, Operating lease liabilities, net of current portion $ 239,173 $ 185,323 Other long-term liabilities (1) 125,836 3,252 Total other long-term liabilities $ 365,009 $ 188,575 (1) As of September 30, 2022, $70.7 million of capital expenditure support received from MISA was recorded as deferred liability within other long-term liabilities. See Note 2 “Summary of Significant Accounting Policies” and Note 19 “Related Party Transactions” for additional information. |
Schedule of Accrued Warranty Liability | Accrued warranty activities consisted of the following (in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Accrued warranty - beginning of period $ 8,311 $ 1,282 Warranty costs incurred (3,501) (5,256) Provision for warranty (1) 8,815 17,599 Accrued warranty - end of period (2) $ 13,625 $ 13,625 (1) Accrued warranty balance as of September 30, 2022 included estimated costs related to the recalls identified. (2) Accrued warranty balances were recorded within other current liabilities and other long-term liabilities on our condensed consolidated balance sheets. |
FAIR VALUE MEASUREMENTS AND F_2
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | 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 September 30, 2022 and December 31, 2021 (in thousands): September 30, 2022 Reported As: Amortized cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Cash and cash equivalents Short-Term Investments Long-Term Investments Cash $ 238,623 $ — $ — $ 238,623 $ 238,623 $ — $ — Level 1: Money market funds 933,177 — — 933,177 933,177 — — U.S. Treasury securities 1,863,413 16 (10,195) 1,853,234 — 1,490,735 362,499 Subtotal 2,796,590 16 (10,195) 2,786,411 933,177 1,490,735 362,499 Level 2: Certificates of deposit 234,614 60 (248) 234,426 7,999 226,427 — Commercial paper 315,209 22 (254) 314,977 79,025 235,952 — Corporate debt securities 284,146 15 (2,682) 281,479 5,312 124,931 151,236 Subtotal 833,969 97 (3,184) 830,882 92,336 587,310 151,236 Total assets measured at fair value $ 3,869,182 $ 113 $ (13,379) $ 3,855,916 $ 1,264,136 $ 2,078,045 $ 513,735 December 31, 2021 Reported As: Cash and cash equivalents Cash $ 160,888 Level 1: Money market funds 6,102,017 Total assets measured at fair value $ 6,262,905 |
Summary of Available-for-sale Debt Securities by Contractual Maturity | The following table summarizes our available-for-sale securities by contractual maturity: September 30, 2022 Amortized cost Estimated Fair Value Within one year $ 2,082,767 $ 2,078,045 After one year through three years 522,262 513,735 Total $ 2,605,029 $ 2,591,780 |
Schedule of Reconciliation of Liabilities Measured at Fair Value on a Recurring Basis | The following table presents a reconciliation of the contingent forward contract liability, convertible preferred stock warrant liability and common stock warrant liability measured and recorded at fair value on a recurring basis (in thousands): Three Months Ended September 30, 2022 2021 Common Stock Common Stock Warrant Liability Fair value-beginning of period $ 536,635 $ — Issuance — 812,048 Change in fair value (140,146) 24,787 Fair value-end of period $ 396,489 $ 836,835 Nine Months Ended September 30, 2022 2021 Common Stock Contingent Forward Contract Liability (1) Convertible Preferred Stock Warrant Liability (1) Common Stock Fair value-beginning of period $ 1,394,808 $ — $ 2,960 $ — Issuance — 2,167,332 — 812,048 Change in fair value (998,319) 454,546 6,976 24,787 Settlement — (2,621,878) (9,936) — Fair value-end of period $ 396,489 $ — $ — $ 836,835 (1) Convertible preferred stock warrant liability and contingent forward contract liability were fully settled during the six months ended June 30, 2021. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following is a summary of the 2026 Notes as of September 30, 2022 and December 31, 2021 (in millions): September 30, 2022 December 31, 2021 Principal Amount $ 2,012.5 $ 2,012.5 Unamortized Debt Discounts and Issuance Costs 21.9 25.7 Net Carrying Amount $ 1,990.6 $ 1,986.8 Fair Value (Level 2) $ 1,257.8 $ 1,984.6 Three Months Ended Nine Months Ended Contractual interest $ 6.2 $ 18.9 Amortization of debt discounts and debt issuance costs 1.4 3.8 Interest expense $ 7.6 $ 22.7 |
CONTINGENT FORWARD CONTRACTS (T
CONTINGENT FORWARD CONTRACTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Valuation Assumptions | The fair value of the Series E convertible preferred stock contingent forward contract liability for the third closing was determined using a forward payoff. The Company’s inputs used in determining the fair value on the issuance date and settlement date, were as follows: Stock Price $ 13.79 Volatility 100.00 % Expected term (in years) 0.01 Risk-free rate 0.03 % The fair value of the Series E convertible preferred stock contingent forward contract liability for the fourth closing was determined using a forward and an option payoff. The Company’s inputs used in determining the fair value on the issuance date were as follows: Fair value of Series E convertible preferred share $ 13.79 Volatility 100.00 % Expected term (in years) 0.11 Risk-free rate 0.03 % July 23, 2021 Fair value of Tranche 1 with $20.00 VWAP threshold per share $ 18.16 Fair value of Tranche 2 with $25.00 VWAP threshold per share $ 18.07 Fair value of Tranche 3 with $30.00 VWAP threshold per share $ 17.92 The fair value of the Private Placement Warrants that are not subject to the contingent forfeiture provisions was estimated using a Black-Scholes option pricing model, and were as follows: September 30, 2022 December 31, 2021 Fair value of Private Placement Warrants per share $ 8.94 $ 31.45 September 30, 2022 December 31, 2021 Volatility 80.00 % 85.00 % Expected term (in years) 3.8 4.6 Risk-free rate 4.17 % 1.20 % Dividend yield — % — % |
COMMON STOCK WARRANT LIABILITY
COMMON STOCK WARRANT LIABILITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of Valuation Assumptions | The fair value of the Series E convertible preferred stock contingent forward contract liability for the third closing was determined using a forward payoff. The Company’s inputs used in determining the fair value on the issuance date and settlement date, were as follows: Stock Price $ 13.79 Volatility 100.00 % Expected term (in years) 0.01 Risk-free rate 0.03 % The fair value of the Series E convertible preferred stock contingent forward contract liability for the fourth closing was determined using a forward and an option payoff. The Company’s inputs used in determining the fair value on the issuance date were as follows: Fair value of Series E convertible preferred share $ 13.79 Volatility 100.00 % Expected term (in years) 0.11 Risk-free rate 0.03 % July 23, 2021 Fair value of Tranche 1 with $20.00 VWAP threshold per share $ 18.16 Fair value of Tranche 2 with $25.00 VWAP threshold per share $ 18.07 Fair value of Tranche 3 with $30.00 VWAP threshold per share $ 17.92 The fair value of the Private Placement Warrants that are not subject to the contingent forfeiture provisions was estimated using a Black-Scholes option pricing model, and were as follows: September 30, 2022 December 31, 2021 Fair value of Private Placement Warrants per share $ 8.94 $ 31.45 September 30, 2022 December 31, 2021 Volatility 80.00 % 85.00 % Expected term (in years) 3.8 4.6 Risk-free rate 4.17 % 1.20 % Dividend yield — % — % |
CONVERTIBLE PREFERRED STOCK (Ta
CONVERTIBLE PREFERRED STOCK (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Features of Convertible Preferred Stock [Abstract] | |
Schedule of Convertible Preferred Stock | See activities related to the PIF Convertible Notes and Series D convertible preferred stock funding as below (in thousands): Conversion of Convertible Notes $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Contingent forward contract liability reclassified to Series D in March 2020 18,180 Series D received in June 2020 200,000 Contingent forward contract liability reclassified to Series D in June 2020 21,384 Conversion of preferred stock warrant to Series D in February 2021 3,000 Reclassification of preferred stock warrant liability to Series D in February 2021 9,936 Total proceeds of Series D $ 1,324,485 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule Of Public Common Stock Warrants | A summary of activity of the Company’s issued and outstanding public warrants was as follows: December 31, Public warrants issued in connection with Merger on July 23, 2021 41,400,000 Number of public warrants exercised (41,034,197) Public warrants redeemed (365,803) Issued and outstanding public warrants as of December 31, 2021 — |
Schedule of Common Stock Reserved for Future Issuance | The Company’s common stock reserved for future issuances as of September 30, 2022 and December 31, 2021, were as follows: September 30, December 31, Private warrants to purchase common stock 44,350,000 44,350,000 Stock options outstanding 43,132,157 64,119,902 Restricted stock units outstanding 39,391,043 48,234,611 Shares available for future grants under equity plans 31,283,219 16,761,960 If-converted common shares from convertible note 36,737,785 36,737,785 Total shares of common stock reserved 194,894,204 210,204,258 |
STOCK-BASED AWARDS (Tables)
STOCK-BASED AWARDS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2022 was as follows: Outstanding Options Number of Options Weighted Average Exercise Price Weighted-Average Remaining Contractual Term Intrinsic Value (in thousands) Balance as of December 31, 2021 64,119,902 $ 1.08 6.60 $ 2,370,666 Options exercised (18,698,664) 0.79 Options canceled (2,289,081) 1.71 Balance as of September 30, 2022 43,132,157 $ 1.17 6.69 $ 554,954 Options vested and exercisable as of September 30, 2022 31,474,979 $ 0.97 6.24 $ 410,294 |
Schedule of Nonvested Restricted Stock Units Activity | A summary of restricted stock units (“RSUs”) activity for the nine months ended September 30, 2022 was as follows: Restricted Stock Units Time-Based Shares Performance-Based Shares Total Shares Weighted-Average Grant-Date Fair Value Balance as of December 31, 2021 32,210,200 16,024,411 48,234,611 $ 20.45 Granted 16,225,356 — 16,225,356 19.11 Vested (9,001,521) (13,934,271) (22,935,792) 19.21 Cancelled/Forfeited (2,133,132) — (2,133,132) 17.20 Balance as of September 30, 2022 37,300,903 2,090,140 39,391,043 $ 20.80 |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The performance condition was satisfied upon the closing of the Merger. The fair value of these performance-based RSUs was measured on the grant date, March 27, 2021, using a Monte Carlo simulation model, with the following assumptions: Weighted average volatility 60.0 % Expected term (in years) 5.0 Risk-free interest rate 0.9 % Expected dividends — |
Schedule of Share-based Payment Arrangement, Expensed and Capitalized, Amount | Total employee and nonemployee stock-based compensation expense for the three and nine months ended September 30, 2022 and 2021, was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Cost of revenue $ 10,836 $ — $ 29,816 $ — Research and development 34,083 59,196 123,059 85,899 Selling, general and administrative 38,383 177,760 199,370 280,301 Total $ 83,302 $ 236,956 $ 352,245 $ 366,200 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | 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): September 30, December 31, Operating leases: Operating lease right-of-use assets $ 211,844 $ 161,974 Other current liabilities $ 7,815 $ 11,056 Other long-term liabilities 239,173 185,323 Total operating lease liabilities $ 246,988 $ 196,379 Finance leases: Property, plant and equipment, net $ 88,751 $ 10,567 Total finance lease assets $ 88,751 $ 10,567 Finance lease liabilities, current portion $ 9,780 $ 4,183 Finance lease liabilities, net of current portion 79,371 6,083 Total finance lease liabilities $ 89,151 $ 10,266 |
Schedule of Lease, Cost | The components of lease expense are as follows within the Company’s condensed consolidated statements of operations and comprehensive loss (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Operating lease expense: Operating lease expense (1) $ 11,888 $ 8,261 $ 32,215 $ 21,811 Variable lease expense 906 595 2,581 1,754 Finance lease expense: Amortization of leased assets $ 1,217 $ 800 $ 3,446 $ 2,032 Interest on lease liabilities 897 115 1,186 328 Total finance lease expense $ 2,114 $ 915 $ 4,632 $ 2,360 Total lease expense $ 14,908 $ 9,771 $ 39,428 $ 25,925 (1) Includes short-term leases, which are immaterial. Other information related to leases where the Company is the lessee was as follows: September 30, December 31, Weighted-average remaining lease term (in years): Operating leases 7.8 7.8 Finance leases 3.7 2.5 Weighted-average discount rate: Operating leases 10.45 % 10.98 % Finance leases 5.67 % 5.58 % |
Schedule of Lessee, Operating Lease, Liability, Maturity | As of September 30, 2022, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands): Operating Leases Finance Leases 2022 (remainder of the year) $ 5,996 $ 1,292 2023 40,795 9,941 2024 51,915 7,344 2025 51,301 5,825 2026 47,862 82,440 Thereafter 181,496 114 Total minimum lease payments 379,365 106,956 Less: Interest (132,377) (17,805) Present value of lease obligations 246,988 89,151 Less: Current portion (7,815) (9,780) Long-term portion of lease obligations $ 239,173 $ 79,371 |
Schedule of Finance Lease, Liability, Fiscal Year Maturity | As of September 30, 2022, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) were as follows (in thousands): Operating Leases Finance Leases 2022 (remainder of the year) $ 5,996 $ 1,292 2023 40,795 9,941 2024 51,915 7,344 2025 51,301 5,825 2026 47,862 82,440 Thereafter 181,496 114 Total minimum lease payments 379,365 106,956 Less: Interest (132,377) (17,805) Present value of lease obligations 246,988 89,151 Less: Current portion (7,815) (9,780) Long-term portion of lease obligations $ 239,173 $ 79,371 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligation, Fiscal Year Maturity | The estimated future payments having a remaining term in excess of one year as of September 30, 2022 was as follows (in thousands): Years ended December 31, Minimum 2022 (remainder of the year) $ 37,551 2023 193,238 2024 58,939 2025 1,451 Total $ 291,179 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | Basic and diluted net loss per share attributable to common stockholders are calculated as follows (in thousands, except share and per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net loss $ (530,101) $ (524,403) $ (831,812) $ (1,534,081) Deemed dividend related to the issuance of Series E convertible preferred stock — — — (2,167,332) Net loss attributable to common stockholders, basic (530,101) (524,403) (831,812) (3,701,413) Change in fair value of dilutive warrants (140,146) — (998,319) — Net loss attributable to common stockholders, diluted $ (670,247) $ (524,403) $ (1,830,131) $ (3,701,413) Weighted-average shares outstanding, basic 1,676,048,504 1,217,032,285 1,666,693,217 432,654,607 Private Placement Warrants using the treasury stock method 14,915,044 — 19,883,372 — Weighted-average shares outstanding, diluted 1,690,963,548 1,217,032,285 1,686,576,589 432,654,607 Net loss per share: Basic $ (0.32) $ (0.43) $ (0.50) $ (8.56) Diluted $ (0.40) $ (0.43) $ (1.09) $ (8.56) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect: September 30, Excluded Securities 2022 2021 Private warrants to purchase common stock — 34,494,445 Public warrants to purchase common stock — 9,317,468 Options outstanding to purchase common stock 43,132,157 67,013,622 RSUs outstanding 37,300,903 27,158,866 Employee stock purchase plan 5,068,423 — If-converted common shares from convertible note 36,737,785 — Total 122,239,268 137,984,401 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Jul. 23, 2021 USD ($) | Jun. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Apr. 29, 2022 USD ($) | Apr. 29, 2022 SAR (ر.س) | Feb. 27, 2022 USD ($) | Feb. 27, 2022 SAR (ر.س) | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||
Net loss | $ 530,101,000 | $ 524,403,000 | $ 831,812,000 | $ 1,534,081,000 | |||||||
Accumulated deficit | 6,897,684,000 | 6,897,684,000 | $ 6,065,872,000 | ||||||||
Proceeds from reverse recapitalization, net of transaction costs | $ 4,400,300,000 | ||||||||||
1.25% Convertible Senior Notes, Due December 2026 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | 2,012,500,000 | 2,012,500,000 | 2,012,500,000 | ||||||||
1.25% Convertible Senior Notes, Due December 2026 | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | $ 2,012,500,000 | ||||||||||
Interest rate | 1.25% | ||||||||||
SIDF | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, face amount | 1,400,000,000 | 1,400,000,000 | $ 1,400,000,000 | ر.س 5,190,000,000 | |||||||
GIB Facility Agreement | Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | 266,200,000 | 266,200,000 | $ 266,200,000 | ر.س 1,000,000,000 | |||||||
ABL Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | ||||||||
Debt instrument, term | 5 years | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jul. 22, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | |||||
Cash and cash equivalents | $ 1,264,136 | $ 6,262,905 | $ 4,796,880 | $ 400 | $ 614,412 |
Restricted cash included in other current assets | 1,554 | 10,740 | 10,970 | 11,278 | |
Restricted cash included in other noncurrent assets | 0 | 24,375 | 24,716 | 14,728 | |
Total cash, cash equivalents, and restricted cash | $ 1,265,690 | $ 6,298,020 | $ 4,832,566 | $ 640,418 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Vehicle Sales with Residual Value Guarantee (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
Vehicle sales that have residual value guarantees | $ 10.1 | $ 10.1 |
REVERSE RECAPITALIZATION- Narra
REVERSE RECAPITALIZATION- Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Jul. 23, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) shares | Jul. 22, 2021 USD ($) shares | Jun. 30, 2021 shares | [1] | Dec. 31, 2020 USD ($) shares | ||||
Schedule Of Reverse Recapitalization [Line Items] | |||||||||||||
Common stock, shares, issued (in shares) | 1,681,005,163 | 1,681,005,163 | 1,648,413,415 | 451,295,965 | |||||||||
Common stock, shares outstanding (in shares) | 1,618,621,534 | 1,680,147,338 | 1,680,147,338 | 1,647,555,590 | 451,295,965 | ||||||||
Share conversion deemed value (in dollars per share) | $ / shares | $ 10 | ||||||||||||
Recapitalization exchange ratio | 2.644 | ||||||||||||
Stock converted, reverse recapitalization (in shares) | 1,193,226,511 | ||||||||||||
Equity awards outstanding (in shares) | 42,182,931 | ||||||||||||
Equity awards converted (in shares) | 111,531,080 | ||||||||||||
Convertible preferred stock, shares issued (in shares) | 0 | 0 | 0 | 437,182,072 | |||||||||
Convertible preferred stock, shares outstanding (in shares) | 0 | 0 | [1] | 0 | 0 | [1] | 0 | 437,182,072 | 1,155,909,367 | 957,159,704 | [2] | ||
Options outstanding (in shares) | 43,132,157 | 43,132,157 | 64,119,902 | 25,764,610 | |||||||||
Options converted (in shares) | 68,121,210 | ||||||||||||
Non-option equity awards outstanding (in shares) | 16,418,321 | ||||||||||||
Non-option equity awards converted (in shares) | 43,409,870 | ||||||||||||
Proceeds from PIPE investment | $ | $ 2,500,000 | ||||||||||||
Working capital loan converted, amount | $ | $ 1,500 | ||||||||||||
Warrants issued for conversion of debt (in shares) | 1,500,000 | ||||||||||||
Price per warrant for warrants issued for conversion of debt (in dollars per share) | $ / shares | $ 1 | ||||||||||||
Sponsor earnback shares (in shares) | 17,250,000 | ||||||||||||
Sponsor earnback warrants (in shares) | 14,783,333 | 14,783,333 | |||||||||||
Proceeds from the reverse capitalization | $ | $ 4,439,200 | $ 0 | $ 4,439,153 | ||||||||||
Cash received upon completion of merger | $ | 2,070,100 | ||||||||||||
Cash and cash equivalents | $ | $ 1,264,136 | $ 4,796,880 | 1,264,136 | 4,796,880 | $ 6,262,905 | $ 400 | $ 614,412 | ||||||
Payments for repurchase of common stock | $ | $ 200 | ||||||||||||
Shares repurchased (in shares) | 21,644 | ||||||||||||
Reverse recapitalization, transaction costs incurred | $ | $ 38,900 | ||||||||||||
Reverse recapitalizations, reduction to additional paid-in capital | $ | 36,200 | ||||||||||||
Transaction costs expensed | $ | 2,700 | $ 0 | $ 2,717 | $ 0 | $ 2,717 | ||||||||
Proceeds from reverse recapitalization, net of transaction costs | $ | $ 4,400,300 | ||||||||||||
Churchill | |||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | |||||||||||||
Common stock, shares outstanding (in shares) | 207,000,000 | ||||||||||||
Stock repurchased during period, shares (in shares) | 21,644 | ||||||||||||
Stock repurchased during period, value | $ | $ 200 | ||||||||||||
Reverse recapitalization transaction costs paid to date | $ | $ 131,400 | ||||||||||||
Legacy Common Shareholders | |||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | |||||||||||||
Stock converted, reverse recapitalization (in shares) | 1,193,226,511 | ||||||||||||
Legacy Preferred Shareholders | |||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | |||||||||||||
Stock converted, reverse recapitalization (in shares) | 437,182,072 | ||||||||||||
PIPE Investors | |||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | |||||||||||||
Shares outstanding prior to merger (in shares) | 166,666,667 | ||||||||||||
Preferred stock, price (in dollars per share) | $ / shares | $ 15 | ||||||||||||
[1]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information.[2]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information. |
REVERSE RECAPITALIZATION - Shar
REVERSE RECAPITALIZATION - Shares of Common Stock Issued (Details) - $ / shares | 12 Months Ended | ||||
Jul. 23, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | Jul. 22, 2021 | Sep. 30, 2017 | |
Schedule Of Reverse Recapitalization [Line Items] | |||||
Common stock, shares outstanding (in shares) | 1,618,621,534 | 1,647,555,590 | 1,680,147,338 | 451,295,965 | |
Total shares of common stock outstanding immediately prior to the merger (in shares) | 425,395,023 | ||||
Stock converted, reverse recapitalization (in shares) | 1,193,226,511 | ||||
Equity awards converted (in shares) | 111,531,080 | ||||
Number of warrants (in shares) | 85,750,000 | 2 | |||
Sponsor earnback warrants (in shares) | 14,783,333 | 14,783,333 | |||
Public warrants to purchase common stock | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Number of warrants (in shares) | 41,400,000 | 0 | 41,400,000 | ||
Private warrants to purchase common stock | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Number of warrants (in shares) | 44,350,000 | ||||
Common Shareholders | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Shares outstanding prior to merger (in shares) | 206,978,356 | ||||
Sponsor Members | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Shares outstanding prior to merger (in shares) | 51,750,000 | ||||
Stock issued during period, shares, restricted stock award, net of forfeitures (in shares) | 17,250,000 | ||||
PIPE Investors | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Shares outstanding prior to merger (in shares) | 166,666,667 | ||||
Shares issued, price per share (in dollars per share) | $ 15 | ||||
Churchill | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Common stock, shares outstanding (in shares) | 207,000,000 | ||||
Less redemption of Churchill shares (in shares) | (21,644) |
BALANCE SHEETS COMPONENTS - Inv
BALANCE SHEETS COMPONENTS - Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 464,854 | $ 87,646 |
Work in progress | 49,375 | 30,641 |
Finished goods | 171,092 | 8,963 |
Total inventory | $ 685,321 | $ 127,250 |
BALANCE SHEETS COMPONENTS - Nar
BALANCE SHEETS COMPONENTS - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Inventory [Line Items] | ||||
Inventory and firm purchase commitments write-downs | $ 186,500,000 | $ 0 | $ 364,553,000 | $ 0 |
Depreciation and amortization | 50,600,000 | $ 14,900,000 | 131,343,000 | $ 26,621,000 |
Construction in progress | ||||
Inventory [Line Items] | ||||
Interest capitalized | $ 1,100,000 | $ 1,800,000 |
BALANCE SHEETS COMPONENTS - Pro
BALANCE SHEETS COMPONENTS - Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 2,171,720 | $ 1,268,166 |
Less accumulated depreciation and amortization | (217,410) | (86,013) |
Property, plant and equipment, net | 1,954,310 | 1,182,153 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 64,677 | 1,050 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 197,254 | 195,952 |
Machinery, Tooling and Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 703,350 | 601,791 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 41,590 | 27,968 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 163,467 | 135,533 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | 23,499 | 15,352 |
Finance leases | ||
Property, Plant and Equipment [Line Items] | ||
Finance leases | 94,991 | 13,601 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment | $ 882,892 | $ 276,919 |
BALANCE SHEETS COMPONENTS - Con
BALANCE SHEETS COMPONENTS - Construction in Progress (Details) $ in Thousands, ر.س in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Dec. 31, 2021 USD ($) | |
MISA | Government Grant | Affiliated Entity | |||||
Property, Plant and Equipment [Line Items] | |||||
Related party transaction, amount of transaction | $ 97,300 | ر.س 366 | $ 97,300 | ر.س 366 | |
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Total construction in progress | 882,892 | 882,892 | $ 276,919 | ||
Machinery and tooling | |||||
Property, Plant and Equipment [Line Items] | |||||
Total construction in progress | 407,856 | 407,856 | 132,943 | ||
Construction of AMP-1 and AMP-2 | |||||
Property, Plant and Equipment [Line Items] | |||||
Total construction in progress | 435,103 | 435,103 | 112,970 | ||
Construction of AMP-1 and AMP-2 | MISA | Government Grant | Affiliated Entity | |||||
Property, Plant and Equipment [Line Items] | |||||
Related party transaction, amount of transaction | (26,600) | ||||
Leasehold improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Total construction in progress | $ 39,933 | $ 39,933 | $ 31,006 |
BALANCE SHEETS COMPONENTS - Oth
BALANCE SHEETS COMPONENTS - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Engineering, design, and testing accrual | $ 26,925 | $ 33,950 |
Construction in progress | 213,551 | 92,590 |
Accrued purchases | 173,889 | 12,225 |
Retail leasehold improvements accrual | 11,578 | 15,796 |
Other professional services accrual | 33,643 | 13,944 |
Tooling liability | 13,708 | 23,966 |
Short-term insurance financing note | 2,141 | 15,281 |
Short-term borrowings | 13,575 | 0 |
Operating lease liabilities, current portion | 7,815 | 11,056 |
Other current liabilities | 189,730 | 99,404 |
Total other current liabilities | $ 686,555 | $ 318,212 |
BALANCE SHEETS COMPONENTS - O_2
BALANCE SHEETS COMPONENTS - Other Noncurrent Liabilities (Details) $ in Thousands, ر.س in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Dec. 31, 2021 USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Operating lease liabilities, net of current portion | $ 239,173 | $ 239,173 | $ 185,323 | ||
Other long-term liabilities | 125,836 | 125,836 | 3,252 | ||
Total other long-term liabilities | 365,009 | 365,009 | $ 188,575 | ||
MISA | Government Grant | Affiliated Entity | |||||
Property, Plant and Equipment [Line Items] | |||||
Related party transaction, amount of transaction | $ 97,300 | ر.س 366 | 97,300 | ر.س 366 | |
MISA | Other Noncurrent Liabilities | Government Grant | Affiliated Entity | |||||
Property, Plant and Equipment [Line Items] | |||||
Related party transaction, amount of transaction | $ 70,700 |
BALANCE SHEETS COMPONENTS - Acc
BALANCE SHEETS COMPONENTS - Accrued Warranty Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Accrued warranty - beginning of period | $ 8,311 | $ 1,282 |
Warranty costs incurred | (3,501) | (5,256) |
Provision for warranty(1) | 8,815 | 17,599 |
Accrued warranty - end of period(2) | $ 13,625 | $ 13,625 |
FAIR VALUE MEASUREMENTS AND F_3
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Assets and Liabilities at Fair Value, Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | $ 1,264,136 | $ 6,262,905 |
Short-Term Investments | 2,078,045 | 0 |
Long-term investments | 513,735 | 0 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 1,264,136 | |
Cash, estimated fair value | 6,262,905 | |
Gross Unrealized Gains | 113 | |
Gross Unrealized Losses | (13,379) | |
Short-Term Investments | 2,078,045 | |
Long-term investments | 513,735 | |
Total assets measured at fair value, amortized cost | 3,869,182 | |
Total assets measured at fair value, fair value | 3,855,916 | |
Fair Value, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 238,623 | |
Cash, estimated fair value | 238,623 | 160,888 |
Short-Term Investments | 0 | |
Long-term investments | 0 | |
Fair Value, Recurring | Level 1: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 933,177 | |
Amortized cost | 2,796,590 | |
Gross Unrealized Gains | 16 | |
Gross Unrealized Losses | (10,195) | |
Estimated Fair Value | 2,786,411 | |
Short-Term Investments | 1,490,735 | |
Long-term investments | 362,499 | |
Fair Value, Recurring | Level 2: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 92,336 | |
Amortized cost | 833,969 | |
Gross Unrealized Gains | 97 | |
Gross Unrealized Losses | (3,184) | |
Estimated Fair Value | 830,882 | |
Short-Term Investments | 587,310 | |
Long-term investments | 151,236 | |
Fair Value, Recurring | Money market funds | Level 1: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 933,177 | |
Cash, estimated fair value | $ 6,102,017 | |
Amortized cost | 933,177 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 933,177 | |
Short-Term Investments | 0 | |
Long-term investments | 0 | |
Fair Value, Recurring | U.S. Treasury securities | Level 1: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 0 | |
Amortized cost | 1,863,413 | |
Gross Unrealized Gains | 16 | |
Gross Unrealized Losses | (10,195) | |
Estimated Fair Value | 1,853,234 | |
Short-Term Investments | 1,490,735 | |
Long-term investments | 362,499 | |
Fair Value, Recurring | Certificates of deposit | Level 2: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 7,999 | |
Amortized cost | 234,614 | |
Gross Unrealized Gains | 60 | |
Gross Unrealized Losses | (248) | |
Estimated Fair Value | 234,426 | |
Short-Term Investments | 226,427 | |
Long-term investments | 0 | |
Fair Value, Recurring | Commercial paper | Level 2: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 79,025 | |
Amortized cost | 315,209 | |
Gross Unrealized Gains | 22 | |
Gross Unrealized Losses | (254) | |
Estimated Fair Value | 314,977 | |
Short-Term Investments | 235,952 | |
Long-term investments | 0 | |
Fair Value, Recurring | Corporate debt securities | Level 2: | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents, amortized cost | 5,312 | |
Amortized cost | 284,146 | |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | (2,682) | |
Estimated Fair Value | 281,479 | |
Short-Term Investments | 124,931 | |
Long-term investments | $ 151,236 |
FAIR VALUE MEASUREMENTS AND F_4
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Narrative (Details) | Sep. 30, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Accrued interest | $ 5,700,000 |
Allowance for credit losses, excluding accrued interest | $ 0 |
FAIR VALUE MEASUREMENTS AND F_5
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Available-for-sale Debt Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Amortized cost | |
Within one year | $ 2,082,767 |
After one year through three years | 522,262 |
Total | 2,605,029 |
Estimated Fair Value | |
Within one year | 2,078,045 |
After one year through three years | 513,735 |
Total | $ 2,591,780 |
FAIR VALUE MEASUREMENTS AND F_6
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS - Reconciliation of Level 3 Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Common Stock Warrant Liability | ||||
Level 3 Liabilities [Roll Forward] | ||||
Fair value-beginning of period | $ 536,635 | $ 0 | $ 1,394,808 | $ 0 |
Issuance | 0 | 812,048 | 0 | 812,048 |
Change in fair value | (140,146) | 24,787 | (998,319) | 24,787 |
Settlement | 0 | 0 | ||
Fair value-end of period | $ 396,489 | 836,835 | $ 396,489 | 836,835 |
Contingent Forward Contract Liability | ||||
Level 3 Liabilities [Roll Forward] | ||||
Fair value-beginning of period | 0 | |||
Issuance | 2,167,332 | |||
Change in fair value | 454,546 | |||
Settlement | (2,621,878) | |||
Fair value-end of period | 0 | 0 | ||
Convertible preferred stock warrant liability | ||||
Level 3 Liabilities [Roll Forward] | ||||
Fair value-beginning of period | 2,960 | |||
Issuance | 0 | |||
Change in fair value | 6,976 | |||
Settlement | (9,936) | |||
Fair value-end of period | $ 0 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | 1 Months Ended | 9 Months Ended | |||||||
Apr. 29, 2022 USD ($) facility | Feb. 27, 2022 USD ($) | Feb. 27, 2022 SAR (ر.س) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) day $ / shares | Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Apr. 29, 2022 SAR (ر.س) facility | Feb. 27, 2022 SAR (ر.س) | |
Debt Instrument, Redemption [Line Items] | |||||||||
Short-term debt | $ 0 | $ 13,575,000 | |||||||
1.25% Convertible Senior Notes, Due December 2026 | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, face amount | $ 2,012,500,000 | $ 2,012,500,000 | |||||||
Debt instrument, convertible, conversion ratio | 0.0182548 | ||||||||
Debt instrument, initial conversion price (in USD per share) | $ / shares | $ 54.78 | ||||||||
Debt instrument, convertible, threshold percentage of stock price (percent) | 130% | ||||||||
Debt instrument, convertible, threshold trading days | day | 20 | ||||||||
1.25% Convertible Senior Notes, Due December 2026 | Redemption Option One | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, convertible, threshold percentage of stock price (percent) | 130% | ||||||||
Debt instrument, convertible, threshold trading days | day | 20 | ||||||||
Debt instrument, convertible, threshold consecutive trading days | day | 30 | ||||||||
1.25% Convertible Senior Notes, Due December 2026 | Redemption Option Two | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, convertible, threshold percentage of stock price (percent) | 98% | ||||||||
Debt instrument, convertible, threshold consecutive trading days | day | 10 | ||||||||
Debt instrument, convertible, redemption period, number of consecutive business days | day | 5 | ||||||||
1.25% Convertible Senior Notes, Due December 2026 | Convertible Debt | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, face amount | $ 2,012,500,000 | ||||||||
Interest rate | 1.25% | ||||||||
Debt instrument, issuance price percentage | 99.50% | ||||||||
Proceeds from convertible debt | $ 1,986,600,000 | ||||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 100% | ||||||||
Debt instrument, effective interest rate | 1.50% | 1.50% | |||||||
SIDF | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, face amount | $ 1,400,000,000 | $ 1,400,000,000 | ر.س 5,190,000,000 | ||||||
Outstanding amounts | 0 | ||||||||
SIDF | Minimum | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, periodic payment, principal | 6,700,000 | ر.س 25,000,000 | |||||||
Service fees | 110,500,000 | 415,000,000 | |||||||
SIDF | Maximum | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, periodic payment, principal | 93,200,000 | ر.س 350,000,000 | |||||||
Service fees | $ 471,100,000 | ر.س 1,770,000,000 | |||||||
GIB Facility Agreement | Working Capital Facility | Line of Credit | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Short-term debt | 13,600,000 | ر.س 51,000,000 | |||||||
GIB Facility Agreement | Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Number of facilities | facility | 2 | 2 | |||||||
Maximum borrowing capacity | $ 266,200,000 | 266,200,000 | ر.س 1,000,000,000 | ||||||
GIB Facility Agreement | Line of Credit | Bridge Loan | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Maximum borrowing capacity | $ 173,000,000 | 650,000,000 | |||||||
Commitment fee percentage | 0.15% | ||||||||
Remaining borrowing capacity | 173,000,000 | 650,000,000 | |||||||
GIB Facility Agreement | Line of Credit | Bridge Loan | Saudi Arabian Interbank Offered Rate | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Interest rate | 1.25% | ||||||||
GIB Facility Agreement | Line of Credit | Working Capital Facility | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Maximum borrowing capacity | $ 93,200,000 | ر.س 350,000,000 | |||||||
Commitment fee percentage | 0.15% | ||||||||
Remaining borrowing capacity | 79,600,000 | ر.س 299,000,000 | |||||||
GIB Facility Agreement | Line of Credit | Working Capital Facility | Saudi Arabian Interbank Offered Rate | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Interest rate | 1.70% | ||||||||
GIB Facility Agreement | Line of Credit | Maximum | Revolving Credit Facility | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Debt instrument, term | 12 months | ||||||||
ABL Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Outstanding amounts | 0 | ||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | |||||||
Debt instrument, term | 5 years | 5 years | |||||||
Remaining borrowing capacity | $ 303,700,000 | ||||||||
Additional borrowing capacity | $ 500,000,000 | ||||||||
Commitment fee percentage | 0.25% | ||||||||
Issuance costs | 6,300,000 | ||||||||
ABL Credit Facility | Line of Credit | Bridge Loan | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||||
ABL Credit Facility | Line of Credit | Letter of Credit | |||||||||
Debt Instrument, Redemption [Line Items] | |||||||||
Outstanding amounts | $ 36,800,000 | ||||||||
Maximum borrowing capacity | $ 350,000,000 |
DEBT - Schedule of Carrying Val
DEBT - Schedule of Carrying Values and Estimated Fair Values of Convertible Notes (Details) - 1.25% Convertible Senior Notes, Due December 2026 - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument, Redemption [Line Items] | ||
Principal Amount | $ 2,012.5 | $ 2,012.5 |
Unamortized Debt Discounts and Issuance Costs | 21.9 | 25.7 |
Net Carrying Amount | 1,990.6 | 1,986.8 |
Level 2: | ||
Debt Instrument, Redemption [Line Items] | ||
Fair Value (Level 2) | $ 1,257.8 | $ 1,984.6 |
DEBT - Components of Interest E
DEBT - Components of Interest Expense (Details) - 1.25% Convertible Senior Notes, Due December 2026 - Convertible Debt - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Debt Instrument, Redemption [Line Items] | ||
Contractual interest | $ 6.2 | $ 18.9 |
Amortization of debt discounts and debt issuance costs | 1.4 | 3.8 |
Interest expense | $ 7.6 | $ 22.7 |
CONTINGENT FORWARD CONTRACTS -
CONTINGENT FORWARD CONTRACTS - Narrative (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 24, 2020 | Apr. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Apr. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | Apr. 01, 2021 | Sep. 30, 2018 | ||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Contingent forward contract liability, fair value loss | $ 0 | $ 454,546,000 | |||||||||||||||||||
Change in fair value of forward contracts | $ 0 | $ 0 | 0 | 454,546,000 | |||||||||||||||||
Stock price (in dollars per share) | $ 23.78 | ||||||||||||||||||||
Eligible Holders | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Aggregate value of convertible preferred shares approved for issuance | $ 71,000,000 | ||||||||||||||||||||
Series D | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Proceeds from issuance of convertible preferred stock | $ 200,000,000 | $ 200,000,000 | $ 400,000,000 | $ 200,000,000 | 0 | 3,000,000 | |||||||||||||||
Issuance of convertible preferred shares (in shares) | 82,496,121 | 82,496,092 | 374,777,280 | ||||||||||||||||||
Settlement of Series D contingent forward contract liability | $ 21,384,000 | $ 18,180,000 | |||||||||||||||||||
Preferred stock, price (in dollars per share) | $ 2.33 | ||||||||||||||||||||
Series E | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Proceeds from issuance of convertible preferred stock | $ 400,000,000 | $ 92,900,000 | $ 107,100,000 | $ 400,000,000 | $ 400,000,000 | $ 500,000,000 | $ 200,000,000 | $ 0 | $ 600,000,000 | ||||||||||||
Issuance of convertible preferred shares (in shares) | 133,818,821 | 66,909,408 | 133,818,821 | 167,273,525 | 200,728,229 | [1] | |||||||||||||||
Preferred stock, price (in dollars per share) | $ 2.99 | $ 2.99 | $ 2.99 | $ 2.99 | |||||||||||||||||
Issuance of Series E convertible preferred stock | $ 400,000,000 | $ 3,206,159,000 | |||||||||||||||||||
Series E | Eligible Holders | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Preferred stock, price (in dollars per share) | $ 2.99 | ||||||||||||||||||||
Convertible preferred shares approved for issuance (in shares) | 23,737,221 | ||||||||||||||||||||
Series E | Additional Purchasers | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Preferred stock, price (in dollars per share) | $ 2.99 | ||||||||||||||||||||
Series E | Management | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | 3,034,194 | ||||||||||||||||||||
Series E | Director | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | 1,658,705 | ||||||||||||||||||||
Series E | Chief Executive Officer | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | 535,275 | ||||||||||||||||||||
Series D Contingent Forward Contract Liability | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Debt discount to the convertible notes | $ 18,600,000 | ||||||||||||||||||||
Contingent forward contract, fair value | 0 | 36,400,000 | $ 0 | ||||||||||||||||||
Contingent forward contract reclassified to preferred shares | $ 18,200,000 | ||||||||||||||||||||
Settlement of Series D contingent forward contract liability | $ 39,600,000 | ||||||||||||||||||||
Contingent forward contract liability, fair value loss | 8,700,000 | ||||||||||||||||||||
Series E Contingent Forward Contract Liability | |||||||||||||||||||||
Forward Contract Indexed to Issuer's Equity [Line Items] | |||||||||||||||||||||
Contingent forward contract, fair value | $ 110,500,000 | $ 722,400,000 | $ 1,444,900,000 | 110,500,000 | $ 800,000 | $ 722,400,000 | 110,500,000 | $ 0 | |||||||||||||
Contingent forward contract reclassified to preferred shares | $ 1,200,000,000 | ||||||||||||||||||||
Contingent forward contract liability, fair value loss | $ (109,700,000) | $ 109,700,000 | |||||||||||||||||||
[1]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information. |
CONTINGENT FORWARD CONTRACTS _2
CONTINGENT FORWARD CONTRACTS - Valuation Assumptions (Details) | Apr. 30, 2021 year | Feb. 28, 2021 year |
Stock Price | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent forward contract liability, measurement input | 13.79 | |
Fair value of Series E convertible preferred share | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent forward contract liability, measurement input | 13.79 | |
Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent forward contract liability, measurement input | 1 | 1 |
Expected term (in years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent forward contract liability, measurement input | 0.11 | 0.01 |
Risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent forward contract liability, measurement input | 0.0003 | 0.0003 |
CONVERTIBLE PREFERRED STOCK W_2
CONVERTIBLE PREFERRED STOCK WARRANT LIABILITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jul. 23, 2021 | Sep. 30, 2017 | |
Class of Warrant or Right [Line Items] | ||||||||
Number of warrants (in shares) | 85,750,000 | 2 | ||||||
Number of shares called by warrants (in shares) | 1,546,799 | |||||||
Warrant exercise price (in dollars per share) | $ 1.94 | $ 11.50 | $ 1.94 | |||||
Proceeds from the exercise of public warrants | $ 3,000 | $ 0 | $ 173,273 | $ 173,300 | ||||
Issuance of Series D convertible preferred stock upon exercise of warrants | $ 12,900 | |||||||
Change in fair value of convertible preferred stock warrant liability | ||||||||
Class of Warrant or Right [Line Items] | ||||||||
Change in fair value of preferred stock warrant liability | $ 0 | $ 0 | $ 0 | $ 6,976 |
COMMON STOCK WARRANT LIABILIT_2
COMMON STOCK WARRANT LIABILITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 23, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Feb. 28, 2021 | Sep. 30, 2017 | |
Class of Warrant or Right [Line Items] | ||||||
Number of warrants (in shares) | 85,750,000 | 2 | ||||
Warrant exercise price (in dollars per share) | $ 11.50 | $ 1.94 | $ 1.94 | |||
Sponsor earnback warrants (in shares) | 14,783,333 | 14,783,333 | ||||
Private warrants to purchase common stock | ||||||
Class of Warrant or Right [Line Items] | ||||||
Number of warrants (in shares) | 44,350,000 | |||||
Warrant exercise price (in dollars per share) | $ 11.50 | |||||
Warrant liability | $ 812 | $ 396.5 | $ 396.5 | $ 1,394.8 | ||
Change in fair value of private placement warrant liability | $ 140.1 | $ 998.3 |
COMMON STOCK WARRANT LIABILIT_3
COMMON STOCK WARRANT LIABILITY - Fair Value of Private Warrants (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 | Jul. 23, 2021 |
Private Placement Warrants, Non-Contingent | |||
Class of Warrant or Right [Line Items] | |||
Fair value of warrants (in dollars per share) | $ 8.94 | $ 31.45 | |
Vesting Tranche One | Private Placement Warrants, Contingent | |||
Class of Warrant or Right [Line Items] | |||
Warrant volume-weighted average trading price (in dollars per share) | $ 20 | ||
Fair value of warrants (in dollars per share) | 18.16 | ||
Vesting Tranche Two | Private Placement Warrants, Contingent | |||
Class of Warrant or Right [Line Items] | |||
Warrant volume-weighted average trading price (in dollars per share) | 25 | ||
Fair value of warrants (in dollars per share) | 18.07 | ||
Vesting Tranche Three | Private Placement Warrants, Contingent | |||
Class of Warrant or Right [Line Items] | |||
Warrant volume-weighted average trading price (in dollars per share) | 30 | ||
Fair value of warrants (in dollars per share) | $ 17.92 |
COMMON STOCK WARRANT LIABILIT_4
COMMON STOCK WARRANT LIABILITY - Level 3 Fair Value Inputs (Details) - Level 3 | Sep. 30, 2022 | Dec. 31, 2021 |
Volatility | ||
Class of Warrant or Right [Line Items] | ||
Warrant measurement input | 0.8000 | 0.8500 |
Expected term (in years) | ||
Class of Warrant or Right [Line Items] | ||
Expected term (in years) | 3 years 9 months 18 days | 4 years 7 months 6 days |
Risk-free rate | ||
Class of Warrant or Right [Line Items] | ||
Warrant measurement input | 0.0417 | 0.0120 |
Expected dividend rate | ||
Class of Warrant or Right [Line Items] | ||
Warrant measurement input | 0 | 0 |
CONVERTIBLE PREFERRED STOCK - N
CONVERTIBLE PREFERRED STOCK - Narrative (Details) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 16 Months Ended | |||||||||||||||||||||||||||
Jul. 23, 2021 shares | Dec. 31, 2020 USD ($) shares | Dec. 24, 2020 USD ($) shares | Dec. 22, 2020 USD ($) shares | Apr. 30, 2021 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) | Feb. 28, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Sep. 30, 2020 USD ($) condition $ / shares shares | Aug. 31, 2020 USD ($) $ / shares shares | Jun. 30, 2020 USD ($) shares | Mar. 31, 2020 USD ($) shares | Oct. 31, 2019 USD ($) | Apr. 30, 2019 USD ($) | Apr. 30, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Dec. 31, 2019 USD ($) $ / shares shares | Dec. 31, 2019 USD ($) $ / shares shares | Jul. 22, 2021 shares | Jun. 30, 2021 USD ($) shares | Dec. 31, 2018 USD ($) | ||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Convertible preferred stock, shares issued (in shares) | shares | 0 | 0 | 0 | 437,182,072 | |||||||||||||||||||||||||||||
Convertible preferred stock, shares outstanding (in shares) | shares | 957,159,704 | [1] | 957,159,704 | [1] | 0 | 0 | [2] | 0 | 0 | [2] | 0 | 957,159,704 | [1] | 437,182,072 | 1,155,909,367 | [2] | |||||||||||||||||
Convertible preferred stock, value | $ 2,494,076,000 | $ 2,494,076,000 | $ 0 | $ 0 | $ 2,494,076,000 | $ 5,836,785,000 | |||||||||||||||||||||||||||
Number of milestone conditions required to receive funding | condition | 2 | ||||||||||||||||||||||||||||||||
Increase in fair value of forward contracts | $ 0 | (454,546,000) | |||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 83,302,000 | $ 236,956,000 | $ 352,245,000 | $ 366,200,000 | |||||||||||||||||||||||||||||
Common stock, shares authorized (in shares) | shares | 1,316,758,889 | 15,000,000,000 | 15,000,000,000 | 15,000,000,000 | |||||||||||||||||||||||||||||
Convertible preferred stock, shares authorized (in shares) | shares | 1,155,909,398 | ||||||||||||||||||||||||||||||||
Eligible Holders | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Aggregate value of convertible preferred shares approved for issuance | $ 71,000,000 | ||||||||||||||||||||||||||||||||
Series E Contingent Forward Contract Liability | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Contingent forward contract, fair value | 110,500,000 | $ 110,500,000 | $ 722,400,000 | 1,444,900,000 | 110,500,000 | $ 800,000 | $ 722,400,000 | $ 0 | 110,500,000 | ||||||||||||||||||||||||
Increase in fair value of forward contracts | 109,700,000 | (109,700,000) | |||||||||||||||||||||||||||||||
Series C | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Repurchase of convertible preferred shares (in shares) | shares | 11,331,430 | ||||||||||||||||||||||||||||||||
Repurchase of convertible preferred shares | $ 60,000,000 | ||||||||||||||||||||||||||||||||
Price of stock repurchased (in dollars per share) | $ / shares | $ 5.30 | ||||||||||||||||||||||||||||||||
Series C | Third Company Repurchase | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Price of stock repurchased (in dollars per share) | $ / shares | $ 1.02 | ||||||||||||||||||||||||||||||||
Number of shares authorized to be repurchased (in shares) | shares | 9,656,589 | ||||||||||||||||||||||||||||||||
Payments for repurchase of convertible preferred stock | $ 9,900,000 | ||||||||||||||||||||||||||||||||
Convertible preferred stock, value | $ 20,400,000 | ||||||||||||||||||||||||||||||||
Cumulative adjustments to additional paid in capital for share repurchases | $ 10,500,000 | $ 10,500,000 | $ 10,500,000 | ||||||||||||||||||||||||||||||
Series C | Fourth Company Repurchase | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Price of stock repurchased (in dollars per share) | $ / shares | $ 1.21 | ||||||||||||||||||||||||||||||||
Number of shares authorized to be repurchased (in shares) | shares | 1,850,800 | 1,850,800 | 1,850,800 | ||||||||||||||||||||||||||||||
Payments for repurchase of convertible preferred stock | $ 2,200,000 | ||||||||||||||||||||||||||||||||
Convertible preferred stock, value | $ 4,500,000 | ||||||||||||||||||||||||||||||||
Cumulative adjustments to additional paid in capital for share repurchases | $ 2,200,000 | 2,200,000 | $ 2,200,000 | ||||||||||||||||||||||||||||||
Convertible preferred stock, fair value (in dollars per share) | $ / shares | $ 2.42 | ||||||||||||||||||||||||||||||||
Series B | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Repurchase of convertible preferred shares (in shares) | shares | [1] | 3,525,365 | |||||||||||||||||||||||||||||||
Payments for repurchase of convertible preferred stock | $ 0 | $ 3,000,000 | |||||||||||||||||||||||||||||||
Series B | Fifth Company Repurchase | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Number of shares authorized to be repurchased (in shares) | shares | 3,525,332 | ||||||||||||||||||||||||||||||||
Payments for repurchase of convertible preferred stock | $ 3,000,000 | ||||||||||||||||||||||||||||||||
Convertible preferred stock, value | 4,000,000 | ||||||||||||||||||||||||||||||||
Cumulative adjustments to additional paid in capital for share repurchases | $ 1,000,000 | ||||||||||||||||||||||||||||||||
Convertible preferred shares subject to repurchase, mandatory redemption term | 45 days | ||||||||||||||||||||||||||||||||
Series D | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Convertible preferred stock issuable, value | $ 400,000,000 | ||||||||||||||||||||||||||||||||
Proceeds from issuance of convertible preferred stock | $ 200,000,000 | $ 200,000,000 | $ 400,000,000 | $ 200,000,000 | 0 | 3,000,000 | |||||||||||||||||||||||||||
Conversion of convertible notes | $ 271,985,000 | $ 272,000,000 | |||||||||||||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | shares | 82,496,121 | 82,496,092 | 374,777,280 | ||||||||||||||||||||||||||||||
Preferred stock, price (in dollars per share) | $ / shares | $ 2.33 | $ 2.33 | |||||||||||||||||||||||||||||||
Proceeds from issuance of convertible preferred stock and conversion of convertible debt | $ 872,000,000 | ||||||||||||||||||||||||||||||||
Series D Preferred Stock, Tranche One | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Convertible preferred stock issuable, value | $ 200,000,000 | ||||||||||||||||||||||||||||||||
Series D Preferred Stock, Tranche Three | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Convertible preferred stock issuable, value | 400,000,000 | ||||||||||||||||||||||||||||||||
Series D Preferred Stock, Tranche Two | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Convertible preferred stock issuable, value | $ 400,000,000 | ||||||||||||||||||||||||||||||||
Series E | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Proceeds from issuance of convertible preferred stock | $ 400,000,000 | $ 92,900,000 | $ 107,100,000 | $ 400,000,000 | $ 400,000,000 | $ 500,000,000 | $ 200,000,000 | $ 0 | $ 600,000,000 | ||||||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | shares | 133,818,821 | 66,909,408 | 133,818,821 | 167,273,525 | 200,728,229 | [1] | |||||||||||||||||||||||||||
Preferred stock, price (in dollars per share) | $ / shares | $ 2.99 | $ 2.99 | $ 2.99 | $ 2.99 | |||||||||||||||||||||||||||||
Convertible preferred stock, additional shares approved for issuance (in shares) | shares | 200,700,000 | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | $ 123,600,000 | ||||||||||||||||||||||||||||||||
Series E | Eligible Holders | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Preferred stock, price (in dollars per share) | $ / shares | $ 2.99 | ||||||||||||||||||||||||||||||||
Convertible preferred shares approved for issuance (in shares) | shares | 23,737,221 | ||||||||||||||||||||||||||||||||
Series E | Additional Purchasers | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Preferred stock, price (in dollars per share) | $ / shares | $ 2.99 | ||||||||||||||||||||||||||||||||
Series E | Management | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | shares | 3,034,194 | ||||||||||||||||||||||||||||||||
Series E | Director | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | shares | 1,658,705 | ||||||||||||||||||||||||||||||||
Series E | Chief Executive Officer | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Issuance of convertible preferred shares (in shares) | shares | 535,275 | ||||||||||||||||||||||||||||||||
Common Stock | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Conversion of convertible preferred stock into common stock in connection with the reverse recapitalization (in shares) | shares | 1,155,909,367 | 1,155,909,367 | [2] | 1,155,909,367 | [1] | ||||||||||||||||||||||||||||
Legacy Preferred Shareholders | |||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||
Stock converted, after exchange ratio (in shares) | shares | 1,155,909,367 | ||||||||||||||||||||||||||||||||
[1]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information.[2]The number of shares of convertible preferred stock and common stock issued and outstanding prior to the Merger have been retroactively adjusted by the Exchange Ratio to give effect to the reverse recapitalization treatment of the Merger. See Note 1 “Description of Business” and Note 3 “Reverse Capitalization” for more information. |
CONVERTIBLE PREFERRED STOCK - S
CONVERTIBLE PREFERRED STOCK - Schedule of Proceeds from Series D Preferred Stock (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | 23 Months Ended | ||||||
Feb. 28, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2019 | Feb. 28, 2021 | |
Class of Stock [Line Items] | ||||||||||
Conversion of preferred stock warrant to Series D in February 2021 | $ 3,000 | $ 0 | $ 173,273 | $ 173,300 | ||||||
Series D | ||||||||||
Class of Stock [Line Items] | ||||||||||
Conversion of convertible notes | $ 271,985 | $ 272,000 | ||||||||
Proceeds from issuance of convertible preferred stock | $ 200,000 | $ 200,000 | $ 400,000 | $ 200,000 | $ 0 | $ 3,000 | ||||
Contingent forward contract liability reclassified to Series D | $ 21,384 | $ 18,180 | ||||||||
Conversion of preferred stock warrant to Series D in February 2021 | 3,000 | |||||||||
Reclassification of preferred stock warrant liability to Series D in February 2021 | $ 9,936 | |||||||||
Total proceeds of Series D | $ 1,324,485 |
STOCKHOLDERS_ EQUITY - Narrativ
STOCKHOLDERS’ EQUITY - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jul. 23, 2021 $ / shares shares | Feb. 28, 2021 USD ($) $ / shares | Sep. 30, 2022 vote $ / shares shares | Sep. 30, 2021 shares | Dec. 31, 2021 $ / shares shares | Sep. 30, 2022 USD ($) vote $ / shares shares | Sep. 30, 2021 USD ($) shares | Dec. 31, 2021 USD ($) $ / shares shares | Jul. 22, 2021 shares | Sep. 30, 2017 $ / shares shares | |
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | ||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | 0 | ||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | 0 | ||||||
Reverse recapitalization, shares issued (in shares) | 425,395,023 | |||||||||
Common stock, shares outstanding (in shares) | 1,618,621,534 | 1,680,147,338 | 1,647,555,590 | 1,680,147,338 | 1,647,555,590 | 451,295,965 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Number of votes allowed per share | vote | 1 | 1 | ||||||||
Number of warrants (in shares) | 85,750,000 | 2 | ||||||||
Number of securities called by each warrant (in shares) | 1 | |||||||||
Warrant exercise price (in dollars per share) | $ / shares | $ 11.50 | $ 1.94 | $ 1.94 | |||||||
Warrants exercised (in shares) | 41,034,197 | |||||||||
Warrants exercised, cashless (in shares) | 25,966,976 | |||||||||
Proceeds from the exercise of public warrants | $ | $ 3,000 | $ 0 | $ 173,273 | $ 173,300 | ||||||
Warrants redeemed (in shares) | 365,803 | |||||||||
Warrant, redemption price (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | ||||||||
Shares repurchased (in shares) | 0 | 0 | 0 | 0 | 857,825 | |||||
Shares repurchased, repurchase price (in dollars per share) | $ / shares | $ 24.15 | |||||||||
Public warrants to purchase common stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of warrants (in shares) | 41,400,000 | 0 | 0 | 41,400,000 | ||||||
Warrants exercised (in shares) | 41,034,197 | |||||||||
Warrants redeemed (in shares) | 365,803 | |||||||||
Legacy Preferred Shareholders | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock converted, after exchange ratio (in shares) | 1,155,909,367 | |||||||||
Employees | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased (in shares) | 712,742 | |||||||||
Board of Directors of Atieva | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares repurchased (in shares) | 145,083 |
STOCKHOLDERS_ EQUITY - Public C
STOCKHOLDERS’ EQUITY - Public Common Stock Warrants (Details) - shares | 5 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | |
Class Of Warrant Or Right [Roll Forward] | ||
Warrants exercised (in shares) | (41,034,197) | |
Public warrants redeemed (in shares) | (365,803) | |
Public warrants to purchase common stock | ||
Class Of Warrant Or Right [Roll Forward] | ||
Beginning of warrants (in shares) | 41,400,000 | |
Warrants exercised (in shares) | (41,034,197) | |
Public warrants redeemed (in shares) | (365,803) | |
Ending of warrants (in shares) | 0 | 0 |
STOCKHOLDERS_ EQUITY - Common S
STOCKHOLDERS’ EQUITY - Common Stock Reserved for Issuance (Details) - shares | Sep. 30, 2022 | Dec. 31, 2021 |
Class of Stock [Line Items] | ||
Common shares reserved for future issuance (in shares) | 194,894,204 | 210,204,258 |
Private warrants to purchase common stock | ||
Class of Stock [Line Items] | ||
Common shares reserved for future issuance (in shares) | 44,350,000 | 44,350,000 |
Stock options outstanding | ||
Class of Stock [Line Items] | ||
Common shares reserved for future issuance (in shares) | 43,132,157 | 64,119,902 |
Restricted stock units outstanding | ||
Class of Stock [Line Items] | ||
Common shares reserved for future issuance (in shares) | 39,391,043 | 48,234,611 |
Shares available for future grants under equity plans | ||
Class of Stock [Line Items] | ||
Common shares reserved for future issuance (in shares) | 31,283,219 | 16,761,960 |
If-converted common shares from convertible note | ||
Class of Stock [Line Items] | ||
Common shares reserved for future issuance (in shares) | 36,737,785 | 36,737,785 |
EARNBACK SHARES AND WARRANTS (D
EARNBACK SHARES AND WARRANTS (Details) | 12 Months Ended |
Dec. 31, 2021 day $ / shares shares | |
Class of Stock [Line Items] | |
Earnback period | 5 years |
Sponsor earnback shares vested (in shares) | shares | 17,250,000 |
Sponsor earnback warrants vested (in shares) | shares | 14,783,333 |
Threshold trading days | day | 40 |
Threshold consecutive trading days | day | 60 |
Vesting Tranche One | |
Class of Stock [Line Items] | |
Sponsor earnback shares and warrants, target stock price (in dollars per share) | $ 20 |
Vesting Tranche Two | |
Class of Stock [Line Items] | |
Sponsor earnback shares and warrants, target stock price (in dollars per share) | 25 |
Vesting Tranche Three | |
Class of Stock [Line Items] | |
Sponsor earnback shares and warrants, target stock price (in dollars per share) | $ 30 |
STOCK-BASED AWARDS - Schedule o
STOCK-BASED AWARDS - Schedule of Option Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Number of Options | ||
Balance - beginning of period (in shares) | shares | 64,119,902 | |
Options exercised (in shares) | shares | (18,698,664) | |
Options canceled (in shares) | shares | (2,289,081) | |
Balance - end of period (in shares) | shares | 43,132,157 | 64,119,902 |
Weighted Average Exercise Price | ||
Balance - beginning of period (in dollars per share) | $ / shares | $ 1.08 | |
Options exercised (in dollars per share) | $ / shares | 0.79 | |
Options canceled (in dollars per share) | $ / shares | 1.71 | |
Balance - end of period (in dollars per share) | $ / shares | $ 1.17 | $ 1.08 |
Additional Disclosures | ||
Options outstanding, weighted average remaining contractual term | 6 years 8 months 8 days | 6 years 7 months 6 days |
Options outstanding, intrinsic value | $ | $ 554,954 | $ 2,370,666 |
Options vested and exercisable, number of options (in shares) | shares | 31,474,979 | |
Options vested and exercisable, weighted average exercise price (in dollars per share) | $ / shares | $ 0.97 | |
Options vested and exercisable, weighted average remaining contractual term | 6 years 2 months 26 days | |
Options vested and exercisable, intrinsic value | $ | $ 410,294 |
STOCK-BASED AWARDS - Narrative
STOCK-BASED AWARDS - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) installment shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vested (in shares) | 22,935,792 | ||||
Stock-based compensation expense | $ | $ 83,302,000 | $ 236,956,000 | $ 352,245,000 | $ 366,200,000 | |
Nonvested awards (in shares) | 39,391,043 | 39,391,043 | 48,234,611 | ||
Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares withheld for tax withholding obligation (in shares) | 400,000 | 8,900,000 | |||
Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized share-based compensation expense | $ | $ 9,300,000 | $ 9,300,000 | |||
Unamortized share-based compensation, options, amortization period | 1 year 10 months 24 days | ||||
Restricted stock units outstanding | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 235,600,000 | 235,600,000 | |||
Time-Based Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized share-based compensation expense | $ | $ 554,000,000 | $ 554,000,000 | |||
Unamortized share-based compensation, options, amortization period | 3 years | ||||
Awards vested (in shares) | 9,001,521 | ||||
Nonvested awards (in shares) | 37,300,903 | 37,300,903 | 32,210,200 | ||
Performance-Based Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Awards vested (in shares) | 13,934,271 | ||||
Nonvested awards (in shares) | 2,090,140 | 2,090,140 | 16,024,411 | ||
Performance-Based Shares | Chief Executive Officer | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of vesting installments with performance conditions met | installment | 4 | ||||
Number of vesting installments | installment | 5 | ||||
Awards vested (in shares) | 13,934,271 | ||||
Stock-based compensation expense | $ | $ 85,400,000 | 0 | |||
Performance-Based Shares | Chief Executive Officer | Award Tranche Five | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unamortized share-based compensation expense | $ | $ 11,000,000 | $ 11,000,000 | |||
Unamortized share-based compensation, options, amortization period | 1 year | ||||
Nonvested awards (in shares) | 2,090,140 | 2,090,140 | |||
Series E | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 123,600,000 |
STOCK-BASED AWARDS - Restricted
STOCK-BASED AWARDS - Restricted Stock Award Activity (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Shares | |
Balance at beginning of period (in shares) | 48,234,611 |
Granted (in shares) | 16,225,356 |
Vested (in shares) | (22,935,792) |
Cancelled/forfeited (in shares) | (2,133,132) |
Balance at end of period (in shares) | 39,391,043 |
Restricted stock units outstanding | |
Weighted-Average Grant-Date Fair Value | |
Balance at beginning of period (in dollars per share) | $ / shares | $ 20.45 |
Granted (in dollars per share) | $ / shares | 19.11 |
Vested (in dollars per share) | $ / shares | 19.21 |
Cancelled/forfeited (in dollars per share) | $ / shares | 17.20 |
Balance at end of period (in dollars per share) | $ / shares | $ 20.80 |
Time-Based Shares | |
Shares | |
Balance at beginning of period (in shares) | 32,210,200 |
Granted (in shares) | 16,225,356 |
Vested (in shares) | (9,001,521) |
Cancelled/forfeited (in shares) | (2,133,132) |
Balance at end of period (in shares) | 37,300,903 |
Performance-Based Shares | |
Shares | |
Balance at beginning of period (in shares) | 16,024,411 |
Granted (in shares) | 0 |
Vested (in shares) | (13,934,271) |
Cancelled/forfeited (in shares) | 0 |
Balance at end of period (in shares) | 2,090,140 |
STOCK-BASED AWARDS - Valuation
STOCK-BASED AWARDS - Valuation Assumptions (Details) - Performance-Based Shares | Mar. 27, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average volatility | 60% |
Expected term (in years) | 5 years |
Risk-free interest rate | 0.90% |
Expected dividends | 0% |
STOCK-BASED AWARDS - Employee S
STOCK-BASED AWARDS - Employee Stock Purchase Plan (Details) - Employee Stock $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of purchase price of common stock | 85% |
Unrecognized share-based compensation expense | $ 29 |
Unrecognized share-based compensation, options, amortization period | 1 year 8 months 12 days |
STOCK-BASED AWARDS - Share-base
STOCK-BASED AWARDS - Share-based Payment Arrangement, Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 83,302 | $ 236,956 | $ 352,245 | $ 366,200 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 10,836 | 0 | 29,816 | 0 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 34,083 | 59,196 | 123,059 | 85,899 |
Selling, general and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 38,383 | $ 177,760 | $ 199,370 | $ 280,301 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Liabilities finance lease | $ 89,151 | $ 10,266 | ||
Proceeds from failed sale-leaseback transaction | $ 31,700 | 31,700 | $ 0 | |
Casa Grande, Arizona | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 4 years | |||
Finance leases | 79,300 | |||
Liabilities finance lease | $ 80,000 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease, liability, current, statement of financial position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating lease, liability, noncurrent, statement of financial position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Finance lease, right-of-use asset, statement of financial position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Operating leases: | ||
Operating lease right-of-use assets | $ 211,844 | $ 161,974 |
Other current liabilities | 7,815 | 11,056 |
Other long-term liabilities | 239,173 | 185,323 |
Total operating lease liabilities | 246,988 | 196,379 |
Finance leases: | ||
Total finance lease assets | 88,751 | 10,567 |
Finance lease liabilities, current portion | 9,780 | 4,183 |
Finance lease liabilities, net of current portion | 79,371 | 6,083 |
Total finance lease liabilities | $ 89,151 | $ 10,266 |
LEASES - Lease Expense (Details
LEASES - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating lease expense: | ||||
Operating lease expense | $ 11,888 | $ 8,261 | $ 32,215 | $ 21,811 |
Variable lease expense | 906 | 595 | 2,581 | 1,754 |
Finance lease expense: | ||||
Amortization of leased assets | 1,217 | 800 | 3,446 | 2,032 |
Interest on lease liabilities | 897 | 115 | 1,186 | 328 |
Total finance lease expense | 2,114 | 915 | 4,632 | 2,360 |
Total lease expense | $ 14,908 | $ 9,771 | $ 39,428 | $ 25,925 |
LEASES - Remaining Terms and Di
LEASES - Remaining Terms and Discount Rates (Details) | Sep. 30, 2022 | Dec. 31, 2021 |
Weighted-average remaining lease term (in years): | ||
Operating leases | 7 years 9 months 18 days | 7 years 9 months 18 days |
Finance leases | 3 years 8 months 12 days | 2 years 6 months |
Weighted-average discount rate: | ||
Operating leases | 10.45% | 10.98% |
Finance leases | 5.67% | 5.58% |
LEASES - Lease Liability Maturi
LEASES - Lease Liability Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2022 (remainder of the year) | $ 5,996 | |
2023 | 40,795 | |
2024 | 51,915 | |
2025 | 51,301 | |
2026 | 47,862 | |
Thereafter | 181,496 | |
Total minimum lease payments | 379,365 | |
Less: Interest | (132,377) | |
Total operating lease liabilities | 246,988 | $ 196,379 |
Other current liabilities | (7,815) | (11,056) |
Long-term portion of lease obligations | 239,173 | 185,323 |
Finance Leases | ||
2022 (remainder of the year) | 1,292 | |
2023 | 9,941 | |
2024 | 7,344 | |
2025 | 5,825 | |
2026 | 82,440 | |
Thereafter | 114 | |
Total minimum lease payments | 106,956 | |
Less: Interest | (17,805) | |
Total finance lease liabilities | 89,151 | 10,266 |
Less: Current portion | (9,780) | (4,183) |
Long-term portion of lease obligations | $ 79,371 | $ 6,083 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | May 31, 2022 lawsuit | Apr. 01, 2022 lawsuit | Apr. 18, 2021 lawsuit | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Individual Actions | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 2 | ||||
Putative Class Actions | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits | lawsuit | 2 | 2 | 2 | ||
Indemnification Agreement | |||||
Loss Contingencies [Line Items] | |||||
Estimate of possible loss | $ | $ 51.4 | $ 30.4 | |||
Capital Addition Purchase Commitments | |||||
Loss Contingencies [Line Items] | |||||
Contractual obligation | $ | $ 697.4 | $ 286 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Estimated Purchase Commitment (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 (remainder of the year) | $ 37,551 |
2023 | 193,238 |
2024 | 58,939 |
2025 | 1,451 |
Total | $ 291,179 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 149 | $ 22 | $ 540 | $ 31 |
Effective income tax rate | (0.00%) | (0.00%) | (0.10%) | (0.00%) |
NET LOSS PER SHARE - Basic and
NET LOSS PER SHARE - Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (530,101) | $ (524,403) | $ (831,812) | $ (1,534,081) |
Deemed dividend related to the issuance of Series E convertible preferred stock | 0 | 0 | 0 | (2,167,332) |
Net loss attributable to common stockholders, basic | (530,101) | (524,403) | (831,812) | (3,701,413) |
Change in fair value of dilutive warrants | (140,146) | 0 | (998,319) | 0 |
Net loss attributable to common stockholders, diluted | $ (670,247) | $ (524,403) | $ (1,830,131) | $ (3,701,413) |
Weighted average shares outstanding - basic (in shares) | 1,676,048,504 | 1,217,032,285 | 1,666,693,217 | 432,654,607 |
Private Placement Warrants using the treasury stock method (in shares) | 14,915,044 | 0 | 19,883,372 | 0 |
Weighted average shares outstanding - diluted (in shares) | 1,690,963,548 | 1,217,032,285 | 1,686,576,589 | 432,654,607 |
Net loss per share - basic (in dollars per share) | $ (0.32) | $ (0.43) | $ (0.50) | $ (8.56) |
Net loss per share - diluted (in dollars per share) | $ (0.40) | $ (0.43) | $ (1.09) | $ (8.56) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities Excluded from Earnings per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 122,239,268 | 137,984,401 |
Private warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 0 | 34,494,445 |
Public warrants to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 0 | 9,317,468 |
Options outstanding to purchase common stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 43,132,157 | 67,013,622 |
RSUs outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 37,300,903 | 27,158,866 |
Employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 5,068,423 | 0 |
If-converted common shares from convertible note | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation amount (in shares) | 36,737,785 | 0 |
NET LOSS PER SHARE - Narrative
NET LOSS PER SHARE - Narrative (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Restricted stock units outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of underlying shares contingently issuable (in shares) | 2,090,140 | 16,024,411 |
Sponsor Earnback Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of underlying shares contingently issuable (in shares) | 11,500,000 | |
Sponsor Earnback Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of underlying shares contingently issuable (in shares) | 9,855,555 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Contributions employees may elect to contribute (percent) | 100% | |||
Company matching contribution | $ 0 | $ 0 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Feb. 28, 2022 USD ($) | Jul. 31, 2021 | Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 SAR (ر.س) | Sep. 30, 2021 USD ($) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 USD ($) facility | Apr. 30, 2022 SAR (ر.س) facility | Feb. 28, 2022 SAR (ر.س) | Feb. 27, 2022 USD ($) | Feb. 27, 2022 SAR (ر.س) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Line Items] | |||||||||||||||
Right-of-use assets | $ 211,844,000 | $ 211,844,000 | $ 161,974,000 | ||||||||||||
Operating lease, liability | 246,988,000 | 246,988,000 | $ 196,379,000 | ||||||||||||
SIDF | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Principal Amount | 1,400,000,000 | 1,400,000,000 | $ 1,400,000,000 | ر.س 5,190,000,000 | |||||||||||
Klein | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Common stock, ownership percentage, more than | 5% | ||||||||||||||
Affiliated Entity | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, internship duration | 6 months | ||||||||||||||
Affiliated Entity | Public Investment Fund Internship Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, expenses from transactions | 300,000 | $ 0 | 1,000,000 | $ 0 | |||||||||||
Affiliated Entity | SIDF Loan Agreement | SIDF | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Principal Amount | $ 1,400,000,000 | ر.س 5,190,000,000 | |||||||||||||
Affiliated Entity | MISA Agreement | MISA | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Period for suspension of funding, operation commencement | 30 months | ||||||||||||||
Period for suspension of funding, attainment of agreed scope of operations | 55 months | ||||||||||||||
Affiliated Entity | Government Grant | MISA | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, amount of transaction | 97,300,000 | ر.س 366,000,000 | 97,300,000 | ر.س 366,000,000 | |||||||||||
Affiliated Entity | Government Grant | MISA | Construction of AMP-1 and AMP-2 | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, amount of transaction | (26,600,000) | ||||||||||||||
Affiliated Entity | Government Grant | MISA | Other Noncurrent Liabilities | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, amount of transaction | 70,700,000 | ||||||||||||||
Affiliated Entity | GIB Facility Agreement | GIB Facility Agreement | Line of Credit | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of facilities | facility | 2 | 2 | |||||||||||||
Maximum borrowing capacity | $ 266,200,000 | ر.س 1,000,000,000 | |||||||||||||
Affiliated Entity | Forecast | Public Investment Fund Internship Agreement | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, amount of transaction | $ 1,000,000 | ||||||||||||||
Klein | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Related party transaction, amount of transaction | 400,000 | $ 0 | 1,000,000 | $ 0 | |||||||||||
KAEC | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Lease initial term (in years) | 25 years | 25 years | |||||||||||||
Right-of-use assets | 4,900,000 | 4,900,000 | |||||||||||||
Operating lease, liability | $ 5,300,000 | $ 5,300,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions | Nov. 08, 2022 USD ($) |
Equity Distribution Agreement | |
Subsequent Event [Line Items] | |
Consideration to be received on agreement | $ 600 |
Subscription Agreement | Ayar | |
Subsequent Event [Line Items] | |
Consideration to be received on agreement | $ 915 |
Numerator factor | 60.40% |
Denominator factor | 39.60% |