MVSTW Microvast Holdings Inc

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Microvast, Inc. was incorporated under the laws of the State of Texas in the United States of America on October 12, 2006 and re-domiciled to the State of Delaware on December 31, 2015. On July 23, 2021 (the “Closing Date”), Microvast, Inc. and Tuscan Holdings Corp.(“Tuscan”) consummated the previously announced merger (the “Merger” or the "Business Combination"), pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc., a Delaware corporation (“Merger Sub”).

Pursuant to the Merger Agreement, the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the Merger. As a result of the Merger, Tuscan was renamed “Microvast Holdings, Inc.” (the “Company”). The Merger was accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”).

The Company and its subsidiaries (collectively, the “Group”) are primarily engaged in developing, manufacturing, and selling electronic power products for electric vehicles and energy storage across the globe.

Basis of presentation and use of estimates

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission (the "SEC") and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading.

The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2024.

The financial information as of December 31, 2023 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2023.

There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2023.

Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability, fair value measurement of convertible loan and share based compensation.

All intercompany transactions and balances have been eliminated upon consolidation.

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Going concern

The accompanying unaudited condensed consolidated financial statements of the Group have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realization of assets and the discharge of liabilities in the normal course of business.

For the three months ended June 30, 2023 and 2024, the Group generated revenues of $74,953 and $83,675, and gross profit of $11,461 and $27,195, respectively. For the six months ended June 30, 2023 and 2024, the Group generated revenues of $121,926 and $165,026, gross profit of $16,319 and $44,420, respectively.

Despite the above, the Group has incurred significant losses in the three and six months ended June 30, 2023 and 2024. For the three months ended June 30, 2023 and 2024, the Group incurred net losses of $26,078 and $78,441, respectively. For the six months ended June 30, 2023 and 2024, the Group incurred net losses of $55,649 and $103,266, respectively. As of June 30, 2024, the Group had working capital of $45,500, shareholders’ equity of $478,103, including an accumulated deficit of $1,000,767, and cash and cash equivalents balance of $68,183. As of June 30, 2024, the Group also had outstanding borrowings of $94,237, of which the amount to be paid in the next 12 months is $60,034, and other current liabilities of $312,515, including accounts payable, notes payable, accrued expenses and other current liabilities. Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $45,952 as of June 30, 2024.

After the Group launched its new battery cell product in 2021, it made significant investment in capacity expansions in both Huzhou, China and Clarksville, Tennessee, United States. The expansion in Huzhou, China was completed in the third quarter of 2023 and is now generating revenue. The Tennessee expansion was originally scheduled to be completed in the fourth quarter of 2023. Due to the fact that the required funding to complete the Tennessee expansion has not been secured, the expansion was suspended. During the second quarter ended June 30, 2024, the Group has decided to put the construction of Tennessee facility on hold until a project funding is secured. The timing of when this project will be resumed and completed remains uncertain.

As of June 30, 2024, the Group has made total capital commitments for construction and purchase of property, plant and equipment amounting to $49,965, $48,929 of which is payable within one year, and most of which relates to production equipment for the Tennessee facility.

As of June 30, 2024, the Group had outstanding payables in relation to assets and services provided for the Tennessee expansion amounting to $65,934 that were currently due to its suppliers and the Group has received notice of non-payment mainly from certain of these suppliers with a total amount of $2,410. Further, there are several suppliers which have filed liens, with a total amount of $35,986 received by the Group as of June 30, 2024, mostly with the county in which the Tennessee project is situated. Several suppliers have also filed litigation alleging that the Group failed to pay for their products or services delivered on the Tennessee project. Refer to Note 16 for details.

The Group has been discussing with those suppliers regarding repayment plans. Subsequent to June 30, 2024 and to the date of issuance of the financial statements, the Group has entered into several subsequent settlement agreements with certain suppliers with payables amounting to approximately $21,338 as of June 30, 2024. Those agreements grant the Group a concession by forgiving certain contractually owed amounts and release some liens, as well as allow the Group to defer certain payment schedules. Based on those subsequent settlement agreements, a total payable concession of approximately $6,573 was obtained, liens of approximately $10,610 will be ultimately released and the payment schedules were generally deferred to monthly installments in the next twelve months.

In light of the capital expenditures required to settle the outstanding payables associated with the Group's Tennessee expansion and operating requirements under its current business plan, the Group is projecting that its existing cash and cash equivalents will not be sufficient to fund its operations and capital expenditure needs through the next twelve months from the date of issuance of its unaudited condensed consolidated financial statements. These conditions and events raise substantial doubt about the Group’s ability to continue as a going concern and the Group's ability to continue as a going concern is dependent on its ability to obtain additional capital or secure financing and generate cash from operations.

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Going concern - continued

As of the date of issuance of the financial statements, the Group has secured the following cash flow and liquidity improvement initiatives:

Loan with Mr. Yang Wu

Pursuant to the $25,000 loan agreement dated May 28, 2024 with Mr. Yang Wu, the Company’s Chief Executive Officer and Chairman, the Group has received the first tranche of $12,000 in May 2024 and the second tranche of $13,000 in July 2024. Refer to Note 14 - Convertible loan with shareholder for details.

Labor reduction in the U.S.

The Group has reduced the number of employees in the U.S. by 82% during the quarter ended June 30, 2024, which will significantly reduce its operating expenditure, ultimately improving its liquidity.

As of the date of issuance of the financial statements, the Group is pursuing the following funding initiatives:

Bank Loans

On September 27, 2022, the Group entered into a $111,483 (RMB800 million) loan facilities agreement with a group of lenders led by a bank in China. Pursuant to the agreement, the specified purpose of the loan is for capital expenditures in the PRC. The Group has drawdown $68,802 (RMB500 million) and the outstanding balance is $51,305 as of June 30, 2024. For the remaining undrawn loan facility amounting to $42,681 (RMB300 million), the effective drawdown period is until June 9, 2024. The Group has applied to extend the drawdown period to a later date. Refer to Note 7- Bank Borrowings for details. The banks are currently going through their internal approval process and there is no assurance that the drawdown date will be extended.

Disposal of non-core US real estate assets

The Group has engaged agents to sell certain US real estate assets that are not integral to the Group's cell manufacturing or assembly operations.

In addition to the above, the Group is engaged in discussions with third parties to assess strategic alternatives, including ways to enhance its liquidity.

These plans are not final and are subject to market and other conditions not within the Group’s control. As such, there can be no assurance that the Group will be successful in obtaining sufficient capital. Should sufficient capital not be secured through the plans, or should there be a delay in the timing of securing capital through these alternatives, this would have adverse implications for the Group and its shareholders. In these scenarios, the Group will need to seek other options, including delaying or reducing operating and capital expenditure and the possibility of an alternative transaction.

Accordingly, management has concluded that these plans do not alleviate the substantial doubt about the Group’s ability to continue as a going concern within one year after the date the unaudited condensed consolidated financial statements are issued. Based on the factors above, a material uncertainty exists which may cast significant doubt as to whether the Group will continue as a going concern and therefore whether it will realize its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern.

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Emerging Growth Company

Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies.

The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

Revenue recognition

Nature of Goods and Services

The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is to provide the battery products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services.

Disaggregation of revenue

For the three and six months ended June 30, 2023 and 2024, the Group derived revenues from geographic regions as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
People’s Republic of China ("PRC")			$	46,122					$	33,282					$	78,734					$	60,474
Other Asia & Pacific countries			18,520						2,371						21,669						25,665
Asia & Pacific			64,642						35,653						100,403						86,139
Europe			9,337						46,745						19,522						75,666
U.S.			974						1,277						2,001						3,221
Total			$	74,953					$	83,675					$	121,926					$	165,026

Contract balances

Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration are unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended June 30, 2023 and 2024, the Group recognized $1,068 and $1,425 of revenue previously included in advance from customers as of April 1, 2023 and April 1, 2024, respectively. During the six months ended June 30, 2023 and 2024, the Group recognized $2,485 and $4,206 of revenue previously included in advance from customers as of January 1, 2023 and January 1, 2024, respectively.

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Share-based compensation

Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital.

For share-based awards granted with a performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur.

Operating leases

As of June 30, 2024, the Company recorded operating lease right-of-use (ROU) assets of $19,601 and operating lease liabilities of $19,606, including current portion in the amount of $3,243, which was recorded under accrued expenses and other current liabilities on the balance sheet.

The Company determines if an arrangement is a lease     or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machines and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less.

As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term.

Impairment of long-lived assets

In accordance with ASC 360, Property, Plant and Equipment ("ASC 360"), the Company reviews long-lived assets such as property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets, and an impairment loss is recorded as a component of operating expenses. Fair value is estimated based on various valuation techniques. For assets held for sales, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts.

During the three months ended June 30, 2024, the Company decided to pause the construction of the battery plant in Tennessee until additional funding for the remaining capital expenditure is secured. As a result, the Company reassessed the recoverability of the long-lived assets in the U.S. and utilized the residual method to estimate the fair value of the plant under construction located in Tennessee. For other long-lived assets in the U.S., the Company estimated market value or estimated cash flow from disposition of the assets. The Company recorded impairment loss of long-lived assets of $51 and $64,912 for the three and six months ended June 30, 2023 and 2024, respectively, in operating expenses.

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Asset held for sales

Assets to be disposed of by sale are reported at the lower of the carrying value or fair vale less cost to sell when the Company has committed to a sale agreement and would be reported separately as asset held for sales in the unaudited condensed consolidated balance sheets.

Convertible loan with shareholder

The Company has elected the fair value option to account for the Convertible loan with shareholder, and records changes in fair value in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk which, if present, will be recorded as a component of other comprehensive income. Interest expense related to the convertible loan is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the convertible loan were expensed as incurred. Losses were recognized $1,590 for the three months and six months ended June 30, 2024. The fair value of the Convertible loan with shareholder was determined by using a discounted cash flow model for the bond component and a Black-Scholes-Merton model for the conversion option, which is considered a Level 3 fair value measurement.

Warrant

The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity ("ASC 480"), then in accordance with ASC 815-40 ("ASC 815"), Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock. Under ASC 480, warrants are considered liability classified if the warrants are mandatory redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the unaudited consolidated statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. Refer to Notes 10 for information regarding the warrants issued.

Recent accounting pronouncements not yet adopted

In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on the consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company do not expect a material impact to the consolidated financial statements.

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Accounts receivable consisted of the following:

			December 31, 2023						June 30, 2024
Accounts receivable			$	143,288					$	109,655
Allowance for credit losses			(4,571)						(4,679)
Accounts receivable, net			$	138,717					$	104,976

Movement of allowance for credit losses was as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
Balance at beginning of the period			$	3,270					$	5,065					$	4,407					$	4,571
Charges /(Reversal) of expenses			262						177						(832)						755
Write off			—						(529)						(66)						(529)
Recoveries of credit losses			121						—						121						—
Exchange difference			(185)						(34)						(162)						(118)
Balance at end of the period			$	3,468					$	4,679					$	3,468					$	4,679

Inventories consisted of the following:

			December 31, 2023						June 30, 2024
Work in process			$	86,379					$	92,254
Raw materials			35,867						41,284
Finished goods			27,503						18,971
Total			$	149,749					$	152,509

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			December 31, 2023						June 30, 2024
Product warranty, current			$	13,738					$	13,603
Payables for purchase of property, plant and equipment			96,350						96,771
Other current liabilities			14,312						16,490
Accrued payroll and welfare			8,089						4,730
Accrued expenses			6,224						5,926
Interest payable			41						898
Other tax payable			7,117						1,112
Operating lease liabilities, current			2,413						3,243
Total			$	148,284					$	142,773

Movement of product warranty was as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
Balance at beginning of the period			$	39,610					$	35,448					$	42,060					$	35,217
Provided during the period			2,920						3,060						5,450						6,329
Utilized during the period			(3,338)						(4,098)						(8,510)						(6,546)
Exchange difference			(2,084)						(226)						(1,892)						(816)
Balance at end of the period			$	37,108					$	34,184					$	37,108					$	34,184

			December 31, 2023						June 30, 2024
Product warranty – current			$	13,738					$	13,603
Product warranty – non-current			21,479						20,581
Total			$	35,217					$	34,184

On September 27, 2022, the Group entered into a $111,483 (RMB800 million) loan facilities agreement with a group of lenders led by a bank in China (the "2022 Facility Agreement"). The 2022 Facility Agreement had an effective drawdown period until June 9, 2023, which was extended to June 9, 2024 by a supplemental agreement signed in October 2023. The Company is currently in negotiations with the lead bank to further extend to a later date. Should the banks not reach agreement then the Company would lose access to the undrawn amount of $42,681 (RMB300 million). This would have no impact on the amount already drawn of $68,802 (RMB500 million) which would continue to be repaid in accordance with the scheduled repayment dates. The interest rate is prime plus 115 basis points where prime is based on Loan Prime Rate published by the National Inter-bank Funding Center of the PRC and is payable on a quarterly basis. The loan facilities can only be used for the manufacturing capacity expansion at the Group’s facility located in Huzhou, China. Accordingly, the Group has the balance of restricted cash of $6,171 and $1,218 as of December 31, 2023 and June 30, 2024, respectively. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without the consent of the lender, and certain customary events of default.

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As of June 30, 2024, the Group had outstanding borrowings of $51,305 under the 2022 Facility Agreement.

Repayment Date						Repayment Amount
December 10, 2024						$8,551 (RMB62.1 million)
June 10, 2025						$8,551 (RMB62.1 million)
December 10, 2025						$8,551 (RMB62.1 million)
June 10, 2026						$12,826 (RMB93.2 million)
December 10, 2026						$12,826 (RMB93.2 million)

The amount of capitalized interest expenses, which was recorded in construction in progress and property, plant and equipment, was $504 and $0 for the three months ended June 30, 2023 and 2024, respectively, and $1,028 and $0 for the six months ended June 30, 2023 and 2024, respectively.

The Group has also entered into short-term loan agreements and bank facilities with certain banks in China. The original terms of these loans are with a maximum maturity of 12 months and the interest rates range from 3.30% to 4.85% per annum.

Changes in bank borrowings are as follows:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
Beginning balance			$	50,964					$	84,065					$	46,395					$	79,153
Proceeds from bank borrowings			4,848						21,682						9,232						40,462
Repayments of principal			(3,939)						(10,929)						(3,939)						(23,449)
Exchange difference			(2,727)						(581)						(2,542)						(1,929)
Ending balance			$	49,146					$	94,237					$	49,146					$	94,237

Balance of bank borrowings includes:			December 31, 2023						June 30, 2024
Current			$	35,392					$	60,034
Non-current			43,761						34,203
Total			$	79,153					$	94,237

Certain assets of the Group have been pledged to secure the above bank facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2023 and June 30, 2024 are as follows:

			December 31, 2023						June 30, 2024
Buildings			$	124,565					$	118,658
Machinery and equipment			—						7,499
Land use rights			11,984						11,565
Construction in progress			—						595
Total			$	136,549					$	138,317

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			December 31, 2023						June 30, 2024
Product warranty - non-current			$	21,479					$	20,581
Deferred subsidy income- non-current			3,382						6,097
Total			$	24,861					$	26,678

			December 31, 2023						June 30, 2024
Long–term bonds payable
Huzhou Saiyuan			$	43,157					$	43,157
Total			$	43,157					$	43,157

Huzhou Saiyuan Loan

On December 29, 2018, Microvast Power Systems Co., Ltd.('MPS'), one of the Company's subsidiaries, signed an agreement with Huzhou Saiyuan, an entity established by the local government, to issue convertible bonds to Huzhou Saiyuan for a total consideration of $87,776 (RMB600 million). The Company pledged its 12.39% equity holding over MPS to Huzhou Saiyuan to facilitate the issuance of these convertible bonds.

If the subscribed bonds are not repaid by the maturity date, Huzhou Saiyuan has the right to dispose of the equity interests pledged by the Company in proportion to the amount of matured bonds, or convert the bonds into equity interests of MPS within 60 days after the maturity date. If Huzhou Saiyuan decides to convert the bonds into equity interests of MPS, the equity interests pledged would be released and the convertible bonds would be converted into equity interest of MPS based on an entity value of MPS of $950,000.

In September 2020 and 2022, MPS entered into two supplement agreements with Huzhou Saiyuan, respectively, to change the repayment schedule as follows: (i) $14,629 (RMB100 million) was repaid, together with interest accrued, on or before November 10, 2022, (ii) $14,630 (RMB100 million) was repaid, together with interest accrued, on or before December 31, 2022, and (iii) the remaining $43,888 (RMB300 million) will be repaid, together with interest accrued, on or before January 31, 2027. The applicable interest rate will be increased to 12% if the Group is in default on the repayment of the bonds at the due date. The remaining terms and conditions of the convertible bonds were unchanged. The Company has complied in full with the amended repayment schedule and accordingly, as of June 30, 2024, the subscription and outstanding balance of the convertible bonds was $43,157 (RMB295 million).

The Company assumed 27,600,000 publicly-traded warrants (“Public Warrants”) and 837,000 private placement warrants issued to Tuscan Holdings Acquisition LLC (the “Sponsor”) and EarlyBirdCapital, Inc. (“EarlyBirdCapital”) (“Private Warrants” and together with the Public Warrants, the “Warrants”) upon the Business Combination, all of which were issued in connection with Tuscan’s initial public offering (other than 150,000 Private Warrants that were issued in connection with the closing of the Business Combination) and entitle the holder to purchase one share of the Company’s Common Stock at an exercise price of $11.50 per share. During the three and six months ended June 30, 2024, none of the Public Warrants or the Private Warrants were exercised.

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The Public Warrants became exercisable 30 days after the completion of the Business Combination. The Public Warrants are only exercisable for cash, however, if the Company were to not maintain the effectiveness of the registration statement covering the shares of Common Stock issuable upon exercise of the Public Warrants, the Public Warrants would be exercisable on a net-share settlement basis. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation.

Once the Public Warrants became exercisable, the Company may redeem the Public Warrants:

•in whole and not in part;

•at a price of $0.01 per warrant;

•upon not less than 30 days’ prior written notice of redemption;

•if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and

•if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.

The Company classified the Public Warrants as equity. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a net-share settlement basis.

The Private Warrants are identical to the Public Warrants, except that the Private Warrants will be exercisable for cash or on a net-share settlement basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. In addition, so long as the Private Warrants are held by EarlyBirdCapital and its designee, the Private Warrants will expire five years from the effective date of the Business Combination.

The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants.

The Private Warrant liability was remeasured at fair value as of June 30, 2024, resulting in a gain of $22 and $64 for the three and six months ended June 30, 2024, classified within changes in fair value of warrant liability in the unaudited condensed consolidated statements of operations, respectively.

The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:

						June 30, 2024
Market price of public stock						$	0.46
Exercise price						$	11.50
Expected term (years)						2.07
Volatility						82.77		%
Risk-free interest rate						4.58		%
Dividend rate						0.00		%

---

The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is a blend of implied volatility from the Company’s own public warrant pricing, the average volatility of peer companies and the Company's historical volatility. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants.

On May 28, 2024, the Company also issued a warrant exercisable for 5,500,000 shares of Common Stock at an initial exercise price of $2.00 per share. The Warrant expires on May 28, 2029 in connection of the convertible loan with shareholder. See Note 14 – Convertible loan with shareholder.

Measured or disclosed at fair value on a recurring basis

The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash and warrant liability on a recurring basis as of December 31, 2023 and cash and cash equivalents, restricted cash and warrant liability, Convertible loan with shareholder and relative warrant at fair value on a recurring basis as of June 30, 2024. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The fair value of the warrant liability, Convertible Loan with shareholder are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liability, the Company used the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. See Note 10 – Warrants. The Convertible Loan and relative warrants were valued using the following assumptions under the Black-Scholes-Merton model, which is a generally accepted computational model typically used for pricing options and is considered a Level 3 fair value measurement. See Note 14 – Convertible loan with shareholder.

As of December 31, 2023 and June 30, 2024, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:

			Fair Value Measurement as of December 31, 2023
			Quoted Prices in Active Market for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Cash and cash equivalents			$	44,541					—						—						$	44,541
Restricted cash			43,648						—						—						43,648
Total financial asset			$	88,189					—						—						$	88,189
Warrant liability			$	—					—						67						$	67
Total financial liability			$	—					—						67						$	67

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Measured or disclosed at fair value on a recurring basis - continued

			Fair Value Measurement as of June 30, 2024
			Quoted Prices in Active Market for Identical Assets (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)						Total
Cash and cash equivalents			$	68,183					—						—						$	68,183
Restricted cash			$	36,301					—						—						$	36,301
Total financial asset			$	104,484					—						—						$	104,484
Warrant liability			$	—					—						3						$	3
Convertible loan with shareholder			$	—					—						13,313						$	13,313
Total financial liability			$	—					—						13,316						$	13,316

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the six months ended June 30, 2023 and 2024:

			Six Months Ended June 30,
			2023						2024
Balance at the beginning of the period			$	126					$	67
Changes in fair value			(17)						(64)
Balance at end of the period			$	109					$	3

The following is a reconciliation of the beginning and ending balances for Level 3 convertible loan with shareholder during the six months ended June 30, 2024:

			Six Months Ended June 30, 2024
Balance at the beginning of the period			$	—
Issuance of convertible loan with shareholder			11,723
Changes in fair value			1,590
Balance at end of the period			$	13,313

Measured or disclosed at fair value on a nonrecurring basis

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The Group has operating leases for office spaces and warehouses. Certain leases include renewal options and/or termination options, which are factored into the Group's determination of lease payments when appropriate.

Operating lease cost for the three and six months ended June 30, 2024 was $859 and $1,719, which excluded cost of short-term contracts. Short-term lease cost for the three and six months ended June 30, 2024 was $145 and $304.

As of June 30, 2024, the weighted average remaining lease term was 9.3 years and weighted average discount rate was 5.2% for the Group's operating leases.

Supplemental cash flow information of the leases were as follows:

			Six months ended June 30, 2024
Cash payments for operating leases			$	1,688
Right-of-use assets obtained in exchange for new operating lease liabilities			$	2,217

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of June 30, 2024:

			As of June 30, 2024
Six months period ending December 31, 2024			$	2,301
2025			$	3,663
2026			$	2,823
2027			$	2,384
2028			$	1,808
2029			$	1,615
Thereafter			$	9,828
Total future lease payments			$	24,422
Less: Imputed interest			$	(4,816)
Present value of operating lease liabilities			$	19,606

On July 21, 2021, the Company adopted the Microvast Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), effective upon the Closing Date. The 2021 Plan provides for the grant of incentive and non-qualified stock option, restricted stock units, restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Options awarded under the 2021 Plan expire no more than 10 years from the date of grant. Concurrently with the closing of the Business Combination, the share awards granted under 2012 Share Incentive Plan of Microvast, Inc. (the “2012 Plan”) were rolled over by removing original performance conditions and converting into options and capped non-vested share units with modified vesting schedules, using the Common Exchange Ratio of 160.3. The 2021 Plan reserved 5% of the fully-diluted shares of Common Stock outstanding immediately following the Closing Date plus the shares underlying awards rolled over from the 2012 Plan for issuance in accordance with the 2021 Plan’s terms.

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Stock options

On April 10, 2024, a terminated and a transition advisory services agreement was entered between a former employee and the Company. According to this agreement, all unvested restricted stock units, performance-based restricted stock units and stock options held by the employee as of April 10, 2024 will vest in full immediately following April 10, 2025.The Company accounted for the modification as a Type III (improbable-to-probable) modification, which represents the modification of the award that was not expected to vest under the original vesting conditions at the date of the modification. The Company recognized compensation cost equal to the modified award’s fair value at the date of the modification over the period in which the former employee serves as consultant to the Company.

The modification date fair value of the stock options was determined using the Black Scholes model with the following assumptions:

						Six months ended June 30, 2024
Exercise price						$	5.69
Expected terms (years)						1.25
Volatility						85.66		%
Risk-free interest rate						5.00		%
Expected dividend yields						0.00		%
Fair value of options granted						$	0.0035

The exercise prices for each award were extracted from the option agreements. The expected terms for each award were derived using the simplified method, and is estimated to occur at the midpoint of the vesting date and the expiration date. The volatility of the underlying common stock during the lives of the options was a blend of implied volatility from the average volatility of peer companies, implied volatility and the Company's historical volatility. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the options. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.

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Stock options - continued

Stock options activity for the six months ended June 30, 2023 and 2024 was as follows:

Stock options life						Number of Shares						Weighted Average Exercise Price (US$)						Weighted Average Grant Date Fair Value (US$)						Weighted Average Remaining Contractual Life
Outstanding as of December 31, 2022						36,091,071						6.08						4.80						6.8
Grant						240,000						1.25						0.67
Forfeited						(347,317)						6.28						4.86
Outstanding as of June 30, 2023						35,983,754						6.04						4.77						6.3
Expected to vest and exercisable as of June 30, 2023						35,983,754						6.04						4.77						6.3
Exercisable as of June 30, 2023						12,563,621						6.14						4.87						6.3
Outstanding as of December 31, 2023						32,876,682						6.01						4.73						5.7
Forfeited						(1,243,497)						4.22						2.83
Outstanding as of June 30, 2024						31,633,185						6.08						4.80						5.2
Expected to vest and exercisable as of June 30, 2024						31,633,185						6.08						4.80						5.2
Exercisable as of June 30, 2024						20,922,066						6.15						4.88						5.2

During the three months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $13,396 and $10,285 related to the option awards, respectively. During the six months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $27,055 and $22,313 related to the option awards, respectively.

The total unrecognized equity-based compensation costs as of June 30, 2024 related to the stock options was $4,031, which is expected to be recognized over a weighted-average period of 0.1 years. The aggregate intrinsic value of the stock options as of June 30, 2024 was $0.

Capped Non-vested share units

The capped non-vested share units (“CRSUs”) represent rights for the holder to receive cash determined by the number of shares granted multiplied by the lower of the fair market value and the capped price, which will be settled in the form of cash payments. The CRSUs were accounted for as liability classified awards.

During the three months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $3,302 and $1,226, related to these CRSUs, respectively. During the six months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $6,546 and $2,481, related to these CRSUs, respectively.

The total unrecognized equity-based compensation costs as of June 30, 2024 related to the CRSUs was $313.

Restricted Stock Units

Following the Business Combination, the Company granted 2,721,624 restricted stock units (“RSUs”) and 2,680,372 performance-based restricted stock units (“PSUs”) subject to service, performance and/or market conditions. The service condition requires the participant’s continued services or employment with the Company through the applicable vesting date, and the performance condition requires the achievement of the performance criteria defined in the award agreement. The market condition is based on the Company’s TSR relative to a comparator group during a specified performance period.

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Restricted Stock Units - continued

The fair value of RSUs is determined by the market closing price of Common Stock at the grant date and is amortized over the vesting period on a straight-line basis. The fair value of PSUs that include vesting based on market conditions are estimated using the Monte Carlo valuation method. For PSUs with performance conditions, share-based compensation expense is only recognized if the performance conditions become probable to be satisfied. Compensation cost for these awards is amortized on a straight-line basis over the vesting period based on the grant date fair value, regardless of whether the market condition is satisfied. Accordingly, the Company recorded share-based compensation expense of $271 and $700 related to these RSUs and $324 and $(1,492) related to these PSUs during the three and six months ended June 30, 2024, respectively. During the three and six months ended June 30, 2023, the Company recorded share-based compensation expense of $512 and $959 related to these RSUs and $789 and $1,508 related to these PSUs, respectively.

The non-vested shares activity for the six months ended June 30, 2023 and 2024 was as follows:

						Number of Non-Vested Shares						Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of December 31, 2022						1,222,837						6.92
Grant						2,900,695						1.86
Vested						(310,432)						3.85
Forfeited						(51,036)						4.21
Outstanding as of June 30, 2023						3,762,064						3.31
Outstanding as of December 31, 2023						3,598,606						3.07
Grant						79,909						1.40
Vested						(503,505)						2.65
Forfeited						(749,267)						4.33
Outstanding as of June 30, 2024						2,425,743						2.72

The total unrecognized equity-based compensation costs as of June 30, 2024 related to the non-vested shares was $2,880.

The following summarizes the classification of share-based compensation:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
Cost of revenues			$	1,525					$	1,481					$	3,029					$	2,619
General and administrative expenses			12,419						7,633						24,587						15,800
Research and development expenses			2,693						2,521						5,707						4,298
Selling and marketing expenses			1,213						488						2,456						1,271
Construction in process			149						(17)						289						14
Total			$	17,999					$	12,106					$	36,068					$	24,002

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On May 28, 2024, Microvast Inc. entered into a $25,000 convertible loan agreement ("Loan Agreement") with Mr. Yang Wu, the Company’s Chief Executive Officer and Chairman.

The loan includes an Initial Term Loan of $12,000 and a Delayed Draw Term Loan of $13,000 at an initial interest rate equal to Secured Overnight Financing Rate("SOFR"), plus an initial Applicable Margin of 9.75% per annum, 3.75% of which shall be paid in kind rather than in cash. The maturity date is November 28, 2025, which may be accelerated upon the occurrence and continuance of an event of default in accordance with the terms of the Loan Agreement. The Loan Agreement also provides Mr. Wu with the right to convert the outstanding principal balance of the Loan, into shares of common stock at an initial conversion rate equal to two shares of Common Stock per $1.00 of principal amount to be converted.

The Initial Term Loans of $12,000 was received in May 2024 and the Delayed Draw Term loan was received in July 2024.

The loan is secured by a first priority security interest in substantially all of its assets by Microvast Inc. and all other entities within the Group as guarantors.

The Group has elected fair value option to account for the convertible loan. Direct costs and fees related to the convertible loan were expensed as incurred. The fair value was determined by using a discounted cash flow model for the bond component and a Black-Scholes-Merton model for the conversion option, which is considered a Level 3 fair value measurement. Subsequent changes in the fair value are recorded as gains (losses) in the unaudited condensed consolidated statement of operation. During the three months ended June 30, 2024, a loss of $1,590 on fair value change of convertible loan with shareholder was recorded. The outstanding balance for the Convertible loan with shareholder was $13,313 as of June 30, 2024.

In connection with the convertible loan from Mr. Wu Yang, on May 28, 2024, the Company issued to Mr. Wu a warrant exercisable for 5,500,000 shares of Common Stock at an initial exercise price of $2.00 per share. The warrant expires on May 28, 2029. No warrants were exercised during the period ended June 30, 2024. As of June 30, 2024, 5,500,000 warrants were outstanding and the Group recorded the warrant value of $779 in additional paid in capital.

The significant input of the discounted cash flow model for the bond component is the discount rate. Below are the key inputs used in Black-Scholes-Merton model for the conversion option:

						June 30, 2024
Market price of public stock						$	0.46
Exercise price						$	0.50
Expected term (years)						1.50
Volatility						53.08		%
Risk-free interest rate						4.94		%
Dividend rate						0.00		%

The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is estimated using a blend of the average volatility of peer companies and the Company's historical volatility. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants.

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The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
Numerator:
Net loss attributable to common stock shareholders			$	(26,089)					$	(78,441)					$	(55,670)					$	(103,266)
Denominator:
Weighted average common stock used in computing basic and diluted net loss per share			307,742,032						315,509,552						307,728,460						315,438,336
Basic and diluted net loss per share			$	(0.08)					$	(0.25)					$	(0.18)					$	(0.33)

For the three and six months ended June 30, 2023 and 2024, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the periods prescribed.

			Three Months Ended June 30,												Six Months Ended June 30,
			2023						2024						2023						2024
Shares issuable upon exercise of stock options			36,123,034						31,762,229						36,088,798						32,006,030
Shares issuable upon vesting of non-vested shares			3,979,361						2,555,946						3,527,440						2,760,854
Shares issuable upon vesting of Capped non-vested shares			13,349,144						6,617,351						13,349,144						6,617,351
Shares issuable upon exercise of warrants			28,437,000						30,431,505						28,437,000						29,434,253
Shares issuable upon vesting of Earn-out shares			19,999,988						19,999,988						19,999,988						19,999,988
Shares issuable that may be subject to cancellation			1,687,500						1,687,500						1,687,500						1,687,500

Litigation

Corporate Governance Actions

The directors of Company predecessor, Tuscan (the “Tuscan Defendants”), and certain former and current Company officers have been named as defendants (the “Company Defendants”) in a purported class action lawsuit filed in the Delaware Court of Chancery (the "Court of Chancery") captioned Matt Jacob v. Stephen A. Vogel, et al., No. 2022-0600-PAF (Del. Ch.) (filed July 7, 2022). As amended, the complaint alleges that Tuscan Defendants breached their fiduciary duties in connection with Tuscan’s acquisition of Microvast, Inc., including by making inadequate disclosures concerning the projected earnings of Microvast, Inc., and asserts claims for aiding and abetting that breach against the Company defendants. The plaintiff further alleges that once the earnings of the combined company became public, the Company’s stock dropped, causing losses to investors.

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Litigation - continued

Corporate Governance Actions - continued

On December 13, 2023, in response to a stockholder litigation demand, the Company filed a petition in the Court of Chancery pursuant to Section 205 of the Delaware General Corporation Law seeking validation of an amendment to the Company’s Amended Certificate of Incorporation, the Business Combination and the issuance of the shares issued pursuant thereto, and the Company’s Second Amended and Restated Certificate of Incorporation adopted in connection with the Business Combination (collectively, the "Acts") to resolve any uncertainty with respect to those matters, which action was captioned In re Microvast Holdings Inc., C.A. No. 2023-1245-PAF. On March 18, 2024, the Court of Chancery granted the petition, validating and declaring effective each Act as of the time and date such Act was originally taken.

The Company, the directors of Company predecessor, Tuscan, and certain former and current Company officers and directors have also been named as defendants in a litigation filed in the Court of Chancery captioned Denish Bhavsar v. Stephen Vogel, et al., Case No. 2024-0137-PAF (Del. Ch.) (filed Feb. 14, 2024). The plaintiff purports to assert derivative claims on behalf of the Company. The complaint alleges that the individual defendants breached their fiduciary duties in connection with Tuscan’s acquisition of Microvast, Inc., including by making inadequate disclosures concerning Microvast, Inc.’s earnings and alleged conflicts of interest that existed between certain directors and Company stockholders.

The Company has received additional demands from purported Company stockholders, requesting that the Company’s Board of Directors investigate whether current and former directors and officers of the Company and its predecessors, Tuscan and Microvast Inc., breached their fiduciary duties by allegedly making material misrepresentations about inter alia (1) Microvast Inc.’s performance and financial health in connection with the merger between Tuscan and Microvast, Inc., and (2) the Company’s loss of a conditional grant from the United States Department of Energy. The Company is reviewing the demands.

Securities Litigation

The Company and certain of its officers have also been named as defendants in a putative class action complaint by a shareholder of the Company in the U.S. District Court for the Southern District of Texas under the caption Schelling v. Microvast Holdings, Inc., Case No. 4:23-cv-04565 (S.D. Tex.) (filed Dec. 5, 2023) (the "Schelling Action"). The complaint alleges that defendants violated certain federal securities laws by making misleading statements regarding the receipt of a conditional grant from the United States Department of Energy, the Company’s profitability, and the nature of Company-associated operations in China. On March 1, 2024, the court appointed Co-Lead Plaintiffs and Co-Lead Counsel for the proposed class of Company investors. On March 14, 2024, the court approved a proposed schedule for filing of an amended complaint and briefing of a motion to dismiss. Plaintiffs amended their complaint on May 13, 2024, and Defendants filed a motion to dismiss on June 20, 2024. Briefing on the motion to dismiss will be completed by September 10, 2024.

The Company and certain of its officers and directors have also been named as defendants in three derivative actions filed in the Southern District of Texas under the captions Bhavsar v. Wu et al., No. 4:24-cv-00372 (S.D. Tex.) (filed Jan. 31, 2024), Marti et al v. Wu et al, Case No. 4:24-cv-00633 (S.D. Tex.) (filed Feb. 23, 2024), Gidaro v. Wu et al, Case No. 4:24-cv-00828 (S.D. Tex.) (filed Mar. 6, 2024). The complaints allege that the officer and director defendants violated the federal securities laws by making inadequate disclosures substantially similar to those alleged in the Schelling Action. The complaints further allege that these inadequate disclosures resulted from, and constituted, breaches of the officer and director defendants’ fiduciary duties. On February 24, 2024, the court entered in an order in the first-filed case, Bhavsar v. Wu et al., No. 4:24-cv-00372, consolidating the Bhavsar case and Marti et al v. Wu et al, Case No. 4:24-cv-00633. The consolidated derivative litigation (the “Consolidated Derivative Action”) is captioned In re Microvast Holdings, Inc. Derivative Litigation, Lead Case No. 4:24-cv-00372 (S.D. Tex.). The parties in the Gidardo action filed a stipulation to consolidate the Gidaro case into the Consolidated Derivative Action. The Consolidated Derivative Action is stayed pending disposition of an anticipated motion to dismiss in the Schelling Action.

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Litigation - continued

Securities Litigation - continued

Pursuant to the Company's governing documents and indemnification agreements entered into by the Company with certain of the named defendants, in the above-described actions, the Company has indemnified those defendants for all expenses and losses related to the litigation subject to the terms of those indemnification agreements. While the lawsuits are being vigorously defended, other reported lawsuits of this type have resulted in a broad range of outcomes, with each case being dependent on its own unique set of facts and circumstances. Litigation of this kind can lead to settlement negotiations, including negotiations prompted by pre-trial civil court procedures. The outcome of any litigation is inherently uncertain, and there is always the possibility that a court rules in a manner that is adverse to the interests of the Company and the individual defendants. However, the amount of any such loss in that scenario, which could be material, cannot be reasonably estimated at this time.

Other Matters

The Company and Microvast Energy, Inc. (“Microvast Energy”), a subsidiary of the Company, have been named as defendants in a litigation filed in the Chancery Court for the State of Tennessee under the caption Stoncor Group, Inc. v. Microvast, Inc., et al, Case No. CD-24-12 (Tenn. Ch.) (filed Mar. 18, 2024). The plaintiff alleges that the Company failed to pay it for construction work that it performed on a Microvast facility in Tennessee, and seeks damages of $1,251, plus certain fees and expenses, and foreclosure on the facility to satisfy the payment allegedly owed.

Deidra Milan is an ex-employee of Microvast, and is the putative representative of a class of more than 100 individual employees who were let go from their jobs at a plant in Clarksville, Tennessee. She has filed Civil Action No. 3:24-cv-00627, Deidre Milan, Plaintiff v. Microvast, Inc. and Microvast Holdings, Inc. The Company filed an answer to the suit on July 19, 2024. The Class Action Complaint is brought under the Worker Adjustment and Notification Act, 29 U.S.C. §§2101-2109 (the “WARN Act”), which requires advance notice before laying off employees in a plant closing and under certain other circumstances. Plaintiff alleges that Defendants made the decision to terminate over 50 employees and at least one-third of their workforce from the Clarksville, Tennessee facility. The complaint also alleges that Defendants have continued the layoffs with other employees being let go in April and as recently as May 17, 2024. Plaintiffs allege that these layoffs were not in good faith, all in violation of the WARN Act. Plaintiffs seek backpay, medical expenses, attorney’s fees and statutory penalties in an unspecified amount.

Microvast, Inc., a subsidiary of the Company, has been named as a defendant in a contract dispute litigation filed in Montgomery County Chancery Court for the State of Tennessee under the caption DPR Construction, GP vs. Microvast, Inc., et al, Case No. CD-24-31 (Tenn. Ch.) (filed June 20, 2024). The Plaintiff alleges that the Company failed to pay it for construction work that is performed on a Microvast facility in Tennessee, and seeks damages of $19,950 in progress billings, the additional sum of $1,566 being held as retainage on Plaintiff's progress billings under the contract, lost profits on the work yet to be performed under the contract plus certain fees and expenses, and foreclosure on the facility to satisfy the payment allegedly owed.

Microvast, Inc. has been named as a defendant in a contract dispute litigation filed in Montgomery County Chancery Court for the State of Tennessee under the caption Faith Technologies, Inc. Microvast, Inc. et al., Case No. CD-24-36 (Tenn. Ch.) (filed on July 15, 2024). Plaintiff asserts claims for damages related to its subcontract with DPR Construction, GP under which Plaintiff provided fire protection system services on a Microvast facility in Tennessee, and seeks damages of $1,699 plus cost of court and attorneys and prejudgment interest.

Microvast, Inc. has been named as a defendant in an action filed in Montgomery County Chancery Court for the State of Tennessee under the caption Bernhard MCC v. Hodess Cleanroom Construction, LLC, Hodess Construction Corporation, Microvast, Inc., and The Industrial Development Board of the County of Montgomery, Case No. CD-24-26 (Tenn. Ch.) (filed on May 28, 2024) brought by a subcontractor on the Microvast Facility in Tennessee for lien enforcement of $2,173.

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Litigation - continued

Other Matters - continued

Microvast, Inc. has been named as a defendant in an action filed in Montgomery County Chancery Court for the State of Tennessee under the caption Bernhard MCC, LLC. vs. U.S. Engineering Innovations, LLC, DPR Construction, Microvast, Inc. and the Industrial Development Board of the County of Montgomery, Case No. CD-24-27 (Tenn. Ch.) (filed on May 28, 2024 ) brought by a subcontractor on the Microvast Facility in Tennessee for lien enforcement of $5,681.

Microvast, Inc. has been named as a defendant in an action filed in Montgomery County Chancery Court for the State of Tennessee under the caption Virginia Transformer Corp. v. Microvast, Inc.and the Industrial Development Board of the County of Montgomery, Tennessee, Case No. RE-24-32 (Tenn. Ch.) (filed on July 01, 2024) brought by a prime contractor on the Microvast Facility in Tennessee for lien enforcement of $1,769.

The Group is also involved in other litigation, claims, and proceedings. The Group evaluates the status of each legal matter and assesses the potential financial exposure. If the potential loss from any legal proceedings or litigation is considered probable and the amount can be reasonably estimated, the Group accrues a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimated. As of December 31, 2023 and June 30, 2024, based on the information currently available, the Group believes that any loss contingencies that may arise as a result of currently pending legal proceedings cannot be accurately quantified at this time and thus cannot determine whether they will have a material adverse effect on the Group’s business, results of operations, financial condition, and cash flows.

Capital commitments

Capital commitments for construction of property and purchase of property, plant and equipment were $49,965 as of June 30, 2024.

Purchase Commitments

Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $45,952 as of June 30, 2024.

Pledged assets

Other than those disclosed in Note 7, the Group may pledge certain assets to banks to secure the issuance of bank acceptance notes for the Group. As of June 30, 2024, notes receivable from customers in the amount of $1,489, together with certain of our machinery and equipment with a carrying value of $25,772 has been pledged to secure the issuance of such notes.

Liens and Notices of Non-payment

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Subsequent funding activities

In July 2024, the Company received the Delayed Draw Term Loan under the Loan Agreement of $13,000.

Subsequent settlement agreements with creditors

Subsequent to June 30, 2024 and to the date of issuance of the financial statements, the Group has entered into several settlement agreements with certain suppliers with payables amounting to approximately $21,338 as of June 30, 2024. Those agreements grant the Group a concession by forgiving certain contractually owed amounts and release some liens, as well as allow the Group to defer certain payment schedules. Based on those subsequent settlement agreements, a total payable concession of approximately $6,573 was obtained, liens of approximately $10,610 will be ultimately released and the payment schedules were generally deferred to monthly installments in the next twelve months. The Group is in the process of assessing the related accounting impact.

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v3.24.2.u1

Cover - shares	6 Months Ended
	Jun. 30, 2024	Aug. 05, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity Registrant Name	Microvast Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-38826
Entity Tax Identification Number	83-2530757
Entity Address, Address Line One	12603 Southwest Freeway
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Stafford
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77477
City Area Code	(281)
Local Phone Number	491-9505
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		323,815,298
Entity Central Index Key	0001760689
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	MVST
Security Exchange Name	NASDAQ
Warrants
Entity Information [Line Items]
Title of 12(b) Security	Redeemable warrants, exercisable for shares of common stock
Trading Symbol	MVSTW
Security Exchange Name	NASDAQ

v3.24.2.u1

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 68,183	$ 44,541
Restricted cash, current	34,737	37,477
Short-term investments	0	5,634
Accounts receivable (net of allowance for credit losses of $4,571 and $4,679 as of December 31, 2023 and June 30, 2024, respectively)	104,976	138,717
Notes receivable	10,872	23,736
Inventories, net	152,509	149,749
Prepaid expenses and other current assets	16,675	25,752
Held-for-sale assets	30,097	0
Total Current Assets	418,049	425,606
Restricted cash, non-current	1,564	6,171
Property, plant and equipment, net	519,432	620,667
Land use rights, net	11,565	11,984
Acquired intangible assets, net	2,854	3,136
Operating lease right-of-use assets	19,601	19,507
Other non-current assets	11,494	9,661
Total Assets	984,559	1,096,732
Current liabilities:
Accounts payable	79,891	112,618
Notes payable	48,388	63,374
Accrued expenses and other current liabilities	142,773	148,284
Advance from customers	40,810	43,087
Short-term bank borrowings	60,034	35,392
Income tax payables	653	655
Total Current Liabilities	372,549	403,410
Long-term bonds payable	43,157	43,157
Long-term bank borrowings	34,203	43,761
Warrant liability	3	67
Share-based compensation liability	190	199
Operating lease liabilities	16,363	17,087
Convertible loan with shareholder	13,313	0
Other non-current liabilities	26,678	24,861
Total Liabilities	506,456	532,542
Commitments and contingencies (Note 16)
Shareholders’ Equity
Common Stock (par value of US$0.0001 per share, 750,000,000 and 750,000,000 shares authorized as of December 31, 2023 and June 30, 2024; 316,694,442 and 317,197,947 shares issued, and 315,006,942 and 315,510,447 shares outstanding as of December 31, 2023 and June 30, 2024)	32	32
Additional paid-in capital	1,506,031	1,481,241
Statutory reserves	6,032	6,032
Accumulated deficit	(1,000,767)	(897,501)
Accumulated other comprehensive loss	(33,225)	(25,614)
Total Equity	478,103	564,190
Total Liabilities and Equity	$ 984,559	$ 1,096,732

v3.24.2.u1

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 4,679	$ 4,571
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	317,197,947	316,694,442
Common stock, shares outstanding (in shares)	315,510,447	315,006,942

v3.24.2.u1

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income Statement [Abstract]
Revenues	$ 83,675	$ 74,953	$ 165,026	$ 121,926
Cost of revenues	(56,480)	(63,492)	(120,606)	(105,607)
Gross profit	27,195	11,461	44,420	16,319
Operating expenses:
General and administrative expenses	(23,511)	(23,509)	(47,305)	(43,894)
Research and development expenses	(10,107)	(9,507)	(21,599)	(20,368)
Selling and marketing expenses	(5,026)	(5,897)	(10,617)	(10,885)
Impairment loss from long-lived asset	(64,912)	(51)	(64,912)	(51)
Total operating expenses	(103,556)	(38,964)	(144,433)	(75,198)
Subsidy income	735	637	1,269	714
Loss from operations	(75,626)	(26,866)	(98,744)	(58,165)
Other income and expenses:
Interest income	246	1,518	365	2,899
Interest expense	(2,094)	(487)	(3,826)	(946)
Changes in fair value of warrant and convertible loan	(1,568)	0	(1,526)	17
Other (expense) income, net	601	(243)	465	546
Loss before provision for income taxes	(78,441)	(26,078)	(103,266)	(55,649)
Income tax expense	0	0	0	0
Net loss	(78,441)	(26,078)	(103,266)	(55,649)
Less: net income attributable to noncontrolling interests	0	11	0	21
Net loss attributable to Microvast Holdings, Inc.'s shareholders	$ (78,441)	$ (26,089)	$ (103,266)	$ (55,670)
Net loss per common share
Basic net loss per share (in dollars per share)	$ (0.25)	$ (0.08)	$ (0.33)	$ (0.18)
Diluted net loss per share (in dollars per share)	$ (0.25)	$ (0.08)	$ (0.33)	$ (0.18)
Weighted average shares used in calculating net loss per share of common stock
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	315,509,552	307,742,032	315,438,336	307,728,460
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	315,509,552	307,742,032	315,438,336	307,728,460

v3.24.2.u1

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net loss	$ (78,441)	$ (26,078)	$ (103,266)	$ (55,649)
Foreign currency translation adjustment	(2,494)	(18,002)	(7,611)	(15,814)
Comprehensive loss	(80,935)	(44,080)	(110,877)	(71,463)
Comprehensive loss attributable to non-controlling interests	0	(107)	0	(129)
Total comprehensive loss attributable to Microvast Holding, Inc.'s shareholders	$ (80,935)	$ (43,973)	$ (110,877)	$ (71,334)

v3.24.2.u1

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands	Total	Total Microvast Holdings, Inc. Shareholders’ Equity	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated other Comprehensive loss	Statutory reserves	Non- controlling Interests
Beginning balance (in shares) at Dec. 31, 2022			307,628,511
Beginning balance at Dec. 31, 2022	$ 612,977	$ 612,977	$ 31	$ 1,416,160	$ (791,165)	$ (18,081)	$ 6,032	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(55,649)	(55,670)			(55,670)			21
Capital contribution from non-controlling interests holder	2,174							2,174
Issuance of common stock in connection with vesting of share-based awards	0
Issuance of common stock in connection with vesting of share-based awards (in shares)			310,432
Share-based compensation	36,029	36,029		36,029
Foreign currency translation adjustments	(15,814)	(15,664)				(15,664)		(150)
Ending balance (in shares) at Jun. 30, 2023			307,938,943
Ending balance at Jun. 30, 2023	579,717	577,672	$ 31	1,452,189	(846,835)	(33,745)	6,032	2,045
Beginning balance (in shares) at Mar. 31, 2023			307,739,948
Beginning balance at Mar. 31, 2023	605,829	603,677	$ 31	1,434,221	(820,746)	(15,861)	6,032	2,152
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(26,078)	(26,089)			(26,089)			11
Issuance of common stock in connection with vesting of share-based awards	0
Issuance of common stock in connection with vesting of share-based awards (in shares)			198,995
Share-based compensation	17,968	17,968		17,968
Foreign currency translation adjustments	(18,002)	(17,884)				(17,884)		(118)
Ending balance (in shares) at Jun. 30, 2023			307,938,943
Ending balance at Jun. 30, 2023	$ 579,717	577,672	$ 31	1,452,189	(846,835)	(33,745)	6,032	$ 2,045
Beginning balance (in shares) at Dec. 31, 2023	315,006,942		315,006,942
Beginning balance at Dec. 31, 2023	$ 564,190	564,190	$ 32	1,481,241	(897,501)	(25,614)	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(103,266)	(103,266)			(103,266)
Issuance of common stock in connection with vesting of share-based awards (in shares)			503,505
Share-based compensation		24,011		24,011
Issuance of warrants	$ 779			779
Foreign currency translation adjustments		(7,611)				(7,611)
Ending balance (in shares) at Jun. 30, 2024	315,510,447		315,510,447
Ending balance at Jun. 30, 2024	$ 478,103	478,103	$ 32	1,506,031	(1,000,767)	(33,225)	6,032
Beginning balance (in shares) at Mar. 31, 2024			315,508,595
Beginning balance at Mar. 31, 2024		546,146	$ 32	1,493,139	(922,326)	(30,731)	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(78,441)	(78,441)			(78,441)
Issuance of common stock in connection with vesting of share-based awards (in shares)			1,852
Share-based compensation		12,113		12,113
Issuance of warrants	$ 779			779
Foreign currency translation adjustments		(2,494)				(2,494)
Ending balance (in shares) at Jun. 30, 2024	315,510,447		315,510,447
Ending balance at Jun. 30, 2024	$ 478,103	$ 478,103	$ 32	$ 1,506,031	$ (1,000,767)	$ (33,225)	$ 6,032

v3.24.2.u1

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities
Net loss	$ (103,266)	$ (55,649)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss/ (gain) on disposal of property, plant and equipment	16	826
Interest expense	622	0
Depreciation of property, plant and equipment	14,912	9,797
Amortization of land use right and intangible assets	387	399
Noncash lease expenses	1,327	1,465
Share-based compensation	23,988	35,779
Changes in fair value of warrant and convertible loan	1,526	(17)
(Reversal)/ allowance of credit losses	755	(832)
Write-down for obsolete inventories	1,737	928
Impairment loss from long-lived asset	64,912	51
Product warranty	6,329	5,450
Changes in operating assets and liabilities:
Notes receivable	10,278	(19,808)
Accounts receivable	29,622	10,251
Inventories	(1,454)	(16,610)
Prepaid expenses and other current assets	8,462	(6,842)
Operating lease right-of-use assets	(1,928)	(5,850)
Other non-current assets	(44)	199
Notes payable	(13,568)	(15,517)
Accounts payable	(30,516)	11,771
Advance from customers	(2,125)	(968)
Accrued expenses and other liabilities	(12,374)	1,020
Operating lease liabilities	(267)	3,364
Other non-current liabilities	2,811	(215)
Net cash (used in) generated from operating activities	2,142	(41,008)
Cash flows from investing activities
Purchases of property, plant and equipment	(13,186)	(93,630)
Purchase of short-term investments	0	(419)
Proceeds on disposal of property, plant and equipment	180	648
Proceeds from maturity of short-term investments	5,564	0
Net cash used in investing activities	(7,442)	(93,401)
Cash flows from financing activities
Proceeds from borrowings	40,462	9,232
Repayment of bank borrowings	(23,449)	(3,939)
Convertible loan borrowing from a shareholder	12,000	0
Payment for debt issue costs	(525)	0
Net cash generated from financing activities	28,488	5,293
Effect of exchange rate changes	(6,893)	(3,182)
(Decrease) increase in cash, cash equivalents and restricted cash	16,295	(132,298)
Cash, cash equivalents and restricted cash at beginning of the period	88,189	302,617
Cash, cash equivalents and restricted cash at end of the period	104,484	170,319
Cash and cash equivalents	68,183	142,766
Restricted cash	36,301	27,553
Total cash, cash equivalents and restricted cash	104,484	170,319
Non-cash investing and financing activities
Payable for purchase of property, plant and equipment	$ 96,771	$ 82,968

v3.24.2.u1

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Microvast, Inc. was incorporated under the laws of the State of Texas in the United States of America on October 12, 2006 and re-domiciled to the State of Delaware on December 31, 2015. On July 23, 2021 (the “Closing Date”), Microvast, Inc. and Tuscan Holdings Corp.(“Tuscan”) consummated the previously announced merger (the “Merger” or the "Business Combination"), pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc., a Delaware corporation (“Merger Sub”). Pursuant to the Merger Agreement, the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the Merger. As a result of the Merger, Tuscan was renamed “Microvast Holdings, Inc.” (the “Company”). The Merger was accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). The Company and its subsidiaries (collectively, the “Group”) are primarily engaged in developing, manufacturing, and selling electronic power products for electric vehicles and energy storage across the globe.

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission (the "SEC") and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2024. The financial information as of December 31, 2023 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2023. There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2023. Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability, fair value measurement of convertible loan and share based compensation. All intercompany transactions and balances have been eliminated upon consolidation. Going concern The accompanying unaudited condensed consolidated financial statements of the Group have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realization of assets and the discharge of liabilities in the normal course of business. For the three months ended June 30, 2023 and 2024, the Group generated revenues of $74,953 and $83,675, and gross profit of $11,461 and $27,195, respectively. For the six months ended June 30, 2023 and 2024, the Group generated revenues of $121,926 and $165,026, gross profit of $16,319 and $44,420, respectively. Despite the above, the Group has incurred significant losses in the three and six months ended June 30, 2023 and 2024. For the three months ended June 30, 2023 and 2024, the Group incurred net losses of $26,078 and $78,441, respectively. For the six months ended June 30, 2023 and 2024, the Group incurred net losses of $55,649 and $103,266, respectively. As of June 30, 2024, the Group had working capital of $45,500, shareholders’ equity of $478,103, including an accumulated deficit of $1,000,767, and cash and cash equivalents balance of $68,183. As of June 30, 2024, the Group also had outstanding borrowings of $94,237, of which the amount to be paid in the next 12 months is $60,034, and other current liabilities of $312,515, including accounts payable, notes payable, accrued expenses and other current liabilities. Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $45,952 as of June 30, 2024. After the Group launched its new battery cell product in 2021, it made significant investment in capacity expansions in both Huzhou, China and Clarksville, Tennessee, United States. The expansion in Huzhou, China was completed in the third quarter of 2023 and is now generating revenue. The Tennessee expansion was originally scheduled to be completed in the fourth quarter of 2023. Due to the fact that the required funding to complete the Tennessee expansion has not been secured, the expansion was suspended. During the second quarter ended June 30, 2024, the Group has decided to put the construction of Tennessee facility on hold until a project funding is secured. The timing of when this project will be resumed and completed remains uncertain. As of June 30, 2024, the Group has made total capital commitments for construction and purchase of property, plant and equipment amounting to $49,965, $48,929 of which is payable within one year, and most of which relates to production equipment for the Tennessee facility. As of June 30, 2024, the Group had outstanding payables in relation to assets and services provided for the Tennessee expansion amounting to $65,934 that were currently due to its suppliers and the Group has received notice of non-payment mainly from certain of these suppliers with a total amount of $2,410. Further, there are several suppliers which have filed liens, with a total amount of $35,986 received by the Group as of June 30, 2024, mostly with the county in which the Tennessee project is situated. Several suppliers have also filed litigation alleging that the Group failed to pay for their products or services delivered on the Tennessee project. Refer to Note 16 for details. The Group has been discussing with those suppliers regarding repayment plans. Subsequent to June 30, 2024 and to the date of issuance of the financial statements, the Group has entered into several subsequent settlement agreements with certain suppliers with payables amounting to approximately $21,338 as of June 30, 2024. Those agreements grant the Group a concession by forgiving certain contractually owed amounts and release some liens, as well as allow the Group to defer certain payment schedules. Based on those subsequent settlement agreements, a total payable concession of approximately $6,573 was obtained, liens of approximately $10,610 will be ultimately released and the payment schedules were generally deferred to monthly installments in the next twelve months. In light of the capital expenditures required to settle the outstanding payables associated with the Group's Tennessee expansion and operating requirements under its current business plan, the Group is projecting that its existing cash and cash equivalents will not be sufficient to fund its operations and capital expenditure needs through the next twelve months from the date of issuance of its unaudited condensed consolidated financial statements. These conditions and events raise substantial doubt about the Group’s ability to continue as a going concern and the Group's ability to continue as a going concern is dependent on its ability to obtain additional capital or secure financing and generate cash from operations. Going concern - continued As of the date of issuance of the financial statements, the Group has secured the following cash flow and liquidity improvement initiatives: Loan with Mr. Yang Wu Pursuant to the $25,000 loan agreement dated May 28, 2024 with Mr. Yang Wu, the Company’s Chief Executive Officer and Chairman, the Group has received the first tranche of $12,000 in May 2024 and the second tranche of $13,000 in July 2024. Refer to Note 14 - Convertible loan with shareholder for details. Labor reduction in the U.S. The Group has reduced the number of employees in the U.S. by 82% during the quarter ended June 30, 2024, which will significantly reduce its operating expenditure, ultimately improving its liquidity. As of the date of issuance of the financial statements, the Group is pursuing the following funding initiatives: Bank Loans On September 27, 2022, the Group entered into a $111,483 (RMB800 million) loan facilities agreement with a group of lenders led by a bank in China. Pursuant to the agreement, the specified purpose of the loan is for capital expenditures in the PRC. The Group has drawdown $68,802 (RMB500 million) and the outstanding balance is $51,305 as of June 30, 2024. For the remaining undrawn loan facility amounting to $42,681 (RMB300 million), the effective drawdown period is until June 9, 2024. The Group has applied to extend the drawdown period to a later date. Refer to Note 7- Bank Borrowings for details. The banks are currently going through their internal approval process and there is no assurance that the drawdown date will be extended. Disposal of non-core US real estate assets The Group has engaged agents to sell certain US real estate assets that are not integral to the Group's cell manufacturing or assembly operations. In addition to the above, the Group is engaged in discussions with third parties to assess strategic alternatives, including ways to enhance its liquidity. These plans are not final and are subject to market and other conditions not within the Group’s control. As such, there can be no assurance that the Group will be successful in obtaining sufficient capital. Should sufficient capital not be secured through the plans, or should there be a delay in the timing of securing capital through these alternatives, this would have adverse implications for the Group and its shareholders. In these scenarios, the Group will need to seek other options, including delaying or reducing operating and capital expenditure and the possibility of an alternative transaction. Accordingly, management has concluded that these plans do not alleviate the substantial doubt about the Group’s ability to continue as a going concern within one year after the date the unaudited condensed consolidated financial statements are issued. Based on the factors above, a material uncertainty exists which may cast significant doubt as to whether the Group will continue as a going concern and therefore whether it will realize its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. Emerging Growth Company Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies. The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments. Revenue recognition Nature of Goods and Services The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is to provide the battery products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. Disaggregation of revenue For the three and six months ended June 30, 2023 and 2024, the Group derived revenues from geographic regions as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 People’s Republic of China ("PRC") $ 46,122  $ 33,282  $ 78,734  $ 60,474  Other Asia & Pacific countries 18,520  2,371  21,669  25,665  Asia & Pacific 64,642  35,653  100,403  86,139  Europe 9,337  46,745  19,522  75,666  U.S. 974  1,277  2,001  3,221  Total $ 74,953  $ 83,675  $ 121,926  $ 165,026  Contract balances Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration are unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended June 30, 2023 and 2024, the Group recognized $1,068 and $1,425 of revenue previously included in advance from customers as of April 1, 2023 and April 1, 2024, respectively. During the six months ended June 30, 2023 and 2024, the Group recognized $2,485 and $4,206 of revenue previously included in advance from customers as of January 1, 2023 and January 1, 2024, respectively. Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with a performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur. Operating leases As of June 30, 2024, the Company recorded operating lease right-of-use (ROU) assets of $19,601 and operating lease liabilities of $19,606, including current portion in the amount of $3,243, which was recorded under accrued expenses and other current liabilities on the balance sheet. The Company determines if an arrangement is a lease     or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machines and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less. As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term. Impairment of long-lived assets In accordance with ASC 360, Property, Plant and Equipment ("ASC 360"), the Company reviews long-lived assets such as property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets, and an impairment loss is recorded as a component of operating expenses. Fair value is estimated based on various valuation techniques. For assets held for sales, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts. During the three months ended June 30, 2024, the Company decided to pause the construction of the battery plant in Tennessee until additional funding for the remaining capital expenditure is secured. As a result, the Company reassessed the recoverability of the long-lived assets in the U.S. and utilized the residual method to estimate the fair value of the plant under construction located in Tennessee. For other long-lived assets in the U.S., the Company estimated market value or estimated cash flow from disposition of the assets. The Company recorded impairment loss of long-lived assets of $51 and $64,912 for the three and six months ended June 30, 2023 and 2024, respectively, in operating expenses. Asset held for sales Assets to be disposed of by sale are reported at the lower of the carrying value or fair vale less cost to sell when the Company has committed to a sale agreement and would be reported separately as asset held for sales in the unaudited condensed consolidated balance sheets. Convertible loan with shareholder The Company has elected the fair value option to account for the Convertible loan with shareholder, and records changes in fair value in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk which, if present, will be recorded as a component of other comprehensive income. Interest expense related to the convertible loan is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the convertible loan were expensed as incurred. Losses were recognized $1,590 for the three months and six months ended June 30, 2024. The fair value of the Convertible loan with shareholder was determined by using a discounted cash flow model for the bond component and a Black-Scholes-Merton model for the conversion option, which is considered a Level 3 fair value measurement. Warrant The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity ("ASC 480"), then in accordance with ASC 815-40 ("ASC 815"), Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock. Under ASC 480, warrants are considered liability classified if the warrants are mandatory redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the unaudited consolidated statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. Refer to Notes 10 for information regarding the warrants issued. Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on the consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company do not expect a material impact to the consolidated financial statements.

v3.24.2.u1

ACCOUNTS RECEIVABLE	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: December 31, 2023 June 30, 2024 Accounts receivable $ 143,288  $ 109,655  Allowance for credit losses (4,571) (4,679) Accounts receivable, net $ 138,717  $ 104,976  Movement of allowance for credit losses was as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Balance at beginning of the period $ 3,270  $ 5,065  $ 4,407  $ 4,571  Charges /(Reversal) of expenses 262  177  (832) 755  Write off —  (529) (66) (529) Recoveries of credit losses 121  —  121  —  Exchange difference (185) (34) (162) (118) Balance at end of the period $ 3,468  $ 4,679  $ 3,468  $ 4,679

v3.24.2.u1

INVENTORIES, NET	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
INVENTORIES, NET	INVENTORIES, NET Inventories consisted of the following: December 31, 2023 June 30, 2024 Work in process $ 86,379  $ 92,254  Raw materials 35,867  41,284  Finished goods 27,503  18,971  Total $ 149,749  $ 152,509  Provision for obsolete inventories at $928 and $1,737 were recognized for the six months ended June 30, 2023 and 2024, respectively.

v3.24.2.u1

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2024
Accrued Liabilities and Other Liabilities [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2023 June 30, 2024 Product warranty, current $ 13,738  $ 13,603  Payables for purchase of property, plant and equipment 96,350  96,771  Other current liabilities 14,312  16,490  Accrued payroll and welfare 8,089  4,730  Accrued expenses 6,224  5,926  Interest payable 41  898  Other tax payable 7,117  1,112  Operating lease liabilities, current 2,413  3,243  Total $ 148,284  $ 142,773

v3.24.2.u1

PRODUCT WARRANTY	6 Months Ended
	Jun. 30, 2024
Product Warranties Disclosures [Abstract]
PRODUCT WARRANTY	PRODUCT WARRANTY Movement of product warranty was as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Balance at beginning of the period $ 39,610  $ 35,448  $ 42,060  $ 35,217  Provided during the period 2,920  3,060  5,450  6,329  Utilized during the period (3,338) (4,098) (8,510) (6,546) Exchange difference (2,084) (226) (1,892) (816) Balance at end of the period $ 37,108  $ 34,184  $ 37,108  $ 34,184  December 31, 2023 June 30, 2024 Product warranty – current $ 13,738  $ 13,603  Product warranty – non-current 21,479  20,581  Total $ 35,217  $ 34,184

v3.24.2.u1

BANK BORROWINGS	6 Months Ended
	Jun. 30, 2024
Bank Borrowings [Abstract]
BANK BORROWINGS	BANK BORROWINGS On September 27, 2022, the Group entered into a $111,483 (RMB800 million) loan facilities agreement with a group of lenders led by a bank in China (the "2022 Facility Agreement"). The 2022 Facility Agreement had an effective drawdown period until June 9, 2023, which was extended to June 9, 2024 by a supplemental agreement signed in October 2023. The Company is currently in negotiations with the lead bank to further extend to a later date. Should the banks not reach agreement then the Company would lose access to the undrawn amount of $42,681 (RMB300 million). This would have no impact on the amount already drawn of $68,802 (RMB500 million) which would continue to be repaid in accordance with the scheduled repayment dates. The interest rate is prime plus 115 basis points where prime is based on Loan Prime Rate published by the National Inter-bank Funding Center of the PRC and is payable on a quarterly basis. The loan facilities can only be used for the manufacturing capacity expansion at the Group’s facility located in Huzhou, China. Accordingly, the Group has the balance of restricted cash of $6,171 and $1,218 as of December 31, 2023 and June 30, 2024, respectively. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without the consent of the lender, and certain customary events of default. As of June 30, 2024, the Group had outstanding borrowings of $51,305 under the 2022 Facility Agreement. Repayment Date Repayment Amount December 10, 2024 $8,551 (RMB62.1 million) June 10, 2025 $8,551 (RMB62.1 million) December 10, 2025 $8,551 (RMB62.1 million) June 10, 2026 $12,826 (RMB93.2 million) December 10, 2026 $12,826 (RMB93.2 million) The amount of capitalized interest expenses, which was recorded in construction in progress and property, plant and equipment, was $504 and $0 for the three months ended June 30, 2023 and 2024, respectively, and $1,028 and $0 for the six months ended June 30, 2023 and 2024, respectively. The Group has also entered into short-term loan agreements and bank facilities with certain banks in China. The original terms of these loans are with a maximum maturity of 12 months and the interest rates range from 3.30% to 4.85% per annum. Changes in bank borrowings are as follows:   Three Months Ended June 30, Six Months Ended June 30,   2023 2024 2023 2024 Beginning balance $ 50,964  $ 84,065  $ 46,395  $ 79,153  Proceeds from bank borrowings 4,848  21,682  9,232  40,462  Repayments of principal (3,939) (10,929) (3,939) (23,449) Exchange difference (2,727) (581) (2,542) (1,929) Ending balance $ 49,146  $ 94,237  $ 49,146  $ 94,237  Balance of bank borrowings includes: December 31, 2023 June 30, 2024 Current $ 35,392  $ 60,034  Non-current 43,761  34,203  Total $ 79,153  $ 94,237  Certain assets of the Group have been pledged to secure the above bank facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2023 and June 30, 2024 are as follows: December 31, 2023 June 30, 2024 Buildings $ 124,565  $ 118,658  Machinery and equipment —  7,499  Land use rights 11,984  11,565  Construction in progress —  595  Total $ 136,549  $ 138,317

v3.24.2.u1

OTHER NON-CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2024
Other Liabilities, Noncurrent [Abstract]
OTHER NON-CURRENT LIABILITIES	OTHER NON-CURRENT LIABILITIES December 31, 2023 June 30, 2024 Product warranty - non-current $ 21,479  $ 20,581  Deferred subsidy income- non-current 3,382  6,097  Total $ 24,861  $ 26,678

v3.24.2.u1

BONDS PAYABLE	6 Months Ended
	Jun. 30, 2024
Bonds Payable [Abstract]
BONDS PAYABLE	BONDS PAYABLE December 31, 2023 June 30, 2024 Long–term bonds payable     Huzhou Saiyuan $ 43,157  $ 43,157  Total $ 43,157  $ 43,157  Huzhou Saiyuan Loan On December 29, 2018, Microvast Power Systems Co., Ltd.('MPS'), one of the Company's subsidiaries, signed an agreement with Huzhou Saiyuan, an entity established by the local government, to issue convertible bonds to Huzhou Saiyuan for a total consideration of $87,776 (RMB600 million). The Company pledged its 12.39% equity holding over MPS to Huzhou Saiyuan to facilitate the issuance of these convertible bonds. If the subscribed bonds are not repaid by the maturity date, Huzhou Saiyuan has the right to dispose of the equity interests pledged by the Company in proportion to the amount of matured bonds, or convert the bonds into equity interests of MPS within 60 days after the maturity date. If Huzhou Saiyuan decides to convert the bonds into equity interests of MPS, the equity interests pledged would be released and the convertible bonds would be converted into equity interest of MPS based on an entity value of MPS of $950,000. In September 2020 and 2022, MPS entered into two supplement agreements with Huzhou Saiyuan, respectively, to change the repayment schedule as follows: (i) $14,629 (RMB100 million) was repaid, together with interest accrued, on or before November 10, 2022, (ii) $14,630 (RMB100 million) was repaid, together with interest accrued, on or before December 31, 2022, and (iii) the remaining $43,888 (RMB300 million) will be repaid, together with interest accrued, on or before January 31, 2027. The applicable interest rate will be increased to 12% if the Group is in default on the repayment of the bonds at the due date. The remaining terms and conditions of the convertible bonds were unchanged. The Company has complied in full with the amended repayment schedule and accordingly, as of June 30, 2024, the subscription and outstanding balance of the convertible bonds was $43,157 (RMB295 million).

v3.24.2.u1

WARRANTS	6 Months Ended
	Jun. 30, 2024
Warrants [Abstract]
WARRANTS	WARRANTS The Company assumed 27,600,000 publicly-traded warrants (“Public Warrants”) and 837,000 private placement warrants issued to Tuscan Holdings Acquisition LLC (the “Sponsor”) and EarlyBirdCapital, Inc. (“EarlyBirdCapital”) (“Private Warrants” and together with the Public Warrants, the “Warrants”) upon the Business Combination, all of which were issued in connection with Tuscan’s initial public offering (other than 150,000 Private Warrants that were issued in connection with the closing of the Business Combination) and entitle the holder to purchase one share of the Company’s Common Stock at an exercise price of $11.50 per share. During the three and six months ended June 30, 2024, none of the Public Warrants or the Private Warrants were exercised. The Public Warrants became exercisable 30 days after the completion of the Business Combination. The Public Warrants are only exercisable for cash, however, if the Company were to not maintain the effectiveness of the registration statement covering the shares of Common Stock issuable upon exercise of the Public Warrants, the Public Warrants would be exercisable on a net-share settlement basis. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. Once the Public Warrants became exercisable, the Company may redeem the Public Warrants: •in whole and not in part; •at a price of $0.01 per warrant; •upon not less than 30 days’ prior written notice of redemption; •if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and •if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants. The Company classified the Public Warrants as equity. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a net-share settlement basis. The Private Warrants are identical to the Public Warrants, except that the Private Warrants will be exercisable for cash or on a net-share settlement basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. In addition, so long as the Private Warrants are held by EarlyBirdCapital and its designee, the Private Warrants will expire five years from the effective date of the Business Combination. The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants. The Private Warrant liability was remeasured at fair value as of June 30, 2024, resulting in a gain of $22 and $64 for the three and six months ended June 30, 2024, classified within changes in fair value of warrant liability in the unaudited condensed consolidated statements of operations, respectively. The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date: June 30, 2024 Market price of public stock $ 0.46  Exercise price $ 11.50  Expected term (years) 2.07 Volatility 82.77  % Risk-free interest rate 4.58  % Dividend rate 0.00  % The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is a blend of implied volatility from the Company’s own public warrant pricing, the average volatility of peer companies and the Company's historical volatility. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants. On May 28, 2024, the Company also issued a warrant exercisable for 5,500,000 shares of Common Stock at an initial exercise price of $2.00 per share. The Warrant expires on May 28, 2029 in connection of the convertible loan with shareholder. See Note 14 – Convertible loan with shareholder.

v3.24.2.u1

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	FAIR VALUE MEASUREMENT Measured or disclosed at fair value on a recurring basis The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash and warrant liability on a recurring basis as of December 31, 2023 and cash and cash equivalents, restricted cash and warrant liability, Convertible loan with shareholder and relative warrant at fair value on a recurring basis as of June 30, 2024. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The fair value of the warrant liability, Convertible Loan with shareholder are based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liability, the Company used the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. See Note 10 – Warrants. The Convertible Loan and relative warrants were valued using the following assumptions under the Black-Scholes-Merton model, which is a generally accepted computational model typically used for pricing options and is considered a Level 3 fair value measurement. See Note 14 – Convertible loan with shareholder. As of December 31, 2023 and June 30, 2024, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurement as of December 31, 2023 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 44,541  —  —  $ 44,541  Restricted cash 43,648  —  —  43,648  Total financial asset $ 88,189  —  —  $ 88,189  Warrant liability $ —  —  67  $ 67  Total financial liability $ —  —  67  $ 67  Measured or disclosed at fair value on a recurring basis - continued Fair Value Measurement as of June 30, 2024 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 68,183  —  —  $ 68,183  Restricted cash $ 36,301  —  —  $ 36,301  Total financial asset $ 104,484  —  —  $ 104,484  Warrant liability $ —  —  3  $ 3  Convertible loan with shareholder $ —  —  13,313  $ 13,313  Total financial liability $ —  —  13,316  $ 13,316  The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the six months ended June 30, 2023 and 2024: Six Months Ended June 30, 2023 2024 Balance at the beginning of the period $ 126  $ 67  Changes in fair value (17) (64) Balance at end of the period $ 109  $ 3  The following is a reconciliation of the beginning and ending balances for Level 3 convertible loan with shareholder during the six months ended June 30, 2024: Six Months Ended June 30, 2024 Balance at the beginning of the period $ —  Issuance of convertible loan with shareholder 11,723  Changes in fair value 1,590  Balance at end of the period $ 13,313  Measured or disclosed at fair value on a nonrecurring basis

v3.24.2.u1

LEASES	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
LEASES	LEASES The Group has operating leases for office spaces and warehouses. Certain leases include renewal options and/or termination options, which are factored into the Group's determination of lease payments when appropriate. Operating lease cost for the three and six months ended June 30, 2024 was $859 and $1,719, which excluded cost of short-term contracts. Short-term lease cost for the three and six months ended June 30, 2024 was $145 and $304. As of June 30, 2024, the weighted average remaining lease term was 9.3 years and weighted average discount rate was 5.2% for the Group's operating leases. Supplemental cash flow information of the leases were as follows: Six months ended June 30, 2024 Cash payments for operating leases $ 1,688  Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,217  The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of June 30, 2024: As of June 30, 2024 Six months period ending December 31, 2024 $ 2,301  2025 $ 3,663  2026 $ 2,823  2027 $ 2,384  2028 $ 1,808  2029 $ 1,615  Thereafter $ 9,828  Total future lease payments $ 24,422  Less: Imputed interest $ (4,816) Present value of operating lease liabilities $ 19,606

v3.24.2.u1

SHARE-BASED PAYMENT	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
SHARE-BASED PAYMENT	SHARE-BASED PAYMENT On July 21, 2021, the Company adopted the Microvast Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), effective upon the Closing Date. The 2021 Plan provides for the grant of incentive and non-qualified stock option, restricted stock units, restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Options awarded under the 2021 Plan expire no more than 10 years from the date of grant. Concurrently with the closing of the Business Combination, the share awards granted under 2012 Share Incentive Plan of Microvast, Inc. (the “2012 Plan”) were rolled over by removing original performance conditions and converting into options and capped non-vested share units with modified vesting schedules, using the Common Exchange Ratio of 160.3. The 2021 Plan reserved 5% of the fully-diluted shares of Common Stock outstanding immediately following the Closing Date plus the shares underlying awards rolled over from the 2012 Plan for issuance in accordance with the 2021 Plan’s terms. Stock options On April 10, 2024, a terminated and a transition advisory services agreement was entered between a former employee and the Company. According to this agreement, all unvested restricted stock units, performance-based restricted stock units and stock options held by the employee as of April 10, 2024 will vest in full immediately following April 10, 2025.The Company accounted for the modification as a Type III (improbable-to-probable) modification, which represents the modification of the award that was not expected to vest under the original vesting conditions at the date of the modification. The Company recognized compensation cost equal to the modified award’s fair value at the date of the modification over the period in which the former employee serves as consultant to the Company. The modification date fair value of the stock options was determined using the Black Scholes model with the following assumptions: Six months ended June 30, 2024 Exercise price $ 5.69  Expected terms (years) 1.25 Volatility 85.66  % Risk-free interest rate 5.00  % Expected dividend yields 0.00  % Fair value of options granted $ 0.0035  The exercise prices for each award were extracted from the option agreements. The expected terms for each award were derived using the simplified method, and is estimated to occur at the midpoint of the vesting date and the expiration date. The volatility of the underlying common stock during the lives of the options was a blend of implied volatility from the average volatility of peer companies, implied volatility and the Company's historical volatility. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the options. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options. Stock options - continued Stock options activity for the six months ended June 30, 2023 and 2024 was as follows: Stock options life Number of Shares Weighted Average Exercise Price (US$) Weighted Average Grant Date Fair Value (US$) Weighted Average Remaining Contractual Life Outstanding as of December 31, 2022 36,091,071  6.08  4.80  6.8 Grant 240,000  1.25  0.67  Forfeited (347,317) 6.28  4.86  Outstanding as of June 30, 2023 35,983,754  6.04  4.77  6.3 Expected to vest and exercisable as of June 30, 2023 35,983,754  6.04  4.77  6.3 Exercisable as of June 30, 2023 12,563,621  6.14  4.87  6.3 Outstanding as of December 31, 2023 32,876,682  6.01  4.73  5.7 Forfeited (1,243,497) 4.22  2.83  Outstanding as of June 30, 2024 31,633,185  6.08  4.80  5.2 Expected to vest and exercisable as of June 30, 2024 31,633,185  6.08  4.80  5.2 Exercisable as of June 30, 2024 20,922,066  6.15  4.88  5.2 During the three months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $13,396 and $10,285 related to the option awards, respectively. During the six months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $27,055 and $22,313 related to the option awards, respectively. The total unrecognized equity-based compensation costs as of June 30, 2024 related to the stock options was $4,031, which is expected to be recognized over a weighted-average period of 0.1 years. The aggregate intrinsic value of the stock options as of June 30, 2024 was $0. Capped Non-vested share units The capped non-vested share units (“CRSUs”) represent rights for the holder to receive cash determined by the number of shares granted multiplied by the lower of the fair market value and the capped price, which will be settled in the form of cash payments. The CRSUs were accounted for as liability classified awards. During the three months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $3,302 and $1,226, related to these CRSUs, respectively. During the six months ended June 30, 2023 and 2024, the Company recorded share-based compensation expense of $6,546 and $2,481, related to these CRSUs, respectively. The total unrecognized equity-based compensation costs as of June 30, 2024 related to the CRSUs was $313. Restricted Stock Units Following the Business Combination, the Company granted 2,721,624 restricted stock units (“RSUs”) and 2,680,372 performance-based restricted stock units (“PSUs”) subject to service, performance and/or market conditions. The service condition requires the participant’s continued services or employment with the Company through the applicable vesting date, and the performance condition requires the achievement of the performance criteria defined in the award agreement. The market condition is based on the Company’s TSR relative to a comparator group during a specified performance period. Restricted Stock Units - continued The fair value of RSUs is determined by the market closing price of Common Stock at the grant date and is amortized over the vesting period on a straight-line basis. The fair value of PSUs that include vesting based on market conditions are estimated using the Monte Carlo valuation method. For PSUs with performance conditions, share-based compensation expense is only recognized if the performance conditions become probable to be satisfied. Compensation cost for these awards is amortized on a straight-line basis over the vesting period based on the grant date fair value, regardless of whether the market condition is satisfied. Accordingly, the Company recorded share-based compensation expense of $271 and $700 related to these RSUs and $324 and $(1,492) related to these PSUs during the three and six months ended June 30, 2024, respectively. During the three and six months ended June 30, 2023, the Company recorded share-based compensation expense of $512 and $959 related to these RSUs and $789 and $1,508 related to these PSUs, respectively. The non-vested shares activity for the six months ended June 30, 2023 and 2024 was as follows: Number of Non-Vested Shares Weighted Average Grant Date Fair Value Per Share (US$) Outstanding as of December 31, 2022 1,222,837  6.92  Grant 2,900,695  1.86  Vested (310,432) 3.85  Forfeited (51,036) 4.21  Outstanding as of June 30, 2023 3,762,064  3.31  Outstanding as of December 31, 2023 3,598,606  3.07  Grant 79,909  1.40  Vested (503,505) 2.65  Forfeited (749,267) 4.33  Outstanding as of June 30, 2024 2,425,743  2.72  The total unrecognized equity-based compensation costs as of June 30, 2024 related to the non-vested shares was $2,880. The following summarizes the classification of share-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Cost of revenues $ 1,525  $ 1,481  $ 3,029  $ 2,619  General and administrative expenses 12,419  7,633  24,587  15,800  Research and development expenses 2,693  2,521  5,707  4,298  Selling and marketing expenses 1,213  488  2,456  1,271  Construction in process 149  (17) 289  14  Total $ 17,999  $ 12,106  $ 36,068  $ 24,002

v3.24.2.u1

CONVERTIBLE LOAN WITH SHAREHOLDER	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
CONVERTIBLE LOAN WITH SHAREHOLDER	CONVERTIBLE LOAN WITH SHAREHOLDER On May 28, 2024, Microvast Inc. entered into a $25,000 convertible loan agreement ("Loan Agreement") with Mr. Yang Wu, the Company’s Chief Executive Officer and Chairman. The loan includes an Initial Term Loan of $12,000 and a Delayed Draw Term Loan of $13,000 at an initial interest rate equal to Secured Overnight Financing Rate("SOFR"), plus an initial Applicable Margin of 9.75% per annum, 3.75% of which shall be paid in kind rather than in cash. The maturity date is November 28, 2025, which may be accelerated upon the occurrence and continuance of an event of default in accordance with the terms of the Loan Agreement. The Loan Agreement also provides Mr. Wu with the right to convert the outstanding principal balance of the Loan, into shares of common stock at an initial conversion rate equal to two shares of Common Stock per $1.00 of principal amount to be converted. The Initial Term Loans of $12,000 was received in May 2024 and the Delayed Draw Term loan was received in July 2024. The loan is secured by a first priority security interest in substantially all of its assets by Microvast Inc. and all other entities within the Group as guarantors. The Group has elected fair value option to account for the convertible loan. Direct costs and fees related to the convertible loan were expensed as incurred. The fair value was determined by using a discounted cash flow model for the bond component and a Black-Scholes-Merton model for the conversion option, which is considered a Level 3 fair value measurement. Subsequent changes in the fair value are recorded as gains (losses) in the unaudited condensed consolidated statement of operation. During the three months ended June 30, 2024, a loss of $1,590 on fair value change of convertible loan with shareholder was recorded. The outstanding balance for the Convertible loan with shareholder was $13,313 as of June 30, 2024. In connection with the convertible loan from Mr. Wu Yang, on May 28, 2024, the Company issued to Mr. Wu a warrant exercisable for 5,500,000 shares of Common Stock at an initial exercise price of $2.00 per share. The warrant expires on May 28, 2029. No warrants were exercised during the period ended June 30, 2024. As of June 30, 2024, 5,500,000 warrants were outstanding and the Group recorded the warrant value of $779 in additional paid in capital. The significant input of the discounted cash flow model for the bond component is the discount rate. Below are the key inputs used in Black-Scholes-Merton model for the conversion option: June 30, 2024 Market price of public stock $ 0.46  Exercise price $ 0.50  Expected term (years) 1.50 Volatility 53.08  % Risk-free interest rate 4.94  % Dividend rate 0.00  % The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is estimated using a blend of the average volatility of peer companies and the Company's historical volatility. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants.

v3.24.2.u1

NET LOSS PER SHARE	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Numerator: Net loss attributable to common stock shareholders $ (26,089) $ (78,441) $ (55,670) $ (103,266) Denominator:     Weighted average common stock used in computing basic and diluted net loss per share 307,742,032  315,509,552  307,728,460  315,438,336  Basic and diluted net loss per share $ (0.08) $ (0.25) $ (0.18) $ (0.33) For the three and six months ended June 30, 2023 and 2024, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the periods prescribed. Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Shares issuable upon exercise of stock options 36,123,034  31,762,229  36,088,798  32,006,030  Shares issuable upon vesting of non-vested shares 3,979,361  2,555,946  3,527,440  2,760,854  Shares issuable upon vesting of Capped non-vested shares 13,349,144  6,617,351  13,349,144  6,617,351  Shares issuable upon exercise of warrants 28,437,000  30,431,505  28,437,000  29,434,253  Shares issuable upon vesting of Earn-out shares 19,999,988  19,999,988  19,999,988  19,999,988  Shares issuable that may be subject to cancellation 1,687,500  1,687,500  1,687,500  1,687,500

v3.24.2.u1

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation Corporate Governance Actions The directors of Company predecessor, Tuscan (the “Tuscan Defendants”), and certain former and current Company officers have been named as defendants (the “Company Defendants”) in a purported class action lawsuit filed in the Delaware Court of Chancery (the "Court of Chancery") captioned Matt Jacob v. Stephen A. Vogel, et al., No. 2022-0600-PAF (Del. Ch.) (filed July 7, 2022). As amended, the complaint alleges that Tuscan Defendants breached their fiduciary duties in connection with Tuscan’s acquisition of Microvast, Inc., including by making inadequate disclosures concerning the projected earnings of Microvast, Inc., and asserts claims for aiding and abetting that breach against the Company defendants. The plaintiff further alleges that once the earnings of the combined company became public, the Company’s stock dropped, causing losses to investors. Litigation - continued Corporate Governance Actions - continued On December 13, 2023, in response to a stockholder litigation demand, the Company filed a petition in the Court of Chancery pursuant to Section 205 of the Delaware General Corporation Law seeking validation of an amendment to the Company’s Amended Certificate of Incorporation, the Business Combination and the issuance of the shares issued pursuant thereto, and the Company’s Second Amended and Restated Certificate of Incorporation adopted in connection with the Business Combination (collectively, the "Acts") to resolve any uncertainty with respect to those matters, which action was captioned In re Microvast Holdings Inc., C.A. No. 2023-1245-PAF. On March 18, 2024, the Court of Chancery granted the petition, validating and declaring effective each Act as of the time and date such Act was originally taken. The Company, the directors of Company predecessor, Tuscan, and certain former and current Company officers and directors have also been named as defendants in a litigation filed in the Court of Chancery captioned Denish Bhavsar v. Stephen Vogel, et al., Case No. 2024-0137-PAF (Del. Ch.) (filed Feb. 14, 2024). The plaintiff purports to assert derivative claims on behalf of the Company. The complaint alleges that the individual defendants breached their fiduciary duties in connection with Tuscan’s acquisition of Microvast, Inc., including by making inadequate disclosures concerning Microvast, Inc.’s earnings and alleged conflicts of interest that existed between certain directors and Company stockholders. The Company has received additional demands from purported Company stockholders, requesting that the Company’s Board of Directors investigate whether current and former directors and officers of the Company and its predecessors, Tuscan and Microvast Inc., breached their fiduciary duties by allegedly making material misrepresentations about inter alia (1) Microvast Inc.’s performance and financial health in connection with the merger between Tuscan and Microvast, Inc., and (2) the Company’s loss of a conditional grant from the United States Department of Energy. The Company is reviewing the demands. Securities Litigation The Company and certain of its officers have also been named as defendants in a putative class action complaint by a shareholder of the Company in the U.S. District Court for the Southern District of Texas under the caption Schelling v. Microvast Holdings, Inc., Case No. 4:23-cv-04565 (S.D. Tex.) (filed Dec. 5, 2023) (the "Schelling Action"). The complaint alleges that defendants violated certain federal securities laws by making misleading statements regarding the receipt of a conditional grant from the United States Department of Energy, the Company’s profitability, and the nature of Company-associated operations in China. On March 1, 2024, the court appointed Co-Lead Plaintiffs and Co-Lead Counsel for the proposed class of Company investors. On March 14, 2024, the court approved a proposed schedule for filing of an amended complaint and briefing of a motion to dismiss. Plaintiffs amended their complaint on May 13, 2024, and Defendants filed a motion to dismiss on June 20, 2024. Briefing on the motion to dismiss will be completed by September 10, 2024. The Company and certain of its officers and directors have also been named as defendants in three derivative actions filed in the Southern District of Texas under the captions Bhavsar v. Wu et al., No. 4:24-cv-00372 (S.D. Tex.) (filed Jan. 31, 2024), Marti et al v. Wu et al, Case No. 4:24-cv-00633 (S.D. Tex.) (filed Feb. 23, 2024), Gidaro v. Wu et al, Case No. 4:24-cv-00828 (S.D. Tex.) (filed Mar. 6, 2024). The complaints allege that the officer and director defendants violated the federal securities laws by making inadequate disclosures substantially similar to those alleged in the Schelling Action. The complaints further allege that these inadequate disclosures resulted from, and constituted, breaches of the officer and director defendants’ fiduciary duties. On February 24, 2024, the court entered in an order in the first-filed case, Bhavsar v. Wu et al., No. 4:24-cv-00372, consolidating the Bhavsar case and Marti et al v. Wu et al, Case No. 4:24-cv-00633. The consolidated derivative litigation (the “Consolidated Derivative Action”) is captioned In re Microvast Holdings, Inc. Derivative Litigation, Lead Case No. 4:24-cv-00372 (S.D. Tex.). The parties in the Gidardo action filed a stipulation to consolidate the Gidaro case into the Consolidated Derivative Action. The Consolidated Derivative Action is stayed pending disposition of an anticipated motion to dismiss in the Schelling Action. Litigation - continued Securities Litigation - continued Pursuant to the Company's governing documents and indemnification agreements entered into by the Company with certain of the named defendants, in the above-described actions, the Company has indemnified those defendants for all expenses and losses related to the litigation subject to the terms of those indemnification agreements. While the lawsuits are being vigorously defended, other reported lawsuits of this type have resulted in a broad range of outcomes, with each case being dependent on its own unique set of facts and circumstances. Litigation of this kind can lead to settlement negotiations, including negotiations prompted by pre-trial civil court procedures. The outcome of any litigation is inherently uncertain, and there is always the possibility that a court rules in a manner that is adverse to the interests of the Company and the individual defendants. However, the amount of any such loss in that scenario, which could be material, cannot be reasonably estimated at this time. Other Matters The Company and Microvast Energy, Inc. (“Microvast Energy”), a subsidiary of the Company, have been named as defendants in a litigation filed in the Chancery Court for the State of Tennessee under the caption Stoncor Group, Inc. v. Microvast, Inc., et al, Case No. CD-24-12 (Tenn. Ch.) (filed Mar. 18, 2024). The plaintiff alleges that the Company failed to pay it for construction work that it performed on a Microvast facility in Tennessee, and seeks damages of $1,251, plus certain fees and expenses, and foreclosure on the facility to satisfy the payment allegedly owed. Deidra Milan is an ex-employee of Microvast, and is the putative representative of a class of more than 100 individual employees who were let go from their jobs at a plant in Clarksville, Tennessee. She has filed Civil Action No. 3:24-cv-00627, Deidre Milan, Plaintiff v. Microvast, Inc. and Microvast Holdings, Inc. The Company filed an answer to the suit on July 19, 2024. The Class Action Complaint is brought under the Worker Adjustment and Notification Act, 29 U.S.C. §§2101-2109 (the “WARN Act”), which requires advance notice before laying off employees in a plant closing and under certain other circumstances. Plaintiff alleges that Defendants made the decision to terminate over 50 employees and at least one-third of their workforce from the Clarksville, Tennessee facility. The complaint also alleges that Defendants have continued the layoffs with other employees being let go in April and as recently as May 17, 2024. Plaintiffs allege that these layoffs were not in good faith, all in violation of the WARN Act. Plaintiffs seek backpay, medical expenses, attorney’s fees and statutory penalties in an unspecified amount. Microvast, Inc., a subsidiary of the Company, has been named as a defendant in a contract dispute litigation filed in Montgomery County Chancery Court for the State of Tennessee under the caption DPR Construction, GP vs. Microvast, Inc., et al, Case No. CD-24-31 (Tenn. Ch.) (filed June 20, 2024). The Plaintiff alleges that the Company failed to pay it for construction work that is performed on a Microvast facility in Tennessee, and seeks damages of $19,950 in progress billings, the additional sum of $1,566 being held as retainage on Plaintiff's progress billings under the contract, lost profits on the work yet to be performed under the contract plus certain fees and expenses, and foreclosure on the facility to satisfy the payment allegedly owed. Microvast, Inc. has been named as a defendant in a contract dispute litigation filed in Montgomery County Chancery Court for the State of Tennessee under the caption Faith Technologies, Inc. Microvast, Inc. et al., Case No. CD-24-36 (Tenn. Ch.) (filed on July 15, 2024). Plaintiff asserts claims for damages related to its subcontract with DPR Construction, GP under which Plaintiff provided fire protection system services on a Microvast facility in Tennessee, and seeks damages of $1,699 plus cost of court and attorneys and prejudgment interest. Microvast, Inc. has been named as a defendant in an action filed in Montgomery County Chancery Court for the State of Tennessee under the caption Bernhard MCC v. Hodess Cleanroom Construction, LLC, Hodess Construction Corporation, Microvast, Inc., and The Industrial Development Board of the County of Montgomery, Case No. CD-24-26 (Tenn. Ch.) (filed on May 28, 2024) brought by a subcontractor on the Microvast Facility in Tennessee for lien enforcement of $2,173. Litigation - continued Other Matters - continued Microvast, Inc. has been named as a defendant in an action filed in Montgomery County Chancery Court for the State of Tennessee under the caption Bernhard MCC, LLC. vs. U.S. Engineering Innovations, LLC, DPR Construction, Microvast, Inc. and the Industrial Development Board of the County of Montgomery, Case No. CD-24-27 (Tenn. Ch.) (filed on May 28, 2024 ) brought by a subcontractor on the Microvast Facility in Tennessee for lien enforcement of $5,681. Microvast, Inc. has been named as a defendant in an action filed in Montgomery County Chancery Court for the State of Tennessee under the caption Virginia Transformer Corp. v. Microvast, Inc.and the Industrial Development Board of the County of Montgomery, Tennessee, Case No. RE-24-32 (Tenn. Ch.) (filed on July 01, 2024) brought by a prime contractor on the Microvast Facility in Tennessee for lien enforcement of $1,769. The Group is also involved in other litigation, claims, and proceedings. The Group evaluates the status of each legal matter and assesses the potential financial exposure. If the potential loss from any legal proceedings or litigation is considered probable and the amount can be reasonably estimated, the Group accrues a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimated. As of December 31, 2023 and June 30, 2024, based on the information currently available, the Group believes that any loss contingencies that may arise as a result of currently pending legal proceedings cannot be accurately quantified at this time and thus cannot determine whether they will have a material adverse effect on the Group’s business, results of operations, financial condition, and cash flows. Capital commitments Capital commitments for construction of property and purchase of property, plant and equipment were $49,965 as of June 30, 2024. Purchase Commitments Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $45,952 as of June 30, 2024. Pledged assets Other than those disclosed in Note 7, the Group may pledge certain assets to banks to secure the issuance of bank acceptance notes for the Group. As of June 30, 2024, notes receivable from customers in the amount of $1,489, together with certain of our machinery and equipment with a carrying value of $25,772 has been pledged to secure the issuance of such notes. Liens and Notices of Non-payment As of June 30, 2024, the Company had received $35,986 of liens and $2,410 of notices of non-payment.

v3.24.2.u1

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Subsequent funding activities In July 2024, the Company received the Delayed Draw Term Loan under the Loan Agreement of $13,000. Subsequent settlement agreements with creditors Subsequent to June 30, 2024 and to the date of issuance of the financial statements, the Group has entered into several settlement agreements with certain suppliers with payables amounting to approximately $21,338 as of June 30, 2024. Those agreements grant the Group a concession by forgiving certain contractually owed amounts and release some liens, as well as allow the Group to defer certain payment schedules. Based on those subsequent settlement agreements, a total payable concession of approximately $6,573 was obtained, liens of approximately $10,610 will be ultimately released and the payment schedules were generally deferred to monthly installments in the next twelve months. The Group is in the process of assessing the related accounting impact.

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission (the "SEC") and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The results of operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2024. The financial information as of December 31, 2023 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2023. There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2023.
Use of estimates	Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability, fair value measurement of convertible loan and share based compensation.
Consolidation	All intercompany transactions and balances have been eliminated upon consolidation.
Emerging Growth Company	Emerging Growth Company Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies. The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.
Revenue recognition	Revenue recognition Nature of Goods and Services The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is to provide the battery products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. Contract balances Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration are unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended June 30, 2023 and 2024, the Group recognized $1,068 and $1,425 of revenue previously included in advance from customers as of April 1, 2023 and April 1, 2024, respectively. During the six months ended June 30, 2023 and 2024, the Group recognized $2,485 and $4,206 of revenue previously included in advance from customers as of January 1, 2023 and January 1, 2024, respectively.
Share-based compensation	Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with a performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur.
Operating leases	Operating leases As of June 30, 2024, the Company recorded operating lease right-of-use (ROU) assets of $19,601 and operating lease liabilities of $19,606, including current portion in the amount of $3,243, which was recorded under accrued expenses and other current liabilities on the balance sheet. The Company determines if an arrangement is a lease     or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machines and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less. As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term.
Impairment of long-lived assets	Impairment of long-lived assets In accordance with ASC 360, Property, Plant and Equipment ("ASC 360"), the Company reviews long-lived assets such as property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets, and an impairment loss is recorded as a component of operating expenses. Fair value is estimated based on various valuation techniques. For assets held for sales, the amount of potential impairment may be based upon appraisal of the asset, estimated market value of similar assets or estimated cash flow from the disposition of the asset. The evaluation of asset impairment requires the Company to make assumptions about future cash flows over the life of the asset being evaluated. These assumptions require significant judgment and actual results may differ from assumed and estimated amounts.
Assets held for sale	Asset held for sales Assets to be disposed of by sale are reported at the lower of the carrying value or fair vale less cost to sell when the Company has committed to a sale agreement and would be reported separately as asset held for sales in the unaudited condensed consolidated balance sheets.
Convertible loan with shareholder	Convertible loan with shareholder The Company has elected the fair value option to account for the Convertible loan with shareholder, and records changes in fair value in the unaudited condensed consolidated statements of operations, with the exception of changes in fair value due to instrument-specific credit risk which, if present, will be recorded as a component of other comprehensive income. Interest expense related to the convertible loan is included in the changes in fair value. As a result of applying the fair value option, direct costs and fees related to the convertible loan were expensed as incurred. Losses were recognized $1,590 for the three months and six months ended June 30, 2024. The fair value of the Convertible loan with shareholder was determined by using a discounted cash flow model for the bond component and a Black-Scholes-Merton model for the conversion option, which is considered a Level 3 fair value measurement.
Warrant	Warrant The Company determines the accounting classification of warrants it issues as either liability or equity classified by first assessing whether the warrants meet liability classification in accordance with ASC 480-10, Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity ("ASC 480"), then in accordance with ASC 815-40 ("ASC 815"), Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a Company’s Own Stock. Under ASC 480, warrants are considered liability classified if the warrants are mandatory redeemable, obligate the Company to settle the warrants or the underlying shares by paying cash or other assets, or warrants that must or may require settlement by issuing variable number of shares. If warrants do not meet liability classification under ASC 480, the Company assesses the requirements under ASC 815, which states that contracts that require or may require the issuer to settle the contract for cash are liabilities recorded at fair value, irrespective of the likelihood of the transaction occurring that triggers the net cash settlement feature. If the warrants do not require liability classification under ASC 815, and in order to conclude equity classification, the Company also assesses whether the warrants are indexed to its Common Stock and whether the warrants are classified as equity under ASC 815 or other applicable GAAP. After all relevant assessments, the Company concludes whether the warrants are classified as liability or equity. Liability classified warrants require fair value accounting at issuance and subsequent to initial issuance with all changes in fair value after the issuance date recorded in the unaudited consolidated statements of operations. Equity classified warrants only require fair value accounting at issuance with no changes recognized subsequent to the issuance date. Refer to Notes 10 for information regarding the warrants issued.
Recent accounting pronouncements not yet adopted	Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on the consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company do not expect a material impact to the consolidated financial statements.
Debt instrument term, description	The original terms of these loans are with a maximum maturity of 12 months and the interest rates range from 3.30% to 4.85% per annum
Public Warrants	Once the Public Warrants became exercisable, the Company may redeem the Public Warrants: •in whole and not in part; •at a price of $0.01 per warrant; •upon not less than 30 days’ prior written notice of redemption; •if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and •if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Disaggregation of Revenue	For the three and six months ended June 30, 2023 and 2024, the Group derived revenues from geographic regions as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 People’s Republic of China ("PRC") $ 46,122  $ 33,282  $ 78,734  $ 60,474  Other Asia & Pacific countries 18,520  2,371  21,669  25,665  Asia & Pacific 64,642  35,653  100,403  86,139  Europe 9,337  46,745  19,522  75,666  U.S. 974  1,277  2,001  3,221  Total $ 74,953  $ 83,675  $ 121,926  $ 165,026

v3.24.2.u1

ACCOUNTS RECEIVABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following: December 31, 2023 June 30, 2024 Accounts receivable $ 143,288  $ 109,655  Allowance for credit losses (4,571) (4,679) Accounts receivable, net $ 138,717  $ 104,976
Schedule of Allowance for Credit Losses	Movement of allowance for credit losses was as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Balance at beginning of the period $ 3,270  $ 5,065  $ 4,407  $ 4,571  Charges /(Reversal) of expenses 262  177  (832) 755  Write off —  (529) (66) (529) Recoveries of credit losses 121  —  121  —  Exchange difference (185) (34) (162) (118) Balance at end of the period $ 3,468  $ 4,679  $ 3,468  $ 4,679

v3.24.2.u1

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2024
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: December 31, 2023 June 30, 2024 Work in process $ 86,379  $ 92,254  Raw materials 35,867  41,284  Finished goods 27,503  18,971  Total $ 149,749  $ 152,509

v3.24.2.u1

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2024
Accrued Liabilities and Other Liabilities [Abstract]
Schedule of Accrued Expenses and Other Current Liabilities	December 31, 2023 June 30, 2024 Product warranty, current $ 13,738  $ 13,603  Payables for purchase of property, plant and equipment 96,350  96,771  Other current liabilities 14,312  16,490  Accrued payroll and welfare 8,089  4,730  Accrued expenses 6,224  5,926  Interest payable 41  898  Other tax payable 7,117  1,112  Operating lease liabilities, current 2,413  3,243  Total $ 148,284  $ 142,773

v3.24.2.u1

PRODUCT WARRANTY (Tables)	6 Months Ended
	Jun. 30, 2024
Product Warranties Disclosures [Abstract]
Schedule of Movement of Product Warranty	Movement of product warranty was as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Balance at beginning of the period $ 39,610  $ 35,448  $ 42,060  $ 35,217  Provided during the period 2,920  3,060  5,450  6,329  Utilized during the period (3,338) (4,098) (8,510) (6,546) Exchange difference (2,084) (226) (1,892) (816) Balance at end of the period $ 37,108  $ 34,184  $ 37,108  $ 34,184
Schedule of Warranty Cost	December 31, 2023 June 30, 2024 Product warranty – current $ 13,738  $ 13,603  Product warranty – non-current 21,479  20,581  Total $ 35,217  $ 34,184

v3.24.2.u1

BANK BORROWINGS (Tables)	6 Months Ended
	Jun. 30, 2024
Bank Borrowings [Abstract]
Schedule of Bank Borrowings Repayment	As of June 30, 2024, the Group had outstanding borrowings of $51,305 under the 2022 Facility Agreement. Repayment Date Repayment Amount December 10, 2024 $8,551 (RMB62.1 million) June 10, 2025 $8,551 (RMB62.1 million) December 10, 2025 $8,551 (RMB62.1 million) June 10, 2026 $12,826 (RMB93.2 million) December 10, 2026 $12,826 (RMB93.2 million)
Schedule of Bank Borrowings	Changes in bank borrowings are as follows:   Three Months Ended June 30, Six Months Ended June 30,   2023 2024 2023 2024 Beginning balance $ 50,964  $ 84,065  $ 46,395  $ 79,153  Proceeds from bank borrowings 4,848  21,682  9,232  40,462  Repayments of principal (3,939) (10,929) (3,939) (23,449) Exchange difference (2,727) (581) (2,542) (1,929) Ending balance $ 49,146  $ 94,237  $ 49,146  $ 94,237  Balance of bank borrowings includes: December 31, 2023 June 30, 2024 Current $ 35,392  $ 60,034  Non-current 43,761  34,203  Total $ 79,153  $ 94,237
Schedule of Banking Facilities and Aggregate Carrying Amount	The aggregate carrying amount of the assets pledged by the Group as of December 31, 2023 and June 30, 2024 are as follows: December 31, 2023 June 30, 2024 Buildings $ 124,565  $ 118,658  Machinery and equipment —  7,499  Land use rights 11,984  11,565  Construction in progress —  595  Total $ 136,549  $ 138,317

v3.24.2.u1

OTHER NON-CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2024
Other Liabilities, Noncurrent [Abstract]
Schedule of Other Non-Current Liabilities	December 31, 2023 June 30, 2024 Product warranty - non-current $ 21,479  $ 20,581  Deferred subsidy income- non-current 3,382  6,097  Total $ 24,861  $ 26,678

v3.24.2.u1

BONDS PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Bonds Payable [Abstract]
Schedule of Bonds Payable	December 31, 2023 June 30, 2024 Long–term bonds payable     Huzhou Saiyuan $ 43,157  $ 43,157  Total $ 43,157  $ 43,157

v3.24.2.u1

WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2024
Warrants [Abstract]
Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option	The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date: June 30, 2024 Market price of public stock $ 0.46  Exercise price $ 11.50  Expected term (years) 2.07 Volatility 82.77  % Risk-free interest rate 4.58  % Dividend rate 0.00  %

v3.24.2.u1

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	As of December 31, 2023 and June 30, 2024, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows: Fair Value Measurement as of December 31, 2023 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 44,541  —  —  $ 44,541  Restricted cash 43,648  —  —  43,648  Total financial asset $ 88,189  —  —  $ 88,189  Warrant liability $ —  —  67  $ 67  Total financial liability $ —  —  67  $ 67  Measured or disclosed at fair value on a recurring basis - continued Fair Value Measurement as of June 30, 2024 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 68,183  —  —  $ 68,183  Restricted cash $ 36,301  —  —  $ 36,301  Total financial asset $ 104,484  —  —  $ 104,484  Warrant liability $ —  —  3  $ 3  Convertible loan with shareholder $ —  —  13,313  $ 13,313  Total financial liability $ —  —  13,316  $ 13,316
Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability	The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the six months ended June 30, 2023 and 2024: Six Months Ended June 30, 2023 2024 Balance at the beginning of the period $ 126  $ 67  Changes in fair value (17) (64) Balance at end of the period $ 109  $ 3  The following is a reconciliation of the beginning and ending balances for Level 3 convertible loan with shareholder during the six months ended June 30, 2024: Six Months Ended June 30, 2024 Balance at the beginning of the period $ —  Issuance of convertible loan with shareholder 11,723  Changes in fair value 1,590  Balance at end of the period $ 13,313

v3.24.2.u1

LEASES (Tables)	6 Months Ended
	Jun. 30, 2024
Leases [Abstract]
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information of the leases were as follows: Six months ended June 30, 2024 Cash payments for operating leases $ 1,688  Right-of-use assets obtained in exchange for new operating lease liabilities $ 2,217
Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis	The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of June 30, 2024: As of June 30, 2024 Six months period ending December 31, 2024 $ 2,301  2025 $ 3,663  2026 $ 2,823  2027 $ 2,384  2028 $ 1,808  2029 $ 1,615  Thereafter $ 9,828  Total future lease payments $ 24,422  Less: Imputed interest $ (4,816) Present value of operating lease liabilities $ 19,606

v3.24.2.u1

SHARE-BASED PAYMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Activity Plan	The modification date fair value of the stock options was determined using the Black Scholes model with the following assumptions: Six months ended June 30, 2024 Exercise price $ 5.69  Expected terms (years) 1.25 Volatility 85.66  % Risk-free interest rate 5.00  % Expected dividend yields 0.00  % Fair value of options granted $ 0.0035
Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM	Stock options activity for the six months ended June 30, 2023 and 2024 was as follows: Stock options life Number of Shares Weighted Average Exercise Price (US$) Weighted Average Grant Date Fair Value (US$) Weighted Average Remaining Contractual Life Outstanding as of December 31, 2022 36,091,071  6.08  4.80  6.8 Grant 240,000  1.25  0.67  Forfeited (347,317) 6.28  4.86  Outstanding as of June 30, 2023 35,983,754  6.04  4.77  6.3 Expected to vest and exercisable as of June 30, 2023 35,983,754  6.04  4.77  6.3 Exercisable as of June 30, 2023 12,563,621  6.14  4.87  6.3 Outstanding as of December 31, 2023 32,876,682  6.01  4.73  5.7 Forfeited (1,243,497) 4.22  2.83  Outstanding as of June 30, 2024 31,633,185  6.08  4.80  5.2 Expected to vest and exercisable as of June 30, 2024 31,633,185  6.08  4.80  5.2 Exercisable as of June 30, 2024 20,922,066  6.15  4.88  5.2
Schedule Non-vested Shares Activity	The non-vested shares activity for the six months ended June 30, 2023 and 2024 was as follows: Number of Non-Vested Shares Weighted Average Grant Date Fair Value Per Share (US$) Outstanding as of December 31, 2022 1,222,837  6.92  Grant 2,900,695  1.86  Vested (310,432) 3.85  Forfeited (51,036) 4.21  Outstanding as of June 30, 2023 3,762,064  3.31  Outstanding as of December 31, 2023 3,598,606  3.07  Grant 79,909  1.40  Vested (503,505) 2.65  Forfeited (749,267) 4.33  Outstanding as of June 30, 2024 2,425,743  2.72
Schedule of Classification of Stock-based Compensation	The following summarizes the classification of share-based compensation: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Cost of revenues $ 1,525  $ 1,481  $ 3,029  $ 2,619  General and administrative expenses 12,419  7,633  24,587  15,800  Research and development expenses 2,693  2,521  5,707  4,298  Selling and marketing expenses 1,213  488  2,456  1,271  Construction in process 149  (17) 289  14  Total $ 17,999  $ 12,106  $ 36,068  $ 24,002

v3.24.2.u1

CONVERTIBLE LOAN WITH SHAREHOLDER (Tables)	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
Fair Value Measurement Inputs and Valuation Techniques	The significant input of the discounted cash flow model for the bond component is the discount rate. Below are the key inputs used in Black-Scholes-Merton model for the conversion option: June 30, 2024 Market price of public stock $ 0.46  Exercise price $ 0.50  Expected term (years) 1.50 Volatility 53.08  % Risk-free interest rate 4.94  % Dividend rate 0.00  %

v3.24.2.u1

NET LOSS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Numerator: Net loss attributable to common stock shareholders $ (26,089) $ (78,441) $ (55,670) $ (103,266) Denominator:     Weighted average common stock used in computing basic and diluted net loss per share 307,742,032  315,509,552  307,728,460  315,438,336  Basic and diluted net loss per share $ (0.08) $ (0.25) $ (0.18) $ (0.33)
Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share	For the three and six months ended June 30, 2023 and 2024, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the periods prescribed. Three Months Ended June 30, Six Months Ended June 30, 2023 2024 2023 2024 Shares issuable upon exercise of stock options 36,123,034  31,762,229  36,088,798  32,006,030  Shares issuable upon vesting of non-vested shares 3,979,361  2,555,946  3,527,440  2,760,854  Shares issuable upon vesting of Capped non-vested shares 13,349,144  6,617,351  13,349,144  6,617,351  Shares issuable upon exercise of warrants 28,437,000  30,431,505  28,437,000  29,434,253  Shares issuable upon vesting of Earn-out shares 19,999,988  19,999,988  19,999,988  19,999,988  Shares issuable that may be subject to cancellation 1,687,500  1,687,500  1,687,500  1,687,500

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Going Concern (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2024	May 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Aug. 08, 2024	May 28, 2024	Dec. 31, 2023	Mar. 31, 2023	Dec. 31, 2022
Significant Accounting Policies [Line Items]
Revenues			$ 83,675	$ 74,953	$ 165,026	$ 121,926
Gross profit			27,195	11,461	44,420	16,319
Net loss			78,441	26,078	103,266	55,649
Working capital			45,500		45,500
Stockholders' equity, including portion attributable to noncontrolling interest			478,103	579,717	478,103	579,717			$ 564,190	$ 605,829	$ 612,977
Accumulated deficit			(1,000,767)		(1,000,767)				(897,501)
Cash and cash equivalents			68,183	142,766	68,183	142,766			44,541
Ending balance			94,237		94,237
Short-term bank borrowings			60,034		60,034				35,392
Other accrued liabilities, current			312,515		312,515
Payables for purchase of property, plant and equipment			96,771		96,771				$ 96,350
Debt instrument, debt default, amount			2,410		2,410
Liens amount			35,986		35,986
Settlement Liabilities, Current			21,338		21,338
Proceeds from bank borrowings			21,682	$ 4,848	40,462	$ 9,232
Subsequent Event
Significant Accounting Policies [Line Items]
Total payable concession							$ 6,573
Amount to be released							$ 10,610
Loan Agreement | Related Party
Significant Accounting Policies [Line Items]
Outstanding balance								$ 25,000
Secured Debt | Loan Agreement | Related Party
Significant Accounting Policies [Line Items]
Outstanding balance			$ 12,000		$ 12,000
Proceeds from bank borrowings		$ 12,000
Delayed Draw Term Loan (DDTL) | Loan Agreement | Related Party | Subsequent Event
Significant Accounting Policies [Line Items]
Proceeds from bank borrowings	$ 13,000
Capital Commitments
Significant Accounting Policies [Line Items]
Commitment and contingencies, capital commitments payable, duration			1 year		1 year
Capital Commitments | Goods, Services And Materials
Significant Accounting Policies [Line Items]
Payables for purchase of property, plant and equipment			$ 65,934		$ 65,934
Capital Commitments
Significant Accounting Policies [Line Items]
Capital commitments			49,965		49,965
Commitment and contingencies, capital commitments payable			48,929		48,929
Inventories
Significant Accounting Policies [Line Items]
Purchase obligation			$ 45,952		$ 45,952

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Labor reduction in the U.S. (Details)	3 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Percentage of workforce reduction	82.00%

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Bank Loans (Details) - 2022 Facility Agreement $ in Thousands, ¥ in Millions	6 Months Ended
	Jun. 30, 2024 CNY (¥)	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Sep. 27, 2022 CNY (¥)	Sep. 27, 2022 USD ($)
Significant Accounting Policies [Line Items]
Line of credit facility, maximum borrowing capacity				¥ 800	$ 111,483
Proceeds from long-term lines of credit	¥ 500	$ 68,802
Long-term line of credit			$ 51,305
Line of credit facility, remaining borrowing capacity	¥ 300		$ 42,681

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Significant Accounting Policies [Line Items]
Revenue	$ 83,675	$ 74,953	$ 165,026	$ 121,926
People’s Republic of China ("PRC")
Significant Accounting Policies [Line Items]
Revenue	33,282	46,122	60,474	78,734
Other Asia & Pacific countries
Significant Accounting Policies [Line Items]
Revenue	2,371	18,520	25,665	21,669
Asia & Pacific
Significant Accounting Policies [Line Items]
Revenue	35,653	64,642	86,139	100,403
Europe
Significant Accounting Policies [Line Items]
Revenue	46,745	9,337	75,666	19,522
U.S.
Significant Accounting Policies [Line Items]
Revenue	$ 1,277	$ 974	$ 3,221	$ 2,001

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Revenue recognized	$ 1,425	$ 1,068	$ 4,206	$ 2,485

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Operating lease right-of-use assets	$ 19,601	$ 19,507
Present value of operating lease liabilities	19,606
Operating lease liabilities, current	$ 3,243	$ 2,413

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Impairment of long-lived assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Impairment loss from long-lived asset	$ 64,912	$ 51	$ 64,912	$ 51

v3.24.2.u1

SIGNIFICANT ACCOUNTING POLICIES - Convertible loan with shareholder (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024
Accounting Policies [Abstract]
Net gain (loss) within net earnings (loss)	$ 1,590	$ 1,590

v3.24.2.u1

ACCOUNTS RECEIVABLE- Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 109,655	$ 143,288
Allowance for credit losses	(4,679)	(4,571)
Accounts receivable, net	$ 104,976	$ 138,717

v3.24.2.u1

ACCOUNTS RECEIVABLE - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of the period	$ 5,065	$ 3,270	$ 4,571	$ 4,407
Charges /(Reversal) of expenses	177	262	755	(832)
Write off	(529)	0	(529)	(66)
Recoveries of credit losses	0	121	0	121
Exchange difference	(34)	(185)	(118)	(162)
Balance at end of the period	$ 4,679	$ 3,468	$ 4,679	$ 3,468

v3.24.2.u1

INVENTORIES, NET - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Work in process	$ 92,254	$ 86,379
Raw materials	41,284	35,867
Finished goods	18,971	27,503
Total	$ 152,509	$ 149,749

v3.24.2.u1

INVENTORIES, NET - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Inventory Disclosure [Abstract]
Provision for obsolete inventories	$ 1,737	$ 928

v3.24.2.u1

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accrued Liabilities and Other Liabilities [Abstract]
Product warranty, current	$ 13,603	$ 13,738
Payables for purchase of property, plant and equipment	96,771	96,350
Other current liabilities	16,490	14,312
Accrued payroll and welfare	4,730	8,089
Accrued expenses	5,926	6,224
Interest payable	898	41
Other tax payable	1,112	7,117
Operating lease liabilities, current	3,243	2,413
Total	$ 142,773	$ 148,284

v3.24.2.u1

PRODUCT WARRANTY - Schedule of Movement of Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of the period	$ 35,448	$ 39,610	$ 35,217	$ 42,060
Provided during the period	3,060	2,920	6,329	5,450
Utilized during the period	(4,098)	(3,338)	(6,546)	(8,510)
Exchange difference	(226)	(2,084)	(816)	(1,892)
Balance at end of the period	$ 34,184	$ 37,108	$ 34,184	$ 37,108

v3.24.2.u1

PRODUCT WARRANTY - Schedule of Warranty Cost (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Product Warranties Disclosures [Abstract]
Product warranty – current	$ 13,603	$ 13,738
Product warranty – non-current	20,581	21,479
Total	$ 34,184	$ 35,217

v3.24.2.u1

BANK BORROWINGS - Narrative (Details) $ in Thousands, ¥ in Millions		3 Months Ended		6 Months Ended
	Sep. 27, 2022 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($)	Jun. 30, 2024 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 CNY (¥)	Dec. 31, 2023 USD ($)	Sep. 27, 2022 CNY (¥)
Debt Instrument [Line Items]
Restricted cash, non-current		$ 1,564		$ 1,564				$ 6,171
Interest costs capitalized		0	$ 504	0		$ 1,028
CHINA
Debt Instrument [Line Items]
Restricted cash, non-current		$ 1,218		$ 1,218				$ 6,171
Maximum
Debt Instrument [Line Items]
Long-term debt, term		12 months		12 months			12 months
Long-term debt, percentage bearing variable interest, percentage rate		4.85%		4.85%			4.85%
Minimum
Debt Instrument [Line Items]
Long-term debt, percentage bearing variable interest, percentage rate		3.30%		3.30%			3.30%
2022 Facility Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 111,483								¥ 800
Line of credit facility, remaining borrowing capacity		$ 42,681		$ 42,681			¥ 300
Proceeds from long-term lines of credit				68,802	¥ 500
Debt instrument, basis spread on variable rate	1.15%
Long-term line of credit		$ 51,305		$ 51,305

v3.24.2.u1

BANK BORROWINGS - Schedule of Bank Borrowings Repayment (Details) - Forecast $ in Thousands, ¥ in Millions	Dec. 10, 2026 USD ($)	Dec. 10, 2026 CNY (¥)	Jun. 10, 2026 USD ($)	Jun. 10, 2026 CNY (¥)	Dec. 10, 2025 USD ($)	Dec. 10, 2025 CNY (¥)	Jun. 10, 2025 USD ($)	Jun. 10, 2025 CNY (¥)	Dec. 10, 2024 USD ($)	Dec. 10, 2024 CNY (¥)
December 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)									$ 8,551	¥ 62.1
June 10, 2025
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)							$ 8,551	¥ 62.1
December 10, 2025
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)					$ 8,551	¥ 62.1
June 10, 2026
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)			$ 12,826	¥ 93.2
December 10, 2026
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)	$ 12,826	¥ 93.2

v3.24.2.u1

BANK BORROWINGS - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Bank Borrowing [Roll Forward]
Beginning balance	$ 84,065	$ 50,964	$ 79,153	$ 46,395
Proceeds from bank borrowings	21,682	4,848	40,462	9,232
Repayments of principal	(10,929)	(3,939)	(23,449)	(3,939)
Exchange difference	(581)	(2,727)	(1,929)	(2,542)
Ending balance	94,237	49,146	94,237	49,146
Short-term bank borrowings	60,034		60,034		$ 35,392
Non-current	34,203		34,203		43,761
Total	$ 94,237	$ 49,146	$ 94,237	$ 49,146	$ 79,153

v3.24.2.u1

BANK BORROWINGS - Schedule of Banking Facilities and Aggregate Carrying Amount (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Bank Borrowings [Abstract]
Buildings	$ 118,658	$ 124,565
Machinery and equipment	7,499	0
Land use rights	11,565	11,984
Construction in progress	595	0
Total	$ 138,317	$ 136,549

v3.24.2.u1

OTHER NON-CURRENT LIABILITIES - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Other Liabilities, Noncurrent [Abstract]
Product warranty - non-current	$ 20,581	$ 21,479
Deferred subsidy income- non-current	6,097	3,382
Total	$ 26,678	$ 24,861

v3.24.2.u1

BONDS PAYABLE - Schedule of Bonds Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,157	$ 43,157
Huzhou Saiyuan
Schedule of Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,157	$ 43,157

v3.24.2.u1

BONDS PAYABLE - Narrative (Details) $ in Thousands, ¥ in Millions							6 Months Ended	25 Months Ended
	Jan. 31, 2027 USD ($)	Jan. 31, 2027 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Nov. 10, 2022 USD ($)	Nov. 10, 2022 CNY (¥)	Jun. 30, 2024 USD ($)	Sep. 30, 2022 agreement	Jun. 30, 2024 CNY (¥)	Dec. 29, 2018 USD ($)	Dec. 29, 2018 CNY (¥)
Schedule of Bonds Payable [Line Items]
Bond loan										$ 87,776	¥ 600
Equity holding pledged percentage										12.39%	12.39%
Debt instrument, convertible amount, subsidiary value threshold | $							$ 950,000
Supplement agreements entered into | agreement								2
Repayments of convertible debt (in dollars and yuan renminbi)			$ 14,630	¥ 100	$ 14,629	¥ 100
Debt instrument, interest rate, stated percentage							12.00%		12.00%
Subscribed amount (in dollars and yuan renminbi)							$ 43,157		¥ 295
Forecast
Schedule of Bonds Payable [Line Items]
Repayments of convertible debt (in dollars and yuan renminbi)	$ 43,888	¥ 300

v3.24.2.u1

WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	6 Months Ended
	Jul. 23, 2021	Jun. 30, 2024	Jun. 30, 2024	May 28, 2024
Warrants (Details) [Line Items]
Shares issued (in shares)	27,600,000
Class of warrant or right, exercisable period	30 days
Warrant term	5 years
Public Warrants
Warrants (Details) [Line Items]
Warrant redemption price (in dollars per share)	$ 0.01
Class of warrant or right, notice of redemption, minimum period	30 days
Stock price minimum to redeem warrants (in dollars per share)	$ 18.00
Warrant redemption, consecutive trading days	20 days
Warrant redemption, trading days	30 days
Initial Lender Warrants | Loan Agreement | Related Party
Warrants (Details) [Line Items]
Initial exercise price				$ 2.00
Tuscan Holdings Corp and EarlyBirdCapital, Inc.
Warrants (Details) [Line Items]
Shares issued (in shares)	837,000
Warrants
Warrants (Details) [Line Items]
Warrant issued (in shares)	150,000
Class of warrant or right, number of securities called by each warrant or right (in shares)	1
Exercise price (in dollars per share)	$ 11.50
Warrant term	5 years
Changes in fair value of warrant and convertible loan		$ 22	$ 64
Common Stock | Initial Lender Warrants | Loan Agreement | Related Party
Warrants (Details) [Line Items]
Number of securities called by warrants (in shares)				5,500,000

v3.24.2.u1

WARRANTS - Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option (Details) - Warrants	Jun. 30, 2024 $ / shares
Warrants [Line Items]
Market price of public stock (in dollars per share)	$ 0.46
Exercise price (in dollars per share)	$ 11.50
Expected term (years)	2 years 25 days
Volatility	82.77%
Risk-free interest rate	4.58%
Dividend rate	0.00%

v3.24.2.u1

FAIR VALUE MEASUREMENT - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	$ 68,183	$ 44,541
Restricted cash	36,301	43,648
Total financial asset	104,484	88,189
Warrant liability	3	67
Convertible loan with shareholder	13,313
Total financial liability	13,316	67
Quoted Prices in Active Market for Identical Assets (Level 1)
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	68,183	44,541
Restricted cash	36,301	43,648
Total financial asset	104,484	88,189
Warrant liability	0	0
Convertible loan with shareholder	0
Total financial liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Total financial asset	0	0
Warrant liability	0	0
Convertible loan with shareholder	0
Total financial liability	0	0
Significant Unobservable Inputs (Level 3)
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Total financial asset	0	0
Warrant liability	3	67
Convertible loan with shareholder	13,313
Total financial liability	$ 13,316	$ 67

v3.24.2.u1

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Warrant Liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at the beginning of the period	$ 67	$ 126
Changes in fair value	(64)	(17)
Balance at end of the period	3	$ 109
Convertible Debt
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at the beginning of the period	0
Issuance of convertible loan with shareholder	11,723
Changes in fair value	1,590
Balance at end of the period	$ 13,313

v3.24.2.u1

LEASES - Narrative (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)
Leases [Abstract]
Operating lease, cost	$ 859	$ 1,719
Short-term lease, cost	$ 145	$ 304
Operating lease, weighted average remaining lease term	9 years 3 months 18 days	9 years 3 months 18 days
Operating lease, weighted average discount rate, percent	5.20%	5.20%

v3.24.2.u1

LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Leases [Abstract]
Cash payments for operating leases	$ 1,688
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,217

v3.24.2.u1

LEASES - Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Leases [Abstract]
Six months period ending December 31, 2024	$ 2,301
2025	3,663
2026	2,823
2027	2,384
2028	1,808
2029	1,615
Thereafter	9,828
Total future lease payments	24,422
Less: Imputed interest	(4,816)
Present value of operating lease liabilities	$ 19,606

v3.24.2.u1

SHARE-BASED PAYMENT - Narrative (Details) $ in Thousands		3 Months Ended		6 Months Ended		35 Months Ended
	Jul. 21, 2021	Jun. 30, 2024 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) shares	Jun. 30, 2023 USD ($) shares	Jun. 30, 2024 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expire date	10 years
Exchange ratio	160.3
Reserves percentage	5.00%
Stock option				$ 4,031
Weighted-average period				1 month 6 days
Aggregate intrinsic value		$ 0		$ 0		$ 0
Equity-based compensation costs				313
Compensation cost				2,880
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		10,285	$ 13,396	22,313	$ 27,055
Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		1,226	3,302	2,481	6,546
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		271	512	$ 700	$ 959
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period (in shares) | shares				503,505	310,432
Granted (in shares) | shares						2,721,624
Performance Based Restricted Stock Unit (PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		$ 324	$ 789	$ (1,492)	$ 1,508
Granted (in shares) | shares						2,680,372

v3.24.2.u1

SHARE-BASED PAYMENT - Schedule of Fair Value Assumptions (Details) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value, granted (in dollars per share)		$ 0.67
Stock option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)	$ 5.69
Expected term (years)	1 year 3 months
Volatility	85.66%
Risk-free interest rate	5.00%
Expected dividend yields	0.00%
Weighted average grant date fair value, granted (in dollars per share)	$ 0.0035

v3.24.2.u1

SHARE-BASED PAYMENT - Schedule of Stock Options (Details) - $ / shares	6 Months Ended		12 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Number of Shares
Number of shares, outstanding at beginning (in shares)	32,876,682	36,091,071	36,091,071
Number of shares, grant (in shares)		240,000
Number of shares, forfeited (in shares)	(1,243,497)	(347,317)
Number of shares, outstanding at ending (in shares)	31,633,185	35,983,754	32,876,682	36,091,071
Number of shares, expected to vest and exercisable (in shares)	31,633,185	35,983,754
Number of shares, exercisable (in shares)	20,922,066	12,563,621
Weighted Average Exercise Price (US$)
Weighted average exercise price, outstanding at beginning (in dollars per share)	$ 6.01	$ 6.08	$ 6.08
Weighted average exercise price, granted (in dollars per share)		1.25
Weighted average exercise price, forfeited (in dollars per share)	4.22	6.28
Weighted average exercise price, outstanding at ending (in dollars per share)	6.08	6.04	6.01	$ 6.08
Weighted average exercise price, expected to vest and exercisable (in dollars per share)	6.08	6.04
Weighted average exercise price, exercisable (in dollars per share)	6.15	6.14
Weighted Average Grant Date Fair Value (US$)
Weighted average grant date fair value, outstanding at beginning (in dollars per share)	4.73	4.80	4.80
Weighted average grant date fair value, granted (in dollars per share)		0.67
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	2.83	4.86
Weighted average grant date fair value, outstanding at ending (in dollars per share)	4.80	4.77	$ 4.73	$ 4.80
Weighted average grant date fair value, expected to vest and exercisable (in dollars per share)	4.80	4.77
Weighted average grant date fair value, exercisable (in dollars per share)	$ 4.88	$ 4.87
Weighted Average Remaining Contractual Life
Weighted average remaining contractual, outstanding	5 years 2 months 12 days	6 years 3 months 18 days	5 years 8 months 12 days	6 years 9 months 18 days
Weighted average remaining contractual life, expected to vest and exercisable	5 years 2 months 12 days	6 years 3 months 18 days
Weighted average remaining contractual life, exercisable	5 years 2 months 12 days	6 years 3 months 18 days

v3.24.2.u1

SHARE-BASED PAYMENT - Schedule Non-vested Shares Activity (Details) - Restricted Stock Units (RSUs) - $ / shares	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Number of Non-Vested Shares
Number of non-vested shares, outstanding (in shares)	3,598,606	1,222,837
Number of non-vested shares, grant (in shares)	79,909	2,900,695
Number of non-vested shares, vested (in shares)	(503,505)	(310,432)
Number of non-vested shares, forfeited (in shares)	(749,267)	(51,036)
Number of non-vested shares, outstanding at ending balance (in shares)	2,425,743	3,762,064
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, outstanding at beginning (in dollars per share)	$ 3.07	$ 6.92
Weighted average grant date fair value per share, non-vested shares, grant (in dollars per share)	1.40	1.86
Weighted average grant date fair value per share, non-vested shares, vested (in dollars per share)	2.65	3.85
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	4.33	4.21
Weighted average grant date fair value per share, non-vested shares, outstanding at ending (in dollars per share)	$ 2.72	$ 3.31

v3.24.2.u1

SHARE-BASED PAYMENT - Schedule of Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-Based Payment Arrangement [Abstract]
Cost of revenues	$ 1,481	$ 1,525	$ 2,619	$ 3,029
General and administrative expenses	7,633	12,419	15,800	24,587
Research and development expenses	2,521	2,693	4,298	5,707
Selling and marketing expenses	488	1,213	1,271	2,456
Construction in process	(17)	149	14	289
Total	$ 12,106	$ 17,999	$ 24,002	$ 36,068

v3.24.2.u1

CONVERTIBLE LOAN WITH SHAREHOLDER - Narrative (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Jul. 31, 2024	May 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	May 28, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Proceeds from bank borrowings			$ 21,682,000	$ 4,848,000	$ 40,462,000	$ 9,232,000
Debt instrument, interest rate, stated percentage			12.00%		12.00%
Net gain (loss) within net earnings (loss)			$ 1,590,000		$ 1,590,000
Convertible loan with shareholder			13,313,000		13,313,000			$ 0
Issuance of warrants			779,000		779,000
Related Party
Related Party Transaction [Line Items]
Convertible loan with shareholder			13,313,000		$ 13,313,000
Loan Agreement | Related Party
Related Party Transaction [Line Items]
Loan amount							$ 25,000,000
Initial conversion rate					2
Loan Agreement | Related Party | Initial Lender Warrants
Related Party Transaction [Line Items]
Initial exercise price							$ 2.00
Warrants outstanding			$ 5,500,000		$ 5,500,000
Issuance of warrants					$ 779,000
Loan Agreement | Related Party | Initial Lender Warrants | Common Stock
Related Party Transaction [Line Items]
Number of securities called by warrants (in shares)							5,500,000
Loan Agreement | Related Party | Delayed Draw Term Loan (DDTL)
Related Party Transaction [Line Items]
Debt instrument, interest rate, stated percentage			9.75%		9.75%
Paid in kind, interest rate			3.75%		3.75%
Loan Agreement | Related Party | Delayed Draw Term Loan (DDTL) | Subsequent Event
Related Party Transaction [Line Items]
Proceeds from bank borrowings	$ 13,000,000
Loan Agreement | Related Party | Secured Debt
Related Party Transaction [Line Items]
Loan amount			$ 12,000,000		$ 12,000,000
Proceeds from bank borrowings		$ 12,000,000

v3.24.2.u1

CONVERTIBLE LOAN WITH SHAREHOLDER - Fair Value Measurement Inputs and Valuation Techniques (Details) - Related Party	May 28, 2024 $ / shares yr
Market price of public stock
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.46
Exercise price
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.50
Expected term (years)
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value | yr	1.50
Volatility
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.5308
Risk-free interest rate
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.0494
Dividend rate
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.0000

v3.24.2.u1

NET LOSS PER SHARE - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator:
Net loss attributable to common stock shareholders	$ (78,441)	$ (26,089)	$ (103,266)	$ (55,670)
Denominator:
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	315,509,552	307,742,032	315,438,336	307,728,460
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	315,509,552	307,742,032	315,438,336	307,728,460
Basic net loss per share (in dollars per share)	$ (0.25)	$ (0.08)	$ (0.33)	$ (0.18)
Diluted net loss per share (in dollars per share)	$ (0.25)	$ (0.08)	$ (0.33)	$ (0.18)

v3.24.2.u1

NET LOSS PER SHARE- Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Shares issuable upon exercise of stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	31,762,229	36,123,034	32,006,030	36,088,798
Shares issuable upon vesting of non-vested shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	2,555,946	3,979,361	2,760,854	3,527,440
Shares issuable upon vesting of Capped non-vested shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	6,617,351	13,349,144	6,617,351	13,349,144
Shares issuable upon exercise of warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	30,431,505	28,437,000	29,434,253	28,437,000
Shares issuable upon vesting of Earn-out shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	19,999,988	19,999,988	19,999,988	19,999,988
Shares issuable that may be subject to cancellation
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	1,687,500	1,687,500	1,687,500	1,687,500

v3.24.2.u1

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands				6 Months Ended
	Jul. 15, 2024 USD ($)	Jun. 20, 2024 USD ($)	Mar. 18, 2024 USD ($)	Jun. 30, 2024 USD ($) action	Jul. 01, 2024 USD ($)	May 28, 2024 USD ($)	Dec. 31, 2023 USD ($)
Commitments and Contingencies (Details) [Line Items]
Loss contingency, new claims filed | action				3
Liens amount				$ 35,986
Property, plant and equipment, net				519,432			$ 620,667
Debt instrument, debt default, amount				2,410
Bank Acceptance Note
Commitments and Contingencies (Details) [Line Items]
Receivables from customers				1,489
Property, plant and equipment, net				25,772
Inventories
Commitments and Contingencies (Details) [Line Items]
Purchase obligation				45,952
Capital Commitments
Commitments and Contingencies (Details) [Line Items]
Capital commitments				$ 49,965
Stoncor Group, Inc.
Commitments and Contingencies (Details) [Line Items]
Loss contingency, damages sought, value			$ 1,251
DPR Construction GP
Commitments and Contingencies (Details) [Line Items]
Loss contingency, damages sought, value		$ 19,950
Loss contingency, damages sought, retainage		$ 1,566
Faith Technologies, Inc. | Subsequent Event
Commitments and Contingencies (Details) [Line Items]
Loss contingency, damages sought, value	$ 1,699
Bernhard MCC v. Hodess Cleanroom Construction, LLC,
Commitments and Contingencies (Details) [Line Items]
Liens amount						$ 2,173
Bernhard MCC, LLC. vs. U.S. Engineering Innovations, LLC, DPR Construction, Microvast, Inc. and the Industrial Development Board of the County of Montgomery
Commitments and Contingencies (Details) [Line Items]
Liens amount						$ 5,681
Virginia Transformer Corp. v. Microvast, Inc.and the Industrial Development Board of the County of Montgomery, Tennessee | Subsequent Event
Commitments and Contingencies (Details) [Line Items]
Liens amount					$ 1,769

v3.24.2.u1

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jul. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Aug. 08, 2024
Subsequent Event [Line Items]
Proceeds from bank borrowings		$ 21,682	$ 4,848	$ 40,462	$ 9,232
Settlement Liabilities, Current		$ 21,338		$ 21,338
Subsequent Event
Subsequent Event [Line Items]
Total payable concession						$ 6,573
Amount to be released						$ 10,610
Subsequent Event | Delayed Draw Term Loan (DDTL) | Loan Agreement | Related Party
Subsequent Event [Line Items]
Proceeds from bank borrowings	$ 13,000

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