0001760689-24-000046 | 10-Q | XBRL Viewer

OTHER NON-CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2024

Other Liabilities, Noncurrent [Abstract]


	September 30, 2024		December 31, 2023
Product warranty - non-current	$	27,303	$	21,479
Deferred subsidy income- non-current	6,093		3,382
Other non-current payable	5,090		—
Total	$	38,486	$	24,861

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Subsequent funding activities From third quarter end to the date of issuance of the financial statements in this Report, the Company received $3,297 of short-term bank borrowings and $6,665 of long-term bank borrowings. Subsequent settlement agreements with creditors Subsequent to September 30, 2024, and up to the issuance date of these financial statements, the Group has entered into several settlement agreements with certain suppliers with payables totaling approximately $4,346 as of September 30, 2024. Under these agreements, the group has received concessions that forgive certain contractually owed amounts and allow for deferred payment schedules. Through these settlements, a total payable concession of approximately $1,036 was achieved, resulting in a net settlement of $3,310. The remaining balances will generally be paid in monthly installments over the next twelve months. The Group is currently assessing the accounting impact of these settlements.

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)									$ 10,859	¥ 76.2
June 10, 2025
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)							$ 10,859	¥ 76.2
December 10, 2025
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)					$ 10,859	¥ 76.2
June 10, 2026
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)			$ 16,288	¥ 114.3
December 10, 2026
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)	$ 26,250	¥ 184.2

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

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+ Details

WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended	9 Months Ended
	Jul. 23, 2021	Sep. 30, 2024	Sep. 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 (in dollars per share)				$ 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		$ 2	$ 66
Common Stock \| Initial Lender Warrants \| Loan Agreement \| Related Party
Warrants (Details) [Line Items]
Number of securities called by warrants (in shares)				5,500,000

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 profit/(loss)	(81,821)	(81,800)			(81,800)			(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		$ 1	(1)
Issuance of common stock in connection with vesting of share-based awards (in shares)			7,218,814
Share-based compensation	52,014	52,014		52,014
Foreign currency translation adjustments	(18,006)	(17,844)				(17,844)		(162)
Ending balance (in shares) at Sep. 30, 2023			314,847,325
Ending balance at Sep. 30, 2023	567,338	565,347	$ 32	1,468,173	(872,965)	(35,925)	6,032	1,991
Beginning balance (in shares) at Jun. 30, 2023			307,938,943
Beginning balance at Jun. 30, 2023	579,717	577,672	$ 31	1,452,189	(846,835)	(33,745)	6,032	2,045
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net profit/(loss)	(26,172)	(26,130)			(26,130)			(42)
Issuance of common stock in connection with vesting of share-based awards	0		$ 1	(1)
Issuance of common stock in connection with vesting of share-based awards (in shares)			6,908,382
Share-based compensation	15,985	15,985		15,985
Foreign currency translation adjustments	(2,192)	(2,180)				(2,180)		(12)
Ending balance (in shares) at Sep. 30, 2023			314,847,325
Ending balance at Sep. 30, 2023	$ 567,338	565,347	$ 32	1,468,173	(872,965)	(35,925)	6,032	$ 1,991
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 profit/(loss)	$ (90,019)	(90,019)			(90,019)
Issuance of common stock in connection with vesting of share-based awards		0	$ 1	(1)
Issuance of common stock in connection with vesting of share-based awards (in shares)			7,120,856
Share-based compensation		30,391		30,391
Issuance of warrants(Note 14)		779		779
Foreign currency translation adjustments		3,862				3,862
Ending balance (in shares) at Sep. 30, 2024	322,127,798		322,127,798
Ending balance at Sep. 30, 2024	$ 509,203	509,203	$ 33	1,512,410	(987,520)	(21,752)	6,032
Beginning balance (in shares) at Jun. 30, 2024			315,510,447
Beginning balance at Jun. 30, 2024		478,103	$ 32	1,506,031	(1,000,767)	(33,225)	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net profit/(loss)	$ 13,247	13,247			13,247
Issuance of common stock in connection with vesting of share-based awards		0	$ 1	(1)
Issuance of common stock in connection with vesting of share-based awards (in shares)			6,617,351
Share-based compensation		6,380		6,380
Foreign currency translation adjustments		11,473				11,473
Ending balance (in shares) at Sep. 30, 2024	322,127,798		322,127,798
Ending balance at Sep. 30, 2024	$ 509,203	$ 509,203	$ 33	$ 1,512,410	$ (987,520)	$ (21,752)	$ 6,032

CONVERTIBLE LOAN WITH SHAREHOLDER MEASURED AT FAIR VALUE

9 Months Ended

Sep. 30, 2024

CONVERTIBLE LOAN WITH SHAREHOLDER MEASURED AT FAIR VALUE

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 of $13,000 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 and nine months ended September 30, 2024, a gain of $2,764 and $1,174 on fair value change of convertible loan with shareholder was recorded, respectively. The outstanding balance for the Convertible loan with shareholder was $24,423 as of September 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 September 30, 2024. As of September 30, 2024, 5,500,000 warrants were outstanding and the Group recorded the warrant value of $779 in additional paid in capital. Equity classified warrants were recorded at fair value at issuance with no changes recognized subsequent to the issuance date.

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:


	September 30, 2024
Market price of public stock	$	0.25
Exercise price	$	0.50
Expected term (years)	1.16
Volatility	55.50		%
Risk-free interest rate	3.85		%
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 U.S. 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.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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+ Details

BANK BORROWINGS - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Bank Borrowing [Roll Forward]
Beginning balance	$ 94,237	$ 49,146	$ 79,153	$ 46,395
Proceeds from bank borrowings	29,911	9,207	70,373	18,439
Repayments of principal	(8,375)	(2,347)	(31,824)	(6,286)
Exchange difference	3,801	(349)	1,872	(2,891)
Ending balance	119,574	55,657	119,574	55,657
Short-term bank borrowings	66,177		66,177		$ 35,392
Non-current	53,397		53,397		43,761
Total	$ 119,574	$ 55,657	$ 119,574	$ 55,657	$ 79,153

- Definition

Amount, after deduction of unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

WARRANTS (Tables)

9 Months Ended

Sep. 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:


	September 30, 2024
Market price of public stock	$	0.25
Exercise price	$	11.50
Expected term (years)	1.82
Volatility	96.27		%
Risk-free interest rate	3.64		%
Dividend rate	0.00		%

SHARE-BASED PAYMENT - Schedule of Fair Value Assumptions (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value, grant (in dollars per share)		$ 1.18
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, grant (in dollars per share)	$ 0.0035

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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-Topic 718
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+ Details

LEASES - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
LEASES - Narrative (Details) $ in Thousands	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Leases [Abstract]
Operating lease, cost	$ 883	$ 2,602
Short-term lease, cost	$ 79	$ 383
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%

FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

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 September 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 measured at fair value.

As of September 30, 2024 and December 31, 2023, 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 September 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	$	63,585	—	—		$	63,585
Restricted cash	51,382		—	—		51,382
Total financial asset	$	114,967	—	—		$	114,967
Warrant liability	$	—	—	$	1	$	1
Convertible loan with shareholder measured at fair value	—		—	24,423		24,423
Total financial liability	$	—	—	$	24,424	$	24,424


	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

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


	Nine Months Ended September 30,
	2024		2023
Balance at the beginning of the period	$	67	$	126
Changes in fair value	(66)		25
Balance at end of the period	$	1	$	151

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


	Nine Months Ended September 30, 2024
Balance at the beginning of the period	$	—
Issuance of convertible loan with shareholder	25,944
Interest paid during the period	(347)
Changes in fair value	(1,174)
Balance at end of the period	$	24,423

Measured or disclosed at fair value on a nonrecurring basis

The Company’s assets measured at fair value on a nonrecurring basis include long-lived assets. The Company reviews the carrying amounts of such assets when events indicate that their carrying amounts may not be recoverable. Any resulting asset impairment would require that the asset be recorded at its fair value. The fair value of the asset or asset group is determined using cost approach, sales comparison approach and income capitalization approach with unobservable inputs (Level 3), depending on the underlying nature of the asset or the asset group.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Significant Accounting Policies [Line Items]
Revenue	$ 101,388	$ 80,116	$ 266,414	$ 202,042
People’s Republic of China ("PRC")
Significant Accounting Policies [Line Items]
Revenue	28,716	36,289	89,190	115,023
Other Asia & Pacific countries
Significant Accounting Policies [Line Items]
Revenue	10,550	24,611	36,215	46,280
Asia & Pacific
Significant Accounting Policies [Line Items]
Revenue	39,266	60,900	125,405	161,303
Europe
Significant Accounting Policies [Line Items]
Revenue	59,479	19,034	135,145	38,556
U.S.
Significant Accounting Policies [Line Items]
Revenue	$ 2,643	$ 182	$ 5,864	$ 2,183

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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+ Details

LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Leases [Abstract]
Cash payments for operating leases	$ 2,518
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,258

BANK BORROWINGS

9 Months Ended

Sep. 30, 2024

Bank Borrowings [Abstract]

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 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. The Group had a balance of restricted cash of $10,663 and $6,171 as of September 30, 2024 and December 31, 2023, 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 September 30, 2024, the Group had outstanding borrowings of $75,115 under the 2022 Facility Agreement.


Repayment Date						Repayment Amount
December 10, 2024						$10,859 (RMB76.2 million)
June 10, 2025						$10,859 (RMB76.2 million)
December 10, 2025						$10,859 (RMB76.2 million)
June 10, 2026						$16,288 (RMB114.3 million)
December 10, 2026						$26,250 (RMB184.2 million)

The amount of capitalized interest expenses, which was recorded in construction in progress and property, plant and equipment, was $65 and $475 for the three months ended September 30, 2024 and 2023, respectively, and $65 and $1,503 for the nine months ended September 30, 2024 and 2023, 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	94,237	$	49,146	$	79,153	$	46,395
Proceeds from bank borrowings	29,911		9,207		70,373		18,439
Repayments of principal	(8,375)		(2,347)		(31,824)		(6,286)
Exchange difference	3,801		(349)		1,872		(2,891)
Ending balance	$	119,574	$	55,657	$	119,574	$	55,657


Balance of bank borrowings includes:	September 30, 2024		December 31, 2023
Current	$	66,177	$	35,392
Non-current	53,397		43,761
Total	$	119,574	$	79,153

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 September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024		December 31, 2023
Buildings	$	121,302	$	124,565
Machinery and equipment	65,091		—
Land use rights	11,902		11,984
Construction in progress	348		—
Total	$	198,643	$	136,549

BANK BORROWINGS - Narrative (Details) $ in Thousands, ¥ in Millions		3 Months Ended		9 Months Ended
	Sep. 27, 2022 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Sep. 27, 2022 CNY (¥)
Debt Instrument [Line Items]
Restricted cash, non-current		$ 11,021		$ 11,021		$ 6,171
Interest costs capitalized		65	$ 475	65	$ 1,503
CHINA
Debt Instrument [Line Items]
Restricted cash, non-current		$ 10,663		$ 10,663		$ 6,171
Maximum
Debt Instrument [Line Items]
Long-term debt, term		12 months		12 months
Long-term debt, percentage bearing variable interest, percentage rate		4.85%		4.85%
Minimum
Debt Instrument [Line Items]
Long-term debt, percentage bearing variable interest, percentage rate		3.30%		3.30%
2022 Facility Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 111,483						¥ 800
Debt instrument, basis spread on variable rate	1.15%
Long-term line of credit		$ 75,115		$ 75,115

PRODUCT WARRANTY (Tables)

9 Months Ended

Sep. 30, 2024

Product Warranties Disclosures [Abstract]

Schedule of Movement of Product Warranty

Movement of product warranty was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Balance at beginning of the period	$	34,184	$	37,108	$	35,217	$	42,060
Provided during the period	4,024		3,567		10,353		9,017
Utilized during the period	(3,970)		(7,125)		(10,516)		(15,635)
Exchange difference	1,216		(202)		400		(2,094)
Balance at end of the period	$	35,454	$	33,348	$	35,454	$	33,348

Schedule of Warranty Cost


	September 30, 2024		December 31, 2023
Product warranty – current	$	8,151	$	13,738
Product warranty – non-current	27,303		21,479
Total	$	35,454	$	35,217

ACCOUNTS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consisted of the following:


	September 30, 2024		December 31, 2023
Accounts receivable	$	125,371	$	143,288
Allowance for credit losses	(3,832)		(4,571)
Accounts receivable, net	$	121,539	$	138,717

Schedule of Allowance for Credit Losses

Movement of allowance for credit losses was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Balance at beginning of the period	$	4,679	$	3,468	$	4,571	$	4,407
Reversal of expenses	(992)		(206)		(237)		(1,038)
Write off	(2)		—		(531)		(66)
Recoveries of credit losses	—		—		—		121
Exchange difference	147		(20)		29		(182)
Balance at end of the period	$	3,832	$	3,242	$	3,832	$	3,242

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

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 nine months ended September 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, write-down of 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 a going concern basis, which assumes that the Group will continue to realize its assets and settle its liabilities in the ordinary course of business.

For the three months ended September 30, 2024 and 2023, the Group generated revenues of $101,388 and $80,116, gross profit of $33,612 and $17,884, net profit of $13,247 and net loss of $26,172, and operating cash outflow of $5,429 and $29,342, respectively. For the nine months ended September 30, 2024 and 2023, the Group reported revenues of $266,414 and $202,042, gross profit of $78,032 and $34,203, net loss of $90,019 (including a $64,924 impairment loss from long-lived assets) and $81,821, and operating cash outflow of $3,287 and $70,350, respectively. As of September 30, 2024, the Group had working capital of $101,683, shareholders' equity of $509,203 (including an accumulated deficit of $987,520), and cash and cash equivalents of $63,585. The Group also held outstanding borrowings of $119,574, with $66,177 due within the next 12 months, and other current liabilities of $269,711, which include accounts payable, notes payable, and accrued expenses. Additionally, the Group had $52,262 in purchase commitments primarily related to inventory as of September 30, 2024.

The Group has made significant investments to expand its capacity, particularly in its Huzhou, China, and Clarksville, Tennessee facilities. The Huzhou Phase 3.1 expansion is now contributing revenue following its completion in the third quarter of 2023 and the Huzhou Phase 3.2 expansion is in process which requires additional capital expenditure. The Tennessee expansion has been paused. Initially intended to produce 53.5Ah cells for the Group's ESS solutions, the Tennessee facility is now being evaluated for a potential shift to lithium iron phosphate (LFP) cell production, which better aligns with the Group’s evolving ESS strategy. The Tennessee facility will require additional financing, and the timing for resuming the project is currently under review.

As of September 30, 2024, the Group had outstanding payables of $31,653 related to the Tennessee facility. The Group is actively working with suppliers. Some of those suppliers have filed liens while others have entered settlement agreements that include payment adjustments and lien releases.

The above factors raise substantial doubt about the Group’s ability to continue as a going concern within the next twelve months from the date of issuance of its unaudited condensed consolidated financial statements.

Management has secured a $29,911 bank loan in the third quarter of 2024, with an additional $9,962 received in October 2024. Further details can be found in Note 7 – Bank Borrowings.Workforce reductions were made in the U.S. during the second and third quarters of 2024, delivering cost savings and enhanced cash flow. Further plans to alleviate the conditions that raise substantial doubt include:

•Operational Improvements: With profitability achieved in the third quarter of 2024, management expects that continued execution of its strategies will generate positive cash flow from operations over the next twelve months.

•Asset Sales: The Group is actively pursuing the sale of non-core U.S. real estate assets, with an expectation of increasing liquidity without affecting core operations.

•Additional Funding Options: Although no additional binding financing agreement has been entered into besides those disclosed in the unaudited condensed consolidated financial statements, the Group is actively engaged in discussions with third parties to explore further funding options.

Going concern-continued

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.

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, there is a substantial 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.

Revenue recognition-continued

Disaggregation of revenue

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
People’s Republic of China ("PRC")	$	28,716	$	36,289	$	89,190	$	115,023
Other Asia & Pacific countries	10,550		24,611		36,215		46,280
Asia & Pacific	39,266		60,900		125,405		161,303
Europe	59,479		19,034		135,145		38,556
U.S.	2,643		182		5,864		2,183
Total	$	101,388	$	80,116	$	266,414	$	202,042

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 September 30, 2024 and 2023, the Group recognized $883 and $1,191 of revenue previously included in advance from customers as of July 1, 2024 and July 1, 2023, respectively. During the nine months ended September 30, 2024 and 2023, the Group recognized $4,208 and $2,485 of revenue previously included in advance from customers as of January 1, 2024 and January 1, 2023, respectively.

Operating leases

As of September 30, 2024, the Company recorded operating lease right-of-use (ROU) assets of $19,468 and operating lease liabilities of $19,540, including current portion in the amount of $3,214, 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 first half year of 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 $12 and $422 for the three months ended September 30, 2024 and 2023, respectively, in operating expenses. The Company recorded impairment loss of long-lived assets of $64,924 and $473 for the nine months ended September 30, 2024 and 2023, 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.

Debt Restructuring

A debt restructuring is the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of an extension of the maturity date, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest. During the three months ended September 30, 2024, the company recorded a gain of $7,709 on the payable concession in the unaudited condensed consolidated statements of operations.

Convertible loan with shareholder measured at fair value

The Company has elected the fair value option to account for the convertible loan with shareholder described in Note 14 – Convertible loan with shareholder measured at fair value herein, 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. Gains of $2,764 and $1,174 were recognized for the three and nine months ended September 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 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.

SIGNIFICANT ACCOUNTING POLICIES - Impairment of long-lived assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Impairment loss from long-lived asset	$ 12	$ 422	$ 64,924	$ 473
Gains on restructuring of debt	$ 7,709

WARRANTS - Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option (Details) - Warrants	Sep. 30, 2024 $ / shares
Warrants [Line Items]
Market price of public stock (in dollars per share)	$ 0.25
Exercise price (in dollars per share)	$ 11.50
Expected term (years)	1 year 9 months 25 days
Volatility	96.27%
Risk-free interest rate	3.64%
Dividend rate	0.00%

FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


	Fair Value Measurement as of September 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	$	63,585	—	—		$	63,585
Restricted cash	51,382		—	—		51,382
Total financial asset	$	114,967	—	—		$	114,967
Warrant liability	$	—	—	$	1	$	1
Convertible loan with shareholder measured at fair value	—		—	24,423		24,423
Total financial liability	$	—	—	$	24,424	$	24,424


	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

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 nine months ended September 30, 2024 and 2023:


	Nine Months Ended September 30,
	2024		2023
Balance at the beginning of the period	$	67	$	126
Changes in fair value	(66)		25
Balance at end of the period	$	1	$	151

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


	Nine Months Ended September 30, 2024
Balance at the beginning of the period	$	—
Issuance of convertible loan with shareholder	25,944
Interest paid during the period	(347)
Changes in fair value	(1,174)
Balance at end of the period	$	24,423

SIGNIFICANT ACCOUNTING POLICIES - Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Revenue recognized	$ 883	$ 1,191	$ 4,208	$ 2,485

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following:


	September 30, 2024		December 31, 2023
Work in process	$	102,443	$	86,379
Raw materials	36,704		35,867
Finished goods	18,622		27,503
Total	$	157,769	$	149,749

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2024

Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	September 30, 2024		December 31, 2023
Product warranty, current	$	8,151	$	13,738
Payables for purchase of property, plant and equipment	54,318		96,350
Other current liabilities	18,112		14,312
Accrued payroll and welfare	4,445		8,089
Accrued expenses	6,118		6,224
Interest payable	1,429		41
Other tax payable	8,415		7,117
Operating lease liabilities, current	3,214		2,413
Total	$	104,202	$	148,284

BANK BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2024

Bank Borrowings [Abstract]

Schedule of Bank Borrowings Repayment

As of September 30, 2024, the Group had outstanding borrowings of $75,115 under the 2022 Facility Agreement.


Repayment Date						Repayment Amount
December 10, 2024						$10,859 (RMB76.2 million)
June 10, 2025						$10,859 (RMB76.2 million)
December 10, 2025						$10,859 (RMB76.2 million)
June 10, 2026						$16,288 (RMB114.3 million)
December 10, 2026						$26,250 (RMB184.2 million)

Schedule of Bank Borrowings

Changes in bank borrowings are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	94,237	$	49,146	$	79,153	$	46,395
Proceeds from bank borrowings	29,911		9,207		70,373		18,439
Repayments of principal	(8,375)		(2,347)		(31,824)		(6,286)
Exchange difference	3,801		(349)		1,872		(2,891)
Ending balance	$	119,574	$	55,657	$	119,574	$	55,657


Balance of bank borrowings includes:	September 30, 2024		December 31, 2023
Current	$	66,177	$	35,392
Non-current	53,397		43,761
Total	$	119,574	$	79,153

Schedule of Banking Facilities and Aggregate Carrying Amount

The aggregate carrying amount of the assets pledged by the Group as of September 30, 2024 and December 31, 2023 are as follows:


	September 30, 2024		December 31, 2023
Buildings	$	121,302	$	124,565
Machinery and equipment	65,091		—
Land use rights	11,902		11,984
Construction in progress	348		—
Total	$	198,643	$	136,549

INVENTORIES, NET - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Inventory Disclosure [Abstract]
Work in process	$ 102,443	$ 86,379
Raw materials	36,704	35,867
Finished goods	18,622	27,503
Total	$ 157,769	$ 149,749

BONDS PAYABLE - Narrative (Details) $ in Thousands, ¥ in Millions							9 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 ($)	Nov. 10, 2022 CNY (¥)	Sep. 30, 2024 USD ($)	Sep. 30, 2022 agreement	Sep. 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

NET PROFIT/(LOSS) PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

NET PROFIT/(LOSS) PER SHARE

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net profit/(loss) attributable to common stock shareholders-Basic	$	13,247	$	(26,130)	$	(90,019)	$	(81,800)
Changes in fair value of convertible loan	(2,764)		—		—		—
Net profit/(loss) attributable to common stock shareholders-Dilutive	$	10,483	$	(26,130)	$	(90,019)	$	(81,800)

Denominator:
Weighted average common stock used in computing basic net profit/(loss) per share	320,545,388		313,108,457		317,153,113		309,541,499
Weighted-average effect of dilutive stocks:
Add:
Diluted effect of shares issuable upon exercise of non-vested shares	1,048,846		—		—		—
Diluted effect of shares issuable upon exercise of Capped non-vested shares	1,654,338		—		—		—
Diluted effect of shares issuable upon convert of convertible loan	43,782,609		—		—		—
Weighted average stock used in computing diluted net profit/(loss) per share	367,031,181		313,108,457		317,153,113		309,541,499

Basic net profit/(loss) per share	$	0.04	$	(0.08)	$	(0.28)	$	(0.26)
Diluted net profit/(loss) per share	$	0.03	$	(0.08)	$	(0.28)	$	(0.26)

For the three and nine months ended September 30, 2024 and 2023, 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 September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Shares issuable upon exercise of stock options	31,431,068	35,830,564	31,812,977	36,001,774
Shares issuable upon vesting of non-vested shares	1,371,685	3,898,963	2,646,585	3,652,642
Shares issuable upon vesting of Capped non-vested shares	—	8,343,220	4,950,938	11,662,166
Shares issuable upon exercise of warrants	33,937,000	28,437,000	30,946,124	28,437,000
Shares issuable upon vesting of Earn-out shares	4,999,997	19,999,988	14,963,495	19,999,988
Shares issuable that may be subject to cancellation	1,687,500	1,687,500	1,687,500	1,687,500
Shares issuable upon convert of convertible loan	—	—	17,678,832	—

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 3,832	$ 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)	323,815,298	316,694,442
Common stock, shares outstanding (in shares)	322,127,798	315,006,942

PRODUCT WARRANTY - Schedule of Movement of Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Balance at beginning of the period	$ 34,184	$ 37,108	$ 35,217	$ 42,060
Provided during the period	4,024	3,567	10,353	9,017
Utilized during the period	(3,970)	(7,125)	(10,516)	(15,635)
Exchange difference	1,216	(202)	400	(2,094)
Balance at end of the period	$ 35,454	$ 33,348	$ 35,454	$ 33,348

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenues	$ 101,388	$ 80,116	$ 266,414	$ 202,042
Cost of revenues	(67,776)	(62,232)	(188,382)	(167,839)
Gross profit	33,612	17,884	78,032	34,203
Operating expenses:
General and administrative expenses	(11,841)	(24,980)	(59,146)	(68,874)
Research and development expenses	(10,692)	(13,241)	(32,291)	(33,609)
Selling and marketing expenses	(4,963)	(6,031)	(15,580)	(16,916)
Impairment loss from long-lived asset	(12)	(422)	(64,924)	(473)
Total operating expenses	(27,508)	(44,674)	(171,941)	(119,872)
Subsidy income	1,082	442	2,351	1,156
Profit/(loss) from operations	7,186	(26,348)	(91,558)	(84,513)
Other income and expenses:
Interest income	186	582	551	3,481
Interest expense	(4,290)	(491)	(8,116)	(1,437)
Changes in fair value of warrant and convertible loan	2,766	(42)	1,240	(25)
Other income	7,399	127	7,864	673
Profit/(loss) before provision for income taxes	13,247	(26,172)	(90,019)	(81,821)
Income tax expense	0	0	0	0
Net profit/(loss)	13,247	(26,172)	(90,019)	(81,821)
Less: net loss attributable to noncontrolling interests	0	(42)	0	(21)
Net profit/(loss) attributable to Microvast Holdings, Inc.'s shareholders	$ 13,247	$ (26,130)	$ (90,019)	$ (81,800)
Net profit/(loss) per common share
Basic net profit/(loss) per share (in dollars per share)	$ 0.04	$ (0.08)	$ (0.28)	$ (0.26)
Diluted net profit/(loss) per share (in dollars per share)	$ 0.03	$ (0.08)	$ (0.28)	$ (0.26)
Weighted average shares used in calculating net profit/(loss) per share of common stock
Weighted average shares used in calculating net profit/(loss) per share of common stock, basic (in shares)	320,545,388	313,108,457	317,153,113	309,541,499
Weighted average shares used in calculating net profit/(loss) per share of common stock, diluted (in shares)	367,031,181	313,108,457	317,153,113	309,541,499

ACCOUNTS RECEIVABLE - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of the period	$ 4,679	$ 3,468	$ 4,571	$ 4,407
Reversal of expenses	(992)	(206)	(237)	(1,038)
Write off	(2)	0	(531)	(66)
Recoveries of credit losses	0	0	0	121
Exchange difference	147	(20)	29	(182)
Balance at end of the period	$ 3,832	$ 3,242	$ 3,832	$ 3,242

OTHER NON-CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2024

Other Liabilities, Noncurrent [Abstract]

Schedule of Other Non-Current Liabilities


	September 30, 2024		December 31, 2023
Product warranty - non-current	$	27,303	$	21,479
Deferred subsidy income- non-current	6,093		3,382
Other non-current payable	5,090		—
Total	$	38,486	$	24,861

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Interest paid during the period	$ (347)
Warrant Liability
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the period	67	$ 126
Changes in fair value	(66)	25
Balance at end of the period	1	$ 151
Shares issuable upon convert of convertible loan
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at the beginning of the period	0
Issuance of convertible loan with shareholder	25,944
Changes in fair value	(1,174)
Balance at end of the period	$ 24,423

SHARE-BASED PAYMENT (Tables)

9 Months Ended

Sep. 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:


	Nine months ended September 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 nine months ended September 30, 2024 and 2023 was as follows:


Stock options life	Number of Shares	Weighted Average Exercise Price (U.S.$)	Weighted Average Grant Date Fair Value (U.S.$)	Weighted Average Remaining Contractual Life
Outstanding as of December 31, 2023	32,876,682	6.01	4.73	5.7
Forfeited	(1,521,350)	4.60	3.18
Outstanding as of September 30, 2024	31,355,332	6.08	4.80	5.0
Expected to vest and exercisable as of September 30, 2024	31,355,332	6.08	4.80	5.0
Exercisable as of September 30, 2024	30,088,665	6.14	4.89	5.1

Outstanding as of December 31, 2022	36,091,071	6.08	4.80	6.8
Grant	640,000	1.77	1.18
Forfeited	(895,706)	5.02	3.64
Outstanding as of September 30, 2023	35,835,365	6.03	4.76	5.6
Expected to vest and exercisable as of September 30, 2023	35,835,365	6.03	4.76	5.6
Exercisable as of September 30, 2023	23,916,879	6.14	4.90	5.5

Schedule Non-vested Shares Activity

Activity on the CRSUs for the nine months ended September 30, 2024 and 2023 was as follows:


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (U.S.$)
Outstanding as of December 31, 2023	6,665,014	2.29
Vested	(6,665,014)	2.29
Outstanding as of September 30, 2024	—	—

Outstanding as of December 31, 2022	13,444,469	2.38
Vested	(6,722,228)	2.47
Outstanding as of September 30, 2023	6,722,241	2.29

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


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (U.S.$)
Outstanding as of December 31, 2023	3,598,606	3.07
Grant	79,909	1.40
Vested	(503,505)	2.65
Forfeited	(777,206)	4.29
Outstanding as of September 30, 2024	2,397,804	2.71

Outstanding as of December 31, 2022	1,222,837	6.92
Grant	3,354,633	1.88
Vested	(496,586)	3.39
Forfeited	(103,424)	4.59
Outstanding as of September 30, 2023	3,977,460	3.17

Schedule of Classification of Stock-based Compensation

The following summarizes the classification of share-based compensation:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenues	$	771	$	1,530	$	3,390	$	4,559
General and administrative expenses	3,392		10,444		19,192		35,031
Research and development expenses	1,604		2,953		5,902		8,660
Selling and marketing expenses	534		935		1,805		3,391
Construction in process	8		140		22		429
Total	$	6,309	$	16,002	$	30,311	$	52,070

SHARE-BASED PAYMENT - Schedule Non-vested Shares Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Capped Non-vested Shares Units
Number of Non-Vested Shares
Number of non-vested shares, outstanding (in shares)	6,665,014	13,444,469
Number of non-vested shares, vested (in shares)	(6,665,014)	(6,722,228)
Number of non-vested shares, outstanding at ending balance (in shares)	0	6,722,241
Weighted Average Grant Date Fair Value Per Share (U.S.$)
Weighted average grant date fair value per share, non-vested shares, outstanding at beginning (in dollars per share)	$ 2.29	$ 2.38
Weighted average grant date fair value per share, non-vested shares, vested (in dollars per share)	2.29	2.47
Weighted average grant date fair value per share, non-vested shares, outstanding at ending (in dollars per share)	$ 0	$ 2.29
Restricted Stock Units (RSUs)
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	3,354,633
Number of non-vested shares, vested (in shares)	(503,505)	(496,586)
Number of non-vested shares, forfeited (in shares)	(777,206)	(103,424)
Number of non-vested shares, outstanding at ending balance (in shares)	2,397,804	3,977,460
Weighted Average Grant Date Fair Value Per Share (U.S.$)
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	1.88
Weighted average grant date fair value per share, non-vested shares, vested (in dollars per share)	2.65	3.39
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	4.29	4.59
Weighted average grant date fair value per share, non-vested shares, outstanding at ending (in dollars per share)	$ 2.71	$ 3.17

NET PROFIT/(LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net profit/(loss) attributable to common stock shareholders-Basic	$ 13,247	$ (26,130)	$ (90,019)	$ (81,800)
Changes in fair value of convertible loan	(2,764)	0	0	0
Net profit/(loss) attributable to common stock shareholders-Dilutive	$ 10,483	$ (26,130)	$ (90,019)	$ (81,800)
Denominator:
Weighted average shares used in calculating net profit/(loss) per share of common stock, basic (in shares)	320,545,388	313,108,457	317,153,113	309,541,499
Diluted effect of shares issuable upon vesting of non-vested shares (in shares)	1,048,846
Diluted effect of shares issuable upon exercise of Capped non-vested shares (in shares)	1,654,338
Diluted effect of shares issuable upon convert of convertible loan (in shares)	43,782,609
Weighted average shares used in calculating net profit/(loss) per share of common stock, diluted (in shares)	367,031,181	313,108,457	317,153,113	309,541,499
Basic net profit/(loss) per share (in dollars per share)	$ 0.04	$ (0.08)	$ (0.28)	$ (0.26)
Diluted net profit/(loss) per share (in dollars per share)	$ 0.03	$ (0.08)	$ (0.28)	$ (0.26)

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accrued Liabilities and Other Liabilities [Abstract]
Product warranty, current	$ 8,151	$ 13,738
Payables for purchase of property, plant and equipment	54,318	96,350
Other current liabilities	18,112	14,312
Accrued payroll and welfare	4,445	8,089
Accrued expenses	6,118	6,224
Interest payable	1,429	41
Other tax payable	8,415	7,117
Operating lease liabilities, current	3,214	2,413
Total	$ 104,202	$ 148,284

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 08, 2024
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 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	Q3
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

SHARE-BASED PAYMENT

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

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 termination and 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:


	Nine months ended September 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 U.S. 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 nine months ended September 30, 2024 and 2023 was as follows:


Stock options life	Number of Shares	Weighted Average Exercise Price (U.S.$)	Weighted Average Grant Date Fair Value (U.S.$)	Weighted Average Remaining Contractual Life
Outstanding as of December 31, 2023	32,876,682	6.01	4.73	5.7
Forfeited	(1,521,350)	4.60	3.18
Outstanding as of September 30, 2024	31,355,332	6.08	4.80	5.0
Expected to vest and exercisable as of September 30, 2024	31,355,332	6.08	4.80	5.0
Exercisable as of September 30, 2024	30,088,665	6.14	4.89	5.1

Outstanding as of December 31, 2022	36,091,071	6.08	4.80	6.8
Grant	640,000	1.77	1.18
Forfeited	(895,706)	5.02	3.64
Outstanding as of September 30, 2023	35,835,365	6.03	4.76	5.6
Expected to vest and exercisable as of September 30, 2023	35,835,365	6.03	4.76	5.6
Exercisable as of September 30, 2023	23,916,879	6.14	4.90	5.5

During the three months ended September 30, 2024 and 2023, the Company recorded share-based compensation expense of $3,176 and $12,713 related to the option awards, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded share-based compensation expense of $25,489 and $39,768 related to the option awards, respectively.

The total unrecognized equity-based compensation costs as of September 30, 2024 related to the stock options was $856, 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 September 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 September 30, 2024 and 2023, the Company recorded share-based compensation expense of $312 and $1,832, related to these CRSUs, respectively. During the nine months ended September 30, 2024 and 2023, the Company recorded share-based compensation expense of $2,793 and $8,378, related to these CRSUs, respectively.

Capped Non-vested share units - continued

Activity on the CRSUs for the nine months ended September 30, 2024 and 2023 was as follows:


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (U.S.$)
Outstanding as of December 31, 2023	6,665,014	2.29
Vested	(6,665,014)	2.29
Outstanding as of September 30, 2024	—	—

Outstanding as of December 31, 2022	13,444,469	2.38
Vested	(6,722,228)	2.47
Outstanding as of September 30, 2023	6,722,241	2.29

There is no unrecognized equity-based compensation costs as of September 30, 2024 related to the CRSUs.

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.

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 $358 and $1,058 related to these RSUs and $2,463 and $971 related to these PSUs during the three and nine months ended September 30, 2024, respectively. During the three and nine months ended September 30, 2023, the Company recorded share-based compensation expense of $577 and $1,536 related to these RSUs and $880 and $2,388 related to these PSUs, respectively.

Restricted Stock Units - continued

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


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (U.S.$)
Outstanding as of December 31, 2023	3,598,606	3.07
Grant	79,909	1.40
Vested	(503,505)	2.65
Forfeited	(777,206)	4.29
Outstanding as of September 30, 2024	2,397,804	2.71

Outstanding as of December 31, 2022	1,222,837	6.92
Grant	3,354,633	1.88
Vested	(496,586)	3.39
Forfeited	(103,424)	4.59
Outstanding as of September 30, 2023	3,977,460	3.17

The total unrecognized equity-based compensation costs as of September 30, 2024 related to the non-vested shares was $2,093.

The following summarizes the classification of share-based compensation:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Cost of revenues	$	771	$	1,530	$	3,390	$	4,559
General and administrative expenses	3,392		10,444		19,192		35,031
Research and development expenses	1,604		2,953		5,902		8,660
Selling and marketing expenses	534		935		1,805		3,391
Construction in process	8		140		22		429
Total	$	6,309	$	16,002	$	30,311	$	52,070

SHARE-BASED PAYMENT - Schedule of Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Cost of revenues	$ 771	$ 1,530	$ 3,390	$ 4,559
General and administrative expenses	3,392	10,444	19,192	35,031
Research and development expenses	1,604	2,953	5,902	8,660
Selling and marketing expenses	534	935	1,805	3,391
Construction in process	8	140	22	429
Total	$ 6,309	$ 16,002	$ 30,311	$ 52,070

BONDS PAYABLE

9 Months Ended

Sep. 30, 2024

Bonds Payable [Abstract]

BONDS PAYABLE


	September 30, 2024		December 31, 2023
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 September 30, 2024, the subscription and outstanding balance of the convertible bonds was $43,157 (RMB295 million).

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation Corporate Governance Actions The directors of Company predecessor, Tuscan, have been named as defendants in a litigation filed in the Court of Chancery captioned Matt Jacob v. Stephen A. Vogel, et al., C.A. No. 2022-0600-PAF (Del. Ch.) (filed July 7, 2022). The plaintiff is seeking to certify the litigation as a stockholder class action. The complaint alleges that 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. The plaintiff further alleges that once the earnings of the combined company became public, the Company’s stock dropped, causing losses to investors. Certain defendants have answered the complaint, and certain defendants have filed motions to dismiss, which are being argued on December 6, 2024. 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. Litigation-continued Corporate Governance Actions-continued The Company, 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 Henry Park v. Yang Wu, et al., C.A. No. 2024-0868-PAF (Del. Ch.) (filed August 19, 2024). The plaintiff purports to assert derivative claims on behalf of the Company. The complaint alleges that certain 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 by refusing to investigate a litigation demand. On October 14, 2024, the Company and other defendants filed a motion to dismiss but the judge has not yet ruled on the motion. 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 has responded to certain of the demands and is evaluating responses to others. The Company has also received and responded to a stockholder demand for books and records made pursuant to Section 220 of the Delaware General Corporation Law that purportedly seeks to investigate the loss of the DOE grant. 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. 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 was completed on September 10, 2024. The Court has not ruled yet on the motion. 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. 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. Litigation-continued 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. in the US District Court for the Middle District of Tennessee. 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 certain types of plant closings and mass layoffs. Plaintiff alleges that Defendants failed to give proper advance notice of a mass layoff 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. The Parties entered into a settlement agreement and this matter has been stayed by order of the court. 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. On October 10, 2024, this case was dismissed with prejudice. Microvast, Inc. was 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. The Parties entered into a settlement agreement and this matter has been stayed by order of the court. Microvast, Inc. was 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 Parties entered into a settlement agreement and a motion to stay will be filed with the court. Litigation-continued Other Matters-continued 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 September 30, 2024 and December 31, 2023, 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 $42,074 as of September 30, 2024. Purchase Commitments Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $52,262 as of September 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 September 30, 2024, notes receivable from customers in the amount of $4,299, together with certain of our machinery and equipment with a carrying value of $25,729 has been pledged to secure the issuance of such notes. Liens As of September 30, 2024, the Company had received $35,656 of liens.

BANK BORROWINGS - Schedule of Banking Facilities and Aggregate Carrying Amount (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Bank Borrowings [Abstract]
Buildings	$ 121,302	$ 124,565
Machinery and equipment	65,091	0
Land use rights	11,902	11,984
Construction in progress	348	0
Total	$ 198,643	$ 136,549

LEASES - Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Leases [Abstract]
Three months period ending December 31, 2024	$ 1,347
2025	3,781
2026	2,917
2027	2,458
2028	1,873
2029	1,681
Thereafter	10,227
Total future lease payments	24,284
Less: Imputed interest	(4,744)
Present value of operating lease liabilities	$ 19,540

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities
Net profit/(loss)	$ (90,019)	$ (81,821)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property, plant and equipment	810	832
Interest expense	2,248	0
Depreciation of property, plant and equipment	22,442	14,643
Amortization of land use right and intangible assets	581	593
Noncash lease expenses	2,004	2,108
Share-based compensation	30,289	51,641
Changes in fair value of warrant and convertible loan	(1,240)	25
(Reversal)/ allowance of credit losses	(237)	(1,038)
Write-down for obsolete inventories	3,032	928
Impairment loss from long-lived asset	64,924	473
Product warranty	10,353	9,017
Changes in operating assets and liabilities:
Notes receivable	9,162	(22,372)
Accounts receivable	18,157	(911)
Inventories	(4,144)	(54,473)
Prepaid expenses and other current assets	2,340	(12,666)
Operating lease right-of-use assets	(1,821)	(5,588)
Other non-current assets	9,037	(653)
Notes payable	(7,490)	(26,070)
Accounts payable	(47,234)	53,400
Advance from customers	(197)	515
Accrued expenses and other liabilities	(33,094)	(1,374)
Operating lease liabilities	(869)	2,760
Other non-current liabilities	7,679	(319)
Net cash used in operating activities	(3,287)	(70,350)
Cash flows from investing activities
Purchases of property, plant and equipment	(27,366)	(153,574)
Purchase of short-term investments	0	(425)
Proceeds on disposal of property, plant and equipment	9,830	879
Proceeds from maturity of short-term investments	5,564	0
Net cash used in investing activities	(11,972)	(153,120)
Cash flows from financing activities
Proceeds from borrowings	70,373	18,439
Repayment of bank borrowings	(31,824)	(6,286)
Convertible loan borrowing from a shareholder	25,000	0
Payment for debt issue costs	(525)	0
Deferred payment related to purchases of property, plant and equipment	(16,389)	0
Net cash generated from financing activities	46,635	12,153
Effect of exchange rate changes	(4,598)	(2,088)
Increase (decrease) in cash, cash equivalents and restricted cash	26,778	(213,405)
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	114,967	89,212
Cash and cash equivalents	63,585	67,398
Restricted cash	51,382	21,814
Total cash, cash equivalents and restricted cash	114,967	89,212
Non-cash investing and financing activities
Payable for purchase of property, plant and equipment	$ 59,408	$ 75,781

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands				9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jul. 15, 2024 USD ($)	Jun. 20, 2024 USD ($)	Mar. 18, 2024 USD ($)	Sep. 30, 2024 USD ($) 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				$ 35,656
Property, plant and equipment, net				527,160			$ 620,667
Bank Acceptance Note
Commitments and Contingencies (Details) [Line Items]
Receivables from customers				4,299
Property, plant and equipment, net				25,729
Inventories
Commitments and Contingencies (Details) [Line Items]
Purchase obligation				52,262
Capital Commitments
Commitments and Contingencies (Details) [Line Items]
Capital commitments				$ 42,074
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.
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
Commitments and Contingencies (Details) [Line Items]
Liens amount					$ 1,769

INVENTORIES, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Inventory Disclosure [Abstract]
Provision for obsolete inventories	$ 1,295	$ 0	$ 3,032	$ 928

Label	Element	Value
Net Cash Provided by (Used in) Operating Activities	us-gaap_NetCashProvidedByUsedInOperatingActivities	$ (5,429,000)
Net Cash Provided by (Used in) Operating Activities	us-gaap_NetCashProvidedByUsedInOperatingActivities	$ (29,342,000)

OTHER NON-CURRENT LIABILITIES - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Liabilities, Noncurrent [Abstract]
Product warranty - non-current	$ 27,303	$ 21,479
Deferred subsidy income- non-current	6,093	3,382
Other non-current payable	5,090	0
Other non-current liabilities	$ 38,486	$ 24,861

SIGNIFICANT ACCOUNTING POLICIES - Convertible loan with shareholder (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Accounting Policies [Abstract]
Net gain (loss) within net earnings (loss)	$ 2,764	$ 1,174

LEASES (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information of the leases were as follows:


	Nine months ended September 30, 2024
Cash payments for operating leases	$	2,518
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,258

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 September 30, 2024:


	As of September 30, 2024
Three months period ending December 31, 2024	$	1,347
2025	$	3,781
2026	$	2,917
2027	$	2,458
2028	$	1,873
2029	$	1,681
Thereafter	$	10,227
Total future lease payments	$	24,284
Less: Imputed interest	$	(4,744)
Present value of operating lease liabilities	$	19,540

BONDS PAYABLE (Tables)

9 Months Ended

Sep. 30, 2024

Bonds Payable [Abstract]

Schedule of Bonds Payable


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

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 63,585	$ 44,541
Restricted cash, current	40,361	37,477
Short-term investments	0	5,634
Accounts receivable (net of allowance for credit losses of $3,832 and $4,571 as of September 30, 2024 and December 31, 2023, respectively)	121,539	138,717
Notes receivable	10,937	23,736
Inventories, net	157,769	149,749
Prepaid expenses and other current assets	23,483	25,752
Held-for-sale assets	19,897	0
Total Current Assets	437,571	425,606
Restricted cash, non-current	11,021	6,171
Property, plant and equipment, net	527,160	620,667
Land use rights, net	11,902	11,984
Acquired intangible assets, net	2,788	3,136
Operating lease right-of-use assets	19,468	19,507
Other non-current assets	11,090	9,661
Total Assets	1,021,000	1,096,732
Current liabilities:
Accounts payable	65,589	112,618
Notes payable	56,314	63,374
Accrued expenses and other current liabilities	104,202	148,284
Advance from customers	42,950	43,087
Short-term bank borrowings	66,177	35,392
Income tax payables	656	655
Total Current Liabilities	335,888	403,410
Long-term bonds payable	43,157	43,157
Long-term bank borrowings	53,397	43,761
Warrant liability	1	67
Share-based compensation liability	119	199
Operating lease liabilities	16,326	17,087
Convertible loan with shareholder measured at fair value	24,423	0
Other non-current liabilities	38,486	24,861
Total Liabilities	511,797	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 September 30, 2024 and December 31, 2023; 323,815,298 and 316,694,442 shares issued, and 322,127,798 and 315,006,942 shares outstanding as of September 30, 2024 and December 31, 2023)	33	32
Additional paid-in capital	1,512,410	1,481,241
Statutory reserves	6,032	6,032
Accumulated deficit	(987,520)	(897,501)
Accumulated other comprehensive loss	(21,752)	(25,614)
Total Equity	509,203	564,190
Total Liabilities and Equity	$ 1,021,000	$ 1,096,732

SIGNIFICANT ACCOUNTING POLICIES - Operating Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Operating lease right-of-use assets	$ 19,468	$ 19,507
Present value of operating lease liabilities	19,540
Operating lease liabilities, current	$ 3,214	$ 2,413

CONVERTIBLE LOAN WITH SHAREHOLDER MEASURED AT FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2024

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:


	September 30, 2024
Market price of public stock	$	0.25
Exercise price	$	0.50
Expected term (years)	1.16
Volatility	55.50		%
Risk-free interest rate	3.85		%
Dividend rate	0.00		%

SHARE-BASED PAYMENT - Narrative (Details) $ in Thousands		3 Months Ended		9 Months Ended
SHARE-BASED PAYMENT - Narrative (Details) $ in Thousands	Jul. 21, 2021	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)
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				$ 856
Weighted-average period				1 month 6 days
Aggregate intrinsic value		$ 0		$ 0
Compensation cost				2,093
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		3,176	$ 12,713	25,489	$ 39,768
Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		312	1,832	2,793	8,378
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		358	577	$ 1,058	1,536
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		$ 2,463	$ 880	$ 971	$ 2,388
Granted (in shares) \| shares				2,680,372

ACCOUNTS RECEIVABLE- Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Receivables [Abstract]
Accounts receivable	$ 125,371	$ 143,288
Allowance for credit losses	(3,832)	(4,571)
Accounts receivable, net	$ 121,539	$ 138,717

PRODUCT WARRANTY

9 Months Ended

Sep. 30, 2024

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY

Movement of product warranty was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Balance at beginning of the period	$	34,184	$	37,108	$	35,217	$	42,060
Provided during the period	4,024		3,567		10,353		9,017
Utilized during the period	(3,970)		(7,125)		(10,516)		(15,635)
Exchange difference	1,216		(202)		400		(2,094)
Balance at end of the period	$	35,454	$	33,348	$	35,454	$	33,348


	September 30, 2024		December 31, 2023
Product warranty – current	$	8,151	$	13,738
Product warranty – non-current	27,303		21,479
Total	$	35,454	$	35,217

PRODUCT WARRANTY - Schedule of Warranty Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Product Warranties Disclosures [Abstract]
Product warranty – current	$ 8,151	$ 13,738
Product warranty – non-current	27,303	21,479
Total	$ 35,454	$ 35,217

BONDS PAYABLE - Schedule of Bonds Payable (Details) - USD ($) $ in Thousands	Sep. 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

SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Disaggregation of Revenue

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
People’s Republic of China ("PRC")	$	28,716	$	36,289	$	89,190	$	115,023
Other Asia & Pacific countries	10,550		24,611		36,215		46,280
Asia & Pacific	39,266		60,900		125,405		161,303
Europe	59,479		19,034		135,145		38,556
U.S.	2,643		182		5,864		2,183
Total	$	101,388	$	80,116	$	266,414	$	202,042

NET PROFIT/(LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 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 profit/(loss) per share for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Numerator:
Net profit/(loss) attributable to common stock shareholders-Basic	$	13,247	$	(26,130)	$	(90,019)	$	(81,800)
Changes in fair value of convertible loan	(2,764)		—		—		—
Net profit/(loss) attributable to common stock shareholders-Dilutive	$	10,483	$	(26,130)	$	(90,019)	$	(81,800)

Denominator:
Weighted average common stock used in computing basic net profit/(loss) per share	320,545,388		313,108,457		317,153,113		309,541,499
Weighted-average effect of dilutive stocks:
Add:
Diluted effect of shares issuable upon exercise of non-vested shares	1,048,846		—		—		—
Diluted effect of shares issuable upon exercise of Capped non-vested shares	1,654,338		—		—		—
Diluted effect of shares issuable upon convert of convertible loan	43,782,609		—		—		—
Weighted average stock used in computing diluted net profit/(loss) per share	367,031,181		313,108,457		317,153,113		309,541,499

Basic net profit/(loss) per share	$	0.04	$	(0.08)	$	(0.28)	$	(0.26)
Diluted net profit/(loss) per share	$	0.03	$	(0.08)	$	(0.28)	$	(0.26)

Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share


	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Shares issuable upon exercise of stock options	31,431,068	35,830,564	31,812,977	36,001,774
Shares issuable upon vesting of non-vested shares	1,371,685	3,898,963	2,646,585	3,652,642
Shares issuable upon vesting of Capped non-vested shares	—	8,343,220	4,950,938	11,662,166
Shares issuable upon exercise of warrants	33,937,000	28,437,000	30,946,124	28,437,000
Shares issuable upon vesting of Earn-out shares	4,999,997	19,999,988	14,963,495	19,999,988
Shares issuable that may be subject to cancellation	1,687,500	1,687,500	1,687,500	1,687,500
Shares issuable upon convert of convertible loan	—	—	17,678,832	—

SIGNIFICANT ACCOUNTING POLICIES - Going Concern (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Significant Accounting Policies [Line Items]
Revenues		$ 101,388	$ 80,116	$ 266,414	$ 202,042
Gross profit		33,612	17,884	78,032	34,203
Net loss		(13,247)	26,172	90,019	81,821
Impairment loss from long-lived asset		12	422	64,924	473
Working capital		101,683		101,683
Stockholders' equity, including portion attributable to noncontrolling interest		509,203	567,338	509,203	567,338	$ 564,190	$ 579,717	$ 612,977
Cash and cash equivalents		63,585	67,398	63,585	67,398	44,541
Ending balance		119,574		119,574
Short-term bank borrowings		66,177		66,177		35,392
Other accrued liabilities, current		269,711		269,711
Payables for purchase of property, plant and equipment		54,318		54,318		$ 96,350
Proceeds from bank borrowings		29,911	$ 9,207	70,373	$ 18,439
Subsequent Event
Significant Accounting Policies [Line Items]
Proceeds from bank borrowings	$ 9,962
Capital Commitments \| Goods, Services And Materials
Significant Accounting Policies [Line Items]
Payables for purchase of property, plant and equipment		31,653		31,653
Inventories
Significant Accounting Policies [Line Items]
Purchase obligation		$ 52,262		$ 52,262

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	9 Months Ended
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	Sep. 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 lithium-ion battery systems and components for electric vehicles and energy storage across the globe.

CONVERTIBLE LOAN WITH SHAREHOLDER MEASURED AT FAIR VALUE - Narrative (Details) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Oct. 31, 2024	Jul. 31, 2024	May 31, 2024	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	May 28, 2024	Dec. 31, 2023
Related Party Transaction [Line Items]
Proceeds from bank borrowings				$ 29,911,000	$ 9,207,000	$ 70,373,000	$ 18,439,000
Debt instrument, interest rate, stated percentage				12.00%		12.00%
Net gain (loss) within net earnings (loss)				$ 2,764,000		$ 1,174,000
Convertible loan with shareholder measured at fair value				24,423,000		24,423,000			$ 0
Subsequent Event
Related Party Transaction [Line Items]
Proceeds from bank borrowings	$ 9,962,000
Related Party
Related Party Transaction [Line Items]
Convertible loan with shareholder measured at fair value				24,423,000		$ 24,423,000
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 (in dollars per share)								$ 2.00
Warrants outstanding				$ 5,500,000		$ 5,500,000
Issuance of warrants(Note 14)						$ 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]
Proceeds from bank borrowings		$ 13,000,000
Debt instrument, interest rate, stated percentage				9.75%		9.75%
Paid in kind, interest rate				3.75%		3.75%
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

FAIR VALUE MEASUREMENT - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 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	$ 63,585	$ 44,541
Restricted cash	51,382	43,648
Total financial asset	114,967	88,189
Warrant liability	1	67
Convertible loan with shareholder measured at fair value	24,423
Total financial liability	24,424	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	63,585	44,541
Restricted cash	51,382	43,648
Total financial asset	114,967	88,189
Warrant liability	0	0
Convertible loan with shareholder measured at fair value	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 measured at fair value	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	1	67
Convertible loan with shareholder measured at fair value	24,423
Total financial liability	$ 24,424	$ 67

NET PROFIT/(LOSS) PER SHARE- Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 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	31,431,068	35,830,564	31,812,977	36,001,774
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	1,371,685	3,898,963	2,646,585	3,652,642
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	0	8,343,220	4,950,938	11,662,166
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	33,937,000	28,437,000	30,946,124	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	4,999,997	19,999,988	14,963,495	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
Shares issuable upon convert of convertible loan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount	0	0	17,678,832	0

SHARE-BASED PAYMENT - Schedule of Stock Options (Details) - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 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)		640,000
Number of shares, forfeited (in shares)	(1,521,350)	(895,706)
Number of shares, outstanding at ending (in shares)	31,355,332	35,835,365	32,876,682	36,091,071
Number of shares, expected to vest and exercisable (in shares)	31,355,332	35,835,365
Number of shares, exercisable (in shares)	30,088,665	23,916,879
Weighted Average Exercise Price (U.S.$)
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)		1.77
Weighted average exercise price, forfeited (in dollars per share)	4.60	5.02
Weighted average exercise price, outstanding at ending (in dollars per share)	6.08	6.03	6.01	$ 6.08
Weighted average exercise price, expected to vest and exercisable (in dollars per share)	6.08	6.03
Weighted average exercise price, exercisable (in dollars per share)	6.14	6.14
Weighted Average Grant Date Fair Value (U.S.$)
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, grant (in dollars per share)		1.18
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	3.18	3.64
Weighted average grant date fair value, outstanding at ending (in dollars per share)	4.80	4.76	$ 4.73	$ 4.80
Weighted average grant date fair value, expected to vest and exercisable (in dollars per share)	4.80	4.76
Weighted average grant date fair value, exercisable (in dollars per share)	$ 4.89	$ 4.90
Weighted Average Remaining Contractual Life
Weighted average remaining contractual, outstanding	5 years	5 years 7 months 6 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	5 years 7 months 6 days
Weighted average remaining contractual life, exercisable	5 years 1 month 6 days	5 years 6 months

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 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 nine months ended September 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, write-down of 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 September 30, 2024 and 2023, the Group recognized $883 and $1,191 of revenue previously included in advance from customers as of July 1, 2024 and July 1, 2023, respectively. During the nine months ended September 30, 2024 and 2023, the Group recognized $4,208 and $2,485 of revenue previously included in advance from customers as of January 1, 2024 and January 1, 2023, respectively.
Operating leases	Operating leases As of September 30, 2024, the Company recorded operating lease right-of-use (ROU) assets of $19,468 and operating lease liabilities of $19,540, including current portion in the amount of $3,214, 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. Debt Restructuring A debt restructuring is the modification of debt in which a creditor grants a concession it would not otherwise consider to a debtor that is experiencing financial difficulties. These modifications may include a reduction of an extension of the maturity date, a reduction of the face amount or maturity amount of the debt, or a reduction of accrued interest.
Convertible loan with shareholder	Convertible loan with shareholder measured at fair value The Company has elected the fair value option to account for the convertible loan with shareholder described in Note 14 – Convertible loan with shareholder measured at fair value herein, 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. Gains of $2,764 and $1,174 were recognized for the three and nine months ended September 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 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.

CONVERTIBLE LOAN WITH SHAREHOLDER MEASURED AT FAIR VALUE - Fair Value Measurement Inputs and Valuation Techniques (Details) - Related Party	Sep. 30, 2024 $ / shares yr
Market price of public stock
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.25
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	1.16
Volatility
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.5550
Risk-free interest rate
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.0385
Dividend rate
Related Party Transaction [Line Items]
Convertible debt and warrants, fair value	0.0000

SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	1 Months Ended
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands	Nov. 12, 2024	Sep. 30, 2024
Subsequent Event [Line Items]
Current settlement liabilities		$ 4,346
Subsequent Event
Subsequent Event [Line Items]
Proceeds from short-term debt	$ 3,297
Proceeds from issuance of long-term debt	6,665
Total payable concession	1,036
Litigation settlement, net	$ 3,310

LEASES

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

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 nine months ended September 30, 2024 was $883 and $2,602, which excluded cost of short-term contracts. Short-term lease cost for the three and nine months ended September 30, 2024 was $79 and $383, respectively.

As of September 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:


	Nine months ended September 30, 2024
Cash payments for operating leases	$	2,518
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,258

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


	As of September 30, 2024
Three months period ending December 31, 2024	$	1,347
2025	$	3,781
2026	$	2,917
2027	$	2,458
2028	$	1,873
2029	$	1,681
Thereafter	$	10,227
Total future lease payments	$	24,284
Less: Imputed interest	$	(4,744)
Present value of operating lease liabilities	$	19,540

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2024

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities


	September 30, 2024		December 31, 2023
Product warranty, current	$	8,151	$	13,738
Payables for purchase of property, plant and equipment	54,318		96,350
Other current liabilities	18,112		14,312
Accrued payroll and welfare	4,445		8,089
Accrued expenses	6,118		6,224
Interest payable	1,429		41
Other tax payable	8,415		7,117
Operating lease liabilities, current	3,214		2,413
Total	$	104,202	$	148,284

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net profit/(loss)	$ 13,247	$ (26,172)	$ (90,019)	$ (81,821)
Foreign currency translation adjustment	11,473	(2,192)	3,862	(18,006)
Comprehensive profit/(loss)	24,720	(28,364)	(86,157)	(99,827)
Comprehensive loss attributable to non-controlling interests	0	(54)	0	(183)
Total comprehensive profit/(loss) attributable to Microvast Holding, Inc.'s shareholders	$ 24,720	$ (28,310)	$ (86,157)	$ (99,644)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income, attributable to parent entity. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 45
-Paragraph 20
-SubTopic 10
-Topic 810
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481231/810-10-45-20

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(23))
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147483621/220-10-S99-2

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+ Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

ACCOUNTS RECEIVABLE

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:


	September 30, 2024		December 31, 2023
Accounts receivable	$	125,371	$	143,288
Allowance for credit losses	(3,832)		(4,571)
Accounts receivable, net	$	121,539	$	138,717

Movement of allowance for credit losses was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Balance at beginning of the period	$	4,679	$	3,468	$	4,571	$	4,407
Reversal of expenses	(992)		(206)		(237)		(1,038)
Write off	(2)		—		(531)		(66)
Recoveries of credit losses	—		—		—		121
Exchange difference	147		(20)		29		(182)
Balance at end of the period	$	3,832	$	3,242	$	3,832	$	3,242

WARRANTS

9 Months Ended

Sep. 30, 2024

Warrants [Abstract]

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 nine months ended September 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 September 30, 2024, resulting in a gain of $2 and $66 for the three and nine months ended September 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:


	September 30, 2024
Market price of public stock	$	0.25
Exercise price	$	11.50
Expected term (years)	1.82
Volatility	96.27		%
Risk-free interest rate	3.64		%
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 U.S. 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 at fair value.

INVENTORIES, NET

9 Months Ended

Sep. 30, 2024

Inventory Disclosure [Abstract]

INVENTORIES, NET

Inventories consisted of the following:


	September 30, 2024		December 31, 2023
Work in process	$	102,443	$	86,379
Raw materials	36,704		35,867
Finished goods	18,622		27,503
Total	$	157,769	$	149,749

Write-down of obsolete inventories at $1,295 and $0 were recognized for the three months ended September 30, 2024 and 2023, respectively. Write-down of obsolete inventories at $3,032 and $928 were recognized for the nine months ended September 30, 2024 and 2023, respectively.