The Company provides a manufacturer’s warranty on new consumer vehicles. A warranty reserve is recorded at the time of sale and once a specific field service action has been identified. The amount reserved is comprised of an actuarial estimate of the projected costs to repair, replace, or adjust defective component parts under the applicable warranty period and the estimated cost of identified field service actions. These estimates are based on an analysis of actual claims incurred to date and future expectations about the nature, frequency, and cost of future claims by vehicle cohort, which may leverage benchmark data. The Company re-evaluates the adequacy of the warranty reserve on a regular basis and makes revisions when appropriate. Warranty estimates are inherently uncertain, especially given the Company’s limited history of sales, and more historical experience or updates to projections and benchmarks may cause material changes to the warranty reserve in the future.


	December 31, 2023		December 31, 2024
Current portion of deferred revenues, lease liabilities, and other liabilities	$	91	$	146
Other non-current liabilities	184		327
Total warranty reserve	$	275	$	473

Warranty expense is recorded as a component of automotive cost of revenues in the Company’s Consolidated Statements of Operations. The Company’s warranty and field service action activity for the year ended December 31, 2022 was primarily for warranties issued during the period. The following table presents the warranty and field service action activity within the reserve for the years ended December 31, 2023 and 2024 (in millions):


	Year Ended December 31,
	2023		2024

Beginning balance	$	100	$	275
Warranties issued in period	233		261
Adjustments to pre-existing warranties	(22)		5
Warranty costs incurred	(36)		(68)
Ending balance	$	275	$	473