Electric Vehicle startup, Lucid Motors, surprised many by securing a win in the bankruptcy auction for Nikola’s Arizona factory and other assets, as revealed in a court filing late Thursday night.
Lucid agreed to approximately $30 million in cash and non-cash considerations to acquire the factory, Nikola’s lease on its Phoenix headquarters, and select machinery, equipment, and inventory, according to the filing.
As part of the arrangement, Lucid plans to extend offers to about 300 former Nikola employees, covering both salaried and hourly positions in manufacturing, engineering, software, assembly, vehicle testing, and warehouse support, as noted in a press release to TechCrunch.
“With the ongoing production ramp-up of Lucid Gravity and preparation for our upcoming midsize platform vehicles, acquiring these assets presents a strategic opportunity to expand our manufacturing, warehousing, testing, and development capabilities while supporting the local Arizona community,” stated Marc Winterhoff, Lucid’s interim CEO.
According to the release, Lucid will not be acquiring Nikola’s hydrogen trucking assets or its customer base. Lucid triumphed over three other unnamed bidders in an auction that commenced on April 7 and involved multiple rounds, as per court filings.
Lucid’s unexpected participation in Nikola’s bankruptcy proceedings is surprising for several reasons.
Since filing for bankruptcy protection in February, Nikola had been attempting to sell its entire business. Lucid, known for producing passenger EVs, has no prior experience dealing with hydrogen-powered electric vehicles, a significant segment of Nikola’s nascent business.
Recently, Nikola’s founder Trevor Milton, who was convicted of fraud in 2022 but pardoned by President Trump in March, was considering placing his own bid on the startup’s assets. Nikola successfully petitioned the court to prevent Milton from inspecting its factory and other assets in person before the April 7 auction.
Lucid already possesses a factory in nearby Casa Grande, Arizona, thus recognizing the value in acquiring additional warehousing space, testing equipment, and personnel.
While Lucid emerged as the top bidder for these assets during the auction, the bankruptcy judge has granted permission for objections to the sale to be filed up until 12:00 p.m. ET on Friday, April 11, with a hearing scheduled for 1:30 p.m. ET.
This story has been updated with new details from Lucid Motors’ press release and further court filings related to the auction.
