Lucid Motors Acquires Nikola's Arizona Factory

Lucid Motors Acquires Nikola Assets in Bankruptcy Auction

Lucid Motors, an electric vehicle (EV) startup, has unexpectedly won the bankruptcy auction for the Arizona factory and associated assets of electric trucking company Nikola. This outcome was revealed in a court filing late Thursday evening.

Details of the Acquisition

Lucid has committed approximately $30 million, encompassing both cash and non-cash considerations, to secure the factory. The acquisition also includes Nikola’s lease for its Phoenix headquarters, as well as specific machinery, equipment, and existing inventory.

Workforce Integration

As part of this agreement, Lucid intends to extend employment offers to roughly 300 former Nikola employees. These opportunities will be available to both salaried and hourly workers.

Areas of Employment

Manufacturing
Engineering
Software development
Vehicle assembly
Vehicle testing
Warehouse support

Strategic Expansion for Lucid

“Acquiring these assets presents a strategic opportunity to expand our manufacturing, warehousing, testing, and development capabilities,” stated Marc Winterhoff, Lucid’s interim CEO. “It also allows us to further support the local Arizona community as we ramp up production of the Lucid Gravity and prepare for future midsize platform vehicles.”

Assets Not Included in the Deal

It’s important to note that Lucid will not be acquiring Nikola’s hydrogen trucking assets or its existing customer base. The company’s focus remains firmly on passenger EVs.

Competitive Bidding Process

Lucid successfully outbid three other unidentified parties in an auction that commenced on April 7th and proceeded through multiple rounds of bidding, as detailed in court documents.

Unexpected Turn in Bankruptcy Proceedings

Lucid’s emergence as the winning bidder is considered surprising for several reasons. Nikola had initially sought a buyer for its entire business following its February bankruptcy filing.

Focus on Passenger EVs

Lucid’s core business centers on the production of passenger EVs, and the company has no prior experience with hydrogen-powered electric vehicles, a key component of Nikola’s operations.

Trevor Milton’s Bid

Notably, Nikola’s founder, Trevor Milton – convicted of fraud in 2022 and subsequently pardoned by President Trump in March – had also been considering a bid for the company’s assets. However, the court prevented Milton from personally inspecting the factory and other assets before the auction.

Synergies with Existing Facilities

Lucid already operates a factory in Casa Grande, Arizona, and views the acquisition as a means to increase warehousing capacity, gain access to valuable testing equipment, and onboard skilled employees.

Next Steps and Potential Objections

While Lucid submitted the highest bid, the bankruptcy judge is accepting objections to the sale until 12:00 p.m. ET on Friday, April 11th. A hearing is scheduled for 1:30 p.m. ET to address any concerns.

This report has been updated to include information from Lucid Motors’ official press release and further details from the auction-related court filings.