Nikola Hydrogen Trucks Auction: Latest News & Updates

Nikola’s Hydrogen Truck Assets to be Auctioned

The hydrogen-powered trucks developed by Nikola are now available for auction. This action represents a significant step in the company’s liquidation process following its February bankruptcy filing.

Agreement with Gordon Brothers

Gordon Brothers, a prominent auction house, finalized an agreement with Nikola through the Delaware bankruptcy court to acquire the hydrogen trucking assets late last week. The listing and a comprehensive brochure detailing the available items were subsequently released by Gordon Brothers over the weekend.

Value of the Assets

The auction house estimates the total value of the assets to be approximately $114 million. This encompasses hydrogen trucks, raw materials, and various sub-assemblies.

Specifically, the auction includes 103 fully assembled hydrogen fuel cell trucks. Additionally, spare parts such as batteries and tires are included in the sale.

Refueling and Testing Equipment

Gordon Brothers is also offering Nikola’s hydrogen storage, refueling, and testing infrastructure. A portion of this equipment remains unused and is still in new condition.

Recent Developments with Nikola’s Manufacturing Facility

This asset auction occurs just over a month after Lucid Motors unexpectedly acquired Nikola’s manufacturing plant and headquarters in Arizona. As part of this deal, Lucid agreed to employ approximately 300 Nikola personnel.

The consideration for this transaction amounted to around $30 million, encompassing both cash and non-cash assets.

Challenges Facing Hydrogen Fuel Technology

The timing of this auction coincides with ongoing difficulties in establishing hydrogen as a commercially viable fuel source. The technology is currently facing new obstacles.

House Republicans are actively pursuing the reduction of financial incentives for hydrogen power, which were previously enacted by former President Biden as part of his broader climate initiatives.

This effort is part of a larger attempt to dismantle the Biden administration’s climate agenda.