EV startup Lucid Motors has emerged as a surprise winner in the bankruptcy auction for electric trucking company Nikola’s Arizona factory and other assets, according a late Thursday court filing.
Lucid committed around $30 million in cash and non-cash considerations in exchange for the factory, Nikola’s lease on its Phoenix headquarters, and “certain machinery, equipment and inventory,” according to the filing.
As part of the deal, Lucid is planning to make offers to around 300 former Nikola employees, the company told TechCrunch.
The sudden appearance of Lucid in the Nikola bankruptcy proceedings is a shock for multiple reasons.
For one, Nikola had been trying to sell its whole business since it filed for bankruptcy protection in February. Lucid is focused on making passenger EVs, and has never dealt with hydrogen-powered electric vehicles, which is a big piece of Nikola’s nascent business.
More recently, Nikola’s founder Trevor Milton — who was convicted of fraud in 2022 but was pardoned by President Trump in March — was evaluating a bid of his own on the startup’s assets. But Nikola got the court to block Milton from inspecting its factory and other assets in-person ahead of the auction, which was held on April 7.
Lucid has its own factory in nearby Casa Grande, Arizona, and so it sees value in acquiring more warehousing space, testing equipment, and employees, according to the company.
While Lucid was the top bidder for these assets at the auction, the bankruptcy judge is allowing objections to the sale to be filed until 12:00 p.m. ET on Friday, April 11. A hearing is scheduled for 1:30 p.m. ET.
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