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Lucid Motors Acquires Nikola’s Arizona Factory in Bankruptcy Auction
Electric vehicle manufacturer Lucid Motors has emerged as the winning bidder in the bankruptcy auction for assets of Nikola, the electric truck company, including its Arizona production facility. This development was revealed in a court document filed late Thursday.
Acquisition Details: Cash and Assets
According to the court filing, Lucid’s winning bid consisted of approximately $30 million in cash and other considerations. In return, Lucid will acquire Nikola’s manufacturing plant, the lease for its Phoenix corporate offices, and specified machinery, equipment, and inventory.
Employee Offers to Former Nikola Staff
Lucid intends to extend job offers to around 300 former Nikola employees as part of the acquisition, a company spokesperson confirmed to news outlets.
Surprise Bidder in Bankruptcy Proceedings
Lucid’s unexpected entry into the Nikola bankruptcy process has surprised many observers due to several factors.
Strategic Focus: Passenger EVs vs. Hydrogen Technology
Nikola had been seeking a buyer for its entire operations since declaring bankruptcy in February. The move by Lucid is particularly noteworthy as Lucid primarily focuses on producing electric passenger vehicles and lacks prior involvement with hydrogen fuel cell technology, a significant aspect of Nikola’s business strategy.
Milton’s Attempted Bid for Nikola Assets
Adding another layer of complexity, Nikola’s founder, Trevor Milton, who faced fraud charges and subsequently received a pardon, had also explored bidding on the company’s assets. However, Nikola successfully sought a court order to prevent Milton from physical inspection of the factory and other assets before the auction held on April 7.
Strategic Rationale: Expansion in Arizona
Lucid, already operating a manufacturing facility in Casa Grande, Arizona, views the acquired assets as valuable for expanding its warehousing capacity, testing infrastructure, and workforce, the company stated.
Court Approval and Transaction Timeline
While Lucid emerged as the highest bidder for these assets in the auction, the bankruptcy court has set a deadline of 12:00 p.m. ET on Friday, April 11, for filing objections to the sale. A hearing to finalize the transaction is scheduled for 1:30 p.m. ET.