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 to a late Thursday night 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. Those offers will go to both salaried and hourly employees across manufacturing, engineering, software, assembly, vehicle testing, and warehouse support, Lucid said in a press release.
“As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles, acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community,” Marc Winterhoff, Lucid’s interim CEO, said in a statement.
Lucid will not acquire any of Nikola’s hydrogen trucking assets or its customers, according to the release. Lucid beat out three other unnamed bidders in an auction that started on April 7 and went multiple rounds, according to a court filing.
The sudden appearance of Lucid in the Nikola bankruptcy proceedings is a shock for multiple reasons.
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. Nikola convinced the court to block Milton from inspecting its factory and other assets in person ahead of the auction, which was held 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.
This story has been updated with information from Lucid Motors’ press release and additional court filings about the auction.