Electric vehicle startup Lucid Motors has unexpectedly won the bankruptcy auction for Nikola Motors’ Arizona factory and various other assets, according to court documents filed late Thursday. Lucid’s winning bid totals approximately $30 million, encompassing both cash and non-cash considerations, and secures the company Nikola’s manufacturing facility, the existing lease on Nikola’s Phoenix headquarters, and certain machinery, equipment, and inventory.
As part of the deal, Lucid confirmed its intent to extend employment offers to approximately 300 former Nikola employees.
Lucid Motors’ involvement represents a surprising development given Nikola’s recent financial struggles. Nikola had been aiming to sell its entire business since filing for bankruptcy protection in February. Lucid’s core business has so far focused on luxury passenger electric vehicles and has had no prior experience with hydrogen-powered electric trucks, an integral part of Nikola’s operations.
The bankruptcy proceedings surrounding Nikola had also recently drawn attention because Nikola’s founder, Trevor Milton—convicted of fraud in 2022 but pardoned in March by former President Trump—was reportedly considering his own bid for the assets. Nikola successfully sought court intervention to prevent Milton from personally inspecting the factory and other critical assets prior to the scheduled auction, which took place on April 7.
Lucid already operates a large production facility in Casa Grande, Arizona, close to Nikola’s assets. The acquisition presents an opportunity for Lucid Motors to expand its warehousing capacity, strengthen its technical infrastructure, and integrate former Nikola employees with valuable manufacturing experience.
Although Lucid was identified as the leading bidder, the U.S. bankruptcy court judge overseeing the Nikola proceeding has allowed objections to the sale to be submitted until noon ET on Friday, April 11. A court hearing on the matter is scheduled for 1:30 p.m. ET later that day.
