A bankruptcy hearing surrounding the sale of electric truck maker Nikola’s assets to Lucid Motors took an uneasy turn late Friday when attorneys representing Nikola’s founder, Trevor Milton, suggested potential irregularities in the sale process.
Initially, the courtroom proceedings appeared straightforward. Delaware bankruptcy Judge Thomas Horan had verbally approved the asset sale without conflict, following a hearing devoid of any objections. Lucid Motors was set to acquire Nikola’s Coolidge, Arizona factory, its leased Phoenix headquarters, necessary manufacturing equipment, and planned to employ around 300 Nikola workers.
However, toward the end of the Zoom hearing, a lawyer representing ISSO LLC—an entity used by Milton to explore bids for the assets—stepped in to express “concerns” over the auction’s handling. Although he stopped short of filing an official objection or delaying the approval, the lawyer stated that the issues raised could potentially be revisited later, clarifying that his client’s present silence “should not be held against us in the future.”
Milton, who recently received a presidential pardon from Donald Trump that spared him from serving a four-year prison sentence, has had ongoing conflicts with Nikola. Previously, Nikola had prevented Milton from touring its Arizona facilities, a move Judge Horan recently upheld.
Joshua Morris, counsel for Nikola, viewed Milton’s latest maneuver as part of a continued strategy aimed at undermining the company. Morris vocalized suspicion during the hearing, describing the remarks from Milton’s representative as “baseless assertions.” He emphasized that, when pressed for specific allegations or evidence, ISSO provided none. Morris suggested Milton may hope the uncertainty surrounding these proceedings would negatively influence arbitration processes. Milton currently remains liable for an outstanding $168 million arbitration award related to earlier deceitful statements made during his tenure as Nikola’s CEO.
This award is central to Nikola’s current bankruptcy strategy. Before filing for Chapter 11 bankruptcy, Nikola reached a settlement with shareholders who filed a class-action suit against the company, promising them proceeds from Milton’s arbitration judgment as part of the settlement’s funding.
While Lucid finalizes its purchase, Nikola continues efforts to liquidate its remaining assets, including a collection of hydrogen-powered trucks and miscellaneous equipment.
Milton’s representative offered no immediate public comment following the hearing’s conclusion.
