In an unexpected move, California-based Lucid Group announced today it has acquired bankrupt hydrogen-powered truck manufacturer Nikola Motors' Arizona factory and other critical assets. It will also offer jobs to 300 Nikola employees.
"Lucid Group, Inc. (LCID), maker of the world’s most advanced electric vehicles, today announced it has reached an agreement to acquire select facilities and assets in Arizona previously belonging to Nikola Corporation, subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction does not include the acquisition of Nikola’s business, customer base, or technology related to Nikola’s hydrogen fuel cell electric trucks," the company stated in a press release.
[Related: Nikola Motors, once a Wall Street darling, files for bankruptcy]
Conveniently, Lucid's own Arizona factory, which produces the Air and Gravity luxury EVs, is about 25 miles away from Nikola's currently shuttered Coolidge facility. The agreement also calls for Lucid to take over Nikola's Phoenix headquarters.
"These buildings collectively add more than 884,000 square feet to Lucid’s Arizona footprint. Most of this space is comprised of state-of-the-art manufacturing and warehousing buildings, which executes against Lucid’s prior planned expansion in Arizona," the release adds. "These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more."
The deal is valued at $30 million in cash and non-cash considerations. As mentioned, Lucid intends to bring back 300 former Lucid employees.
"Additionally, Lucid plans to offer employment to more than 300 former Nikola employees in roles across Lucid’s Arizona facilities. These offers will encompass various technical salaried and hourly positions including manufacturing engineering, software, assembly, vehicle testing, and warehouse support as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community."
Lucid reportedly beat out three other unknown bidders in the auction that began on April 7. Supposedly, Nikola founder, Trevor Milton, also attempted to make a bid to buy back his former company following his presidential pardon in March after being convicted back in 2022 for securities fraud in federal court.
[Related: Trump pardons Nikola founder, convicted felon Trevor Milton]
Not part of the deal are Nikola's customer base and technologies related to its hydrogen fuel cell electric trucks. Lucid did not offer specifics as to what it intends to build at the former Nikola facility, though Interim CEO Marc Winterhoff did provide a hint.
“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."
In response to these events, Nikola Tre hydrogen owner and operator, Bill Hall, told Clean Trucking that Nikola's retention of its hydrogen business "leaves owners none the wiser as to how we will sustain our vehicles. There is still the matter of the hydrogen fuel business and the Class 8 truck business."
Nikola announced in February it intended to file for Chapter 11 bankruptcy following several months of disappointing financial reports and vehicle recalls, specifically fire-related concerns regarding its battery-electric semi.
