On Thursday, April 10, 2025, Lucid Motors emerged victorious in the bankruptcy auction for Nikola Corporation’s Arizona factory and other assets, according to a court filing.
The electric vehicle startup committed roughly $30 million in cash and non-cash considerations to acquire the factory, Nikola’s lease on its Phoenix headquarters, and various machinery, equipment, and inventory.
Lucid also plans to offer jobs to about 300 former Nikola employees, the company told TechCrunch, signaling a commitment to both growth and the local workforce.
This acquisition caught many off guard for several reasons. Nikola, a company focused on hydrogen-powered electric trucks, has been trying to sell its entire business since filing for bankruptcy protection in February.
Lucid, known for its luxury passenger EVs like the Air sedan, operates in a completely different corner of the EV market.
The idea of Lucid snapping up a factory tied to heavy-duty trucks raised eyebrows, but the move makes sense when you consider Lucid’s existing operations.
With a factory already in nearby Casa Grande, Arizona, Lucid sees the extra space as valuable for warehousing, testing equipment, and expanding its footprint.
The auction itself wasn’t without drama. Nikola’s founder, Trevor Milton, who was convicted of fraud in 2022 but pardoned by President Trump in March 2025, had been exploring a bid to reclaim his company’s assets.
Nikola’s team moved quickly to block Milton from inspecting the factory and other assets in person before the April 7 auction, a decision the court upheld.
Lucid’s winning bid sidestepped Milton’s potential comeback, keeping the focus on a more stable transition for the assets.
For Lucid, this deal is a strategic opportunity. The additional infrastructure could help the company scale up production or explore new projects, all while staying rooted in Arizona’s growing EV hub. Offering jobs to Nikola’s former workers also shows Lucid’s confidence in its long-term plans.
For Nikola, the $30 million infusion offers some relief as it navigates bankruptcy, though the loss of its factory and headquarters lease marks a significant step back. The company’s next steps remain unclear, but this sale provides at least a partial path forward.
The deal isn’t fully sealed yet. The bankruptcy judge has set a deadline of 12:00 p.m. ET on Friday, April 11, for objections to the sale, with a hearing scheduled for 1:30 p.m. ET. Unless major challenges arise, Lucid is poised to take control of the assets soon, marking a new chapter for both companies.
This acquisition underscores the unpredictable nature of the EV industry. While giants like Tesla often dominate the spotlight, smaller players like Lucid and Nikola are carving their own paths, sometimes in unexpected ways.
Lucid’s decision to capitalize on Nikola’s misfortune shows a willingness to seize opportunities, even in unfamiliar territory. Meanwhile, Nikola’s struggles highlight the risks of betting big on emerging technologies like hydrogen power.
Arizona stands to benefit as well. With Lucid doubling down on its presence, the state could see more jobs and investment, cementing its role as a key player in EV manufacturing. As the court prepares to review the sale, the industry is watching closely to see how this deal reshapes the landscape.
Will Lucid turn this acquisition into a springboard for growth? Or will Nikola find a way to rebound from this setback? For now, Lucid’s bold move has everyone talking, proving once again that the EV world is full of surprises.
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