EV Startup Lucid Motors has emerged as a surprising winner in bankruptcy auctions for electric trucking company Nikola’s Arizona Factory and other assets, according to a court application later Thursday night.
Lucid has committed about $30 million in cash and non-cash considerations in exchange for a factory, Nikola’s lease at Nikola’s Phoenix headquarters, and “specific machines, equipment, inventory,” according to the filing.
As part of the deal, Lucid plans to offer around 300 former Nicola employees, the company told TechCrunch.
The sudden appearance of MikID in the Nicola bankruptcy proceedings is shocking for multiple reasons.
Nicola has been trying to sell the entire business ever since filing for bankruptcy protection in February. Lucid focuses on the manufacture of passenger EVs and has never dealt with hydrogen-powered electric vehicles, a big part of Nicola’s new business.
More recently, Nicola founder Trevor Milton, who was convicted of fraud in 2022 but was forgiven by President Trump in March, was assessing his own bid on the startup’s assets. Nicola persuaded the court to block Milton from examining the factory and other assets ahead of the auction held on April 7th.
Lucid has its own factory in Casa Grande, near Arizona, so it’s worth gaining more warehouse space, test equipment and employees, according to the company.
Lucid was the top bidder for these assets at auction, but the bankruptcy judge has permitted him to challenge the sale until 12pm on Friday, April 11th.
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