n Thursday, a night court filing mentioned that the electric vehicle startup Lucid Motors has emerged as a superior winner in the bankruptcy auction for
electric trucking company Nikola’s Arizona factory and other assets.
The company has committed around $30 million in cash and non-cash considerations in exchange for the factory, Nikola’s lease on its Phoenix headquarters, and “certain machinery, equipment, and inventory,” as the filing mentioned. Even more so, as part of the deal, Lucid is also planning to make offers to around 300 former employees, as it was reported by TechCrunch.
The sudden change in Lucid for Nikola's bankruptcy proceedings is a shock for multiple reasons. Even more so, Nikola had also been trying to sell its whole business since it filed for bankruptcy protection in February. Lucid also has its focus on making passenger EVs, and has never before dealt with hydrogen-powered electric vehicles.
Nikola had also been trying to sell its whole business since it filed for bankruptcy protection in February. Lucid focus is now on creating passenger EVs, and ever since then, it has never dealt with hydrogen-powered electric vehicles, which stands for a big piece of Nikola’s nascent business.
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Even more so, recently, the company’s founder, Trevor Milton, who was convicted of fraud in 2022, however pardoned by President Donald Trump in March of this year, was also evaluating a personal bid on the startup’s assets. Nikola also convinced the court to block Milton from inspecting the factory’s premises and other assets in person ahead of the auction, which was held April 7.
A factory near Casa Grande, Arizona, is also held by Lucid, and it seems like the company has acquired more warehousing space, also for testing equipment, and employees, according to the company.
Lucid also said that the top bidder for these assets that were mentioned in the action, the bankruptcy judge will allow objections when it comes to the sale that was filed until 12:00 p.m. ET on Friday. A hearing has also been scheduled for 1:30 p.m. ET, reported TechCrunch.
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