Lucid Motors has won a bankruptcy auction for key assets of Nikola Corporation, including the embattled truck maker’s Arizona manufacturing plant and other facilities, in a move that bolsters Lucid’s production capabilities amid intensifying EV market competition.
The acquisition includes Nikola’s Coolidge manufacturing facility, its Phoenix headquarters lease, and select equipment and inventory. Lucid secured the deal with a bid of approximately $30 million in cash and non-cash considerations. The EV startup, backed by Saudi Arabia’s Public Investment Fund, will also offer employment to over 300 former Nikola workers—an effort to preserve skilled labor while accelerating Lucid’s manufacturing scale.
The Coolidge facility adds more than 884,000 square feet to Lucid’s Arizona footprint, significantly expanding its manufacturing and warehousing operations. This expansion aligns with Lucid’s long-term strategy to diversify its production capacity beyond its Casa Grande plant, as it seeks to ramp up output of its electric sedans and SUVs.
Nikola, once a rising player in the zero-emissions trucking industry, filed for bankruptcy protection in late 2023 after years of financial turmoil and executive controversy. The sale of its assets marks a turning point for the company, while offering Lucid a rare opportunity to gain operational infrastructure at a discount.
The timing of the acquisition is crucial. Lucid is navigating a turbulent EV market marked by high capital burn and waning investor enthusiasm. The deal not only gives Lucid a physical boost in production scale, but also signals confidence in its long-term viability—particularly as the company looks to widen its product lineup and improve delivery timelines.
As competition from legacy automakers and startups alike continues to heat up, Lucid’s acquisition of Nikola’s Arizona assets could prove pivotal in the company’s effort to stay competitive and scale efficiently in a consolidating electric vehicle landscape.
