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Lucid Group, Inc. (NASDAQ:LCID) has announced its intention to acquire specific facilities and assets located in Arizona that were previously owned by Nikola Corp (OTC:NKLAQ) during a recent bankruptcy auction.
The agreement involves a significant financial commitment from Lucid, putting forth nearly $30 million in cash and non-cash considerations. This sum will secure the factory, Nikola’s lease on its headquarters in Phoenix, along with various machinery, equipment, and inventory, according to a court filing submitted on Thursday evening.
As Lucid positions itself as a competitor to Tesla Inc. (NASDAQ:TSLA), the acquisition includes Nikola’s former manufacturing site in Coolidge, Arizona (680 E Houser Rd) and its prior headquarters and product development center located in Phoenix (4141 E Broadway Rd).
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This acquisition will expand Lucid’s operational footprint in Arizona by over 884,000 square feet, primarily comprising advanced manufacturing and warehousing facilities, aligning with Lucid’s earlier expansion plans in the state.
Included in the facilities are various pieces of development equipment featuring comprehensive battery and environmental testing chambers, a full-size chassis dynamometer, machining tools, and more.
The execution of this agreement is pending approval from the U.S. Bankruptcy Court for the District of Delaware.
It’s important to note that this transaction does not involve the acquisition of Nikola’s operating business, its customer base, or any technology associated with Nikola’s hydrogen fuel cell electric trucks.
In a significant move, Lucid intends to extend job offers to more than 300 former Nikola employees for various roles across its Arizona operations. Available positions will span a range of technical salaried and hourly jobs, including roles in manufacturing engineering, software development, assembly, vehicle testing, and warehouse support, emphasizing Lucid’s commitment to integrating experienced individuals into its workforce.
The recent bankruptcy auction for Nikola concluded on April 10, 2025, as part of the company’s filing for Chapter 11 bankruptcy. Nikola’s challenges began in 2020 following allegations of fraud from the short-seller Hindenburg and were compounded by the subsequent conviction of former CEO Trevor Milton for misleading statements about the company.
In December 2023, Milton was found guilty of fraud after a jury concluded he had repeatedly lied regarding company operations. This led to a subsequent investigation which resulted in a four-year prison sentence for Milton in 2022.
Milton raised concerns in April 2024 about alleged misconduct within Nikola’s board, claiming that the continued presence of certain executives could lead to further financial distress for the company.
In June 2024, he initiated a multi-billion dollar derivative lawsuit against Nikola’s chief legal officer and board members, signaling an ongoing struggle within the company.
Many other electric vehicle manufacturers that went public during the pandemic, such as Fisker, Lordstown Motors, and Proterra, have faced similar challenges as funding availability has dwindled amidst rising interest rates and waning consumer demand.
Recently, Lucid announced a private institutional offering amounting to $1 billion in aggregate principal for 5.00% convertible senior notes maturing in 2030 to improve its financial flexibility and facilitate the buyback of earlier debts due in 2026.
As of December 31, 2024, Lucid reported it held $1.61 billion in cash and cash equivalents.
Price Action: At the latest premarket check, LCID shares had risen by 1.59% to $2.56.
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