In a surprising but calculated move, Lucid Group, Inc. (NASDAQ: LCID), a leader in luxury electric vehicles, has agreed to acquire critical assets and real estate previously owned by Nikola Corporation. The transaction, valued at $30 million in combined cash and non-cash considerations, is still subject to approval by the U.S. Bankruptcy Court for the District of Delaware.
Lucid’s acquisition includes Nikola’s 884,000-square-foot manufacturing and warehousing facility in Coolidge, Arizona, along with its Phoenix headquarters. These additions nearly double Lucid’s Arizona footprint and align with its previously announced expansion plans, particularly as it ramps up production of the Lucid Gravity SUV and prepares for upcoming midsize EV platforms.
“These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more,” Lucid stated in a press release.
Strategic Workforce Integration
In a move that demonstrates both strategic foresight and community engagement, Lucid plans to hire over 300 former Nikola employees. These positions will span a wide range of technical and manufacturing disciplines, including assembly, vehicle testing, software, engineering, and warehouse support. By integrating skilled personnel familiar with EV manufacturing processes, Lucid strengthens its operational capabilities while supporting workers displaced from Arizona’s EV sector.
“These offers will encompass various technical salaried and hourly positions…as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community,” the company added.
The Future of the Nikola Hydrogen Business
While Lucid’s acquisition includes real estate and equipment, it explicitly excludes Nikola’s hydrogen fuel cell technologies and customer relationships. This carve-out leaves unanswered questions about the future of Nikola’s hydrogen business.
Bill Hall, a Nikola Tre hydrogen truck owner, expressed concerns in an interview with Clean Trucking, stating, “Nikola’s retention of its hydrogen business leaves owners none the wiser as to how we will sustain our vehicles.”
Nikola’s ongoing struggles compound these concerns. In February, the company filed for Chapter 11 bankruptcy after a string of troubling financial reports and recalls, most notably, fires involving its battery-electric trucks.
A Turnaround with Competitive Implications
Lucid reportedly emerged victorious over three unnamed bidders, including a surprising bid from Nikola’s founder, Trevor Milton, who is controversial. Recently pardoned after a 2022 conviction for securities fraud, Milton had attempted to reacquire his former company during the bankruptcy proceedings.
Lucid’s acquisition not only accelerates its production ambitions but also reinforces Arizona’s status as an emerging hub for advanced electric vehicle manufacturing. By adding capacity, skilled labor, and testing capabilities, Lucid is positioning itself to meet increasing market demand and challenge traditional automakers with a broader, more scalable EV portfolio.
“As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles,” said Interim CEO Marc Winterhoff, “acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community.”
Conclusion
While Nikola’s hydrogen-powered future hangs in the balance, Lucid has seized a rare opportunity to grow during a time of industry consolidation. With added infrastructure, experienced personnel, and strategic proximity to its existing facilities, Lucid’s acquisition underscores its vision for growth and leadership in the electric vehicle (EV) sector.