Lucid to Acquire Select Facilities and Assets Previously Belonging to Nikola Corporation, Will Extend Offers to 300+ Former Nikola Employees

Rhea-AI Summary

Lucid Group (LCID) has announced an agreement to acquire select facilities and assets previously owned by Nikola in Arizona, pending U.S. Bankruptcy Court approval. The acquisition includes Nikola's former Coolidge manufacturing facility and Phoenix headquarters, adding over 884,000 square feet to Lucid's Arizona footprint.

The deal excludes Nikola's business, customer base, and hydrogen fuel cell electric truck technology. The facilities feature state-of-the-art manufacturing and warehousing buildings, development equipment, battery testing chambers, and a chassis dynamometer. Additionally, Lucid plans to extend employment offers to more than 300 former Nikola employees across various technical roles.

The acquisition follows Nikola's Chapter 11 bankruptcy auction conclusion on April 10, 2025. Interim CEO Marc Winterhoff stated the expansion will support Lucid's production ramp of Gravity and upcoming midsize platform vehicles while maintaining their commitment to the Arizona community.

Positive

• Acquisition of 884,000 square feet of state-of-the-art manufacturing and warehousing facilities
• Access to advanced development and testing equipment
• Strategic expansion supporting Lucid Gravity production and midsize platform vehicles
• Immediate access to 300+ skilled EV industry workers

Negative

• Additional capital expenditure for facility acquisition during bankruptcy proceedings
• Integration costs and potential operational disruptions during facility transition

Insights

Manufacturing & Operations Strategist

Lucid's acquisition of Nikola's former facilities represents a significant manufacturing capacity expansion with immediate operational benefits. By securing 884,000 square feet of existing facilities in Arizona, Lucid gains ready-to-use infrastructure without the typical 18-24 month construction timeline for new facilities – critical for scaling production of their Gravity SUV and planned midsize platform vehicles.

The acquired assets include specialized EV manufacturing equipment that would typically require substantial lead time to procure and install, including battery testing chambers, environmental testing facilities, and a chassis dynamometer. These turnkey capabilities will accelerate Lucid's production capabilities and quality control processes at a time when manufacturing scale is crucial to their business model.

From a workforce perspective, the ability to onboard 300+ former Nikola employees with established EV manufacturing experience creates immediate operational value. This technical talent acquisition bypasses lengthy recruitment and training cycles, further accelerating Lucid's manufacturing capabilities in a seamless manner.

The strategic consolidation of manufacturing footprint in Arizona creates operational efficiencies through geographic concentration, potentially streamlining supply chain logistics and creating economies of scale. This transaction executes against Lucid's previously planned expansion in Arizona, suggesting it aligns with their established manufacturing strategy while opportunistically accelerating the timeline.

Corporate Finance Analyst

This asset acquisition through bankruptcy proceedings represents an astute strategic move by Lucid. While financial terms weren't disclosed, acquiring facilities and equipment through Nikola's Chapter 11 proceedings potentially allows Lucid to secure these assets at favorable valuations compared to market rates for comparable facilities.

The transaction structure – acquiring only select physical assets while avoiding Nikola's business operations, customer contracts, and technology related to hydrogen fuel cells – minimizes integration risks and potential liabilities. This targeted approach demonstrates disciplined capital allocation by interim CEO Marc Winterhoff, focusing exclusively on assets that directly support Lucid's existing business model and production needs.

The workforce component is equally strategic. By extending offers to 300+ former Nikola employees, Lucid secures technical talent with specialized EV manufacturing experience who are already familiar with the acquired facilities. This reduces onboarding costs and accelerates time-to-productivity for these assets.

For shareholders, this transaction potentially enhances Lucid's production scalability without the full capital expenditure of new construction. The company's ability to execute opportunistic transactions during the bankruptcy proceedings of another EV manufacturer demonstrates management's capacity to identify and secure strategic assets that support their production ramp for Gravity and development of future vehicle platforms.

NEWARK, Calif., April 11, 2025 /PRNewswire/ -- Lucid Group, Inc. (Nasdaq: LCID), maker of the world's most advanced electric vehicles, today announced it has reached an agreement to acquire select facilities and assets in Arizona previously belonging to Nikola Corporation, subject to approval by the U.S. Bankruptcy Court for the District of Delaware. The transaction does not include the acquisition of Nikola's business, customer base, or technology related to Nikola's hydrogen fuel cell electric trucks.

Additionally, Lucid plans to offer employment to more than 300 former Nikola employees in roles across Lucid's Arizona facilities. These offers will encompass various technical salaried and hourly positions including manufacturing engineering, software, assembly, vehicle testing, and warehouse support as Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community.

As part of the agreement, Lucid will take over Nikola's former Coolidge manufacturing facility (680 E Houser Rd, Coolidge, AZ), as well as the Phoenix facility (4141 E Broadway Rd, Phoenix, AZ) previously used as Nikola's headquarters and product development center. These buildings collectively add more than 884,000 square feet to Lucid's Arizona footprint. Most of this space is comprised of state-of-the-art manufacturing and warehousing buildings, which executes against Lucid's prior planned expansion in Arizona. These facilities also include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more.

Lucid's agreement to acquire the aforementioned assets follows Nikola's bankruptcy auction which concluded on April 10, 2025, as part of its filing for Chapter 11 bankruptcy relief.

"As we continue our production ramp of Lucid Gravity and prepare for our upcoming midsize platform vehicles, acquiring these assets is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community," said Marc Winterhoff, Interim CEO at Lucid. "We are delighted to extend employment offers to more than 300 former employees, who bring valuable industry experience, and together with our outstanding teams, will continue powering Lucid's industry-leading innovation."

"Today's announcement is fantastic news for Arizona workers and our state's growing EV and battery manufacturing industry," said Arizona Governor Katie Hobbs. "Arizona is the proud home of Lucid's advanced EV manufacturing lines – and this acquisition promises to strengthen Lucid's operations while offering continued employment to hundreds of skilled workers in our state."

"I am honored to work with the local Lucid team to support the asset acquisition efforts of Nikola Corporation in my hometown of Coolidge," said Arizona state Senator T.J. Shope. "This investment will be instrumental in helping those impacted by job loss to regain employment by Lucid and further solidify Lucid's commitment to growth in Pinal County and our state, by utilizing the Coolidge facility for Lucid manufacturing operations."

 About Lucid Group

Lucid (NASDAQ: LCID) is a Silicon Valley-based technology company focused on creating the most advanced EVs in the world. The award-winning Lucid Air and new Lucid Gravity deliver best-in-class performance, sophisticated design, expansive interior space and unrivaled energy efficiency. Lucid assembles both vehicles in its state-of-the-art, vertically integrated factory in Arizona. Through its industry-leading technology and innovations, Lucid is advancing the state-of-the-art of EV technology for the benefit of all.

Media Contact

media@lucidmotors.com

Forward-Looking Statements

This communication includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "shall," "expect," "anticipate," "believe," "seek," "target," "continue," "could," "may," "might," "possible," "potential," "predict" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding Lucid's expectations related to offers of employment and the planned acquisition of facilities and assets. These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Lucid's management. These forward-looking statements are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from these forward-looking statements. Many actual events and circumstances are beyond the control of Lucid. These forward-looking statements are subject to a number of risks and uncertainties, including those factors discussed under the heading "Risk Factors" in Part I, Item 1A of Lucid's Annual Report on Form 10-K for the year ended December 31, 2024, as well as other documents Lucid has filed or will file with the Securities and Exchange Commission. If any of these risks materialize or Lucid's assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Lucid currently does not know or that Lucid currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Lucid's expectations, plans or forecasts of future events and views as of the date of this communication. Lucid anticipates that subsequent events and developments will cause Lucid's assessments to change. However, while Lucid may elect to update these forward-looking statements at some point in the future, Lucid specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Lucid's assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

 

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SOURCE Lucid Group

FAQ

What facilities did Lucid (LCID) acquire from Nikola's bankruptcy auction?

Lucid acquired Nikola's former Coolidge manufacturing facility and Phoenix headquarters, adding 884,000 square feet of manufacturing and warehousing space in Arizona.

How many former Nikola employees will Lucid (LCID) hire after the acquisition?

Lucid plans to extend employment offers to more than 300 former Nikola employees across various technical roles in their Arizona facilities.

What manufacturing capabilities will Lucid (LCID) gain from this acquisition?

Lucid gains state-of-the-art manufacturing facilities, battery testing chambers, a chassis dynamometer, machining equipment, and development infrastructure.

What vehicles will benefit from Lucid's (LCID) facility expansion?

The expansion will support production of the Lucid Gravity and upcoming midsize platform vehicles.

When did Nikola's bankruptcy auction conclude for Lucid's (LCID) acquisition?

Nikola's bankruptcy auction concluded on April 10, 2025.