It’s an ill wind indeed that doesn’t blow something good someone’s way. Back in 2010, an opportunity to buy a factory in Fremont, California at a bargain-basement price gave a certain EV startup a huge leg up. Now EV pioneer Lucid Motors appears to have pulled off a similar coup, buying an Arizona factory and other assets from bankrupt company Nikola.
Lucid laid down some $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,” according to a court filing. Experts have estimated that Lucid would have spent several times that sum to build a new factory. The facilities Lucid bought are near its existing factory in Casa Grande, Arizona.
As part of the deal, Lucid will offer to hire around 300 former Nikola employees, the company told TechCrunch. Positions will be offered to both salaried and hourly employees in manufacturing, engineering, software, assembly, vehicle testing and warehouse support.
“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, Lucid’s interim CEO.
Nikola had a colorful history—it was an early proponent of hydrogen fuel cell vehicles before partially pivoting to BEVs. (Lucid wisely chose not to acquire any of Nikola’s hydrogen-related assets.) Some of the company’s claims turned out to be a bit fanciful, and founder Trevor Milton was convicted of fraud in 2022. (He received an executive pardon in March.)
Source: TechCrunch