Lucid Acquires Select Nikola Assets in Arizona Move
Deal News | Apr 11, 2025 | Zawya
California-based Lucid Group has announced its acquisition of select assets and facilities belonging to the bankrupt electric and hydrogen-powered truckmaker, Nikola Corp., based in Arizona. This transaction notably excludes Nikola's business, client assets, or technology related to its hydrogen fuel cell electric trucks. As part of the acquisition, Lucid plans to hire over 300 former Nikola employees from various departments across these Arizona-based facilities. Nikola previously filed for Chapter 11 bankruptcy in February, citing financial difficulties including low demand and cash flow issues. The decision to sell its assets was aimed at maximizing value amidst a turbulent market. Meanwhile, Nikola founder Trevor Milton was pardoned by President Trump after being sentenced for fraud. The acquisition by Lucid illustrates a strategic maneuver to bolster its capabilities in the electric vehicle market.
Sectors
- Electric Vehicles
- Bankruptcy and Restructuring
Geography
- United States – The article focuses on companies based in the U.S., namely Lucid Group in California and Nikola Corp. in Arizona.
- Arizona – Specific state where Nikola's facilities and some assets are located and being acquired by Lucid Group.
- California – The state where Lucid Group is headquartered and from where it orchestrates its business expansions.
Industry
- Electric Vehicles – The primary focus of both Lucid Group and Nikola Corp., involved in the manufacturing and development of electric vehicles.
- Bankruptcy and Restructuring – Nikola Corp filed for Chapter 11 bankruptcy protection, leading to asset restructuring and acquisition opportunities.
Financials
- – No specific financial figures mentioned regarding the transaction or the acquisition
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lucid Group | Acquirer | Company | An electric vehicle manufacturer based in California, acquiring facilities and assets from Nikola Corp. |
| Nikola Corp. | Target Company | Company | An Arizona-based electric and hydrogen-powered truckmaker that filed for bankruptcy. |
| Trevor Milton | Founder of Nikola Corp. | Person | Founder who was sentenced for fraud and recently pardoned by the U.S. President. |
| U.S. Government | Government | Government | Involved in the pardon of Nikola's founder, underscoring a notable political dimension. |