Lucid Group, Inc ( LCID ) announced Friday that it has agreed to acquire select facilities and assets in Arizona previously belonging to Nikola Corp ( NKLAQ ) in the bankruptcy auction.

Lucid committed close to $30 million in cash and non-cash considerations in exchange for the factory, Nikola's ( NKLAQ ) lease on its Phoenix headquarters, and "certain machinery, equipment and inventory," as per a Thursday night court filing.

Tesla Inc ( TSLA ) rival Lucid will take over Nikola's ( NKLAQ ) former Coolidge manufacturing facility (680 E Houser Rd, Coolidge, AZ) and the Phoenix facility (4141 E Broadway Rd, Phoenix, AZ) previously used as Nikola's ( NKLAQ ) headquarters and product development center.

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These buildings add more than 884,000 square feet to Lucid's Arizona footprint. Most of this space comprises state-of-the-art manufacturing and warehousing buildings, which executes against Lucid's prior planned expansion in Arizona.

These facilities include development equipment with extensive battery and environmental testing chambers, a full-size chassis dynamometer, machining equipment, and more.

The deal is subject to approval by the U.S. Bankruptcy Court for the District of Delaware.

The deal does not include acquiring Nikola's ( NKLAQ ) business, customer base, or technology related to Nikola's ( NKLAQ ) 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. Lucid welcomes employees with strong backgrounds in EV technology and further supports its local community.

Nikola's ( NKLAQ ) bankruptcy auction concluded on April 10, 2025, as part of its filing for Chapter 11 bankruptcy relief. Nikola's ( NKLAQ ) troubles began back in 2020 when short-seller Hindenburg accused it of fraud, followed by the conviction of former CEO Trevor Milton for lying about the company.

Hindenburg highlighted Nikola's ( NKLAQ ) video titled "Nikola One in Motion," alleging that the company towed the truck to the top of a hill and released it instead of being driven at high speed. 

In December 2023, Milton was convicted of fraud after a jury found he had lied persistently about the company. The subsequent investigation led to Milton's conviction on fraud charges in 2022 and a four-year prison sentence.

In April 2024, Milton alleged Nikola's ( NKLAQ ) board of rampant misconduct and potential fraud. He also sought the resignation of then-CEO Steve Girsky and those involved in their decisions, as failing to do so might make the company go bankrupt by year-end.

In June 2024, Milton filed a multi-billion derivative lawsuit against the company's chief legal officer, Britton Worthen, and its directors.

Reportedly, electric vehicle companies that went public during the pandemic, including Fisker, Lordstown Motors, and Proterra, went bankrupt as funding for their operations declined amid rising interest rates and decreasing demand.

Last week, Lucid announced the pricing of its private institutional offering of $1 billion aggregate principal amount of 5.00% convertible senior notes due 2030 for buyback of earlier debt due in 2026.

Lucid held $1.61 billion in cash and equivalents as of December 31, 2024.

Price Action: LCID stock is up 1.59% at $2.56 premarket at last check Friday.

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