Lucid Motors Acquires Nikola’s Arizona Facilities for $30M Post-Bankruptcy: A Strategic Expansion for EV Production

On April 13, 2025, Lucid Motors seized a pivotal opportunity by acquiring the Arizona facilities of Nikola, a once-hyped electric vehicle (EV) and hydrogen truck manufacturer, for $30 million following Nikola’s Chapter 11 bankruptcy filing in February. The deal, announced on April 13, 2025, encompasses Nikola’s truck business and customer relationships, providing Lucide with 884,000 square feet of additional space, a fully equipped factory, and access to a skilled workforce, reports AutoBlog. This acquisition marks a strategic move for Lucid to bolster its manufacturing capabilities in Arizona, a region increasingly central to the EV industry’s growth.

A Neighbor’s Misfortune Becomes Lucid’s Gain

Nikola, based in Phoenix, had been grappling with years of turmoil, including electric truck recalls, cash burn, and the fraud conviction of its founder, Trevor Milton. Despite its modern facilities, the brand struggled to gain traction, ultimately leading to its bankruptcy filing. Lucid, already established in Arizona with its Casa Grande plant—where it builds the high-performance Air sedan and the new Gravity SUV—saw an opportunity to expand its footprint. The acquisition includes Nikola’s Coolidge manufacturing plant and its former Phoenix headquarters, both outfitted with high-end development tools such as battery testing chambers, chassis dynamometers, and machining equipment.

The $30 million price tag, while significant, is considered a bargain by industry watchers. Building a new facility of comparable size and capability would likely cost several times that amount, given the current costs of construction, equipment, and labor. This acquisition not only saves Lucid on capital expenditure but also accelerates its ability to scale production to meet growing demand for its luxury EVs.

Lucid Bolsters Production Capacity and Workforce

The acquisition adds substantial infrastructure to Lucid’s operations. The Coolidge plant alone spans 884,000 square feet (approximately 82,125 square meters), providing ample room for manufacturing, warehousing, and testing. Additionally, Lucid gains access to a workforce of over 300 former Nikola employees, many of whom bring experience in EV manufacturing.

Interim CEO Marc Winterhoff emphasized the strategic value of this move, stating, “This is an opportunity to strategically expand our manufacturing, warehousing, testing, and development facilities while supporting our local Arizona community.”

These new roles will span engineering, vehicle testing, assembly, and software development—skills that align directly with Lucid’s growing product pipeline. The company, backed by Arabie Saoudite‘s Public Investment Fund, is preparing to launch a new midsize vehicle platform aimed at more affordable EVs. The additional space and talent acquired from Nikola will support this ramp-up, positioning Lucid to compete more effectively in a crowded EV market.

Strategic Expansion in Arizona’s EV Hub

Arizona has emerged as a key hub for EV manufacturing, with its favorable climate, access to renewable energy, and business-friendly policies attracting companies like Lucid, Nikola, and others. Lucid’s existing Casa Grande plant, operational since 2020, has been a cornerstone of its production strategy. The addition of Nikola’s facilities in Coolidge and Phoenix further solidifies Lucid’s presence in the region, creating a robust network of manufacturing and development sites.

The Coolidge plant, located approximately 50 miles (80 kilometers) southeast of Phoenix, is well-suited for industrial operations, with its proximity to major highways and a skilled labor pool. The Phoenix headquarters, meanwhile, offers additional office and testing space, which Lucid can leverage for research and development. This expansion aligns with broader industry trends, as companies seek to localize production in the U.S. to mitigate supply chain risks and qualify for federal EV tax credits under the Inflation Reduction Act.

Financial and Market Implications

While Lucid remains unprofitable and reliant on steady funding—primarily from its Saudi backers—the company is in a stronger financial position than Nikola ever was. The $30 million acquisition cost (approximately 28 million euros) is a fraction of what Nikola invested in its facilities, which were built during a period of high optimism for the company. Industry analysts see this as a savvy move for Lucid, allowing it to scale without the burden of excessive capital expenditure.

However, challenges persist. Competitors such as Tesla, Rivian, and legacy automakers like Ford and GM are also ramping up production, intensifying price competition, particularly for premium models like Lucid’s Air sedan, which starts at $69,900. Lucid’s focus on a more affordable midsize platform is a step in the right direction, but the company must navigate the road to profitability—a journey Nikola never completed.

Regulatory considerations also loom large. While Arizona offers a supportive environment for EV manufacturers, federal policies around emissions standards, battery production, and labor requirements could impact Lucid’s operations. The company will need to ensure compliance with the Inflation Reduction Act’s domestic production rules to maximize tax credits for its customers, a factor that could influence its production strategy at the newly acquired facilities.

EVXL’s Take: A Calculated Move with Long-Term Potential

Lucid’s acquisition of Nikola’s assets is a calculated step that underscores its commitment to scaling production and competing in the evolving EV market. By securing modern facilities at a fraction of their original cost, Lucid gains a significant advantage in terms of infrastructure and workforce, positioning itself to meet future demand more efficiently. The focus on hiring experienced Nikola employees is particularly noteworthy, as it ensures continuity and leverages existing expertise in EV manufacturing.

Yet, we remain cautiously optimistic. Lucid’s reliance on external funding and its lack of profitability raise questions about its long-term sustainability, especially in a market where consumer preferences are shifting toward more affordable models. The acquisition signals confidence and a clear intent to survive the industry’s current turbulence, but Lucid must execute flawlessly to turn this opportunity into a competitive edge. As demand for EVs grows and the market matures, having the infrastructure to scale quickly could set Lucid apart—provided it can navigate the financial and regulatory hurdles ahead.

This move shows Lucid is planning not just to survive, but to lead in the next chapter of the EV evolution. The coming years will reveal whether this acquisition marks the beginning of a new era for Lucid or merely a footnote in the industry’s ongoing consolidation.