In a strategic move to enhance its manufacturing infrastructure, Lucid Motors has successfully acquired select facilities and assets in Arizona previously owned by the bankrupt electric and hydrogen-powered truck manufacturer, Nikola Corporation. This acquisition encompasses Nikola’s factory in Coolidge, Arizona, and its lease on the Phoenix headquarters, along with specific machinery, equipment, and inventory. Notably, the transaction excludes Nikola’s business operations, customer relationships, and hydrogen fuel cell technology.
Details of the Acquisition
Lucid Motors committed approximately $30 million in cash and non-cash considerations for these assets. The company plans to extend employment offers to over 300 former Nikola employees, encompassing both salaried and hourly positions across various departments, including manufacturing engineering, software development, assembly, vehicle testing, and warehouse support. This initiative underscores Lucid’s commitment to leveraging local talent and expertise to strengthen its operational capabilities.
Strategic Implications for Lucid Motors
This acquisition aligns with Lucid’s broader strategy to expand its manufacturing footprint in Arizona. The company has been actively enhancing its Advanced Manufacturing Plant (AMP-1) in Casa Grande, Arizona. The expansion includes a new manufacturing facility, warehouse, and vertically integrated stamping facility, increasing the plant’s total size to over 3.85 million square feet. This development is pivotal as Lucid prepares for the production of its forthcoming Gravity SUV, scheduled for launch in late 2024 with a base price under $80,000.
Background on Nikola Corporation
Nikola Corporation, headquartered in Phoenix, Arizona, filed for Chapter 11 bankruptcy protection in February 2025. The company faced significant challenges, including low demand, high cash burn, and funding difficulties. Nikola’s transition from battery-powered to hydrogen-powered electric trucks was marred by setbacks, notably vehicle recalls in 2023 due to fire hazards. Additionally, the company’s founder, Trevor Milton, was convicted of fraud and sentenced to four years in prison in 2023, though he was recently pardoned by former U.S. President Donald Trump.
Lucid’s Manufacturing Expansion in Arizona
Lucid’s acquisition of Nikola’s assets is part of a broader effort to establish Arizona as a hub for electric vehicle manufacturing. The company’s AMP-1 facility in Casa Grande is undergoing significant expansion, with plans to increase its size by approximately 3 million square feet. This expansion includes the addition of a new general assembly line, quality and semi-knock-down centers, larger paint and body shops, a relocated and expanded powertrain facility, and a relocated logistics center. These enhancements are designed to support the production of the Lucid Gravity SUV and future vehicle models.
Economic Impact and Job Creation
The expansion of Lucid’s manufacturing facilities is expected to have a substantial economic impact on the region. The company anticipates creating approximately 4,800 direct and indirect jobs by 2029. This growth is projected to result in over $700 million in capital investment by Lucid by the mid-2020s and an estimated $32 billion revenue impact for the city and county over a 20-year period. Additionally, training programs and new curriculums at local community colleges are being developed to support workforce development in advanced manufacturing.
Lucid’s Commitment to Sustainable Transportation
Lucid Motors is dedicated to inspiring the adoption of sustainable transportation by creating captivating electric vehicles centered around the human experience. The company’s first model range, the Lucid Air, is a state-of-the-art luxury sedan with a California-inspired design underpinned by race-proven technology. Featuring luxurious interior space in a mid-size exterior footprint, certain models of the Air have a projected range of over 500 miles and can accelerate from 0-60 mph in under 2.5 seconds.
Conclusion
Lucid Motors’ acquisition of Nikola’s Arizona facilities represents a significant step in the company’s growth strategy. By expanding its manufacturing capabilities and leveraging local talent, Lucid is well-positioned to meet the increasing demand for electric vehicles. This move also contributes to Arizona’s emergence as a key player in the electric vehicle manufacturing industry, fostering economic growth and job creation in the region.
