Lucid Ready To Expand Production, Thanks To Disgraced Tesla Rival

Lucid, maker of luxury EVs such as the sleek and fast Air sedan and the upcoming Gravity SUV, has entered an agreement to acquire select facilities and assets in Arizona from Nikola Corporation – a disgraced EV company poised to produce trucks that are rivals to the Tesla Semi. Aligned with the company’s plans for aggressive manufacturing expansion, the deal is still subject to approval by the US Bankruptcy Court for the District of Delaware – though notably, it doesn’t include Nikola’s business operations, customer base, and hydrogen fuel cell technology.

Two Facilities Up For Acquisition In Arizona

Lucid Motors, with its recent change in leadership, is up for the acquisition of two Nikola facilities in Arizona, specifically the Coolidge manufacturing facility and the one in Phoenix, which served as Nikola’s headquarters and product development center. Assets to be included in the sale should include state-of-the-art manufacturing and warehouse spaces, battery and environmental testing chambers, full-size chassis dynamometer, and machining equipment.

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The facilities cover a total area of over 884,000 sq. ft, expanding Lucid’s footprint in the state. And while Lucid may be taking over these facilities, the previous jobs there are planned to be offered to former Nikola employees, with positions covering manufacturing engineering, software, assembly, vehicle testing, and warehouse support.

Expanding Lucid’s Manufacturing Gravitas

Lucid Motors entered the agreement to acquire Nikola’s assets after winning the auction just this week. It was part of Nikola’s Chapter 11 bankruptcy filing after facing countless controversies over the years due to fraud and other irregularities. That said, the Arizona government is pretty pleased with the move as it “strengthens Lucid’s operations while offering continued employment to hundreds of skilled workers in our state.”

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With the Gravity just entering production late last year, Lucid Motors is in the middle of expansion, not only for the production of its current lineup, but also for future EVs in the pipeline, including rumored more affordable models. It even set up an R&D and engineering hub right at the gates of Detroit’s Big Three, with total capital investments of $10 million.