In a surprise move, electric vehicle (EV) startup Lucid Motors has emerged as the winner of the bankruptcy auction for Nikola's Arizona factory and other assets, according to a late Thursday court filing. The deal, worth around $30 million in cash and non-cash considerations, marks a significant expansion of Lucid's manufacturing capabilities and employee base.

The acquisition includes the factory, Nikola's lease on its Phoenix headquarters, and "certain machinery, equipment, and inventory," as stated in the filing. As part of the deal, Lucid is planning to make offers to around 300 former Nikola employees, the company told TechCrunch. This move is seen as a strategic play by Lucid to bolster its production capacity and tap into Nikola's existing talent pool.

The sudden appearance of Lucid in the Nikola bankruptcy proceedings has raised eyebrows, given that Nikola had been trying to sell its entire business since filing for bankruptcy protection in February. Lucid, focused on making passenger EVs, has no prior experience with hydrogen-powered electric vehicles, a key aspect of Nikola's nascent business. This departure from Lucid's core business raises questions about the company's long-term strategy and plans for the acquired assets.

Adding to the surprise is the fact that Nikola's founder, Trevor Milton, who was convicted of fraud in 2022 but pardoned by President Trump in March, had been evaluating a bid of his own on the startup's assets. However, Nikola successfully blocked Milton from inspecting its factory and other assets in-person ahead of the auction, which was held on April 7.

Lucid's interest in the acquisition is reportedly driven by its need for additional warehousing space, testing equipment, and employees. The company already operates a factory in nearby Casa Grande, Arizona, and sees value in expanding its footprint in the region. The deal is expected to provide Lucid with the necessary resources to ramp up production and meet growing demand for its luxury EVs.

While Lucid was the top bidder for these assets at the auction, the bankruptcy judge is allowing objections to the sale to be filed until 12:00 p.m. ET on Friday, April 11. A hearing is scheduled for 1:30 p.m. ET, where the court will review any objections and potentially finalize the sale. If approved, the deal is expected to have significant implications for the EV industry, as Lucid looks to leverage its new assets to drive growth and innovation.

As the EV landscape continues to evolve, this unexpected twist in the Nikola bankruptcy saga highlights the dynamic nature of the industry. With Lucid's surprise bid, the company is poised to become a major player in the Arizona EV ecosystem, and its plans for the acquired assets will be closely watched by industry insiders and observers alike.