According to Bloomberg, electric truck maker Nikola, a bankruptcy maker, has obtained court approval to initiate auction proceedings at its U.S. manufacturing plant in Arizona. Creditors said the asset may have special value to automakers in the context of frequent tariff adjustments by the Trump administration.
At the March 7 hearing, Benjamin Butterfield, attorney representing Nikola’s unsecured creditors, noted that Nikola’s 691,000-square-foot manufacturing plant in Coolidge, Arizona, is a fully ready facility that has a unique appeal for businesses interested in transferring production to the United States. The plant is part of a range of technologies and other assets that Nikola will be auctioned in April.
At present, the automotive industry is in chaos due to fluctuations in US tariff policies. The White House is discussing a potential auto tariff exemption package after Ford Motor Company, General Motors and Stellantis requested the U.S. government to grant more time to transfer investment and production to the U.S.
“If you are looking for facilities in the U.S. to transfer your business to the U.S., this Nikola factory will be of great value,” Benjamin Butterfield stressed at the hearing. Benjamin Butterfield, who represents the unsecured creditors committee and is working with Nikola to maximize the value of Nikola’s asset sale.
Nikola’s electric vehicle and hydrogen fuel cell technologies are also on sale as part of its bankruptcy and restructuring process. Benjamin Butterfield said the technology could help companies interested in getting involved in hydrogen energy business save a lot of time and make a significant leap in R&D.
Bankruptcy Judge Thomas Horan said he would approve Nikola’s sale process. According to court documents, Nikola has set the bid deadline to April 3, and if a competitive offer is received, Nikola will hold an auction on April 7.
During the hearing, Nikola’s attorney Joshua Morse revealed that potential buyers have visited Nikola’s Coolidge factory and Phoenix headquarters as part of their due diligence. Joshua Morse said the parties are signing a confidentiality agreement “at a rapid pace” and some potential bidders have met with Nikola’s management.
In 2023, Nikola sold the land where the Coolidge factory was located and leased back, according to court documents. It is reported that the valuation of the factory at the time of its sale was as high as US$174 million.
Nikola filed for bankruptcy protection in February this year, when the company’s liabilities were about $98 million. Nikola’s case number is 25-10258 and was heard by the Delaware Bankruptcy Court.