Bankrupt electric vehicle maker Nikola Corp. won court permission to auction its Arizona manufacturing facility, an asset creditors said may prove especially valuable to automakers as the Trump administration continues to go back-and-forth on implementing tariffs.
The company’s 691,000-square-foot manufacturing plant in Coolidge, Arizona, is a “turn-key” facility could appeal to buyers interested in moving production to the US, Benjamin Butterfield, a lawyer representing Nikola’s unsecured creditors, said during a Friday hearing. The plant is part of a broader set of technology and other assets poised to hit the auction block in April.
The hearing follows Trump’s barrage and subsequent reversals of tariffs, capping a week of confusion and chaos for the automotive industry. The White House is discussing a potential carve-out for cars after Ford Motor Co., General Motors Co. and Stellantis NV asked for relief and more time to shift investment and production to the US, Bloomberg News reported Friday.
“If you are looking for a facility to move your operations stateside, this could be very valuable to you,” Butterfield said during Friday’s hearing. Butterfield represents an unsecured creditors committee and working with Nikola to sell company assets for as much as possible.
The company’s EV and hydrogen-electric technology is also up-for-sale as part of its Chapter 11 process. A buyer “that wants to get into the hydrogen business can save themselves a lot of time by buying this technology,” Butterfield said, adding it would be a “huge step-forward” in research and development.
Bankruptcy Judge Thomas Horan said Friday he’d approve the company’s sale process. The company has set a bid deadline of April 3, to be followed by an April 7 auction if competing offers are received, according to court documents.
Nikola lawyer Joshua Morse said during Friday’s hearing that potential buyers have visited the Coolidge facility and its Phoenix headquarters as part of the due-diligence process. Interested parties are signing non-disclosure agreements at “a furious pace” and certain potential bidders have met with company management as part of the process, Morse said.
In 2023, Nikola sold the land on which the Coolidge facility is located for $50.4 million and leased it back, according to court documents. At the time of the sale, Nikola said the facility was appraised for $174 million.
Nikola sought court protection in February with about $98 million in debt.
The case is Nikola Corp., number 25-10258, in the US Bankruptcy Court for the District of Delaware.
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