In a surprise move, EV startup Lucid Motors has emerged as the winning bidder in the bankruptcy auction for Nikola’s Arizona factory and other assets, as revealed in a court filing on Thursday night. The filing disclosed that Lucid has committed approximately $30 million in cash and non-cash considerations to acquire the factory, Nikola’s lease on its Phoenix headquarters, and specific machinery, equipment, and inventory.

As part of the agreement, Lucid plans to extend job offers to around 300 former Nikola employees, according to the company’s statement to TechCrunch. This development has raised eyebrows due to the unexpected involvement of Lucid in the Nikola bankruptcy proceedings.

Nikola had been attempting to sell its entire business since filing for bankruptcy protection in February. Notably, Lucid’s primary focus is on producing passenger electric vehicles, whereas Nikola’s business has a significant emphasis on hydrogen-powered electric vehicles, an area where Lucid has no prior experience.

In a related development, Nikola’s founder Trevor Milton, who was convicted of fraud in 2022 but pardoned by President Trump in March, had been considering a bid for the startup’s assets. However, the court blocked Milton from inspecting the factory and other assets ahead of the auction, which took place on April 7.

Lucid, which operates its own factory in Casa Grande, Arizona, sees strategic value in acquiring additional warehousing space, testing equipment, and talent from Nikola. The company believes this acquisition will complement its existing operations and enhance its overall capabilities.

Although Lucid has emerged as the top bidder, the bankruptcy judge has allowed for objections to the sale to be filed until 12:00 p.m. ET on Friday, April 11. A hearing is scheduled to take place at 1:30 p.m. ET to review the sale and address any concerns or objections.