The 691,000-square-foot plant is considered a “turn-key” facility, making it attractive to potential buyers looking to establish production operations in the U.S. During a March 7 hearing, Benjamin Butterfield, a lawyer representing Nikola’s unsecured creditors, emphasized the facility’s significant value for companies seeking to relocate operations stateside. The auction is part of a broader strategy that includes selling various technology and assets in April.

This court proceeding occurs during a challenging time for the automotive industry, characterized by the Trump administration’s inconsistent approach to tariffs. Reports suggest that the White House is contemplating potential exemptions for vehicles, responding to requests from major automakers like Ford, General Motors, and Stellantis for relief and more time to adjust their investments and production strategies in the U.S.

Bankruptcy Judge Thomas Horan expressed his support for the sale process, with Nikola establishing a bid deadline of April 3, followed by an auction on April 7 if competing offers are received.

In 2023, Nikola sold the land on which the Coolidge facility sits for $50.4 million and then leased it back. At that time, the facility was appraised at $174 million. Nikola filed for court protection in February with approximately $98 million in debt.