Xpeng Inc. is preparing the ground for a potential stock market debut of its flying car business, reported Bloomberg, citing sources.
This will mark a fresh step in the Chinese electric vehicle maker’s push beyond traditional automobiles.
The company has quietly begun work on a possible initial public offering of its aerial mobility unit in Hong Kong, according to a Bloomberg report.
The move comes as China accelerates policy support for its low-altitude economy, an emerging sector that includes flying taxis, drones, and other airborne technologies.
For Xpeng, the plan highlights how its core car business is increasingly being positioned as a base to support more experimental transport ventures.
Banks appointed
Xpeng has hired JPMorgan Chase & Co. and Morgan Stanley to work on preparations for an IPO of its flying car unit, reported Bloomberg.
The banks have been selected to advise on a listing of Xpeng Aeroht in Hong Kong.
The report said the unit has filed confidentially for a share sale that could take place as soon as this year. The discussions remain private and subject to change, with deliberations ongoing around timing and structure.
Listing plans evolve
Experts said that last year, banks had already been invited to pitch for roles on a potential Xpeng Aeroht listing in either Hong Kong or the US.
The current preparations suggest Hong Kong is emerging as the preferred venue, although the final decision has not been confirmed.
The confidential nature of the filing means details such as valuation, deal size, and cornerstone investors have not been disclosed.
Strategy beyond cars
Xpeng has been working to strengthen its core automotive operations while also investing in frontier technologies.
The company is expanding its presence in extended-range hybrids and scaling up its autonomous driving software, aiming to establish a profitable base business that can support longer-term innovation.
That strategy underpins the development of its flying car unit, which has recently been rebranded internationally as Aridge.
The business is seen as well placed to benefit from China’s low-altitude economy drive, which focuses on commercial uses of airspace close to the ground, including flying taxis and delivery drones.
Manufacturing and funding
Xpeng Aeroht operates a 120,000 square metre intelligent flying car factory in Guangzhou. The facility is designed to eventually produce one aircraft every 30 minutes once it reaches full capacity.
The unit’s first mass-produced flying vehicle is scheduled for customer delivery in late 2026.
The flying car business is part-owned by Xpeng and its chairman and chief executive officer, He Xiaopeng.
It has previously raised external capital, including a $150 million funding round completed in 2024.
Xpeng’s shares have risen 69% over the past 12 months, giving the company a market capitalisation of about $19 billion, according to available data.
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