Chinese electric vehicle maker Xpeng Inc. has initiated confidential preparations for an initial public offering (IPO) of its flying car business, Aridge (formerly Xpeng Aeroht), in Hong Kong. According to a Bloomberg report, the company has appointed JPMorgan Chase & Co. and Morgan Stanley to advise on the potential listing, which could occur as soon as this year.
The move aligns with China's accelerating policy support for its "low-altitude economy," an emerging sector encompassing flying taxis, drones, and other airborne technologies. Xpeng's strategy positions its core automotive operations as a profitable base to fund longer-term, experimental transport ventures like flying cars.
The unit has filed confidentially for the share sale, meaning details on valuation, deal size, and cornerstone investors remain undisclosed. While Hong Kong has emerged as the preferred venue, the final decision on timing and structure is still under deliberation. Last year, banks were invited to pitch for roles on a potential listing in either Hong Kong or the U.S.
Aridge operates a 120,000-square-meter intelligent flying car factory in Guangzhou, designed to eventually produce one aircraft every 30 minutes at full capacity. The division's first mass-produced flying vehicle is scheduled for customer delivery in late 2026. The business is part-owned by Xpeng and its Chairman & CEO, He Xiaopeng, and has previously raised significant external capital, including a $150 million funding round in 2024 and a $250 million Series B round in July 2025.
At a November 2025 AI Day event, Xpeng showcased the new Aridge A868 model—a hybrid flying car capable of traveling over 500 kilometers on a single charge, designed for multi-passenger, longer trips. Xpeng's shares have risen approximately 69% over the past 12 months, giving the company a market capitalization of about $19 billion.
