Chinese electric vehicle manufacturer Xpeng Inc. is moving forward with plans to take its flying car subsidiary public through a Hong Kong initial public offering, according to sources familiar with the developments.

According to a Bloomberg report published on January 12, 2026, the company has confidentially filed for the share sale and selected investment banks to manage the listing process.

Xpeng has appointed JPMorgan Chase & Co. and Morgan Stanley to lead the IPO preparations for Xpeng Aeroht, which recently adopted the international brand name Aridge, the sources said. The offering could potentially occur within 2026, though deliberations remain ongoing and plans may still change. Representatives from Xpeng, JPMorgan, and Morgan Stanley all declined to comment on the matter.

The flying car unit previously attracted investment interest in 2024, securing RMB 1.05 billion yuan (US$150 million) in funding. Xpeng Aeroht maintains partial ownership by both Xpeng Inc. and its Chairman and CEO He Xiaopeng. Sources indicated last year that banks had been invited to compete for roles in a potential listing in either Hong Kong or the United States.

The company operates a 120,000 square meter manufacturing facility in Guangzhou designed to eventually produce one aircraft every 30 minutes. Its first commercially available flying vehicle is scheduled for customer deliveries in late 2026, positioning the company to capitalize on China's expanding low-altitude economy sector, which encompasses airspace usage by flying taxis and drones.

The listing plan comes as Xpeng pursues a broader strategy to establish its traditional automotive business as a profitable foundation for advanced technology ventures. The parent company is expanding into extended-range hybrid vehicles while scaling its autonomous driving capabilities. Xpeng's shares have surged 69% over the past year, bringing its market capitalization to approximately US$19 billion.

The IPO would provide Xpeng Aeroht access to public capital markets amid growing interest in urban air mobility solutions. The outcome of this listing could significantly influence investment flows into China's emerging low-altitude transportation sector and set a precedent for similar technology spinoffs from automotive manufacturers.