Chinese electric vehicle maker Xpeng is considering an initial public offering (IPO) for its flying car subsidiary Xpeng Aeroht, according to a Bloomberg report citing people familiar with the matter.
The company has reportedly invited banks to pitch for roles in the offering, which could take place in either Hong Kong or the United States. However, discussions are ongoing, and a final decision has not been made. Xpeng may opt for a different location or decide against proceeding with an IPO, the sources said.
Asked for comment, Xpeng Aeroht told local media that it had “no specific releasable information at the moment.”
Xpeng Aeroht was founded in 2013 and formally established as a tech subsidiary in 2020. The unit is majority-owned by Guangzhou-based Xpeng and led by chairman and CEO He Xiaopeng. Its operations focus on the development of electric vertical takeoff and landing (eVTOL) aircraft and modular flying cars.
At Xpeng’s Tech Day event on October 24, 2023, the company outlined its roadmap for Aeroht, which includes a modular flying vehicle system composed of a flying body and a parent vehicle capable of recharging it.
Zhao Deli, founder and president of Xpeng Aeroht, said on September 3, 2024, that the company planned to mass-produce and deliver the modular flying car in 2026. He said the vehicle would be priced at “no more than RMB 2 million” (approximately $276,800).
In October 2024, Xpeng Aeroht broke ground on a flying car manufacturing facility in Guangzhou, with an anticipated annual production capacity of 10,000 units. In August, the unit secured $150 million in a Series B1 funding round and subsequently launched a Series B2 round.