XPeng’s Flying Car Unit Aridge Advances Toward Hong Kong IPO Amid “Low-Altitude Economy” Boom

According to multiple reports, XPeng has confidentially filed for a share sale in Hong Kong and has engaged JPMorgan Chase and Morgan Stanley to underwrite the planned offering, signifying preparatory steps toward a public listing. This move follows Aridge’s rebranding in late 2025 and its progress in mass production capabilities, including the launch of a 120,000-square-meter intelligent flying car factory in Guangzhou capable of producing next-generation vehicles with modular flight systems. Market observers say the IPO could take place this year, although deliberations remain ongoing and plans could evolve. The involvement of such high-profile banks underlines investor interest and the strategic importance XPeng places on diversifying its business beyond traditional EV production.

Aridge has achieved notable milestones in product development and market positioning. Its modular flying car, dubbed the “Land Aircraft Carrier,” has completed trial production, rolled off mass-production lines, and garnered significant preorders — with some estimates counting thousands of reservations from domestic and international customers. Featuring a hybrid powertrain with an extended range and the capacity to operate as both a ground vehicle and an eVTOL aircraft, this product embodies the company’s vision for versatile, next-generation urban mobility. XPeng’s broader corporate strategy has emphasized cutting-edge technology, including autonomous driving and AI integration, with the flying car division positioned as a high-growth frontier segment.

The push toward a Hong Kong IPO takes place against the backdrop of China’s “low-altitude economy” initiative, which has been gaining traction through government policy support and regional development plans targeting sub-1,000-meter airspace utilization. Local authorities and industry players are increasingly backing eVTOL and related sectors, forecasting substantial growth in economic scale over the next decade. China’s development of eVTOL and flying car technologies aligns with efforts to solve urban congestion, enhance emergency response capabilities, and expand transportation infrastructure into three dimensions. By entering the public markets, Aridge would potentially tap into capital to accelerate production output, expand R&D, and commercialize its innovative mobility solutions domestically and abroad.

For XPeng, spinning out and listing Aridge offers strategic benefits beyond financing. Isolating the flying car business in a separate public entity could unlock differentiated valuation that traditional automotive investors might overlook and allow more focused operational priorities tailored to advanced air mobility. The IPO could also chart a path for other Chinese aerospace and drone startups seeking growth capital. However, risks remain, including regulatory scrutiny, technological hurdles in certification and safety, and the need to prove commercial viability beyond prototypes and pilot programs. As the global race for urban air mobility intensifies, Aridge’s progress and market reception of its listing will be closely watched by investors, policymakers, and competitors alike.