Tesla Rival Xpeng Hired Banks To Facilitate Flying Car Unit's Hong Kong IPO: Report

Xpeng Inc. (NYSE:XPEV) has reportedly hired banks to help set up the automaker's flying car unit, Aeroht's Hong Kong public listing.

Morgan Stanley, JP Morgan Hired

The Chinese automaker has sought the services of Morgan Stanley, as well as JPMorgan & Chase Co., to prepare for the possible IPO, Bloomberg reported on Monday, citing anonymous sources familiar with the matter.

Xpeng, JPMorgan and Morgan Stanley didn't immediately respond to Benzinga's request for comment.

The report also suggested that the IPO plan may change, with sources also suggesting that banks were invited last year to outline their pitches for an IPO in Hong Kong or the U.S.

Xpeng's Physical AI, Robotaxi Play

The news comes as Xpeng CEO He Xiaopeng touted the company's ambitions to expand on its Robotaxi and Humanoid Robot exploits. The CEO also shared that the company should not be limited to being just an automaker, but also be recognized for its “physical AI.”

He also confirmed that Xpeng's Robotaxi service would be going into the trial phase soon. Xpeng will offer its Robotaxi service in 2026 through the Chinese tech giant Alibaba Group Holding Limited’s (NYSE:BABA) Amap mapping platform.

Tesla's Roadster Hover Patent, Sean Duffy Touts Air Taxis

Meanwhile, Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk recently teased the demo of the automaker's Roadster, which would be focused more on performance. Musk also hinted at the Roadster's possible hovering capabilities as a patent filing suggests the car would have an active aero system that could make it hover for a few moments.

Elsewhere, Transportation Secretary Sean Duffy has touted air taxis as the next major development in mobility, positioning the sector as a catalyst for putting the U.S. ahead of China in the aviation industry.

Xpeng scores well on the Momentum metric, but has an unfavorable price trend in the Short, Medium and Long term. For more such insights, sign up for Benzinga Edge Stock Rankings today!

Price Action: XPEV gained 2.70% in Pre-market trading on Monday, currently trading for $20.56 per share, according to Benzinga Pro data.

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