Chinese electric vehicle maker Xpeng Inc (NYSE:XPEV) is reported to be mulling a flotation of its flying car business in Hong Kong or New York.
The Guangzhou group has invited banks to pitch for a role to help the Xpeng AeroHT initial public offer, Bloomberg reported, citing people familiar with the matter.
Talks are ongoing, the source added. Xpeng did not confirm or deny the story.
Last November, XPeng AeroHT carried out the first global public manned flight of its electric vertical take-off and landing (eVTOL) aircraft.
Earlier in the year the unit raised $150 million of funding to advance the development of the vehicles and build the world's first factory for eVTOL aircraft in China, which broke ground in October.
This added to $500 million drummed up in its initial Series A funding round in 2021.
Guangzhou's local government committed 10 billion yuan (approximately $1.40 billion) to support the flying taxi sector.