Xpeng Inc has hired banks to work on an initial public offering of its flying car unit in Hong Kong, according to people familiar with the matter.

The Chinese electric-vehicle maker picked JPMorgan Chase & Co and Morgan Stanley to prepare for a listing of Xpeng Aeroht, the people said, asking not to be identified because the information is private. It has filed confidentially for a share sale that may take place as soon as this year, the people said.

Deliberations are ongoing and the IPO plan may change, the people said.

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Representatives for Xpeng, JPMorgan and Morgan Stanley declined to comment.

People familiar with the matter said last year that banks had been invited to pitch for a role on an Xpeng Aeroht IPO in Hong Kong or the US.

By expanding in extended-range hybrids and scaling its autonomous driving software, Xpeng aims to position its core automotive business as the profitable foundation for other frontier technologies.

For Xpeng Aeroht, recently rebranded internationally as Aridge, it has an opportunity to capitalize on China’s low-altitude economy drive, which covers activity in airspace used by machines such as flying taxis and drones.

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Xpeng Aeroht has a 120,000 square meter (1.3 million square feet) intelligent flying car factory in Guangzhou that is designed to eventually produce one aircraft every 30 minutes. Its first mass-produced flying vehicle is scheduled for customer delivery in late 2026.

Xpeng Aeroht is part-owned by Xpeng and its Chairman and Chief Executive Officer He Xiaopeng. Past funding includes a $150 million round in 2024. Xpeng’s shares have climbed 69 percent in the past 12 months, giving the company a market value of about $19 billion.