New York, Jan 12, 2026, 13:10 EST — Regular session
- XPeng’s shares listed in the U.S. jumped roughly 8% during early afternoon trading
- Bloomberg reports the automaker has brought in JPMorgan and Morgan Stanley to prepare for a Hong Kong IPO at its flying-car division
- EU sets tough conditions for minimum-price agreements aimed at replacing tariffs on China-built EVs; U.S. CPI data expected Tuesday
Shares of XPeng Inc, listed in the U.S., jumped Monday following a Bloomberg report that the Chinese EV maker tapped JPMorgan and Morgan Stanley to lead an IPO for its flying-car unit in Hong Kong. The stock rose 8.2% to $21.66 in early afternoon trading.
This shift is crucial as XPeng pushes investors to look past its car business — toward autonomy, robotics, and now “low-altitude” air mobility — even as the crowded, price-driven China EV market drags. Spinning off a separate listing lets the company fund those ambitions without tapping the parent’s resources.
Europe is heating up as a flashpoint. On Monday, the European Commission laid down rules for Chinese EV makers aiming to swap EU tariffs for minimum-price commitments — basically a price floor. Any such deal must offset subsidies’ impact and mirror the effect of existing duties. These guidelines specify minimum prices by model and configuration and warn of “cross-compensation” risks. At the same time, the EU is mulling over a minimum-price plus import-quota plan tied to a Volkswagen model produced in China. Reuters
Sources familiar with the situation told The Business Times that XPeng has quietly submitted paperwork for a share sale, aiming for an IPO potentially before year-end. They warned, however, that the timetable could shift. Company spokespeople declined to provide any comments.
South China Morning Post reported that the unit, now known as Aridge and previously AeroHT, is under the control of XPeng co-founder and CEO He Xiaopeng. Following a mid-2024 funding round, it was valued at around $2 billion. The outlet labeled Aridge a top mainland China eVTOL developer—electric vertical take-off and landing aircraft—as it expands into what Beijing terms the low-altitude economy.
XPeng dropped new product and tech news Monday. The company announced the launch of its 2026 P7+ sedan, targeting a rollout in 36 countries. It also reported 2025 global deliveries hitting 429,445 vehicles. The firm said its VLA 2.0 autonomous-driving system will start over-the-air updates in March 2026. In the release, He described the 100,000th P7+ built as “more than a numerical achievement – it is a powerful validation of our technological progress.” PR Newswire
XPeng revealed the P7+ at the Brussels Motor Show, setting the starting price in Germany at €46,600, according to electrive.com. Jacky Gu, head of powertrain at XPeng, described the strategy as “physical AI,” the outlet reported, positioning the vehicle as a software-first alternative to Volkswagen’s ID.7. electrive.com
Other China EV stocks followed suit. NIO climbed roughly 4.7%, Li Auto added about 2.6%, and Tesla shares edged up around 1.4% during the same period.
The broader U.S. market saw mixed moves as investors digested fresh political pressure on the Federal Reserve and a proposed cap on credit-card interest rates, which weighed heavily on financial stocks, Reuters reports. This environment allowed stock-specific news to drive trading in high-beta names such as XPeng.
Still, the trade “off-ramp” in Europe doesn’t guarantee an easy exit. Experts and officials caution that minimum-price deals might push up prices on China-made EVs, potentially cutting demand despite dodging tariffs. AP News
Traders are focused on Tuesday’s U.S. consumer price index report for December, set for 8:30 a.m. ET, looking for clues on interest rates and risk appetite. Investors will also be eyeing updates from XPeng or Aridge regarding their Hong Kong listing efforts.
