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. 1
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. 2
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. 3
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. 4
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.” 5
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. 6
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. 7
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. 8
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. 9
