Chinese EV maker Xpeng’s flying car company raises over $500 million

GUANGZHOU, China — HT Aero, the flying automotive firm backed by Chinese language electrical carmaker Xpeng Inc. and its founder, raised greater than $500 million from exterior buyers.

The cash can be put towards analysis and improvement and rolling out a brand new mannequin that has the flexibility to function within the air and on roads.

Zhao Deli, founder and president of HT Aero, mentioned in a press launch that the corporate’s next-generation mannequin can be a “totally built-in flying automobile and car, designed for each low-altitude air journey and street driving.”

The corporate is planning for an official roll-out of the brand new automobile in 2024, Zhao mentioned. Nonetheless, he didn’t give a timeline for when the brand new automobile can be launched.

HT Aero is an affiliate firm of Xpeng, considered one of China’s electrical automobile start-ups. Xpeng’s founder He Xiaopeng in addition to the electrical automotive firm itself are buyers in HT Aero.

The brand new funding spherical was led by high-profile enterprise capital corporations IDG Capital and 5Y capital in addition to Xpeng. Different buyers embody Sequoia China, Jap Bell Capital, GGV Capital, GL Ventures and Yunfeng Capital.

Flying automobiles — additionally known as electrical vertical take-off and touchdown automobiles — have garnered a lot of interest from automakers and start-ups. Corporations together with South Korea’s Hyundai, German start-up Lilium, and China-based Ehang are creating flying passenger automobiles.

In July, HT Aero launched the X2, its second flying automotive prototype and first that is capable of carry a passenger.

Xpeng’s founder He advised CNBC in an interview final month that flying automobiles will be a part of the company’s future.

Nonetheless, such automobiles face various hurdles to get off the bottom together with regulatory approval to function.