October 20, 2021: -HT Aero, the flying car company backed by Chinese electric carmaker Xpeng Inc. and its founder, raised over $500 million from outside investors.

The money will be put toward research and development and rolling out a new model that can operate in the air and on roads.

In a press release, Zhao Deli, founder and president of HT Aero, said that the company’s next-generation model will be a “fully integrated flying vehicle and automobile, designed for low-altitude air travel and road driving.”

The company plans for an official roll-out of the new vehicle after the year 2024, Zhao said. Although, he did not give a timeline for when the new car will be launched.

HT Aero is an affiliate company of Xpeng, one of the electric vehicle start-ups in China. Xpeng’s founder He Xiaopeng and the electric car company itself are investors in HT Aero.

The funding round was led by high-profile venture capital firms IDG Capital and 5Y capital, and Xpeng. Other investors include Sequoia China, Eastern Bell Capital, GGV Capital, GL Ventures, and Yunfeng Capital.

Flying cars, also called electric vertical take-off and landing vehicles, have garnered interest from automakers and start-ups. Companies that include South Korea’s Hyundai, German start-up Lilium, and China-based Ehang develop flying passenger vehicles.

In July, HT Aero launched the X2, its next flying car prototype and the first to carry a passenger.

Xpeng’s founder told CNBC in an interview in the previous month that flying vehicles will be a part of the company’s future.

Still, such vehicles face several hurdles to get off the ground, including regulatory approval to operate.