Less than two weeks into 2024, the flying car race is already shaping up to be a defining market trend. Companies are working around the clock to be the first to deliver the air taxis that promise to usher in the next phase of transportation. XPeng (NYSE:XPEV) may not be the first name that comes to mind when investors consider flying car stocks. Yet the Chinese electric vehicle (EV) producer is gearing up to introduce its own contributions to the fast-growing electric vertical takeoff and landing (eVTOL) sector. In fact, interested buyers will be able to place orders later this year as XPeng’s newest flying car enters mass production. This news could put XPEV stock in focus as the new year takes off.

The automaker is still recovering from a difficult year, and some investors may be skeptical of its growth prospects in China’s competitive EV market. But will its upcoming flying cars help XPeng recover the ground it lost in 2023? Let’s take a closer look.

What’s Happening With XPEV Stock

So far, this recent development hasn’t helped boost shares for XPeng. As of this writing, XPEV stock is down almost 1.75% for the day. However, that can be mostly attributed to negative market momentum. Fellow Chinese EV stocks Li Auto (NASDAQ:LI) and Nio (NYSE:NIO) are down even more after slipping over the past two days as well. This just hasn’t been a good week for the EV sector in general.

Thankfully for investors, though, XPeng is more than just an EV company. Its subsidiary aviation arm AeroHT recently announced plans for its modular Land Aircraft Carrier, a 6×6 all-wheel drive EV with the ability to store an eVTOL aircraft in its rear, to enter mass production in 2025. However, before it begins, the company will likely have a list of customers waiting for it. As Electrek reports:

“Before then, however, the company will open pre-orders for the modular EV/ eVTOL combo beginning in Q4 of this year. Described by its makers as “not another mere concept,” AeroHT shared that the Land Aircraft Carrier has already completed all necessary tests during its R&D validation phase and has now begun the preparation stage for mass production.”

Some details regarding XPeng’s innovative product and final design have yet to be revealed. However, it has described its upcoming eVTOL as a “fully-electric piloted aircraft capable of vertical takeoff/landing and low-altitude flights.” Additionally, the vehicle features a panoramic cockpit for two people. XPeng’s CEO, He Xiaopeng, has stated that the carrier’s price will be in the roughly 1 million RMB range ($140,500), but no specific cost has been provided for the eVTOL.

What Comes Next

A vehicle designed to transport eVTOLs may not be as exciting as the release of new flying cars themselves. But that doesn’t mean these developments don’t bode well for XPEV stock. The company is slowly but steadily pivoting from a pure EV stock to a flying car play as well. This could offer investors valuable exposure to a breakout sector. Additionally, XPEV stock is currently down more than 13% year-to-date (YTD), which could make for a tempting entry point for patient investors who don’t mind some risk. XPeng is definitely a company to watch as the flying car race continues to unfold.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.