The share price of Sony shot up by 3% to 133.75 yesterday following the news that it plans to enter the electric vehicle market. Stocks in the Japanese multinational company rose to reach its highest level in 22 years and the operating company called Sony Mobility is expected to be launched in spring 2022.
It’s been well-known that Sony had been working with other companies to test drive its electric vehicle prototypes over the past year. This has followed on from the CES show in 2020 that saw Sony unveiling its first prototype sedan car.
The Japanese tech giant has been experimenting with the advanced technologies such as camera monitoring and sensoring that are essential in delivering a successful autonomous vehicle experience. Plus there are expected to be developments in how robotics and artificial intelligence are used to power the Sony electric vehicles. The new announcement comes at a critical time when other tech companies such as Apple are making big noises about their moves into the EV market.
Sony revealed its electric vehicle prototype this week ahead of its full introduction at the Consumer Electronics Show. This will highlight the VISION-S 02 electric vehicle that hosts a number of features hinting at where Sony could take the EV trend next. In particular, there will be a priority on entertainment experiences within the huge interior of the seven-seat SUV vehicle. It’s hoped that Sony will begin producing its electric vehicles on a small scale as early as 2024.
The race to enter the electric vehicle market
Tesla is arguably the best-known electric vehicle manufacturer, and it’s success as a trillion-dollar company has made the EV market one of the most fascinating investment opportunities. There have been many highly promising electric vehicle start-ups in the past few months with November’s $80 billion IPO of Rivian being the most visible example of this. This followed on from Lucid going public a few months previously in its bid to enter the luxury electric car market.
However, it’s the entry of big tech brands like Sony and Apple that’s promising to make things even more interesting. Apple has stated that it could be ready to debut its electric car as soon as 2025 and it’s expected to deliver a fully autonomous driving experience that’s been something of a holy grail for all contenders in the EV market.
Such is the excitement around electric vehicles that traditional car manufacturers such as General Motors have had little choice but to get involved. General Motors introduced its electric pickup truck earlier this week, and many others are expected to join the fray. Outside the US, Chinese companies such as Nio, Xpeng and Li Auto have also been making promising noises about their electric vehicle technology. All of which means that the race to get a lead in the electric vehicle market is only going to get more intense.