New entrants are rushing into the EV space. The latest is Sony. The dash to sell EVs should tell EV investors something about the barriers to entry in the business and of the ultimate profitability in the industry. Based on the frothy share prices of EV firms, nobody appears to be listening to the message. Bloomberg’s Takashi Mochizuki and Yuki Furukawa explain Sony’s dive into EVs, reporting:
Sony Group Corp. is exploring the commercial launch of its own electric vehicle, joining tech rivals like Xiaomi and Foxconn in a rush into the red-hot industry.
Sony Chief Executive Officer Kenichiro Yoshida announced the establishment of Sony Mobility Inc. at the company’s CES 2022 keynote event Tuesday. The tech giant rolled out an SUV-type EV prototype to accompany the announcement, though no details on pricing or release date were made available. Sony is a leader in making sensors for autonomous and self-aware vehicles, a growing segment of its imaging business that spans most of the world’s smartphones and digital cameras.
The stock jumped as much as 4.7% in Tokyo on Wednesday.
“We are exploring the commercial launch of Sony EV,” Yoshida said at the press conference. “Sony is well-positioned as a creative entertainment company to redefine mobility.”
The Tokyo-based company unveiled its first prototype vehicle, dubbed Vision-S, in 2020 at the same event. Designed in collaboration with auto industry players including Magna International Inc. and Robert Bosch GmbH, it was a concept car to showcase Sony technologies covering its core strengths of entertainment and sensors.
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