Sony and Honda’s New Electric Car Aims to Take Down Tesla – Here’s What You Need to Know

A joint venture between Sony and Honda is entering the luxury electric car market, directly challenging Tesla.

Sony Honda Mobility, in which Sony Group and Honda each hold a 50% stake, announced plans to launch the first model of its electric vehicle brand, AFEELA, at CES 2025, the world’s largest consumer electronics show. The IT show was held in Las Vegas, US, on Monday (US time), and Nikkei reported on Wednesday.

The company’s strategy is to combine Sony’s advanced digital technology with Honda’s automobile production know-how to challenge Tesla, the leader in the electric vehicle market.

The base model of AFEELA, the Origin, starts at $89,900, and the high-end model, the Signature, starts at $102,900.

This is a higher price range than Tesla’s flagship models, the Model S and Model S Plaid.

“Rather than mass production, we are targeting consumers who sympathize with our products,” said Izumi Kawanishi, president of Sony-Honda Mobility.

AFEELA’s biggest feature is its advanced artificial intelligence (AI) system, which analyzes surrounding data collected by 40 vehicle sensors to recognize situations and assist in driving.

It also provides intelligent services such as learning users’ conversation and content consumption patterns to provide customized entertainment and suggesting vehicle maintenance or replacement times.

However, the AFEELA has a disadvantage in driving range compared to Tesla.

The Origin model’s expected driving range for the North American market is less than 500 km (310 miles), shorter than the Tesla Model S’s approximately 600 km (373 miles).

Sony and Honda Mobility are currently accepting reservations in California and the US and plan to deliver high-end models in North America from mid-2026. Entry into the Japanese market is scheduled for 2026.

Meanwhile, the electric vehicle market has recently slowed, and major automakers such as Volvo in Sweden and Ford in the US are reconsidering their plans to transition to electric vehicles.

In addition, Chinese companies are leading the market, accounting for half of the top 10 companies in global electric vehicle sales in the third quarter of 2024.

Sony and Honda’s entry into the high-end electric vehicle market is noteworthy.

Although they may be less price competitive than Chinese companies, the key to their success will be the differentiated experience they can provide in autonomous driving and entertainment functions.