Sony shares pop on news that it intends to ‘explore entry into the EV market’

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Sony’s (SONY) stock was up 3% in morning trading Wednesday after its announcement that it intends “to explore entry into the EV market” through an operating company called Sony Mobility Inc. that it plans to launch this spring.

Sony unveiled an electric SUV prototype, the VISION-S 02, ahead of the Consumer Electronics Show this week, noting that it will offer entertainment experiences to take advantage of the large interior of the seven-seat vehicle. The Japanese tech giant has been working with partners and test driving its EV/cloud platform over the last year and half with a prior version of the prototype on public roads.

The new announcement solidifies Sony’s ambitions to compete in the red-hot and competitive electric vehicle industry. The legacy electronics and entertainment giant has been working on an arsenal of high-end technologies that dovetail into EV and autonomous driving, such as sensors and camera monitoring.

The Sony Vision-S SUV prototype electric vehicle is unveiled during the Sony press conference ahead of the Consumer Electronics Show (CES) on January 4, 2022 in Las Vegas, Nevada. - Electronics giant Sony unveiled Tuesday a new prototype of its Vision-S electric vehicle and announced the founding of a company to explore jumping into the rapidly growing market.
The Japanese firm, better known for its TVs and video game consoles, will create the Sony Mobility subsidiary in spring 2022 as it weighs entering the field. (Photo by Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images) — The Sony Vision-S SUV prototype electric vehicle is unveiled during the Sony press conference ahead of the Consumer Electronics Show (CES) on January 4, 2022 in Las Vegas, Nevada (Photo by PATRICK T. FALLON/AFP via Getty Images)

The EV industry has seen an influx of companies entering the space, including electric SUV and pickup truck startup, Rivian (RIVN), which went public in November with a valuation north of $80 billion. Luxury electric car maker Lucid (LCID) made its public debut via a SPAC deal over the summer.

Tech giant Apple (AAPL) is also working on an entry into the electric vehicle and autonomous space.

Still, Tesla (TSLA) remains the leader and giant within the space, smashing analysts expectations for deliveries last year.

Sony’s stock was listed as one of Yahoo Finance’s trending tickers during the session on Wednesday.