Rumors swirled over Sony’s foray into the electric vehicle industry, but now one of the biggest questions about the venture has been answered thanks to a new partnership with Honda.
Here’s a quick scenario for you…
Imagine spending years building your name and reputation as one of the premier whittlers in the world.
People pay a premium for every piece you carve.
You become so renowned for your wood carvings that your name is now synonymous with the craft, spoken by people all over the world. You’ve become unimaginably wealthy and successful due to your wood carving prowess.
It’s a good life, right?
Well…now imagine that you’ve done all this with wood carvings and then wake up one morning and say to the world, “I think I’m going to build a high-rise condo.”
Don’t you think the world would look at you sideways for a minute?
People would be wondering whether you were serious. And if you were serious, they’d start wondering if you needed to spend some time on a therapist’s couch somewhere.
It’d be a huge leap outside of your area of expertise…and that might have even your biggest fans concerned.
Sure, you know how to carve wood, which means you can work with building materials and may even have an intimate understanding of tools and engineering…but just because your wood carvings look nice inside of a condo doesn’t mean you can build a condo.
Yet, for some reason, because there are electronics inside of an electric vehicle, Sony (SONY) seems to believe they have what it takes to build these cars…and yet people really didn’t even think twice about this development.
Outside Of Their Element?
Sure, customers had questions, but it seems that most people just went along with it, thinking that Sony’s success in electronics can easily translate to electric cars.
However, despite the general lack of concern, one BIG question remained to be answered: HOW exactly Sony is going to make these cars?
Were they planning on building a factory? Were they going to license their EV to another car company and give them a piece of the pie to make it?
Well, that question has been answered…
According to the latest announcement, Sony will be partnering with fellow Japanese juggernaut Honda (HMC) to build their new electric vehicle.
A Powerful Partnership?
What makes Honda the perfect fit for Sony?
Well, Honda was the first Japanese carmaker to pledge to phase out traditional cars completely by 2040, which is a huge plus to the arrangement. Getting out of gas-powered vehicles puts Honda and Sony on the same page, and the two companies have a lot to teach each other.
Where Honda has literal DECADES of experience in designing, producing, and selling vehicles, Sony has spent almost the EXACT same amount of time becoming a global leader in producing electronics, especially for entertainment purposes. They have all the ins they need to get the job done in the EV world.
In fact, Sony’s even been working with TSMC to build a new chip-making plant in Japan, which means that the new manufacturing facilities won’t have the same chip-shortage problem that the rest of the automotive world is dealing with.
The question is…will it work?
Only time will tell.
But what we do know is that Honda doesn’t really need the help. Even before this announcement, the car company’s StockPower rating was “bullish.”
And it turns out that Sony needs the help even LESS, as their StockPower rating is even HIGHER than Honda’s!
So, this might just be the right partnership at the right time for BOTH companies. Both already have momentum going in, and that bodes well for investors.
Should be interesting…
They could become the “Reese’s Cup” of the car industry–two great flavors that are even better together.
That would be great for their respective brands and the EV industry.
I’m sure Elon will be keeping an eye on this partnership…and so will we.
“Cooperation doesn’t mean agreement, it means working together to advance the greater good.” – Simon Sinek