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Sony and Honda Just Hit the Brakes on Their $90,000 Electric Car. Here’s What Went Wrong.

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Why This Matters

The cancellation of the Sony Honda Afeela electric vehicle highlights the challenges automakers face in the highly competitive EV market and underscores the importance of strategic alignment and financial planning. For consumers, this development signals potential delays or shifts in the availability of innovative EV offerings from major tech and automotive collaborations. It also emphasizes the risks involved in high-stakes investments in cutting-edge technology projects.

Key Takeaways

Plans for the $90,000 Afeela have gone afoul. Sony Honda Mobility announced Wednesday it’s scrapping development of its joint venture electric vehicle after Honda flagged a writedown of as much as $15.7 billion and had to overhaul its entire EV strategy.

The partnership combined Honda’s engineering expertise with Sony’s software and gaming capabilities. Sony Honda Mobility had planned to begin deliveries of the Afeela 1 in California late this year, with a second model expected as early as 2028. Pre-orders opened last year at $89,900.

Customers who reserved the Afeela 1 will receive full refunds. Both Sony and Honda said they don’t expect the discontinuation to materially impact their financials. As for Sony Honda Mobility, it will continue discussions with both parent companies about its future plans.