Core Viewpoint - Sony Honda Mobility (SHM) has launched its electric vehicle brand AFEELA, with the first model AFEELA 1 priced from $89,900, but faces legal challenges in California due to its direct sales model [3][6]. Group 1: Company Developments - SHM is a joint venture between Sony and Honda, established to develop and sell high-value electric vehicles and mobility services, with a registered capital of 10 billion yen [5]. - The AFEELA 1 is set to be produced in Ohio and is expected to be available for sale in California by 2025, with a refundable reservation fee of $200 [5][6]. - SHM plans to introduce additional models, including a pure electric SUV by 2027 and a compact car for the mass market by 2028 [6]. Group 2: Industry Context - The entry of consumer electronics giants into the automotive industry has been met with mixed results, with some, like Dyson, halting their automotive projects due to commercial viability concerns [4][10]. - Analysts suggest that the complexity of the automotive industry poses significant challenges for companies transitioning from consumer electronics, potentially harming their brand image and existing business [4][9]. - The success of companies like Huawei and Xiaomi in the smart electric vehicle sector has inspired other consumer electronics firms to explore similar ventures, leading to a renewed wave of interest in the automotive market [9][11]. Group 3: Legal and Market Challenges - SHM is currently facing a lawsuit from the California New Car Dealers Association (CNCDA) for allegedly violating state franchise laws by selling directly to consumers [6]. - The competitive landscape in the automotive market is intensifying, prompting consumer electronics companies to seek new growth opportunities through electric vehicle development [9][11].