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Tesla's newest rival nears reality

By Tim Gibson
Updated January 7 2026 - 3:41pm, first published 3:36pm
Tesla's newest rival nears reality
Tesla's newest rival nears reality

Sony and Honda Mobility (SHM) has unveiled its 2026 Afeela Prototype at the Consumer Electronics Show (CES) in Las Vegas. 

The Afeela 2026 Prototype is an all-electric SUV, which will be the second of the brand’s proposed vehicles.

Pricing has not been confirmed for the new Afeela SUV, but it is likely to be more than the Afeela 1, which starts from US$89,900 (A$144,000).

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The Afeela 1 sedan has been in the works for some time, with it first revealed as a concept in January 2023 at the CES.

Reports emerged in early 2024 SHM was considering an SUV, with the latest CES announcement confirming the car will be a real thing. 

SHM is a collaboration between major entertainment company Sony and well-known car manufacturer Honda, combining to create a car focused on a technology vision. 

This tech-based approach and all-electric status sees the brand shape up as a potential rival to Tesla.

2026 Afeela 1 (left) and 2026 Afeela Prototype (right)
2026 Afeela 1 (left) and 2026 Afeela Prototype (right)

This 2026 Prototype could be seen as direct competition for the Tesla Model Y, but it looks to come in at a significantly higher price point.

SHM has also unveiled new elements for its vision, one is an intelligent drive system similar to what is available on some Tesla models. 

The advanced driver assistance system supports Level 2 autonomous driving, allowing travel from departure point to destination, with the company setting its sights on Level 4-equivalent capabilities in the future. 

2026 Afeela 1
2026 Afeela 1

There is also a sophisticated AI system in the car called the ‘Personal Agent’, which is an interactive conversational AI, using Microsoft's Azure OpenAI. 

This computing power is supported by a Snapdragon Digital Chassis, which offers high-level connectively and vehicle security.

The 2026 Prototype looks like a raised version of the Afeela 1, keeping the same rough design and features.

2026 Afeela 1
2026 Afeela 1

This includes the car having cameras instead of side mirrors among other cameras on the roof for its AI driving capacity and there are also no door handles.

According to SHM, the 2026 Prototype offers greater spatial flexibility and accessibility in comparison to the Afeela 1.

While we are yet to see an Afeela car hit the market, the company has confirmed there is progress on beginning production.

2026 Afeela 1
2026 Afeela 1

Reservations for the Afeela 1 opened up in January 2025, with trial production runs of the car conducted at Honda’s East Liberty Auto Plant in Ohio.

The company has also confirmed deliveries of the Afeela 1 are expected to begin sometime in 2026. 

The new Afeela concept SUV is targeted for a launch in the United States market in 2028. 

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