Sony unveiled an electric SUV prototype, the VISION-S 02, ahead of the Consumer Electronics Show this week. The tech giant has been working with partners and test driving its EV/cloud platform over the last year and half. The new announcement solidifies Sony's ambitions to compete in the competitive electric vehicle industry.

Sony is launching a new company called Sony Mobility that will focus on electric cars. The company already has a working prototype of the Vision-S EV, and now it's going a step further with a concept SUV.

The company's CEO says the company wants to find out how a "creative entertainment company" can "redefine mobility". We don't know if this means we'll see a Sony-branded car in production soon, but it seems like a real possibility.

The electric vehicle (EV) sector has witnessed a surge of new entrants, notably Rivian (RIVN), an electric SUV and pickup truck company that went public in November with a valuation of more than $80 billion. Lucid (LCID), a luxury electric car manufacturer, made its public debut this summer through a SPAC sale.

Sony's stock was up 3% in morning trading Wednesday after the company announced that it intends "to explore entry into the EV market".