BYD’s new EV, starting at less than $10,000, is stoking fear across the industry
Leading EV maker BYD shook the industry after unveiling the new Seagull (Dolphin Mini), with starting prices as low as $9,700 (69,800 yuan). Although BYD’s new EV, which earned the nickname “Lamborghini mini,” is not sold in the US, American automakers are taking notes.
BYD’s new Seagull EV shocks the industry
BYD launched the new Seagull EV Honor Edition (Dolphin Mini overseas) earlier this month with a “shocking price” starting at around $9,700 (69,800 yuan).
Powered by BYD’s Blade batteries, the new EV is available in 30.08 kWh and 38.88 kWh versions. The former is good for up to 190 miles (305 km) CLTC range, while the latter provides up to 252 mi (405 km). It can also charge from 30% to 80% in 30 mins.
The inside doesn’t look like a cheap EV with a 10.1″ rotating center screen and otherwise minimalist design.
With DiLink’s intelligent network, users can interact and play videos. According to local reports, the Seagull has earned the nickname “Lamborghini mini,” as former Lamborghini designer Wolfgang Egger led the design.
Perhaps more importantly, BYD reportedly earns a profit on the Lamborghini mini, which has American automakers worried.
According to Terry Woychowski, former GM executive and current president of automotive at Caresoft Global, BYD’s new Seagull could be a “clarion call for the rest of the industry.”
In a new CNBC report, Woychowski called the low-cost electric car “a significant event” as American automakers look to keep up.
American automakers look to affordable EVs to compete
Caresoft, an engineering consulting firm, inspects (digitally and physically) every part of a vehicle to determine how its clients can improve efficiency.
After studying the new BYD Seagull, the firm found it simple and efficiently designed, built, and executed. However, Caresoft was met with better-than-expected quality and reliability.
“What they did do is done very well,” Woychowski explained. “It’s efficiently done.” For under $10,000, it’s a steal.
Although BYD has no plans to enter the US passenger EV market, if the Seagull arrived in America, it would likely still be tens of thousands of dollars cheaper than the average electric car.
BYD launched the Seagull EV in South America as the Dolphin Mini. In Brazil, the EV has a starting price of around $20,000 (99,800 BRL).
Meanwhile, American automakers are preparing for the inevitable. “What we’ve seen over time is automotive manufacturers eventually enter all the markets that matter,” Marin Gjaja, chief operating officer for Ford Model E, said in a recent interview with CNBC.
Ford is shifting plans to focus on smaller, more affordable EVs, including a compact electric pickup and SUV. According to sources, the first model is expected to launch in 2026, with a starting price of around $25,000.
Rival GM plans to introduce its next-gen Chevy Bolt EV, based on its Ultium platform, next year. According to CFO Paul Jacobson, the new Bolt EV will save billions as its first Ultium-based model to use LFP batteries. Ford also plans to use LFP batteries for its next-gen models to cut costs.
Electrek’s Take
American automakers are already losing market share. The “Big Three,” including Ford, GM, and Chrysler (owned by Stellantis now), have seen their share of the US market crater from 75% in 1984 to around 40% in 2023.
Ford’s CEO Jim Farley warned at a Wolfe Research conference last month that if automakers fail to keep up with Chinese automakers, like BYD, “then 20% to 30% of your revenue is at risk.”
Farley also called BYD’s new Seagull EV “pretty damn good,” as he warned the industry. Ford’s leader added, “As the CEO of a company that had trouble competing with the Japanese and the South Koreans, we have to fix this problem.”
The American automaker is developing a low-cost EV platform led by Alan Clarke, who previously oversaw engineering on Tesla’s Model Y.
Amid the shift to smaller EVs, Ford is reportedly putting off plans to launch a larger three-row electric SUV. Farley said building larger EVs, like the F-150 Lightning, is too costly.
Meanwhile, BYD launched a “liberation battle,” as it calls it, against gas-powered vehicles. The Chinese automaker has launched a series of low-cost EVs, including an updated version of its best-selling Dolphin.
BYD has a major advantage as it builds nearly all the components for its vehicles. For example, except for the windows and tires, everything is made in-house for the BYD Dolphin.
Reports suggest that BYD’s next-gen EV platform could slash costs even further, putting more pressure on American automakers to act.
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EV sales kept up their momentum in December 2024, with incentives playing a big role, according to the latest Cox Automotive’s Kelley Blue Book report.
December’s strong EV sales saw an average transaction price (ATP) of $55,544, which helped push the industry-wide ATP higher, according to Kelley Blue Book. The December ATP for an EV was higher year-over-year by 0.8%, slightly below the industry average, and higher month-over-month by 1.1%. Tesla ATPs were higher year-over-year by 10.5%.
Incentives for EVs remained elevated in December, although they were slightly lower month-over-month at 14.3% of ATP, down from 14.7% in November.
EV incentives were higher by an impressive 41% year-over-year and have been above 12% of ATP for six consecutive months. Strong sales incentives, which averaged more than $6,700 per sale in 2024, were one reason EV sales surpassed 1.3 million units last year, according to Cox Automotive, a new record for volume and share.
(My colleague Jameson Dow reported yesterday, “In 2024, the world sold 3.5 million more EVs than it did in the previous year … This increase is larger than the 3.2 million increase in EV sales from the previous year – meaning that EV sales aren’t just up, but that the rate of growth is itself increasing.”)
Kelley Blue Book estimated that in December, approximately 84,000 vehicles – or 5.6% of total sales – transacted at prices higher than $80,000 – the highest volume ever. KBB lumps gas cars and EVs together into this luxury vehicle category, so this is where Tesla Cybertruck is slotted.
However, Tesla bundles sales figures of Cybertruck with Model S, Model X, and Tesla Semi(!) into a category it calls “other models,” so we don’t know for sure exactly how many Cybertrucks Tesla sold in Q4, much less in December. However, Electrek‘s Fred Lambert estimates between 9,000 and 12,000 Cybertrucks were sold in Q4, and that’s not a stellar sales figure.
What will January bring when it comes to EV ATPs? What about tax credits? Check back in a month and I’ll fill you in.
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Tesla is now claiming that Cybertruck was the ‘best-selling electric pickup in US’ last year despite not even reporting the number of deliveries.
There’s a lot of context needed here.
As we often highlighted, Tesla is sadly one of, if not the most, opaque automakers regarding sales reports.
Tesla doesn’t break down sales per model or even region.
For comparison, here’s Ford’s Q4 2024 sales report compared to Tesla’s:
You could argue that Tesla has fewer models than Ford, and that’s true, but Tesla’s report literally has two lines despite having six different models.
There’s no reason not to offer a complete breakdown like all other automakers other than trying to make it hard to verify the health of each vehicle program.
This has been the case with the Cybertruck. Tesla is bundling its Cybertruck deliveries with Model S, Model X, and Tesla Semi deliveries.
Despite this lack of disclosure, Tesla has been able to claim that the Cybertruck has become “the best-selling electric pickup truck” in the US in 2024:
It very well might be true. Ford disclosed 33,510 F-150 Lightning truck deliveries in the US in 2024 while most estimates are putting Cybertruck deliveries at around 40,000 units.
Those are global deliveries, but Tesla only delivered the Cybertruck in the US, Canada, and Mexico in 2024, and most of the deliveries are believed to be in the US.
However, there’s essential context needed here, as we highlighted in our recent ‘Tesla Cybertruck sales are disastrous‘ article.
First off, Tesla had a backlog of over 1 million reservations for the Cybertruck that it has been building since 2019. This led many to believe Tesla already had years of demand baked in for the truck and that production would be the constraint.
However, based on estimates, again, because Tesla refuses to disclose the data, Cybertruck deliveries were either flat or down in Q4 versus Q3 despite Tesla introducing cheaper versions of the vehicle and ramping up production.
Again, that’s after just about 40,000 deliveries.
Furthermore, with almost 11,000 deliveries in Q4 in the US, Ford more likely than not outsold Cybertruck with the F-150 Lightning in Q4.
Electrek’s Take
Tesla is in damage control here. There’s no doubt that it is having issues selling the Cybertruck.
Inventory is full of Cybertrucks and Tesla is now discounting them and offering free lifetime Supercharging.
Tesla is great at ramping up production, and it’s clear the Cybertruck is not production-constrained anymore. It is demand-constrained despite having over 1 million reservations.
Again, those reservations were made before Tesla unveiled the production version, which happened to have less range and cost significantly more.
The upcoming cheaper single motor version should help with demand, but I have serious doubts Tesla can ramp this program up to more than 100,000 units in the US.
As a reminder, Tesla installed a production capacity of 250,000 units annually and Musk said he could see Tesla selling 500,000 Cybertrucks per year.
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