New ultra-cheap EV could upend the global auto market — but it’s off-limits to US drivers

David Gray is the co-founder of Glovebox Media and provides expert EV analysis for The Cool Down.

China’s BYD has created shockwaves worldwide since the Seagull EV was unveiled in early 2023.

«A sub-$10K EV? Really?» many of us asked. «But is it any good?»

The answers: «Not really» and «actually, yes.» While reviewers were generally impressed with the product, the incredible price tag was based on a currency conversion that was never going to hold up overseas.

In March 2024, the Dolphin Mini iteration arrived in Mexico, where it can now be bought for the equivalent of around $21,000.

And later this year, a smaller version named the Dolphin Surf will hit the U.K., where reports claim it’s expected to sell for as little as 15,000 pounds (roughly $19,000).

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The car threatens to break the psychologically crucial $20,000 barrier in the United States, and is produced in a country with similar safety standards to the U.S.

So, why are we so obsessed with the Dolphin if it’s not going to arrive on U.S. shores any time soon?

Well, because the Dolphin will be available in a great many other international markets. And it is already redefining customers’ expectations of what they can and should get for their money: it’s not the only sub-$20K EV around, but it’s perhaps the one attracting the most praise.

This means no more free pass to EV manufacturers, which have long claimed that electric cars use new technologies that should automatically cost a premium. Plus, BYD’s expected success could eat into international sales from U.S. EV brands such as Tesla, which has its own much-anticipated sub-$30,000 offering on the way that will now have to be really special in order to have a huge impact.

BYD and Tesla sold roughly the same number of EVs in 2024, with both moving just under 1.8 million vehicles worldwide. But when you factor in BYD’s hybrid models, the Chinese company’s sales actually total a staggering 4.3 million. That domination can translate into massive reinvestments in technology — and even cheaper offerings coming down the pipeline.

But these cheap BYD models have at least one weakness as far as any theoretical U.S. market is concerned: They’re small, slotting into the «super mini» niche, which Americans have shown little to no appetite for thus far.

For now, even as America’s EV landscape wobbles, we can’t help but be impacted by what happens globally. Cheaper, better EVs in China, Central America, and Europe will mean greater competitiveness and higher expectations at home.

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