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The $10,000 BYD Seagull EV is scaring the U.S. auto industry

Credit: BYD

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China is the world’s largest automotive market, and understandably so, an important one for electric vehicle (EV) makers like Tesla. Although competitive Chinese automaker BYD isn’t yet slated to enter the U.S. market, the company’s recent release of a city EV with a price tag under $10,000 has some worried for when it and other low-cost companies do.

BYD launched its Seagull, a small hatchback EV with a price tag starting at 69,800 yuan (~$9,773), at the Shanghai Auto Show last year. While BYD said just last month that it has no plans to enter the U.S. auto market anytime soon, some U.S. automotive groups have expressed concerns over the Seagull EV and other affordable mass-market EVs eventually coming to North America.

Credit: BYD

At the same time, many automakers including Tesla are racing to build their next-generation, mass-market EVs, set to first be produced in Texas as soon as 2025, then later at an upcoming factory in Mexico, and eventually at a yet-unannounced third location. However Tesla and other automakers have generally been considered to be targeting a $25,000 price tag, and while affordable, it’s still far greater than $10,000.

While BYD isn’t planning to enter the U.S. at this point, the company has been beginning to deliver its EVs in several markets throughout Europe and Asia. Even despite ongoing political concerns, its entry into North America is considered an eventuality, and other Chinese automakers likely won’t be far behind.

Former General Motors (GM) executive Terry Woychowski, who is now President of engineering consultancy Caresoft Global, called the arrival of the Seagull a “clarion call for the rest of the auto industry,” adding that it’s a “significant event” (via CNBC).

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In a report last month from the Alliance for American Manufacturing, similar points were highlighted:

“The introduction of cheap Chinese autos — which are so inexpensive because they are backed with the power and funding of the Chinese government — to the American market could end up being an extinction-level event for the U.S. auto sector,” the organization writes.

BYD last year sold 1.57 million battery-electric vehicles (BEVs), substantially increased from 2020, when the automaker sold just 130,970. The automaker also reached a production milestone of 200,000 Seagull EV units in November.

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Tesla CEO Elon Musk, while continually encouraging increased competition to help advance sustainable transportation, aired a similar warning during Tesla’s Q4 and FY 2023 earnings call in January.

“The Chinese car companies are the most competitive car companies in the world,” Musk said during the call. “So, I think they will have significant success outside of China depending on what kind of tariffs or trade barriers are established.”

“Frankly, I think, if there are not trade barriers established, they will pretty much demolish most other companies in the world.”

BYD executive says Tesla is a ‘partner’ in electrification

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla to launch in India in July with vehicles already arriving: report

Tesla is finally making serious moves toward launching in India, with showrooms opening in July, a report claims.

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Credit: Tesla

Tesla is finally bringing its business to India, a new report indicates, as the company is already shipping vehicles from China to the market where it has attempted to launch business for several years.

We first heard of Tesla planning to launch in India about a decade ago when CEO Elon Musk and Indian Prime Minister Narendra Modi met in California at the Fremont Factory in 2015.

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Over the years, the two have hinted that the automaker would eventually land in India, but issues with import duties have delayed Tesla’s attempts.

Now, there seems to be some serious movement in Tesla’s plans, as it has reportedly shipped the first batch of vehicles from China to India, according to Bloomberg. The outlet says these are Model Y Rear-Wheel-Drive configurations.

Tesla is also planning for other parts of the launch, like preparing for Supercharging, aftermarket parts and merchandise purchasing for vehicle owners and fans, and spare parts from various regions, including the United States, China, and the Netherlands.

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The company and the Indian government must have come to some sort of agreement that was catalyzed by Musk and Modi’s meeting in February in the U.S.

It is a long time coming, and it now gives Tesla access to an incredibly vast market in India, where a very small percentage of 2024’s total automotive sales were comprised of electric vehicles.

Another interesting tidbit about the launch is that the vehicles will be coming from Gigafactory Shanghai and not Gigafactory Berlin as previously thought. Reports from other publications, like Reuters, indicated the German production facility was building vehicles for India early last year.

India has a very strict policy that favors domestic manufacturing, which is why the import duties were so high for foreign automakers looking to bring their product into the market. These duties were reduced from 110 percent to just 15 percent, as long as companies aim to invest in India and meet certain investment and sales targets.

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SpaceX and Elon Musk share insights on Starship Ship 36’s RUD

Starship Ship 36 experienced a Rapid Unscheduled Disassembly during a static fire attempt.

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Elon Musk and SpaceX provided an explanation for the Rapid Unscheduled Disassembly (RUD) of Starship Ship 36 on Wednesday. As per Musk, preliminary data suggests that a nitrogen composite overwrapped pressure vessel (COPV) in the vehicle’s payload bay failed below its proof pressure.

On Wednesday evening, Ship 36 experienced a RUD during a static fire attempt. Videos of the incident that were shared online showed Starship Ship 36 exploding into a massive fireball at its launchpad in Starbase, Texas. Images taken in the aftermath of the explosion showed significant damage to the plumbing in the area. The site’s pad structure was also destroyed.

Elon Musk shared some information immediately after the incident. In a response to a post from space enthusiast @Erdayastronaut, Musk stated that “Preliminary data suggests that a nitrogen COPV in the payload bay failed below its proof pressure.”

Musk also noted that, “If further investigation confirms that this is what happened, it is the first time ever for this design.”

SpaceX provided more insight into the incident in a post on its official website.

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“After completing a single-engine static fire earlier this week, the vehicle was in the process of loading cryogenic propellant for a six-engine static fire when a sudden energetic event resulted in the complete loss of Starship and damage to the immediate area surrounding the stand.

“The explosion ignited several fires at the test site, which remains clear of personnel and will be assessed once it has been determined to be safe to approach. Individuals should not attempt to approach the area while safing operations continue,” SpaceX wrote in its post.

SpaceX highlighted that despite Starship Ship 36’s RUD, the incident will not result in any hazards to the surrounding communities in the Rio Grande Valley. And in a post on X, SpaceX also confirmed that everyone in the Starship team was safe and accounted for after Ship 36’s explosion.

While Ship 36’s RUD is a speed bump for the Starship program, SpaceX is a company that is known to grow stronger with every adversity. Thus, it would not be surprising if SpaceX implemented numerous improvements to Starship after this incident–improvements that would make the vehicle more reliable and safer than before.

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Tesla has started rolling out initial round of Robotaxi invites

Tesla is putting safety above all in its initial Robotaxi rollout.

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Credit: @BLKMDL3/X

Tesla has started rolling out an initial round of invites for its upcoming Robotaxi service in Austin, Texas.

Screenshots shared by several Tesla community members who received the invites provided a quick overview of the autonomous ride-hailing service.

As noted in a techAU report, the initial round of Robotaxi service invites has gone to longtime Tesla owners and active members of the EV community. These include owners such as @SawyerMerritt, @BLKMDL3, @WholeMarsBlog, @ItsKimJava, and @HerbertOng, all of whom shared screenshots of the invitation that Tesla has sent about the upcoming service.

You’re Invited to Early Access of Tesla Robotaxi!

The Future is Now! You’re invited to Early Access of Tesla’s Robotaxi service in Austin, TX!

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As an Early Access rider, you can be among the first to use our new Robotaxi App and experience an autonomous ride within our geofenced area in Austin. Through this exclusive preview, you’ll have the opportunity to provide valuable feedback on our Robotaxi service.

Based on Tesla’s message, it appears that participation in the service would be strictly invite-only for now. Participants must also download Tesla’s dedicated Robotaxi App to hail a ride. Rides can also be requested and initiated to and from any location within a geofenced area of Austin.

The robotaxi service will be available from 6:00 AM to 12:00 AM, seven days a week, though these hours may change depending on factors such as inclement weather. Interestingly enough, Tesla is inviting the first participants of the Robotaxi program to share photos and videos of their experience with the service.

While the vehicles themselves are autonomous and would operate without human input, the Robotaxis would still be accompanied by a Tesla staff member to monitor the vehicle. This strategy suggests that Tesla is really putting safety above all in its initial Robotaxi rollout.

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