Referring to a car, it is a car whose cosmetics look like it's stock and slow and one assumes there is a small engine under the hood. Only when it is challenged by a ricer or another car, it shows its mighty by leaving the other car in a cloud of smoke because it has either a huge engine from the factory or has a swapped engine from a bigger car or has tons of engine modifications.
A sleeper is is the perfect example of this acronym "All bite, no bark."
It is a sleeper dude, that is what it meant to do, shock you by its speed and power you never thought it had.
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