Dreame Shuts Down Electric Vehicle Division Following Funding Cutbacks

Chinese appliance and vacuum manufacturer Dreame is shuttering its automotive division after state-linked financial backing dried up, as reported by The Verge. The closure marks a major retreat in the company's broader effort to transform from a vacuum cleaner manufacturer into a global multi-sector technology conglomerate.

The company's vehicle enterprise, operating under the internal designation "Project Starry Sky," previously employed more than 1,000 workers at its peak, according to details originally published by CarNewsChina. The division's workforce has now been reduced to a small group of human resources and legal personnel tasked with winding down operations and liquidating remaining assets.

In an official statement regarding the corporate restructuring, Dreame stated that it "recently adjusted certain operations that were in the exploratory phase." The organization indicated that its long-term operations will now focus on four primary corporate pillars: "smart home, outdoor/garden, smart mobility, and embodied AI." Corporate spokespersons did not respond to requests for further comment on the automotive division's closure.

The operational halt coincides with broader actions by Chinese regulatory bodies targeting oversight of the nation's $3.4 trillion private fund ecosystem. After establishing itself as one of the world's highest-volume vacuum manufacturers, Dreame aggressively expanded into adjacent technology verticals, establishing nearly 1,000 affiliated entities spanning smartphones, robotics, and electric vehicles. Much of this rapid expansion was facilitated by state capital, but Chinese authorities recently began examining the enterprise's fiscal spending practices, CNBC reported.

Prior to the shutdown, Dreame showcased its automotive ambitions earlier this year at an industrial exposition in San Francisco, introducing a prototype called the "Nebula Next 01 Jet Edition." The company asserted that the high-performance concept car was integrated with twin rocket boosters engineered to produce 100 kilo-Newtons of thrust, theoretically enabling the vehicle to sprint from zero to 60 miles per hour in 0.9 seconds.

Dreame also claimed the prototype utilized an advanced sulfide-based solid-state battery system boasting an energy density above 450 watt-hours per kilogram, alongside an estimated single-charge range exceeding 550 kilometers (341.7 miles). Despite these specifications, industry analysts raised immediate questions regarding the mechanical plausibility and safety of such extreme acceleration figures.

Subsequent disclosures from former staff members indicate that the showcased vehicle was entirely non-operational as a true automobile. Ex-employees told Chinese media outlet China Economy that the prototype exhibited in San Francisco lacked a functional chassis and was instead propelled and steered via remote control during public demonstrations.

The collapse of Project Starry Sky mirrors previous high-profile setbacks among electric vehicle startups attempting rapid market entry without established manufacturing platforms. Notably, Chinese-backed electric vehicle developer Faraday Future faced severe scrutiny nearly a decade ago over similar practices, including accusations that its public self-driving and mobility demonstrations relied on offstage remote operators rather than functional autonomous systems.