Dreame shuts down automotive project after government funding withdrawal

Automotive Project Closure

Dreame, a Chinese vacuum company, has reportedly shut down its automotive project, known as "Project Starry Sky." This division, which once employed over 1,000 individuals, now retains only a small team of legal and HR staff to manage the winding down process.

Funding Withdrawal and Government Scrutiny

The closure is a direct result of government funding drying up. This development coincides with new regulations from the Chinese government aimed at tightening oversight of the $3.4 trillion private fund industry. Dreame was specifically mentioned in this context, as much of its rapid expansion into new businesses, including smartphones, robotics, and cars, was financed by government funds.

Concept Car Controversy

Earlier this year, Dreame showcased the "Nebula Next 01 Jet Edition" concept car at a San Francisco expo. This concept featured rocket engines and claimed acceleration from 0 to 60 mph in 0.9 seconds, along with a sulfide-based solid-state battery offering over 550 km of range. However, the concept was later revealed to be vaporware, with former employees stating it lacked an actual chassis and was remote-controlled.

Future Business Focus

Following the shutdown of its automotive project, Dreame stated it has "adjusted certain operations that were in the exploratory phase." The company plans to refocus its efforts on four core business areas: smart home, outdoor/garden, smart mobility, and embodied AI.