Dreame scraps rocket-car project as government funding dries up

Dreame, a Chinese vacuum-cleaner manufacturer that has been expanding into a broad range of tech products, is shutting down its automotive arm after government funding evaporated. The division, known as “Project Starry Sky,” once employed more than 1,000 workers, but now only a small team of legal and HR personnel remain to dismantle the operation. In a brief statement, Dreame said it has adjusted exploratory activities and will concentrate on four core areas: smart home, outdoor/garden, smart mobility and embodied AI.

The decision comes amid new Chinese rules tightening supervision of the private-fund sector, which had financed much of Dreame’s rapid diversification into smartphones, robotics and vehicle projects. The company had previously wowed audiences at a San Francisco expo with the Nebula Next 01 Jet Edition, a sleek concept claiming 0-60 mph in 0.9 seconds, a solid-state battery over 450 Wh/kg and 100 kN of thrust. However, former employees disclosed that the showcase lacked an actual chassis and was driven by remote control, underscoring the vaporware nature of the project. Analysts note the episode resembles earlier over-promised Chinese EV ventures such as Faraday Future, which also faced credibility issues.