Dreame’s dream of a rocket-powered car is dead
Dreame, the Chinese vacuum-cleaner manufacturer with ambitions to become a broader technology conglomerate, has reportedly shut down its automotive division after government funding dried up. The move follows tighter Chinese government scrutiny of the £3.4 trillion private fund industry, with regulators specifically singling out Dreame's spending, and it undercuts the company's efforts to expand from vacuums into smartphones, robotics and cars.
According to CarNewsChina, the unit, known as "Project Starry Sky", once employed over 1,000 staff but has been reduced to a handful of legal and HR workers overseeing its wind-down; Dreame said it would instead focus on smart home, outdoor/garden, smart mobility and embodied AI. The closure comes months after Dreame unveiled the "Nebula Next 01 Jet Edition" concept car at a San Francisco expo, claiming rocket boosters that could take it from 0-60mph in 0.9 seconds, a 450 Wh/kg solid-state battery and a 550km range. Former employees have since told China Economy the showcased vehicle had no real chassis and was driven by remote control, echoing similar remote-control demo controversies at rival Faraday Future.
- Dreame shuts down its car division after Chinese government funding stopped.
- Regulators tightened scrutiny of Dreame's spending amid private fund crackdown.
- Its flashy "rocket car" concept was reportedly remote-controlled, not real.
New here? Start with this
Dreame made its name as a Chinese vacuum-cleaner brand, but in recent years it tried to grow into a much broader technology company, moving into smartphones, robotics and, eventually, electric cars. Its car division, internally known as "Project Starry Sky", was central to that ambition and at its peak employed more than 1,000 people.
Earlier in 2026, Dreame showed off a concept car called the "Nebula Next 01 Jet Edition" at an event in San Francisco, promising eye-catching performance figures including rocket-assisted acceleration and a long driving range. This kind of flashy unveiling is common in China's crowded electric-vehicle market, where new entrants compete for attention and investment alongside established carmakers.
The story matters because it touches on wider questions about how China's private investment industry is funded and regulated, and about the credibility of ambitious tech demonstrations more broadly. Chinese authorities have been tightening oversight of private fund spending, and Dreame's car unit has reportedly become a casualty of that scrutiny, raising questions about the company's broader diversification plans.
Asia Business Companies Government Markets Politics Space Technology World