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Dreame Cancels Rocket-Powered Car Project

Originally published on: August 25, 2026
▼ Summary

– Chinese vacuum manufacturer Dreame is shutting down its automotive division, Project Starry Sky, after government funding dried up.
– The company previously showcased the Nebula Next 01 Jet Edition concept car at a San Francisco event, claiming advanced rocket propulsion and solid-state battery technology.
– Reports indicate the concept vehicle was vaporware with no actual chassis and was controlled remotely rather than being a functional prototype.
– Dreame’s rapid expansion into smartphones, robotics, and cars was largely funded by Chinese government money, which is now facing tighter regulatory oversight.
– Following the automotive shutdown, Dreame plans to refocus its business efforts on smart home, outdoor, smart mobility, and embodied AI sectors.

Dreame, the Chinese technology firm best known for its vacuum cleaners, is reportedly terminating its ambitious automotive division after government funding was withdrawn. The shutdown of “Project Starry Sky” marks a significant pivot for the company, which had hoped to transition from home appliances into a broader global tech conglomerate.

According to reports from CarNewsChina, the automotive unit once boasted a workforce of more than 1,000 employees. Today, only a small team of legal and human resources staff remains, tasked with dismantling the operation. In an official statement, Dreame confirmed it has “recently adjusted certain operations that were in the exploratory phase.” The company clarified that its future strategy will concentrate on four primary sectors: “smart home, outdoor/garden, smart mobility, and embodied AI.” A company spokesperson did not respond to requests for further comment.

This strategic retreat follows intensified scrutiny from Chinese authorities regarding the allocation of public funds. New regulations targeting the nation’s $3.4 trillion private fund industry have placed Dreame under closer examination. After establishing itself as a dominant manufacturer of vacuums, Dreame rapidly expanded into nearly a thousand affiliated ventures involving robotics, smartphones, and electric vehicles. Much of this aggressive growth was supported by state backing, but officials are now questioning how those funds were utilized, as reported by CNBC.

The cancellation brings an end to one of the most high-profile and controversial concepts in recent automotive history: the Nebula Next 01 Jet Edition. Unveiled at a San Francisco expo earlier this year, the concept car featured two rocket engines designed to accelerate from zero to sixty miles per hour in just 0.9 seconds. The vehicle was purportedly equipped with a sulfide-based solid-state battery boasting an energy density exceeding 450 Wh/kg and a range of over 550 km (341.7 miles). Company representatives claimed the boosters could generate 100 kilo-Newtons of force.

However, the specifications raised immediate skepticism among experts, particularly regarding the physics required to achieve such acceleration without catastrophic structural failure. It appears these concerns were well-founded. Former employees revealed to China Economy that the displayed vehicle lacked a functional chassis and was operated via remote control, effectively rendering it vaporware. While concept cars often serve as design exercises rather than drivable prototypes, the extent of the deception here is notable.

The collapse of Dreame’s car project mirrors struggles faced by other ambitious entrants in the EV space. Faraday Future, another Chinese-backed automaker with aspirations for autonomous and electric vehicles, encountered similar hurdles nearly a decade ago. That company also faced allegations of using remote-controlled vehicles for public demonstrations, highlighting the risks companies take when promising advanced technology before possessing the engineering infrastructure to support it.

(Source: The Verge)

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