Dreame abandons electric car project
Chinese appliance and electronics company Dreame is reportedly abandoning its electric car business, which it announced just over a year ago. The company, known primarily for robotic and stick vacuum cleaners, first revealed its car ambitions in August 2025.
The automotive division, which at its peak employed around 1,000 people, has seen a steady number of layoffs during recent months, according to a report from Car News China, which was cited by The Canberra Times.
Internal sources suggest that the car business was more about marketing and fundraising for the brand rather than actual manufacturing, with one former employee claiming that the company used high salaries and inflated titles to draw and poach talent from established carmakers. These sources also indicated that Dreame was required to secure funding before its research and development budgets were allocated.
The company issued a statement saying it "recently adjusted certain operations that were in the exploratory phase," and that it would focus on four key business areas: "smart home, outdoor/garden, smart mobility, and embodied AI." A spokesperson did not respond to a request for comment from The Verge.
The rise and fall of Project Starry Sky
Dreame's automotive division, reportedly referred to as "Project Starry Sky," was once a significant venture. It was reported in the automotive division to have employed over a thousand people, but now only a handful of legal and HR staff remain, tasked with winding down the operation, according to CarNewsChina as relayed by The Verge.
The company showcased its ambitious concept car, the Nebula Next 01 Jet Edition, at a San Francisco expo earlier this year. The vehicle was claimed to feature a pair of rocket engines, a sulfide-based solid-state battery with an energy density exceeding 450 Wh/kg, and a range of over 550 kilometers. However, former employees told the Chinese outlet China Economy that the concept lacked an actual chassis and was driven via remote control.
The cancelling of the car project came after China's government introduced new rules tightening oversight of the private fund industry, According to The Verge, the government funding that supported the company's expansion was now being looked at more closely.
Australia plans abandoned
Dreame had intended to launch in Australia within 12 to 18 months, making it the company's first right-hand-drive market. The brand initially planned a "family" of electric SUVs, and possibly an electric passenger car. These vehicles were set to feature Dreame's solid-state battery technology, which would have been a world first.
The company's concept, the Nebula Next 01, had even been shown in Australia. However, with the reported wind-down, those plans are now uncertain.