Chinese vacuum manufacturer Dreame has reportedly shut down its automotive division, bringing a sudden end to an ambitious rocket-powered concept car project that turned out to be little more than a remote-controlled prototype.
The company's automotive unit, known internally as "Project Starry Sky," once employed over 1,000 people. Today, only a small team of legal and human resources staff remains to wind down operations. The shutdown follows stricter regulatory oversight from the Chinese government, which recently introduced rules tightening control over the country's $3.4 trillion private fund industry. After achieving global success with its home vacuums, Dreame expanded aggressively into nearly 1,000 affiliated ventures ranging from smartphones to robotics and electric vehicles—much of it financed through government-backed funds.
Earlier this year, Dreame drew significant media attention at a San Francisco exposition with the unveil of the "Nebula Next 01 Jet Edition." The company claimed the sleek concept car featured a pair of rocket engines capable of delivering 100 kilonewtons of force, allowing it to accelerate from 0 to 60 mph in just 0.9 seconds. Dreame also boasted that the vehicle was powered by a record-breaking solid-state battery with a driving range exceeding 340 miles.
However, former employees later revealed that the vehicle shown to the public was far from operational. The prototype lacked an actual chassis and was driven across the stage via remote control, raising serious questions about how the company intended to realize its dramatic performance claims without violating basic laws of physics.
In a statement, Dreame acknowledged that it had "recently adjusted certain operations that were in the exploratory phase." Moving forward, the company stated it will concentrate on four primary business sectors: smart home devices, outdoor equipment, smart mobility, and embodied artificial intelligence.
The collapse of Dreame's car project echoes similar cautionary tales in the tech and automotive sectors, such as electric vehicle startup Faraday Future, which faced comparable accusations a decade ago after showcasing ambitious vehicle designs operated by offstage remote controls.