Dreame's "Rocket Car" model at San Francisco. Credit: Dreame Understand China EV’s Market Real-time notifications when critical EV data is released All important data in one place 2,000,000+ data points Become a member Dreame Technology, the vacuum and cleaning robot maker, has decided to shutter its automotive business and liquidate its “Starry Sky” project, marking an abrupt end to a venture characterised by high-profile launches and rapid expansion. The downfall comes just one year after Dreame’s official entry into the car market in August 2025. The company had made headlines early in 2026, debuting a supercar at the Consumer Electronics Show (CES) in January and unveiling the “Nebula Next 01 Jet Edition” (known as the “Rocket Car“) in San Francisco on April 27. At its peak, the automotive division employed nearly 1,000 people. However, following months of steady layoffs that began in May, the workforce has plummeted to just a few dozen employees. These remaining staff members, primarily from finance, legal, and HR departments, are tasked with winding down operations, handling supplier debts, and processing the legal annulment of the related companies. READ ALSO Vacuum maker Dreame’s two supercars make CES debut: Surprisingly less Bugatti-like than renders suggested The “Rocket Car,” which was marketed as a breakthrough in aerospace-grade civilian transport, claimed a 0-100 km/h acceleration of just 0.9 seconds. The vehicle was reportedly equipped with a sulfide-based all-solid-state battery with an energy density exceeding 450 Wh/kg and a CLTC range of over 550 km. Its propulsion system boasted a maximum thrust output of 100 kN. Dreame’s “Rocket Car”, the Nebula Next 01. Despite the technical claims, internal sources suggest the project was more about marketing and fundraising than genuine manufacturing. Former employees revealed to China Economy that the “supercar” model shown at CES lacked a chassis and was moved via remote control. The “Rocket Car” model was allegedly purchased from a Shanghai-based model company for several million yuan (hundreds of thousands USD) and modified with a chassis and thrusters to create a visual effect for the cameras. Insiders further claimed that the company’s operational logic was inverted, instead of investing in R&D to create a product, employees were required to secure funding first before R&D budgets were allocated. One former employee noted that the company used high salaries and inflated titles to poach talent from established automakers, focusing on financing rather than production. The rapid contraction is also linked to regulatory scrutiny. Reports indicate that local government authorities intervened to investigate the use of investment funds, restricting the company’s ability to spend government grants freely. The core products of Dreame. Dreame CEO Yu Hao, known for a flat management style and an “entrepreneurial” approach, has now pivoted the company back to its core strengths. Dreame has eliminated most of its “incubators” and will now focus exclusively on four core business lines: vacuum cleaning, robotic lawnmowers, two-wheeled electric vehicles, and “Magic Atom” robots. Despite the exit from the automotive sector, the company continues to seek a public listing in the capital markets. READ ALSO Vacuum maker Dreame unveils supercar with 0.9s 0-100 km/h sprint, 4,320-line LiDAR and 450 Wh/kg solid-state battery Most important news in your inbox. Recaps · scheduled All you need, in one email. Instant alerts · real-time Ping me when an article goes live. 0 of 27 topics selected Bundle into one email per day — instead of one email per article No spam · Unsubscribe with one click · Change settings anytime
+57 others
