Dreame’s dream of a rocket-powered car is dead

Dreame is reportedly shutting down its automotive division, known as Project Starry Sky, after losing government funding. The unit once had more than 1,000 employees, but only a small legal and HR team remains to close operations, while Dreame says it will refocus on smart home, outdoor, smart mobility, and embodied AI businesses.

The retreat highlights how costly and politically dependent the EV race has become, especially for consumer hardware companies trying to jump into cars. Dreame’s pullback suggests more nontraditional automaker ventures may narrow ambitions as capital tightens and EV competition intensifies.