Dreame, a company that previously announced ambitious plans to enter the electric vehicle market, has reportedly decided to shut down its car manufacturing business. The business unit, known as the “Starry Project,” is expected to have its related companies deregistered.
Abrupt End to Ambitious Plans
After a period of high-profile announcements and efforts to establish its presence in the automotive industry, Dreame’s car manufacturing venture has taken a sharp turn. Reports indicate that the company is closing down its EV production operations, marking a rapid conclusion to its ambitious endeavor.
Company Scale and Workforce Reduction
In just one year, the Dreame car project went from inception to this abrupt halt. At its peak, the project employed nearly a thousand people. Currently, only a few dozen employees remain, primarily from administrative departments such as finance, legal, and human resources. Their main tasks involve settling outstanding supplier payments and managing the company’s deregistration process.
Employee Severance Details
A former employee, who wished to remain anonymous, shared details about the severance packages offered. According to this individual, employees who have worked for less than six months will receive compensation equivalent to N+0.5 (where N represents the number of months worked). Those with service between six months and one year will get N+1, and employees with a year or more of service are set to receive N+1.5. The primary operating entity, “Starry Project (Shanghai) Automotive Technology Co., Ltd.,” was registered in January 2025, and employee contracts were signed under this company. This registration date is crucial for determining the compensation scope for many employees.
Leadership Mobility and Office Vacancies
Further reports suggest that senior management within Dreame Automotive have begun actively seeking new external employment opportunities. Simultaneously, project employees are experiencing widespread layoffs and departures. The company’s office spaces show a significant number of vacant workstations, reflecting the project’s downsizing.
Background of Dreame’s Automotive Ambitions
Dreame Technology officially announced its foray into car manufacturing on August 28, 2025, with a bold claim to build the world’s fastest car. By the first half of 2026, the company had unveiled several concept vehicles, signaling its serious intent to compete in the EV market. However, these plans have now been shelved.
