Another investment from Xiaomi? "Dreame officially announces entering the automotive industry" trends on social media. Netizens: This is crazy...

You should know Dreame, the brand whose robotic vacuum cleaners are selling like hotcakes.

On the 28th, it suddenly officially announced that it would "build the world's fastest car", directly targeting the legendary super - car brand Bugatti Veyron!

As soon as this official announcement was released, it quickly topped the hot - search list on social media platforms, and netizens went wild.

Netizens who were not optimistic said bluntly:

"This is crazy."

"The boss of Dreame is probably going to run away."

"They probably want to make a big splash to save on advertising costs."...

Some talented netizens couldn't wait to come up with ideas for Dreame:

"Actually, it can leverage its expertise in making vacuum cleaners to build a street sweeper."

"In the future, there's no need to sweep the roads manually. This car can sweep the roads as it moves."

"It can design an intelligent vehicle for the environmental sanitation department."

"I hope the interior can be self - cleaning."

Okay, it's fun to have a little joke.

Actually, quite a few netizens expressed their support:

"I'm optimistic about this kind of cross - border move. In the end, we consumers will benefit, as we'll have more choices."

"It's quite normal for a brand to expand into different product categories. Why can't Dreame give it a try?"

"I value their manufacturing experience. Quality control ability in large - scale production is the core."

However, many netizens took a neutral view of this matter:

"The idea is good, but the automotive industry is a tricky one. Just don't let it end up in a fiasco."

"These days, if you don't build a car, you're not even qualified to call yourself a tech company."

"Previously, everyone was into making mobile phones. Now, everyone is into making cars."...

Speaking of Dreame's foray into the automotive industry, according to its official announcement, this isn't an impulsive decision. The idea was conceived in 2013, but it was only officially made public 12 years later.

Moreover, its first product can rival the Bugatti Veyron and is planned to be unveiled in 2027, targeting the high - end market right from the start. It seems that they are full of confidence.

Let's first take a look at what capabilities Dreame has.

Since its establishment in 2017, Dreame has indeed been thriving in the cleaning field.

According to the Hurun Global Unicorn List in 2024, Dreame's company valuation reached 20 billion yuan last year.

There is also a notable detail. It's possible that Dreame's courage to enter the automotive industry comes from Xiaomi.

Public information shows that Xiaomi, through its investment platforms such as Shunwei Capital, participated in multiple rounds of financing for Dreame Technology.

Moreover, Dreame's first step towards success is also related to Xiaomi. As a company in the Xiaomi ecosystem, Dreame started by manufacturing smart cleaning products for Xiaomi in 2017 and gradually developed its own brand later.

However, regardless of its strong investor background, building cars requires a huge amount of capital.

Especially since Dreame is aiming high right from the start, targeting the high - end market and competing with the Bugatti Veyron. At present, its capabilities in the automotive industry are still limited compared to established players.

Whether it will succeed or not remains to be seen, but this time Dreame is serious about building cars and not just testing the waters.

Some media have reported that Dreame has already assembled a car - building team of nearly a thousand people and is still expanding.

In addition, in January this year, the founder of Dreame registered a company called Star Project and indirectly holds an 80% stake.

It was later reported that the first model of Star Project is a high - end new - energy SUV. Its styling design was being worked on in the first quarter of this year. The factory is planned to be completed in the first quarter of next year, and mass production is scheduled for 2027.

After mass production, it is planned to be sold overseas first and then enter the domestic market.

These progress and plan reports have not been officially confirmed yet and are for reference only.

Looking at those who have ventured into the automotive industry over the years, Dreame is not the first home - appliance company to make a cross - border move into car - building.

Dyson, a home - appliance giant similar to Dreame, also ambitiously entered the electric - vehicle field. Even more similarly, it planned to build a super - luxury electric car...

Finally, after investing 2 billion pounds (about 18.2 billion yuan), it decided that "it was impossible to produce a profitable car" and ultimately gave up.

Dyson's intelligent electric prototype car. Image source: Dyson

Such real - life examples directly influence people's views on Dreame's car - building venture.

On the other hand, the automotive industry is extremely competitive now. It's hard not to wonder why Dreame wants to take this risk.

The new - energy vehicle industry in China has now entered the elimination stage.

The leading car companies in the industry are cutting prices and expanding overseas. Small and medium - sized players are either going bankrupt or withdrawing from the market. Moreover, the pace of innovation in the automotive industry is extremely fast, with major upgrades every year.

Therefore, from the perspective of industry entry barriers and risk control, it's not a wise decision to enter the market now.

Moreover, building cars is an industry with a long cycle, high investment, and slow returns. Dreame has not yet reached a dominant position in its main business, let alone achieving remarkable success in the cross - border automotive industry.

If one is optimistic about Dreame's car - building plan just because of Xiaomi's success, it might be a hasty decision.

Xiaomi can guarantee large - scale capital investment, has the strong personal IP of Lei Jun, and also benefits from the support of its loyal fans.

Moreover, as the saying goes, all men rush to where profits lie. Xiaomi entered the automotive market early and targeted the mass - market with affordable models.

Dreame's first model is positioned in the high - end market, which limits its market scope. It's already a latecomer, and there isn't much market share left. There are concerns that it might stumble right from the start.

Facing the huge capital requirements of the new - energy vehicle industry, which often amount to tens of billions of yuan, as an unlisted company with limited financing capabilities, it's highly uncertain whether Dreame can support the mass production of its cars.

Therefore, from