Government documents released today inadvertently revealed that the company - which specialises in vacuum cleaners, fans and electrical devices - is indeed toiling away on the project.
"The government is funding Dyson to develop a new battery electric vehicle at their headquarters in Malmesbury, Wiltshire," the National Infrastructure Delivery Plan said.
"This will secure £174m of investment in the area, creating over 500 jobs, mostly in engineering."
Dyson will be following in the footsteps other tech firms such as Google and Apple, who've also reportedly branched out into the automotive industry. The Energy Information Administration wants to see 20m electric vehicles on the roads by 2020.
Dyson's chief executive, Max Conze was asked last year if the company was working on an electric car, the Guardian reported.
“We are ruling nothing out. Like our friends in Cupertino [Apple] we are also unhealthily obsessive when it comes to taking apart our products to make them better.”