Musk Says Tesla’s Robot Plans Are Affected by China, US Trade Conflict
(MENAFN) Tesla head Elon Musk revealed that China's limitations on rare earth elements (REEs) aimed at the U.S. amid the ongoing trade conflict between Washington and Beijing are negatively influencing the company's robotics development.
Based on the media, Tesla's first-quarter earnings fell by 71 percent, with Musk attributing the decline to the trade dispute, which he says is impeding the manufacturing of the firm's Optimus humanoid robots.
Speaking on Wednesday, Musk stated Tesla is collaborating with Chinese authorities to ensure access to essential materials, stressing that the Optimus units are vital for the company's long-term goals, and he dismissed claims that his negotiations are connected to defense-related manufacturing.
He added that these self-operating machines are intended for use within Tesla's own production lines.
Tesla first revealed the Optimus model in 2022, and Musk declared in 2024 that they would commence deploying humanoid assistants the following year.
Financial disclosures highlighted a significant earnings slump from January to March 2025, blaming volatility in the automotive and energy industries as well as swiftly evolving trade frameworks.
The company has faced backlash and demonstrations, largely due to Musk’s political activities.
The billionaire entrepreneur supported Donald Trump's presidential bid and was chosen to head the U.S. Department of Government Efficiency (DOGE).
His cost-cutting approach included the dismissal of thousands of government staffers.
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