Elon Musk says Tesla has “thousands of” Optimus robots by the end of the year, but China is hammering rare earth controls and producing hobbing
- Rare earth metals form strong magnets To produce fighter jets, smartphones and motors mounted on the arms of Tesla’s humanoid robots called Optimus. CEO Elon Musk is optimistic. The company has thousands of Optimus units by the end of the year, but it could be awaiting an export license from China, which manages more than 90% of the market for more than six months.
Elon Musk I’m sure Tesla will fire that million Humanoid Optimus Robot But by the end of the decade or even 2029, for now, production will only move “as fast as the slowest and lucky components in the whole,” he told investors Tuesday.
Beijing has been tightened as part of retaliation against Trump’s trade barb Export control The seven rare earth metals are a move to emphasize China’s domination in a market that is essential to making everything from fighter jets to smartphones. These metals are important for small but powerful motor masks, especially for Tesla. say Soon, the best robots will be able to do household chores and work on the assembly line of electric vehicle manufacturers.
“We are sure we will overcome these issues,” Musk said Tuesday in Tesla’s first quarter revenue call. “And by the end of this year, there will be thousands of Optimus robots.”
Still, it appears that Tesla has no choice but to pass through China. According to S&P Global Market Intelligence, the country controls almost 70% of all rare earth imports in the United States.
However, the statistics begin to explain the extent of China’s mineral hegemony. Optimus motors like smartphone chips require these metals for their ultramagnetic properties. According to a 2023 report from Aspen Research InstituteBeijing controls 92% of global magnet production from rare earths.
These so-called “permanent magnets” are also generally important in the production of electric vehicles, but the masks stated that “as a whole” Tesla doesn’t need them. However, he said that the Optimus design requires these magnets to be driven in the robot’s arms with motors that will not overheat or break in small spaces.
“These were basically influenced by the supply chain by China. They are requesting export licenses to send rare earth magnets,” Musk said. “So we’re working with China. Hopefully we’ll get a license to use rare earth magnets.”
These licenses for shipments to the US will not be processed for at least six months, and Yang Jie, export control lawyer at Huiye at Shanghai Law Firm, probably won’t. I said New York Times.
“China wants to assure them that they are not being used for military purposes, but obviously that’s not the case,” Musk said. “They’re just in humanoid robots.”
Customs tariffs hurt Tesla
Maybe you have musk I spent time Over $250 million and enough time to help Trump win the presidency, Dan Ives of Wedbush Securities Called The “Age Poker Movement” at the time was clearly a confused government. Customs duties development Tesla has benefited very little.
While Musk is leading Controversial Government Efficiency Bureau (DOGE) – He told investors he would do so Go back soon From that role, focusing on Tesla, his plea to avoid escalating trade tensions appears to have fallen wildly into deaf ears. The wealthiest man in the world is repetitive Sparring Along with Peter Navarro, one of Trump’s top trade advisers, Musk calls him “stupid” and “more stupid than a brick bag.”
Tesla’s net profit fell 71% year-on-year in the first quarter, with car revenue below $14 billion for the first time in nearly three years.
Musk said the company’s localized supply chain in markets such as the US, Europe and China put Tesla in a better position than its competitors to intensify trade tensions. Still, he acknowledges that tariffs are strict for the company when margins are still low. Tesla’s total margin fell to 16.3% in the first quarter, down from 17.4% in the same period last year.
“I’ve been on record many times that I think low tariffs are generally a good idea of prosperity,” Musk said. “But this decision is basically up to the elected representatives of those who are presidents of the United States. So I will continue to defend lower tariffs, not tariffs, but that’s all I can do.” jpmorgan chainSecretary of the Treasury Scott Betting It showed the possibility of “emission removal” with China. Trump also showed it Taxes will be significantly reduced If a trade agreement is reached.
This story was originally introduced Fortune.com