Elon Musk says Tesla will have ‘thousands’ of Optimus robots by year’s end, but China slapping controls on rare earths is hobbling production

• Rare ground minerals are decisive magnets To produce combat aircraft, smartphones and engines that operate Humanoid Tesla, called Optimus. The CEO of Elon Musk is optimistic that the company will get thousands of Optimus units by the end of the year, but the company may wait for an export license from China, which controls more than 90 % of the market, for a period of six months or more.

Elon Musk is confident that Tesla will come out of a million of its human robots by the end of the decade – or even in 2029. However, production will only move “as soon as much slower and less lucky component in everything.”

As part of its revenge for Trump’s commercial criticism, Beijing has stressed the export controls on seven rare ground minerals, a step confirming China’s dominance in a necessary market to make everything from combat aircraft to smartphones. Especially for Tesla, these minerals are necessary for small engines, but the powerful that MUTK will soon enable Optimus Robots to perform homework and work on the electric vehicle maker assembly lines.

“I am sure that we will overcome these issues,” Musk said on Tuesday during the profit call in the first quarter in Tesla. “We will be, by the end of this year, we have thousands of Optimus robots.”

However, Tesla does not seem to be an option but to go to China. The country controls approximately 70 % of all American imports of rare land, according to the global market intelligence.

But this statistic begins only in describing the size of metal superiority in China. The engines in Optimus, like smartphone chips require these minerals because of their very magnetic properties. According to the 2023 report issued by the Asbin Institute, Beijing controls 92 % of global magnet production from rare land.

This alleged permanent magnet is also generally decisive in producing electric cars, but Musk said, “In general”, it does not need it. He said that the design of Optimus, however, requires these magnets to operate the robot arms with engines that will not excel over or break a small space.

“This was affected by the supply chain, mainly China, which requires an export license to send any rare ground magnets,” Musk said. “So we are working through this with China. We hope we get a license to use rare Earth magnets.”

These shipments for shipments are not likely to be addressed to the United States for at least six months. New York Times.

“China wants some assurances that these are not used for military purposes, which are clearly not.” “They only go to a human robot.”

Definitions hurt Tesla

MUSK may have spent more than $ 250 million and a lot of his time to help Trump win the presidency, which Dan IVES from Wedbush Securities called “the poker step for ages” at the time, but it is clear that the chaotic tariff in the administration has made a few.

MUSK presides over the controversial government efficiency (DOGE) – investors told that he would soon return to this role to re -focus on Tesla – his appeals to avoid the escalation of commercial tensions seemed to have fallen largely on the deaf ears. The richest man in the world had erupted over and over again with Peter Navarro, one of the best trade consultants in Trump, who was called “Mobtha” and “stupid from a brick bag.”

Tesla’s net income decreased by 71 % on an annual basis in the first quarter, as car revenues decreased to less than 14 billion dollars for the first time in nearly three years.

Musk said that the translated supply chains of the company in markets such as the United States, Europe and China put Tesla in a better position of competitors on the escalating trade tensions. However, I acknowledged that the definitions are difficult for the company when the margins are still low. Tesla’s total margin decreased to 16.3 % in the first quarter, a decrease from 17.4 % in the same period last year.

“I was in the record several times, saying I think the low definitions are a general idea of ​​prosperity,” Musk said. “But this decision is due to the elected people, as he is president of the United States. Therefore, I will continue to defend the low customs tariffs instead of the upper tariff, but this is all I can do.” There are signs that the Musk message gets more traction in Washington: in a closed event hosted by Jpmorgan Chase, Treasury Secretary Scott Payett pointed to the possible “escalation” with China’s possible “escalation”. Trump also indicated that the customs tariff will significantly decrease if a commercial deal is reached.

This story was originally appeared on Fortune.com

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2025-04-23 17:54:00