Tesla’s plan to mass-produce its Optimus humanoid robots is delayed due to new export restrictions on rare earth magnets in China. CEO Elon Musk announced this setback during the Q1 2025 earnings call on April 22, 2025, which threatens Tesla’s goal of producing thousands of robots by the end of the year.
Reuters reported that China, controlling over 90% of global rare earth refining, imposed curbs on heavy rare earths like terbium and dysprosium, critical for Optimus’ high-performance magnets. Exporters now require licenses from China’s Ministry of Commerce, with approvals taking six to eight weeks. Musk clarified, “They’re just going into a humanoid robot,” denying military use.
🇨🇳🤖🧲🚫 China’s Rare Earth Curbs Delay Tesla’s Optimus Robot Output, Musk Confirms
🔹 Summary:
Tesla CEO Elon Musk revealed that China’s new export restrictions on rare earth magnets are delaying production of the company’s Optimus humanoid robots.
Tesla is working with… pic.twitter.com/2ZHDFXsxV5
— PiQ (@PiQSuite) April 23, 2025The restrictions, viewed as a retaliation against U.S. tariffs, underscore the geopolitical risks in technology supply chains. Tesla is facing increasing competition from more affordable Chinese robotics companies. Additionally, the company’s profit for the first quarter fell by 71%, totalling $409 million and missing revenue expectations by $2.1 billion. As a result, Tesla’s stock dropped by 5.8% before the earnings announcement.
Read: Tesla’s Optimus Robot Takes a Stumble While Learning to Walk on Slopes
Experts caution that Tesla’s robotics aspirations may decline without alternative sources of rare earth materials, which could affect its innovation timeline.
