Tesla Humanoid Robot Plan Hampered by China Rare Earth Curbs (1)

Tesla Inc.’s production of Optimus, a robot that promises to take over household chores, has been disrupted by China’s curbs on rare earth exports, introduced by Beijing earlier this month in an escalating trade war with Washington.

Speaking on the company’s earnings call on Tuesday, Chief Executive Officer Elon Musk said production was impacted by the “magnet issue”. While weeks of delays are expected as exporters grapple with tighter permit requirements for the key ingredients, Tesla is one of the highest-profile buyers so far to flag the direct consequence of the change.

Tesla’s Optimus during the World Artificial Intelligence Conference (WAIC) in Shanghai in 2024.

Source: AFP/Getty Images

“We’re working through that with China. ...