Tesla CEO Elon Musk revealed that the production of the company's Optimus humanoid robots has been delayed due to new export restrictions from China. The disruption stems from limited access to rare earth magnets, critical components in the robot's design. According to Musk, Chinese authorities are seeking firm guarantees that the magnets will not be used for military purposes. He clarified during Tesla's earnings call, "China wants some assurances that these are not used for military purposes, which obviously they're not. They're just going into a humanoid robot," he said, firmly emphasizing, "It's not a weapon."

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Export Licenses Now a Roadblock

Earlier this month, China introduced sweeping export controls on rare earth materials in retaliation for US tariffs. These restrictions not only apply to raw minerals but also to processed products like magnets, making sourcing more complex and time-consuming. Exporters now need to apply for licenses through China's Ministry of Commerce. The approval process is known to be opaque and can stretch from several weeks to even a few months, industry experts note.

Tesla's Plans for Optimus in 2025

Despite the hurdles, Musk remains optimistic about Tesla's humanoid robotics program. He has previously mentioned the company's goal to manufacture thousands of Optimus units within this year, although this new development could alter that timeline.