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

• Seldom metals on earth make major magnets that are important to make jets of fighter, smartphone, and motors with power over humanoid robot, called Optimus. Coo Elon Musk is hopeful that the company has thousands of Optimus units at the end of the year, but the company has more than 90% of the market, for six months or more.

Elon Musk Tesla is confident to churn in one million Humanoid Optimus Robots By the end of the decade – or even 2029. However, production only moves to the “smallest component of Tariff in the Tariff Donald Tariff in China.

As part of its revenge against the barbals of Trump’s trade, Beijing holds Export controls In seven rare metals on the ground, one step subject to Chinese dominance in a market that is important for doing everything from planes on smartphones. Especially for Tesla, these metals are critical to small but strong musk motors States Soon to allow optimus robots to make household chores and work on electric-vehicle gathering lines make.

“I am confident that we can overcome these issues,” Musk said Tuesday during the first-quarter of Tesla income. “And we, at the end of this year, there are thousands of optimus robots.”

However Tesla has no choice but pass through China. The country controls nearly 70% of all US imports on rare lands, according to S & P Global Market Intelligence.

But stat just began to describe the scope of the highest mineral minerals in China. Optimus motors, such as smartphone chips, require these metals due to their ultra-magnetic properties. According to a 2023 report from Aspen InstituteBeijing controls 92% of global magnet production from rare lands.

This is called “permanent magnet” is often important in doing electricity vehicles, but Musk says Tesla, “as a whole,” they do not need. He said the design of Optimus, however, it requires the magnets to the power of robot arms with an unbearable motor or destroys a small space.

“The affected chains of supply by basically China requires a export license to send any unique magnets to the ground,” Musk said. “So we work through China. Hope, we can get a license to use outstanding land magnets.”

Those licenses for US shipments cannot be processed for at least six months, Yang Jie, is an export lawyer at Shanghai Law Firm Hoiye, told The New York Times.

“China wants some assurance that it is not used for military purposes, clearly they are not,” Musek said. “They just go to a humanoid robot.”

Tariffs ruin Tesla

Musk can Cover More than $ 250 million and more hours in his time to help Trump win Presidency, Wedbush Securities’ Dan Ives called a “poker to act for ages” in time, but clearly disturbed the administration tariff roLutout has made Tesla some favor.

While musk is on the way to controversial Excessive Department of Government (DOGE) -He told the investors he would Soon back From that role in Tesla – his requests to avoid growing in trading tensions as mostly fall into deaf. The richest man in the world repeatedly POINTS With Peter Navarro, one of the leading Trump trading counselors, which the muscles called a “Moron” and “disumber than a sack of bricks.”

Tesla’s net infusonten income reduced 71% year-old in the first quarter as car revenues falling below $ 14 billion for the first time in approximately three years.

Musk says localized supplies of companies in markets such as America, Europe, and China have put Tesla in a better position than competitors in the development of trading tensions. However he recognizes the tariffs that are difficult by a company when margins are still below. Tesla’s gross margin fell to 16.3% of Q1, from 17.4% at the same time last year.

“Many times I say I believe I believe in the lowest tariff of most a good idea for prosperity,” as in musk. “But this decision on the basis of the selected representative of the people who are president of the United States. But the signs of Tarko to withdraw Washington: in a closed activity hosted at Jpmorgan ChaseSecretary Treasury Scott bet signed a possible “de-escalation” in China. Trump also meant Tariffs come in a lot When a trade deal is reached.

This story originally shown Fortune.com

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