Tesla Robot Delay Deepens Amid China Export Rules

Tesla's mass production of its Optimus humanoid robot has been delayed due to China's recent export restrictions on seven rare earth elements and magnets, which are crucial for the robot's actuators. The restrictions, enacted in response to increased U.S. tariffs under President Trump, now require American companies to obtain export licenses from China's Ministry of Commerce, with approvals expected to take several weeks to months. CEO Elon Musk clarified that the magnets are for civilian robotic use, but China is seeking assurances against military applications. Tesla faces heightened vulnerability due to China's dominance in rare earth supply chains and intensifying U.S.-China trade tensions. Analysts say failure to secure timely licenses or alternative supply sources could jeopardize Tesla's goal to mass-produce thousands of Optimus units this year. The export curbs may also give Chinese robotics companies a competitive advantage.