Elon Musk claims trade fights between the US and China are stopping Tesla from making its human-like Optimus robots. According to Futurism, Tesla aims to build 5,000 robots in 2025 and ramp up to 100,000 per month by 2026.
The company needs special magnets made from rare earth metals—materials found in limited places on Earth—but cannot get them due to growing tensions between the two countries.
Robot Plans and Capabilities
The Optimus robots can currently walk in controlled settings and do simple tasks like picking up eggs. Musk compared his planned 5,000-robot production to a “Roman legion”—an ancient military unit of trained soldiers who fought together. These robots use servo mechanisms (special motors that make precise movements, like tiny muscles) to move their joints.
However, Tesla’s finances are struggling badly, making these ambitious plans harder to achieve. The company reported a massive drop in profits recently:
| Financial Measure | Q1 2024 | Q1 2025 | Change |
|---|---|---|---|
| Net Income | $1.39 billion | $409 million | Down 71% |
| Revenue | $21.3 billion | $19.3 billion | Down 9% |
| Earnings Per Share | $0.41 | $0.12 | Down 71% |
Trade War Complications
US-China tensions are directly blocking Tesla’s robot plans in several ways:
- China requires special permits to export rare earth magnets needed for robot actuators (the parts that help robots move, like our joints)
- The US put 145% tariffs (extra taxes) on Chinese goods, making parts more expensive
- China wants promises that Tesla won’t use these parts for military purposes
- China responded with its own 125% tariffs on US goods
Due to these challenges, Tesla reduced its production goal from 10,000 to 5,000 robots for 2025. Ross Gerber, CEO of Gerber Kawasaki, has expressed concerns about these ambitious plans given the financial situation.
While Musk continues to make big promises about Tesla’s robot future, the reality of trade wars and falling profits presents serious obstacles. Without resolving these international trade issues and improving Tesla’s financial health, the vision of thousands of humanoid robots helping in factories and homes may remain just that—a vision.
