Why Tesla might delay production of its Optimus humanoid robot
What's the story
Tesla's humanoid robot, Optimus, has been hit by China's recent restrictions on rare earth exports. The move is part of an escalating trade dispute between Beijing and Washington.
Elon Musk, Tesla's CEO, revealed during the company's earnings call that production was impacted due to a "magnet issue."
He also said they are working through this issue with China and hope to secure a license for using these materials.
Trade dispute
China's export restrictions explained
Responding to the US's rising tariffs, China recently added seven rare earth minerals to its export control list.
These minerals are classified as dual-use items with civilian and military applications.
Consequently, China has imposed these restrictions due to the dual-use nature of these minerals, which are used in advanced technologies like optical lasers, radar devices, wind turbine magnets, and jet engine coatings, among others.
Clarification
Musk addresses concerns over military use
Musk clarified that China is looking for assurances that these rare earth minerals aren't being used for military purposes. He said, "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."