China's Rare Earth Export Curbs Impact Tesla's Robot Production

Tesla's production of Optimus humanoid robots is affected by China's export restrictions on rare earth magnets. China demands assurances that these magnets aren't used for military purposes. This move is part of China's response to U.S. tariffs, impacting multiple industries. Export licenses now require lengthy approvals.

Tesla's production plans for its Optimus humanoid robots have hit a snag due to China's recent export restrictions on rare earth magnets, CEO Elon Musk revealed on Tuesday.

During an earnings call, Musk explained that China demands Tesla ensure the magnets won't be used for military applications. The automaker is currently negotiating with Chinese officials to secure an export license.

This development comes as China tightens controls on rare earth exports in response to U.S. tariffs, impacting sectors from defense to consumer electronics.

(With inputs from agencies.)