Elon Musk has claimed that Tesla will have thousands of Optimus robots by the end of the year, showcasing the company’s ambitions in robotics. However, production challenges have arisen due to China imposing stricter controls on rare earth materials, which are crucial for manufacturing these robots. Rare earth elements play a vital role in the development of advanced technologies, including robotics, electric vehicles, and energy storage systems. Musk’s announcement highlights Tesla’s diversification efforts beyond electric vehicles, yet the reliance on rare earth materials sourced from China poses significant hurdles. The company must navigate geopolitical tensions and supply chain complexities to meet its ambitious production targets. Despite these challenges, Tesla remains committed to advancing its robotics program as part of its broader innovation strategy. — new from Fortune
