Insight
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April 24, 2025
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5 minute read
Musk on rare earth export restrictions: Optimus was affected
In Tesla’s Q1 2025 earnings call this week, Elon Musk revealed a critical hurdle for the production of Optimus, Tesla’s humanoid robot: China’s export restrictions on rare earth magnets.
Musk stated, “Optimus was affected… by the magnet issue from China because the Optimus actuators in the arm do use permanent magnets,” highlighting how China’s export restrictions, imposed in early April 2025, are poised to disrupt Tesla’s supply chain.
China’s new controls, a response to US tariffs, target seven rare earth elements (REEs) and magnets that contain them, requiring exporters to first secure licenses – a process Musk noted involves assuring Beijing the magnets are for civilian, not military, use.
