US-China trade war affects Elon Musk's robots

Tesla CEO Elon Musk has said that China's restrictions on the US on rare earth elements (REE), as part of the trade war between the two countries, are affecting the production of his company's robots.

According to CNBC, Tesla's net profits in the first quarter fell by 71 percent, with Musk saying that trade wars have hindered the company's ability to produce its Optimus humanoid robots.

On Wednesday, Musk said Tesla is working with Beijing to secure access to key resources, stressing that Optimus robots are critical to the company's future and denying accusations that his demands are related to military production.

Musk said autonomous robots will be used in his company's manufacturing facilities.

The prototype of the Optimus robot was unveiled in 2022, and in 2024 Musk announced that the company would begin using humanoid robots the following year.

Tesla's financial results showed a 71 percent decline in the first quarter of this year, citing uncertainties in the automotive and energy markets, as well as rapidly changing trade policies.

Tesla has been subject to protests and boycotts due to Musk's actions.

The world's richest man supported President Donald Trump's election campaign and was appointed to lead the US Department of Government Efficiency (DOGE). Musk's strategy to cut costs included laying off thousands of federal employees.

Protests were held outside Tesla dealerships across the country, with police making arrests. Trump showed support for his top adviser by purchasing Tesla electric vehicles.

However, since Trump's victory in November 2024, Tesla's popularity has waned. The company's shares have lost most of the gains that Trump's victory brought, falling 41 percent since the beginning of the year.

Musk said he will reduce his time on DOGE and devote one or two days a week to government affairs, as long as President Trump wants him to do so. He stressed that he wants to focus on the challenges Tesla is facing now.

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