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International Business Times UK
International Business Times UK
Technology
Rohit David

Elon Musk: China's Rare Earth Tariffs Jeopardise Tesla's AI Future

Tesla Inc. Elon Musk China United States Earth Donald Trump Robots Pixabay
Elon Musk says China’s rare earth export curbs are hitting Tesla’s Optimus robots, risking its AI ambitions. (Credit: Pete Linforth : Pixabay)

China's recent export curbs on rare earth magnets have thrown a wrench into Tesla's ambitious plans for its Optimus humanoid robots, threatening the company's AI-driven future.

Speaking on a Tesla earnings call on 22 April 2025, CEO Elon Musk revealed that these restrictions, imposed in retaliation for U.S. tariffs, are delaying production of Optimus, a cornerstone of Tesla's push into artificial intelligence and robotics.

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