1. Elon Musk stated that China's new trade restrictions on rare earth magnets have impacted the production of Tesla's Optimus humanoid robot.

He added that the company is addressing this issue with Beijing and hopes to receive approval to access critical components.

Tesla CEO Elon Musk stated that new trade restrictions from China on rare earth magnets have affected the production of the company's Optimus humanoid robot, which relies on exports.

Speaking at Tesla's earnings report conference on Tuesday, Musk said the company is addressing this issue with Beijing and hopes to receive approval to access critical resources.

Earlier this month, China imposed new export controls on seven rare earth elements and magnets used in various fields, from defense to energy to automotive technology. This move is in retaliation for President Donald Trump's tariff increases.

According to Musk, Beijing has requested Tesla ensure that rare earth magnets under expert control will not be used for military purposes.

"China wants some assurances that these things are not being used for military purposes, which clearly is not the case. They are just bringing in a humanoid robot," he said.

The new restrictions, which increase the risk of global shortages, require exporters of rare earth elements, both medium and heavy, to apply for licenses from the Ministry of Commerce of China.

According to the Center for Strategic and International Studies, China dominates the market for many of these rare earth elements, while the United States is not prepared to fill the potential shortage.

Meanwhile, the Trump administration is considering applying new tariffs on all types of critical minerals imported into the United States in response to China's export control measures.

Is future growth at risk?

In the earnings report call on Tuesday, Musk emphasized the importance of humanoid robots to the company's future plans.

He stated, "The future of the company is fundamentally based on large-scale autonomous vehicles and a large number of autonomous humanoid robots."

Previously, Musk announced that the Optimus plan would produce about 5,000 units this year as the technology develops as part of Tesla's future business plan. Furthermore, he stated that Tesla would deploy robots in its electric vehicle manufacturing plants.

It is unclear to what extent export control measures may change these plans. However, Musk reassured investors on Tuesday that the company still plans to produce thousands of robots this year, with thousands of robots also expected to be deployed at Tesla's factories.


Emerging technology could help Tesla boost investor optimism as the company's electric vehicle business is struggling, with stock prices down about 37% to date.

Steve Westly, founder and managing partner of The Westly Group and former Tesla board member, shared with CNBC's 'Closing Bell Overtime' program on Tuesday that the company needs to find new growth drivers soon.

The company is expected to face fierce competition from other humanoid robot companies in China, such as Unitree Robotics and AgiBot, both of which are reportedly planning to enter mass production this year. According to some analysts, export control measures may give Chinese companies an advantage over competitors in the United States.

While Musk is optimistic about Tesla's prospects in this area, even claiming that the company is leading compared to competitors, he is concerned that the rankings will be flooded with Chinese companies.

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