Chinese parts challenge Optimus humanoid robot production goals in US

Tesla CEO Elon Musk aims to shift production of the Optimus humanoid robot to the US by repurposing its Fremont EV factory, targeting an ambitious output of 1 million units annually. However, Tesla faces a significant challenge due to its heavy reliance on Chinese-made components, which constitute the majority of Optimus’s parts such as actuators, motors, reducers, and vision systems. Morgan Stanley estimates that removing Chinese components from the supply chain would increase costs from $46,000 to $131,000 per unit, conflicting with Tesla’s goal to reduce the robot’s price to around $20,000. Currently, core components are manufactured in China, while final assembly occurs in the US, reflecting a supply chain similar to Apple’s iPhone production. Tesla has developed strong partnerships with Chinese suppliers over the past three years, benefiting from China’s low-cost manufacturing, government subsidies, tax incentives, and research funding in the humanoid robotics sector. The company plans to launch the Optimus V3 model