Tesla Warned By Chinese to Ditch the All-American Optimus Dream

Tesla (TSLA) has been warned by the Chinese that Optimus may not be the All-American humanoid robot that it wants it to be.Claim 50% Off TipRanks PremiumUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential Chinese Supply Chain According to an article in the South China Morning Post, although Tesla plans final assembly of Optimus in the U.S., it will remain heavily dependent on a strong Chinese supply chain network. Indeed, suppliers are already talking up the creation of an 'Optimus' supply chain of actuator, motors, sensors and batteries suppliers. This is akin to the supply chain Apple (AAPL) has developed in China, where it is seen as a badge of honour and prestige to be part of the group. The robotic suppliers have, according to the article, been engaged by Tesla since 2023 to design, make and refine parts for Optimus. They have also worked closely with Tesla on new prototype designs including, reportedly, Optimus's new curved-glass head. Chinese analysts believe that this reliance on China will remain important to Tesla for the "foreseeable future." That's because, they say, China still offers deep expertise, fast delivery and cost advantages in robotics components that are hard to replicate elsewhere. China Leads the Way Indeed, China is the global leader in humanoid robotics. According to recent data from Omdia, Chinese humanoid robot makers dominated the market in 2025, with five firms in the top 10, Start-up Shanghai AgiBot Innovation Technology was top of the robot class, shipping 5,168 humanoids last year. That amounts to around 40% of the overall market. Unitree Robotics, whose models are well-known for their athleticism sprinted to second spot with 4,200 humanoids. Tesla revealed last week that it plans to unveil the Gen 3 version of Optimus in Q1, which will include major upgrades from version 2.5, including its latest hand design. The Gen 3 is its first design meant for mass production. "Preparations are underway for the first production line, including supply chain readiness, with start of production planned before the end of 2026 and eventual planned capacity of 1 million robots per year," it said. The Optimus is an important part of the Tesla ecosystem – see below: