Tesla's Optimus Robot Program Head, Milan Kovac, to Step Down

Key Highlights

• Milan Kovac, head of Tesla’s Optimus robot program, resigns; Ashok Elluswamy to succeed.
• Production of Tesla’s Optimus robots delayed due to rare-earth magnet restrictions, Musk emphasizes long-term importance.

The abrupt exit of Milan Kovac, the program's head and vice president of engineering, presents a significant obstacle for Elon Musk's ambitious humanoid robot project, Optimus. Kovac left a big leadership void when he announced his immediate resignation on Friday.

According to reports, Ashok Elluswamy, who oversees Tesla's autopilot teams, will take over as the initiative's leader.

Musk had previously stated that thousands of Optimus robots would be produced this year, highlighting the robots' crucial role in Tesla's long-term strategy.

However, China's export restrictions on rare-earth magnets, a crucial part of the robots, have impeded progress. Musk has characterized the project as crucial to Tesla's future, and this setback has increased pressure on it.

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Since it believes that these are the main factors influencing the company's value, Tesla has deliberately refocused its attention on the creation of humanoid robots and its robotaxi service. "Autonomy and Optimus are the only things that matter in the long term," Musk recently reaffirmed in an interview.