Tesla Faces Leadership Shake-Up and Supply Chain Hurdles in Race to Build Optimus Robots

Tesla's ambitious Optimus humanoid robot project has hit turbulence as Milan Kovac, the head of engineering for the program, officially exits the company. His departure adds uncertainty to one of CEO Elon Musk’s most hyped projects, even as the company pushes to meet lofty production goals.

Kovac Steps Down, Elluswamy Steps In

Kovac announced his resignation on X, citing a desire to “spend more time with family abroad,” while reiterating his strong support for Musk and the Tesla team. Musk responded with gratitude, calling Kovac’s decade-long contribution “outstanding.”

Now stepping up is Ashok Elluswamy, the head of Tesla’s Autopilot software and a seasoned AI engineer. Elluswamy’s background in artificial intelligence makes him a strategic pick to lead Optimus, a project that heavily depends on autonomy and machine learning.

Can Tesla Deliver 5,000 Humanoid Robots by 2025?

Musk has famously declared that Optimus is Tesla’s most important product, even suggesting it could eventually surpass the company’s EV business. He’s aiming to produce 5,000 Optimus robots by the end of 2025, scaling to 50,000 by 2026—a target that has sparked skepticism across the robotics industry.

Despite controlled demo videos showing Optimus walking and performing basic tasks, experts warn that competitors like Boston Dynamics and Agility Robotics may already have more mature technology.

Supply Chain Trouble from China

Adding to the pressure is a new geopolitical challenge: China’s export restrictions on rare earth minerals and magnets—critical components for the compact actuators that power Optimus. Musk recently acknowledged that the “magnet issue” is already delaying progress.

Without access to these materials, mass production of Optimus becomes nearly impossible, putting Tesla’s ambitious roadmap at risk.