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On January 28 (local time), Elon Musk, CEO of Tesla, declared during the 2025 fourth - quarter earnings call that China poses the most formidable competition for Tesla's humanoid robot, Optimus. He underscored that Chinese firms boast unparalleled strengths in large - scale manufacturing and AI technology. Musk pointed out that going head - to - head with China in this area would be a "grueling fight."
Tesla has ambitious plans for 2026. It intends to allocate over $20 billion in capital expenditures to establish six new factories. These facilities will be dedicated to the production of Cybercab, Optimus, and LFP batteries. Moreover, Musk divulged that Tesla will set up its own chip plant. This plant will integrate logic chips, memory chips, and packaging processes, aiming to mitigate supply chain and geopolitical risks.
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