Milan Kovac has resigned as the head of Tesla’s Optimus humanoid robot program, citing personal reasons.

He announced his decision in a social media post on June 6, saying he wants to spend more time with his family abroad.

Kovac joined the Optimus program in 2022 as director of Optimus and Autopilot Engineering and was promoted to vice president in September 2024.

Ashok Elluswamy, who currently leads Tesla’s autopilot teams, will take over Kovac’s responsibilities.

Tesla has not responded to questions about Kovac’s resignation or the program’s future.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ The widening gap between humanoid robot ambitions and market realities

Musk’s description of Optimus robots as “the only things that matter in the long term” for Tesla’s future reflects an extraordinary vision that contrasts sharply with current market valuations 1.

While Musk has claimed the Optimus robot could generate $10 trillion in annual revenue and help make Tesla a $25 trillion company, the current humanoid robot market is valued only in the low single-digit billions 1.

Industry projections suggest the market could reach between $15-80 billion by 2032, showing significant growth but still far smaller than Musk’s projections 1.

Tesla previously faced challenges with factory automation in 2018, when Musk admitted “excessive automation” had hindered Model 3 production and that “humans are underrated” 2.

This pattern of ambitious automation goals followed by manufacturing reality checks has characterized Tesla’s approach to production innovation for years.

2️⃣ Geopolitical tensions reshape advanced robotics supply chains

China’s new trade restrictions on rare earth magnets have created a direct obstacle to Tesla’s Optimus robot production plans, as confirmed by Musk himself 3.

These restrictions require exporters to obtain special licenses for shipping materials critical to robotics, highlighting how geopolitical tensions can impact technological development 3.

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