Tesla's Optimus chief engineer leaves, concerns mount

Published: 2025-06-07 10:01:05 ET TSLA

Published on 06/07/2025 at 10:01

Key takeaways

Milan Kovac, chief engineer of Tesla's humanoid robot program, Optimus, has left the company. His departure brings uncertainty to the project, which CEO Elon Musk sees as integral to Tesla's future. Ashok Elluswamy, who leads Tesla's Autopilot teams, will now be in charge of Optimus.

Kovac confirmed his departure on social media, saying it was a difficult decision because he wanted to prioritize his family. He expressed his unwavering support for Musk and the team and expressed confidence in their ability to further develop Optimus with the help of Tesla's AI, engineering and manufacturing teams.

Challenges at Tesla

Musk has previously named both Kovac and Elluswamy as essential figures in the company's artificial intelligence operations. Tesla is facing challenges in the traditional electric vehicle market due to declining demand and consumer resistance to Musk's political views. Therefore, the company is increasingly focusing on robotics, AI and autonomous driving.

The recent controversy surrounding Musk' s relationship with President Donald Trump further amplifies Tesla's regulatory risks. Optimus attracted attention last October when prototypes were shown at an event in Los Angeles, performing tasks such as serving the bar and interacting with guests.

Potential of Optimus

However, subsequent reports revealed that human operators were remotely controlling some of the robots' capabilities. Musk imagines Optimus could perform various household tasks and potentially become "the largest product ever" with a price tag of $20,000 to $30,000 per unit.

While investors are watching Optimus' development closely, the timeline of its launch remains uncertain. Some observers recall an early prototype requiring human assistance during a 2022 podium presentation.

Vision of investors

Brett Winton, chief futurist at Ark Investment Management, a major Tesla investor, acknowledges that Optimus is not currently included in their five-year model for the company. Nevertheless, they continue to monitor the progress and rapid evolution of the robotics sector and recognize its potential impact on the market.

Describing Musk's demanding leadership style, Winton notes that he expects immediate results and relentlessly pursues progress. He believes this intensity is necessary for breakthrough innovation.

Thousands of Optimus robots by the end of this year

During Tesla's last earnings call, Musk predicted that thousands of Optimus robots would be operational in Tesla's facilities by the end of this year, and he predicted the capacity to produce millions of units per year by the end of the decade.

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