Tesla’s Head of Optimus Humanoid Robot Program Exits Company

(Bloomberg) -- The leader of Tesla Inc.’s Optimus program is leaving the company, according to a person familiar with the matter, injecting uncertainty into the humanoid robot effort that Chief Executive Officer Elon Musk sees as a significant part of its future business.

Milan Kovac, the head of engineering for Optimus, informed colleagues on Friday that he is departing effective immediately, said the person, who asked not to be identified discussing private information. Ashok Elluswamy, who leads Tesla’s Autopilot teams, will take over responsibility for Optimus, the person said.

Kovac, Elluswamy and Musk didn’t immediately respond to requests for comment.

Musk praised Kovac and Elluswamy in a June 2 social media post as two “key people” in the company’s artificial intelligence operations who “have been there from the beginning.”

Musk is increasingly betting Tesla’s future on robotics, along with artificial intelligence and driverless cars, as the traditional electric-vehicle business faces challenges. The automaker’s sales have cratered in key markets due to lukewarm demand and a consumer backlash over the CEO’s political activity. This week, Musk’s relationship with President Donald Trump erupted into a public feud, raising further risks for Tesla on the regulatory front.

Tesla drew attention in October when it used Optimus prototypes to tend bar and interact with guests at a flashy event in the Los Angeles area to generate investor enthusiasm for upcoming products. Bloomberg reported afterward that humans were used to remotely control some capabilities of the robots.

Musk has said Optimus, which would handle many household tasks, could be “the biggest product ever of any kind.” The robots could eventually be available to consumers for $20,000 to $30,000 each, Musk has said.

The robot’s capabilities have long been closely watched by investors, even if the product’s launch timing remains uncertain. Observers noted in 2022 when an early prototype had to be carried by people on stage.

On the most recent Tesla earnings call, Musk said he expects to have thousands of Optimus robots working in Tesla’s own facilities by the end of this year. He also predicted Tesla will be able to build millions of units per year by the end of the decade.

--With assistance from Kara Carlson.

(Updates with Musk post in fourth paragraph.)

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