Tesla Chief Executive Elon Musk said he expects China to emerge as the company’s biggest competitor in humanoid robots, mirroring the competitive dynamics that have shaped the global electric vehicle market.
Speaking during Tesla’s fourth-quarter earnings call on Wednesday, Musk said China’s ability to rapidly scale manufacturing and advance artificial intelligence positions it as a formidable rival in the development of humanoid robots.
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“Well, I do think that by far, the biggest competition for humanoid robots will be from China. China is incredibly good at scaling manufacturing,” Musk said. He added that China also has strong AI capabilities, including “excellent free models that keep improving,” making it difficult for companies outside the country to compete at scale.
Musk said Tesla currently faces limited competition outside China in humanoid robotics but warned that Chinese firms would be a significant challenge. “I always think people sort of outside of China kind of underestimate China,” he said. “China’s next level.”
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Despite that assessment, Musk said Tesla believes its Optimus humanoid robot will remain ahead of Chinese offerings in key technical areas. “We think we’ll be ahead in terms of the real-world intelligence, the electromechanical dexterity, especially the hand design, which is by far the hardest thing in the robot,” he said.
China has a growing number of companies focused on robotics, including specialist developers such as Unitree and UBTech, while automakers are increasingly entering the field as part of broader AI and automation strategies.
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In November, Xpeng unveiled its next-generation Iron humanoid robot, drawing attention for its fluid movements and realistic demonstrations. Musk acknowledged the development, commenting publicly that the robot was “not bad” and predicting that “Tesla and Chinese companies will dominate the market.”
Earlier this month, Xpeng chairman and chief executive He Xiaopeng said the company had completed its first ET1 humanoid robot developed to automotive-grade standards. Other Chinese automakers are also exploring humanoid robotics, including Li Auto and traditional manufacturer Chery, reflecting the sector’s growing strategic importance.