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Tesla's Optimus humanoid robot program head exiting firm, Bloomberg News reports

Tesla's Optimus humanoid robot program head exiting firm, Bloomberg News reports

Yahoo15 hours ago

(Reuters) -The head of Tesla's Optimus program, Milan Kovac, is leaving the company, casting uncertainty over chief executive Elon Musk's humanoid robot project, Bloomberg News reported on Friday, citing a person familiar with the matter.
Kovac, vice president and head of engineering for Optimus, told colleagues on Friday that he was departing, effective immediately. Ashok Elluswamy, who leads Tesla's autopilot teams, will take on Kovac's role, the report said.
Tesla, Kovac and Elluswamy did not immediately respond to Reuters requests for comment.
Musk has earlier said he expected Tesla to make thousands of Optimus robots this year.
He said in April that China's export restrictions on rare-earth magnets had affected production of the humanoid robots.
Tesla has shifted focus to launching the robots and its robotaxi service, with much of the company's valuation hanging on that bet.
"The only things that matter in the long term are autonomy and Optimus," Musk told CNBC in an interview in May.

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How to dismiss a high-profile employee without a Trump-Musk-style meltdown

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SpaceX can't launch without an FAA permit, and under the Biden administration several of its launches were delayed or prohibited until the company fixed problems or passed environmental reviews. The FAA also slapped SpaceX with a $633,009 fine last year for separate launch violations, triggering Musk to call for its then-administrator Mike Whitaker to resign. Whitaker subsequently stepped down, effective the day Trump took office — years ahead of the end of his five-year term. — Jack Detsch, Joe Gould, Sam Skove, Oriana Pawlyk and Jessie Blaeser Starlink, SpaceX's satellite subsidiary, has been angling for a role in the FAA's promise to upgrade its beleaguered air traffic control system — one of the most criticized potential conflicts of interest between Musk's businesses and his former leading role in the Trump administration. And it's seeking billions of dollars in Biden-era broadband subsidies, a decision in the hands of the Commerce Department. Now all that is at risk. Musk has publicly promoted Starlink's satellite communications terminals as a solution for the FAA's communications technology problems, while criticizing Verizon's work on a $2.4 billion contract meant to upgrade the agency's telecom infrastructure from copper wires to fiber optics. (He later conceded that he had meant to criticize a different contractor.) Duffy more recently urged Congress to approve a massive improvement plan for the FAA that could, among other fixes, allow either fiber or satellite technology to replace the agency's telecommunications equipment. He said he was 'agnostic' about whether Musk's companies should be involved. Duffy also allowed SpaceX employees to visit an FAA air traffic control center in Virginia in February, and some SpaceX engineers took temporary jobs at the agency under an ethics arrangement that allowed them to take part in matters that could affect the company's financial interests. 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Musk was also looking to Trump-appointed officials in Commerce and the Federal Communications Commission to make smaller rule changes that could have helped expand Starlink's business, such as freeing up wireless bandwidth for satellite service providers. — Oriana Pawlyk and John Hendel The Federal Trade Commission is in charge of enforcing a consent decree stemming from a 2011 settlement with Musk's social media company — then called Twitter and under different ownership — over data security violations. The order was updated in 2022 when the company had to pay a $150 million fine for violating the original deal, and it's set to keep X under FTC scrutiny until 2042. The order requires periodic audits of X's privacy and security practices, and violations could result in extending the consent decree order, as well as additional fines. It's been a thorn in Musk's side since he acquired the company. 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Commissioner Marty Makary recently unveiled a framework for approving updated Covid vaccines that sets study expectations for manufacturers who want to get their shots approved for young, healthy people. The agency green-lit the company's first clinical trial in humans in 2023. — Lauren Gardner The Trump-Musk breakup comes as Congress is considering legislation that would regulate cryptocurrencies. Musk — a longtime fan of the industry and particularly the token Dogecoin — isn't explicitly in the crypto business. But his social media company's plan to launch an 'X money' platform with Visa has sparked concerns among some lawmakers that he or another big technology firm could seek to issue a digital currency known as a stablecoin that is pegged to the value of the dollar. Lawmakers could include language in crypto legislation that would limit tech firms' ability to use stablecoins to get into financial services. That would allay fears from Democrats about digital currencies breaking down historic barriers between banking and commerce firms — but it would deliver a blow to Musk. What's more, X's payments company is poised to operate as a money transmitter business that is regulated by the Treasury Department. The company has already obtained licenses in several dozen states and has registered with Treasury's Financial Crimes Enforcement Network. — Jasper Goodman and Michael Stratford Trump's environmental regulators also have the power to obstruct one of Musk's highest-profile initiatives — his artificial intelligence company, xAI. The Memphis, Tennessee-based supercomputer behind Musk's chatbot, Grok, has a voracious appetite for electricity, and has been powered in part by natural gas turbines operating without Clean Air Act permits since June 2024. The Environmental Protection Agency has so far declined to take any action against the sprawling supercomputer facility for the huge amounts of smog-forming air pollution it's releasing. Theoretically, though, it could order xAI to shut the unpermitted turbines down. If that happens, Grok would be forced to operate on just 150 megawatts of power that xAI receives from the local electric grid — a fraction of what it needs. Musk has underscored the importance of the turbines to his operations, saying at the launch of Grok3 in February that the bot was powered by 'trailer after trailer of generators.' xAI was valued at $80 billion in March when it bought Musk's social media site X. xAI is now seeking a Clean Air Act permit for 15 of the turbines. The decision technically lies with the Shelby County Health Department, but the department has requested assistance from EPA, which is reviewing the issue. EPA Administrator Lee Zeldin met with xAI representatives at the end of May. — Ariel Wittenberg

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