Tesla Inc. TSLA has reportedly halted production of its Optimus line of humanoid robots.What Happened: Tesla has halted purchases of raw materials as it redesigns the hardware and software of its Optimus robot, according to sources in the company's Chinese supply chain, Chinese media outlet LatePost reported on Wednesday (Translated from Chinese).The report suggests that Tesla had purchased enough materials to produce 1,200 robots and produced over 1,000 units, much lower than Elon Musk's target of 5,000.Tesla did not immediately respond to Benzinga's request for comment.The halt comes as Tesla reportedly told the suppliers the company would need at least two months to determine the production and purchase plan as it determines the redesigns to Optimus, the Chinese supply chain sources said.The redesigns come as Ashok Elluswamy took over the reins of the Optimus line, the report said. Currently, according to the sources, the Optimus robots carrying batteries in the battery workshop are proving to be less efficient than the workers.Tesla told the suppliers that some of the joint motors overheat and the battery life is relatively short, the report said, as Tesla provided feedback to its suppliers.Why It Matters: The report comes even as Wedbush Securities' Dan Ives reiterated Tesla's lead in the robotics segment. Ives said that the sector has a chance to be bigger than the company's autonomous driving tech due to its scale.Nvidia Corp NVDA CEO Jensen Huang had earlier said that the Optimus robot could be the first humanoid robot to achieve the tech scale and high volume needed to further the robotics sector. “I think this is likely to be the next multi-trillion-dollar industry,” Huang said.However, Palantir Technologies Inc.'s PLTR Peter Thiel says Musk's vision of a billion humanoid robots in a decade in the U.S. seems not &#34;thought through.&#34;The production for Optimus had hit a snag earlier in the year as China's crackdown on rare earth metals exports posed supply chain issues for Tesla and its robotics ambitions.Tesla offers satisfactory Momentum and Quality, while scoring well on the Growth metric, but the stock offers poor Value. For more such insights, sign up for Benzinga Edge Stock Rankings today!Check out more of Benzinga's Future Of Mobility coverage by following this link.<ul><li>Elon Musk Says Humanoid Robots Will Start Impacting Countries’ GDPs In 4 To 5 Years. ‘Robot Cars’ Even Sooner—In Just 1 To 2 Years</li></ul>

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Tesla has halted production of its Optimus humanoid robots as it redesigns hardware and software, according to reports. The company has stopped purchasing raw materials and produced over 1,000 units, falling short of Elon Musk's target of 5,000. The redesigns are led by Ashok Elluswamy, with issues reported regarding efficiency and battery life. Despite challenges, analysts believe the robotics sector could surpass Tesla's autonomous driving technology in scale. The halt in production is also influenced by supply chain issues due to China's rare earth metals export restrictions.

- Tesla Inc. has halted production of its Optimus humanoid robots as it redesigns the hardware and software.  
- The company has reportedly produced over 1,000 units, falling short of Elon Musk's target of 5,000, and will take at least two months to reassess its production plans.  
- This pause in production comes amid challenges such as overheating motors and short battery life, while experts suggest the robotics sector could become a multi-trillion-dollar industry.  

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Elon Musk's Tesla Has Halted The Production Of Its Humanoid Robot Optmius Amid Redesign Plans: Report