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Tesla Engineers Audit Chinese Suppliers As Optimus Commercialization Nears
About a month after JPMorgan analysts toured Tesla's Fremont factory and confirmed a "targeted four-month transition following the end of S/X production in May" to humanoid production lines, a new report on Friday says that Tesla engineers arrived in China to inspect robotics component suppliers, as Elon Musk appears to be moving closer and closer toward the commercialization of humanoid robots.
Bloomberg first reported this development as Tesla engineers arrived in Ningbo, a major port and manufacturing city in Zhejiang province on China's eastern coast, just south of Shanghai. The engineers inspected parts and component factories for the humanoid robot called "Optimus."
"Tesla's reported supplier audits are a positive commercialization signal for China's humanoid supply chain, pointing to progress toward repeatable Optimus production," Bloomberg Intelligence analyst Ian Ma wrote in a note, adding, "Near-term sentiment could stay supported if audits lead to confirmed supplier nominations and larger orders."
Tesla is reportedly targeting the second half of 2027 for commercial sales of Optimus. Production is likely to begin much earlier, as JPM analyst Rajat Gupta said the "Optimus Academy" will be operating later this year, with robots collecting real-world training data before being deployed in factories.
News of this development sent the Solactive China Humanoid Robotics Index slightly higher on Friday, up about 1.4%, amid a tumultuous year that has left it down about 30%.
The market's appetite for physical AI, specifically humanoids, was hyped in mid-August by China's blockbuster Unitree IPO, but the momentum failed to follow through.
Bernstein analyst Eunice Lee recently pointed out that the adoption curve for humanoids will be much steeper than that of automobiles over a century ago.
Goldman analysts last month raised their global humanoid robot delivery base case to 75,000 shipments in 2026, 890,000 in 2030, and 6.5 million in 2035, versus previous estimates of 51,000, 256,000, and 1.4 million, respectively.
The invasion of physical AI is just around the corner.
Tyler Durden Sat, 09/19/2026 - 20:25Christine Taylor reveals shockingly low ‘Hey Dude’ salary
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HHS Awards $42.3 Million To Push 'Treatment First' Model For Homelessness & Addiction
Authored by Kimberly Hayek via The Epoch Times,
A federal agency within the U.S. Department of Health and Human Services (HHS) awarded $42.3 million in new supplemental cash Friday to states and territories with the goal of speeding up the implementation of the Treatment First model for homelessness tied to addiction.
The Substance Abuse and Mental Health Services Administration (SAMHSA) funding supports the initiative falling under President Donald Trump's executive order titled "Ending Crime and Disorder on America's Streets" and the relevant Best Practices Toolkit that followed. That order from July 2025 directed agencies to put treatment and recovery ahead of the old approaches.
"President Trump has directed us to break the cycle of homelessness and addiction by putting treatment, recovery, and self-sufficiency first," HHS Secretary Robert F. Kennedy Jr. said in a statement. "These investments will help states move people from crisis into treatment and from treatment into lasting recovery, stable housing, and work. We are funding results that help people reclaim their health and independence."
About $17.3 million of the funds went to Community Mental Health Services Block Grant recipients. Officials say it builds systems, partnerships, workforce capacity, policies, and the technical pieces needed to make Treatment First a success. The funds will go toward technical assistance, training, policy work, and coordination across systems.
Roughly $25 million went to Substance Use Prevention, Treatment, and Recovery Services Block Grant recipients to expand options for safe, licensed, certified, or chartered sober and recovery housing, as well as the requisite technical assistance to ensure that more recovery residences open and quality standards tighten.
"Treatment First means building a system that does not leave people cycling between homelessness, emergency rooms, and the criminal justice system," SAMHSA Principal Deputy Assistant Secretary Christopher D. Carroll said. "These investments will help states strengthen the infrastructure - partnerships, data, workforce, and recovery supports - needed to connect people with serious mental illness and addiction to effective treatment and support them on a path toward lasting recovery, stable housing, employment, and self-sufficiency."
In June, the Department of Housing and Urban Development (HUD) published a $4.04 billion Continuum of Care notice. It walked away from the Housing First model, which provided permanent housing with no strings attached. Chronic homelessness climbed 81 percent from 2013 to 2025, despite the number of taxpayer-funded beds increasing 151 percent, HUD figures show.
HUD Secretary Scott Turner called Housing First a failure that "warehoused the vulnerable without results." Housing alone will not fix a crisis driven by addiction and mental illness, he said.
Kennedy earlier this year announced more than $700 million for related work, of which nearly $100 million went to the STREETS program for homeless people dealing with addiction or serious mental illness. In February, he introduced the $100 million STREETS effort itself, built around continuous contact from the street through recovery, jobs and self-sufficiency.
A federal appeals court this week allowed HUD to forge ahead with funding shifts after lower-court challenges. The department has earmarked $1.3 billion for transitional housing and supportive services.
Tyler Durden Sat, 09/19/2026 - 19:50