Tesla’s Optimus Has a BIG Problem… THIS Company Solves It

A CEO just told Wall Street who his secret customer is without saying the name. On August 5th, the CEO of a motor company in Wisconsin got on his earnings call and said this. I've had the opportunity to meet with the CEO of one of the largest US robotics companies and I plan to go down to Austin and spend some time with them. He didn't say Tesla. He can't. But there is exactly one publicly traded company building humanoid robots in Austin, Texas. Yet that same morning, the stock dropped 14% and it hasn't stopped. It's down a third from its high because the boring half of the company had a soft quarter because the entire industrial sector has rolled over and taken this stock along for the ride. But meanwhile, there's something nobody noticed. On that same call, the same day, the same CEO said the robot business got upgraded, higher growth guidance, 30 million a year of humanoid revenue. Book a $200 million pipeline coming in behind it. So, if you've been waiting for a way into the robotics trade that isn't Tesla, this is a company that sells the joints to every robot maker on Earth, and it's on sale for reasons that have nothing to do with robots. Today, I'm going to show you why Tesla keeps missing its own dates. The one part inside every humanoid robot that's the real bottleneck, why this stock got sold for the wrong reasons, along with the name and ticker and the price that I think it's worth. So, make sure to subscribe to the channel because this is the early stages of the humanoid robot trade and I want to keep you in front of it. Now, let's get into this. So, why is the smartest car company in the world late delivering a robot? 9 months ago, Elon Musk said the new version of Optimus would be unveiled, quote, probably in Q1. Then it was a few months. Then it was the middle of the year. Then on July 22nd, Tesla reported second quarter earnings and for the first time gave no date at all. And the next time they have to answer for it is the third quarter call in late October. But the reason it's late is not the brain. The brain is just software. Tesla is very good at software. The hard part is the body. Think about what a humanoid robot is. It is a machine with somewhere between 20 and 40 joints. Every single joint has to move like yours. Rotate, hold a load, stop on a dime, and do it 10,000 times a day without wearing out. And every one of those joints is a little package. a motor, a gearbox, a a screw that turns spinning motion into pushing motion, and a stack of magnets that makes the motor strong enough to lift something. And that package has a name. It's called an actuator. And here is the big number I want you to stick with. Somewhere between 40 and 60% of the cost of building a humanoid robot is those actuators and the motion parts inside them. So, not the chips, not the cameras or the battery, the joints. So, when Tesla says the robot is late, what they're really saying is that they are trying to build tens of thousands of precision actuators inhouse on a factory line. They used to build the Model S car. So, that is a low volume, high precision manufacturing problem that companies spent a 100red years getting good at. Tesla is starting from zero. Now, Elon himself said the ramp would be agonizingly slow and the early production curve would be quote quite flat and long. It's not a man hiding from a surprise. He is simply describing the supply chain problem. Now, while everybody's watching Tesla, Wall Street has been quietly raising its numbers on the whole industry. And I mean raising them. Okay? Two and a half years ago, the biggest bank on Wall Street put out a report on the humanoid robot market saying it'll be worth $6 billion by 2035. Then they came back and said, "No, no, we got that wrong. It's it's more like 38 billion. So, six times bigger, right?" And then last December, another one of the big banks looked at it and said, "No, no, we think it is 7.5 trillion dollars per year by 2050. A billion robots." Now, are these numbers accurate? I have no idea. Nobody does. Not even the fancy bankers, not even Elon. But look at the direction here. Every time Wall Street revisits this, the number gets bigger. And that is what happens right before a sector goes mainstream. Every time. It was the same with AI. And it's not just these forecasts. The supply chain is moving without Tesla. Over in China, the component makers are building enough capacity to make somewhere between a 100,000 and a million robots a year. And they're building this before the orders even shown up. They are betting that the orders come. That's kind of like building a a chip fabrication plant before anyone's ordered any chips. So, how do you know if the market is starting to believe it? Simple. You watch the prices. On July 1st, the first humanoid robot company went public. It's called Agility Robotics. It did so through a spa. And on that day, the first robot stock public day, the money did not pile into Agility Robotics. It piled into the part supplier. Umbrella, which makes the vision chips, was up 28% in a single session. Alistster, which makes the LAR sensors, up 15%. Wolf Speed up nine. Naid, the Japanese motor maker, 8%. That's the rotation. That's what it looks like when investors figure out they don't have to pick the winning robot. They just have to own the companies that sell to all of the robots because a gear box from one of these suppliers goes into a Tesla robot, goes into a figure robot or a Chinese robot. It doesn't matter who wins. Now, before we get too deep into this, let me just remind you that $5 Black Ops special is still going on. Here's what that includes. An entire year of access to me and my team. Five bucks. Every single week we'll get together live for an hour, review the market, my favorite stocks, patterns that identify buy and sell points. We look at your stocks, review portfolios, all of it. Nothing's off limits, completely interactive every week for an hour for a whole year. You'll also get a live session with my analyst every Thursday, plus bonus reports and indicators and a ton of other stuff. It is just five bucks. Do not hesitate. I promise it is worth every penny. Click the link in description, scan the QR code hiding over here in the corner or just go to tradewith Ross.com and get signed up for that now. All right, so what is this stock? The company is Regal Rexner, ticker RRX. Now, you've probably never heard of it, and that's well kind of the point. Regal Rexner is an old line industrial company out of Wisconsin, roughly an 11 billion market cap. They make motors, gearboxes, bearings, brakes, and motion control systems, the parts that make machines move. If it spins, lifts, or turns in a factory, there's a decent chance a realtor part is inside it. Now, for most of its life, that was a boring business. Motors for air conditioners, gearboxes for conveyor belts, bearings that go into mining equipment. But they also own a handful of brands that make exactly the thing a humanoid robot needs. One of them, Cole Morgan, makes frameless servo motors designed to sit inside a robot's joint. Another, Portocap, makes the tiny motors that go in robot hands and fingers. They got a brand for the linear actuators, a brand for the brakes, a brand for the gearing, the whole joint, all from one company. And here are the numbers. Back in February, an analyst at one of the big banks put out a report that said Rio Rexner already has more than $30 million a year of humanoid related business on the books. So, not a pipeline, not an estimate, booked business. and they are tracking a $200 million opportunity for the company across humanoids, collaborative robots, and surgical robot. And when that report came out, the stock had just run 67% in 3 months. The fat cats, the the the Wall Street guys had already been piling into this. But then came August 5th when the new CEO, a guy named Amir Paul who just took over, got on the call and said the line I read to you earlier. Met with a CEO of one of the big robotics companies flying to Austin. Now when you think about how a CEO talks, CEOs love to name drop a big customer. It's their favorite thing to do. It's free marketing. The only reason you don't say the name is that you are not allowed to. Tesla is famous for not letting suppliers say its name. In fact, there's a Chinese actuator company that publicly denied a Tesla order after the news leaked because acknowledging it was a bigger problem than denying it. So, when a CEO says, quote, "One of the largest robotics companies in America and Austin and then stops talking, he wants every analyst on that call to draw that conclusion himself." And a few lines later in the same call he said quote if you think about the biggest application of AI and physical AI and the introduction of robotics the fact that we are such a core part of those systems is terribly exciting with all that. Why the heck is the stock down by a third? Well two big reasons and neither of them has to do with robots. Reason one is that August 5th earnings call. Now Regal beat on earnings $2.99 a share against an estimate of $259. looks great, but $32 million of that was a tariff refund, a check from the government. So you take that out, numbers didn't lie. They didn't beat, they didn't miss. And at the same time, the boring half of the company had a weak quarter. They also told Wall Street that margins would take a little longer to improve than they planned because they are spending money to keep up with the demand in the growth part of the business. So stock fell 16% that. On that same call, the segment that houses robotics and data centers, the growth segment, they raised the outlooks. They expect to sell even more there. So essentially, the robot business is upgraded, but the stock sold off because the air conditioner business. And reason two is the stock just got caught in a big group move. Industrial stocks as a whole rolled over last month. GE Vernova, Eaton, Caterpillar, they just brought everything else down with it. the AI sell off that the LAR and the chip names down 10 12% in a day. Regal doesn't sell a chip. It fell anyway. And this is what a lot of people don't understand about how the stock market works. When a big industrial ETF gets redemptions, it doesn't sit there and decide which stocks it's going to sell. It sells everything in equal proportion. So if Regal Rexard is 1% of the fund, it gets 1% of the selling. Even if that selling had nothing to do with them, they're just in the wrong basket at the wrong time. Remember, it's all about supply and demand. And I want to show you the chart here. Look at Regal Registered. Listen, it's been an ugly summer for the company, okay? From its peak here, it's down roughly a third. But if you notice where the stock stopped, I just don't believe this stuff is coincidence. Look at this base that formed here in September, November, basically the end of 2025. Okay. So, see how I get the big run up uh here. It then comes in, kind of bases out, tightens, beautiful breakout 160 to 220, makes a new high, and then sells off. And look at where it stopped. If you extend that line out, the resistance level from July, August, September, October, November of 25 over here where the stock could not get above, what do you know? That's where she bounced. So, is this a high-flying momentum stock that I think is going to soar next week? I mean, it's got momentum. It's not going in the right direction at the moment, but it's also not trading at all-time highs. But this is kind of a a a good place to buy these. You want to when stocks make big moves, they tend to kind of go from price acceptance to price discovery. Okay? When a stock is bouncing around between 140 and 150 for half a freaking year, that's acceptance. Buyers, sellers kind of agree that's what it worth. If buyers thought it was worth a lot more, they'd have bought like hell and sitted higher. If sellers thought it was worth a lot less, they'd have sold like crazy and drove it down. It wasn't. What changes that? Well, this earnings report comes out. Numbers are really good. Buyers now think it's worth a lot more. It surges. It's price discovery. And when it rolls over, it falls to the last place it found buyers to the last area of acceptance. So this kind of 140 to 160 range is exactly where I would expect this stock to bounce if it is going to. So this price here at around 163 or so, I'm recording this on Tuesday. I don't care if it's 157 when you watch this or 167. We're just talking about the general area in here. Right now, we don't need to over complicate all this, okay? We had three weeks of four sellers driving the stock lower. That pulled a company with a growing robot business down to a price that a company with a growing robot business shouldn't trade at. It has the same $200 million pipeline, the same $30 million on the books, the same CEO flying to Austin, but it's 33% off. So, if you believe in this thing long term, if you like the picks and shovel plays, which I do, this is a lowcost entry into the same robotic story. Are there risks? Of course. Margins are still an issue. That's this new jobs, new guy's job to fix them. The residential HVAC business is soft. It needs a little help. But the robot business is real. And that to me is where the biggest opportunity is for this company. In 15 years, no one will even remember that this company once made air conditioning parts. They will be a robotics supplier first and foremost. Now, Wall Street analysts, they have an average price target on Regal Rexard of right around $250 a share. So, roughly 50% above where it's trading today. And that's before anyone models what happens if if Optimus or Figure or any of these programs goes from a few thousand units a year to a few hundred thousand or a few million. And if that 40 to 60% number holds and this company has the joint, this is easily a3 to $400 stock inside the next two to three. Regal Rexner, ticker RX. Folks, don't forget to subscribe to the channel. Love to keep you in front of this. And consider joining my Black Ops trading service. It is the best $5 you'll spend all year. We get together live every week. I'll send you some bonus reports. You have access to my support team. I'll even give you my full Trading View chart layouts if you want help setting that up. Tons of stuff. Just trying to help. It's five bucks. Click the link uh in the description. Otherwise, I'll see you in the next