So i was planning on making a gnome battle smith but I friggin love kobolds, but kobolds in 5e are kinda dampened with their draw backs but I think I finally see some sick potential.

Your steel defender goes on your initiative right after you do, so nothing is stopping a kobold from taking say a crossbow with the magical imbuing fun, readying his action for "when my steel defender gets up next to it I'll fire" ending his turn and the steel defender than saunters up and triggers pack tactics for a nice advantaged crossbow shot?  And the enemy is than left with a dodging defender that's gonna attack them if they try to get away?

Could you also trigger sneak attack damage if dipping into rogue this way?

Also similarly since  kobolds are small and the construct is medium could you mount it, ready your action for when my steel defender brings me into range i strike him with my sword! and have it carry you into combat for some advantageous pack tactics melee combat with a side of sneak attacks and bonus action whacks from it in following turns?

That's a pretty neat idea. I imagine the steel defender as some kind of weird trash heap assembled to look like a dragon. Now here's a question. Suppose you ride the defender, ready an action to attack when it gets into range, then have the defender walk into and out of melee. You get your melee attack, and the defender provokes an AoO but the rider doesn't, right?

Interesting yeah wonder how that works would probably be under mounted combat, staying in combat might not be the worst thing that way you can use your bonus actions to have it attack on your turn.

This idea would work until level 5 when you get extra attack, than give you the option of waiting to get a good single strike in or making two than having the steel defender move up to your target for the next round. Having on demand advantage could have some strong benefits without being totally reliant on the party.

If a mount incurs an attack of opportunity the attacker can choose to target the mount or the rider. If the mount disengages, though, it does not incur an opportunity attack and since the rider is not moving under their own power, neither do they.

Quote from Ophidimancer >>

If a mount incurs an attack of opportunity the attacker can choose to target the mount or the rider. If the mount disengages, though, it does not incur an opportunity attack and since the rider is not moving under their own power, neither do they.

 Dang. That's tasty. Meaning a mounted battle smith can effectively disengage as a bonus action.

Alternately if you don't use a bonus action to command the Steel Defender then it automatically takes the dodge action meaning any opportunity attacks against it that turn are at disadvantage. Further any attack roll against its rider can be forced to be made with disadvantage using the Steel Defender's Deflect Attack reaction.

Add to that the fact that the Steel Defender is immune to exhaustion (full day, fast pace travel without consequence) and it's more or less the perfect mount for a small artificer.

Quote from Unclevertitle >>

Dang. That's tasty. Meaning a mounted battle smith can effectively disengage as a bonus action.

Alternately if you don't use a bonus action to command the Steel Defender then it automatically takes the dodge action meaning any opportunity attacks against it that turn are at disadvantage. Further any attack roll against its rider can be forced to be made with disadvantage using the Steel Defender's Deflect Attack reaction.

Add to that the fact that the Steel Defender is immune to exhaustion (full day, fast pace travel without consequence) and it's more or less the perfect mount for a small artificer.

Any ONE attack, but yes.