Tesla’s stock experienced a rise on Monday as Elon Musk highlighted the potential of the company’s humanoid robots. Musk shared on social media that Tesla plans to produce “genuinely useful” humanoid robots for internal use in limited quantities next year, with hopes for larger-scale production for external companies by 2026.
During April’s annual shareholder meeting, Musk indicated that the Optimus robot would enter limited production in 2025, aiming for over 1,000 units operational by the end of that year. Currently, two robots are on the factory floor, although Tesla has not disclosed their specific functions.
Musk previously suggested that the robots could potentially increase Tesla’s market capitalization by $20 trillion. The robots are anticipated to be available for sale by late 2025, with projected prices ranging between $20,000 and $30,000.
However, the definition of “genuinely useful” remains ambiguous, as prior demonstrations have not impressed critics. In May, Tesla faced scrutiny for showcasing an Optimus robot folding a shirt, a task that was reportedly controlled by a person off-camera.
Skepticism surrounding Tesla’s humanoid robot venture is evident. Craig Irwin, an analyst at Roth MKM, pointed out that the ambitious timeline of having a sentient humanoid robot by 2025 seems far-fetched, recalling the company’s previous promotional stunt involving a dancer in a robot costume in 2021. Irwin noted that Tesla struggles to compete with established robotics firms, suggesting their current designs are outdated.
Moreover, Tesla faces competition from various entities, including Hyundai’s Boston Dynamics, Honda, Apptronik, and Chinese automakers Dongfeng Motor and Nio, which are already testing humanoid robots on their assembly lines. BMW has also partnered with Silicon Valley’s Figure for humanoid robot integration into its operations.
As a result of Musk’s comments, Tesla’s stock rose over 3% on Monday, though it has remained largely flat year-to-date after experiencing significant gains in the past two months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the long-awaited robotaxi project.