Tesla shares experienced a rise on Monday as CEO Elon Musk emphasized the future potential of the company’s humanoid robots. Musk announced on social media platform X that Tesla aims to produce functional humanoid robots for internal use in low volumes next year, with the goal of higher production for external customers by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that its humanoid robot, named Optimus, could enter limited production by 2025, with over 1,000 units operational within the company by the end of that year. Currently, two robots are already present on Tesla’s factory floor, though the specific tasks they perform remain undisclosed.
Musk speculated that the introduction of humanoid robots could potentially increase Tesla’s market capitalization by around $20 trillion. However, the robots are not anticipated to enter the market for sale until late 2025, with prices projected to range between $20,000 and $30,000.
The exact functionality of these robots remains uncertain, especially since previous demonstrations have drawn skepticism. For instance, in May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which some claimed was manipulated by an off-screen operator.
This isn’t the first time Tesla has resorted to unconventional presentations for its robots; the Optimus robot project initially launched in 2021 featured a person in a robot costume performing a dance.
Analysts express doubts about Tesla’s ability to compete in the humanoid robotics space, with MKM analyst Craig Irwin noting on Yahoo Finance that the company’s efforts currently lag behind industry leaders like Boston Dynamics. He remarked on the challenges Tesla faces, citing their past attempts to demonstrate technology that now appears outdated.
In addition to Boston Dynamics, Tesla will be competing with Honda and Apptronik, as well as Chinese automakers Dongfeng Motor and Nio, which are testing humanoid bots from UBTech Robotics. Meanwhile, BMW has been utilizing humanoid robots developed by Figure in its operations since January.
Following Musk’s comments, Tesla’s stock price increased by over 3% on Monday. The company’s shares have remained relatively stable year-to-date after undergoing a significant recovery over the last two months. Tesla is scheduled to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates regarding the long-anticipated launch of the company’s robotaxi service.