Tesla’s stock experienced an uptick on Monday as CEO Elon Musk highlighted the future potential of the company’s humanoid robots. Musk stated on social media platform X that Tesla plans to have “genuinely useful” humanoid robots in low production for internal use next year, with hopes of scaling to high production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk revealed plans to move the Optimus robots into limited production by 2025, predicting that over 1,000 robots would be operational at Tesla by the end of that year. Currently, two robots are already on the factory floor, though Tesla has not disclosed the specific tasks they are assigned.
Musk has also suggested that the introduction of these robots could potentially increase the company’s market capitalization by $20 trillion. The robots are expected to be available for sale by the end of 2025, with prices estimated to range between $20,000 and $30,000.
However, the functionality of these robots has been questioned, as previous demonstrations have fallen short of expectations. In May, Tesla faced criticism for showcasing a video of an Optimus robot folding a shirt, which was reportedly controlled off-screen by a human.
Analysts have expressed skepticism regarding Tesla’s ability to compete in the humanoid robot market, particularly with established players like Boston Dynamics. Craig Irwin from MKM Research commented that Tesla’s previous presentation of the Optimus project lacked credibility, referencing an early demonstration that featured a person dancing in a robot suit.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik, while Chinese companies such as Dongfeng Motor and Nio are testing humanoid robots from UBTech Robotics. Meanwhile, BMW has been utilizing humanoid robots from Silicon Valley-based Figure since earlier this year.
Following Musk’s remarks, Tesla’s stock surged over 3% on Monday. Year-to-date, shares have remained relatively flat after experiencing a significant recovery in recent months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the much-anticipated robotaxi initiative.