Tesla shares experienced a rise on Monday as Elon Musk highlighted the potential benefits of the company’s humanoid robots.
Musk detailed on X that Tesla aims to have “genuinely useful humanoid robots in low production for internal use” by next year, with hopes for broader production for external companies by 2026. In April, during Tesla’s annual shareholder meeting, Musk indicated that the Optimus robot could enter limited production in 2025, predicting that over 1,000 of the robots would be operational by year-end. Currently, two robots are already on the production line, although Tesla has not disclosed their specific functions.
Musk previously suggested that the robots could significantly enhance Tesla’s market capitalization by as much as $20 trillion. The robots are expected to be available for purchase by late 2025, with prices ranging from $20,000 to $30,000.
Questions remain regarding Musk’s claim that the robots will be “genuinely useful,” as earlier demonstrations raised skepticism. In May, Tesla faced criticism after releasing a video that appeared to show an Optimus robot folding a shirt, which was later revealed to involve off-screen human control.
Tesla’s ambition with their robots has been met with skepticism. Analyst Craig Irwin from MKM described the idea of a “sentient humanoid robot by 2025” as overly ambitious, recalling the initial launch of the Optimus project that featured a performer in a robot suit. Irwin noted that Tesla may struggle to compete with established players like Boston Dynamics, indicating that Tesla’s offerings seem outdated compared to current standards.
In addition to competition from Boston Dynamics, Tesla faces challenges from Honda and Apptronik in Japan, as well as Chinese firms like Dongfeng Motor and Nio, which are testing UBTech Robotics humanoid robots in their production facilities. BMW has also started utilizing humanoid robots developed by Silicon Valley-based Figure.
Following Musk’s remarks, Tesla stock jumped more than 3% on Monday. Year-to-date, the share price is relatively stable after recovering strongly over the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to discuss the delays behind the robotaxi rollout.