Tesla’s stock experienced a rise on Monday as Elon Musk reiterated the potential of the company’s humanoid robots. Musk stated on X that Tesla aims to develop practical humanoid robots with low production for internal use next year, and he hopes to ramp up production for other companies by 2026.
During Tesla’s annual meeting in April, Musk announced plans for the Optimus robot to enter limited production in 2025, with a target of over 1,000 units operational by the end of that year. Currently, two robots are already on the factory floor, although Tesla has not disclosed their specific functions.
Musk previously suggested that the introduction of these robots could increase Tesla’s market capitalization by $20 trillion. The robots are expected to go on sale at the end of 2025, with a price range between $20,000 and $30,000.
Musk’s reference to the robots as “genuinely useful” is vague, especially considering past demonstrations have received criticism. In May, Tesla faced accusations of misrepresenting a video where an Optimus robot appeared to fold a shirt, which was allegedly being controlled by someone off-screen.
This is not the first time Tesla has been accused of embellishing its robotics capabilities. The Optimus project was famously introduced in 2021 with a dancer dressed in a robot costume.
Craig Irwin, an analyst at Roth MKM, expressed skepticism about Tesla’s progress, stating that the company would struggle to catch up with competitors like Boston Dynamics, citing their technology as being outdated.
Tesla will also face competition from other firms, including Hyundai’s Boston Dynamics, Japan’s Honda, and Apptronik. Chinese automakers Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics in their production lines, while BMW has integrated Silicon Valley’s Figure robots into its operations since January.
On Monday, Tesla’s stock rose over 3% following Musk’s remarks. Year-to-date, shares have remained relatively stable after a significant rebound over the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the delayed robotaxi unveiling.