Elon Musk’s Humanoid Robots Boost Tesla Stock: What’s Next?

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Tesla shares experienced a surge on Monday as Elon Musk continued to highlight the potential value of the company’s humanoid robots. Musk stated on X that Tesla would have practical humanoid robots in limited production for internal use next year, with hopes for higher production levels for other companies by 2026.

During Tesla’s annual meeting in April, Musk indicated that the robots, named Optimus, would enter limited production in 2025, predicting that over 1,000 robots would be operational at Tesla by year’s end. Currently, two robots are already on the factory floor, although the specifics of their tasks have not been disclosed.

Musk made a bold claim in April, suggesting that the robots could potentially add up to $20 trillion to Tesla’s market value. The robots are not expected to go on sale until the end of 2025, with projected prices ranging from $20,000 to $30,000.

However, the exact meaning of Musk’s description of the robots as “genuinely useful” is uncertain, as previous demonstrations have not been particularly convincing. For instance, in May, Tesla was accused of showcasing a video of an Optimus robot folding a shirt while a person off-screen was actually controlling it.

This is not the first instance of Tesla using theatrical tactics to present its robots; the Optimus project was originally launched in 2021 with a person dressed in a costume dancing to demonstrate its capabilities.

MKM analyst Craig Irwin commented on Yahoo Finance that predicting a sentient humanoid robot by 2025 seems implausible, citing the initial launch of the project with a dancer in a robot suit. He expressed skepticism about Tesla’s ability to keep pace with leading companies like Boston Dynamics, stating that their current offerings appear outdated.

In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik, while Chinese companies like Dongfeng Motor and Nio are testing humanoid robots from UBTech Robotics in their production lines. BMW has also integrated humanoid robots from Figure into its facilities since January.

Following Musk’s remarks, Tesla stock rose by more than 3% on Monday. The shares have remained relatively stable year-to-date after a significant recovery over the past two months. Tesla is set to release its second-quarter earnings on Tuesday, during which Musk is anticipated to provide an update on the long-delayed robotaxi launch.

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