Tesla’s stock saw an increase on Monday as CEO Elon Musk highlighted the potential of the company’s humanoid robots. Musk announced on X that Tesla aims to have “genuinely useful humanoid robots” in low production for internal use by next year, with hopes for high production for external companies by 2026.
During Tesla’s annual meeting in April, Musk mentioned that the Optimus robots would enter limited production in 2025, predicting that over 1,000 robots could be operational within the company by that year. Currently, two robots are being utilized on the factory floor, although Tesla has not disclosed their specific tasks.
Musk previously speculated that the introduction of these robots could enhance Tesla’s market capitalization by $20 trillion. The robots are not expected to hit the market until late 2025, with potential prices ranging from $20,000 to $30,000.
There remains some uncertainty about what Musk means by “genuinely useful,” as previous demonstrations of the robots have not been very convincing. In May, Tesla faced criticism for a video showcasing an Optimus robot folding a shirt, which turned out to be controlled by an unseen person.
Critics pointed out that Tesla has previously relied on gimmicks to promote its robots, such as unveiling the Optimus project in 2021 with a dancer in a costume. Analyst Craig Irwin from MKM expressed skepticism about the timeline for a sentient humanoid robot, stating that Tesla may struggle to match the capabilities of established competitors like Boston Dynamics.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik in Japan. Chinese companies Dongfeng Motor and Nio are working with UBTech Robotics on humanoid robots for production lines, while BMW has been using humanoid robots developed by Figure in its facilities since January.
Following Musk’s comments, Tesla’s stock rose over 3% on Monday. The shares have remained stable year-to-date after a significant rebound over the past couple of months. Tesla is expected to release its second-quarter earnings on Tuesday, where Musk will likely provide updates on the timeline for the long-awaited robotaxi.