Elon Musk’s Robot Ambitions Boost Tesla Stock: What’s Next?

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Tesla’s stock saw an increase on Monday as Elon Musk highlighted the potential value of the company’s humanoid robots. Musk stated on X that Tesla plans to have genuinely useful humanoid robots in limited production for internal use by next year, with hopes for higher production for other companies by 2026.

During Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robots would enter limited production in 2025, estimating that over 1,000 robots could be operational by year-end. Although two robots are currently present on the factory floor, their specific roles have not been disclosed.

Musk has speculated that the introduction of these robots could significantly increase Tesla’s market capitalization by up to $20 trillion. However, the robots are not expected to be available for sale until late 2025, with pricing anticipated to range between $20,000 and $30,000.

There is some uncertainty about what Musk refers to as “genuinely useful” robots, as previous demonstrations have garnered skepticism. For example, in May, Tesla faced criticism for sharing a video of an Optimus robot folding a shirt, which was reportedly controlled by an individual off-screen. This has led to doubts regarding the authenticity of the company’s showcases.

Analysts, including Craig Irwin from Roth MKM, expressed skepticism about Tesla’s ambitions, recalling the company’s initial presentation of the Optimus robot in 2021, which featured a dancer in a costume. Irwin noted the challenge Tesla faces in catching up to competitors like Boston Dynamics, suggesting that their capabilities appear outdated.

Apart from Boston Dynamics, Tesla is also in competition with robotics firms from Japan, such as Honda, and multiple companies in China and Europe that are deploying humanoid robots in their operations.

Following Musk’s comments, Tesla stock increased by over 3% on Monday. Year-to-date, the shares have remained relatively stable after a significant rebound in the past couple of months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide an update on the anticipated robotaxi rollout.

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