Tesla’s stock saw an increase on Monday as Elon Musk highlighted the potential impact of the company’s humanoid robots. Musk announced on social media that Tesla aims to produce “genuinely useful” humanoid robots for internal use at a low volume by next year, with hopes for larger-scale production for external businesses by 2026.
During Tesla’s annual shareholder meeting in April, Musk projected that the Optimus robot would enter limited production in 2025, with expectations of over 1,000 units operational by year’s end. Currently, two robots are in use on the factory floor, although Tesla has not disclosed their specific tasks.
Musk has suggested that these robots could add $20 trillion to Tesla’s market capitalization. However, they are not expected to be available for sale until late 2025, with a projected price range of $20,000 to $30,000.
The term “genuinely useful” raises questions, as previous demonstrations of the robots have not met expectations. For instance, a video showcasing an Optimus robot folding a shirt was found to be operated by an off-screen individual, raising skepticism about the authenticity of the product’s capabilities.
Critics, including Craig Irwin, an analyst at Roth MKM, have expressed doubts about Tesla’s ability to compete with established robotics firms like Boston Dynamics. Irwin pointed out that Tesla’s previous presentations, such as the introduction of the Optimus robot featuring a performer in a robot suit, lacked credibility.
In addition to competition from Hyundai’s Boston Dynamics, Tesla also faces challenges from Honda, Apptronik, and Chinese companies Dongfeng Motor and Nio, which are testing humanoid robots in their production lines. BMW has also been utilizing robots from Silicon Valley’s Figure since early this year.
Following Musk’s comments, Tesla’s stock climbed over 3% on Monday. Despite some fluctuations, shares remain mostly stable this year after a strong recovery in recent months. Tesla will release its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed robotaxi launch.