Tesla’s stock experienced an uptick on Monday as Elon Musk continues to highlight the potential impact of the company’s humanoid robots.
Musk shared on X that Tesla plans to have “genuinely useful humanoid robots” in limited production for internal use by next year, with hopes for high production for external companies by 2026. During Tesla’s annual shareholder meeting in April, he revealed plans for the Optimus robot to enter limited production by 2025, with an expectation that over 1,000 robots could be operational at Tesla by year-end. Currently, two robots are already present on the factory floor, although Tesla has not disclosed their specific functions.
Musk has previously suggested that the new product could significantly boost Tesla’s market value by as much as $20 trillion. However, the robots are not anticipated to hit the market until late 2025, with projected prices between $20,000 and $30,000.
There remains some ambiguity about what Musk means by the term “genuinely useful,” as previous demonstrations of the robots have faced skepticism. For instance, Tesla was accused of misleading viewers with a video showing an Optimus robot folding a shirt, which some claimed was being manipulated by an off-screen operator.
Critics have pointed out that Tesla’s demonstrations of its robotic capabilities have often been underwhelming. Roth MKM analyst Craig Irwin remarked on Yahoo Finance that it might be challenging for Tesla to compete with other robotics companies, particularly given past presentations, such as the initial unveiling of the Optimus project in 2021 that featured a dancer in a robot costume.
Tesla will also face competition from established firms like Hyundai’s Boston Dynamics, as well as Japanese rivals Honda and Apptronik. Chinese manufacturers Dongfeng Motor and Nio are testing humanoid robots developed by UBTech Robotics in their production lines, while BMW has been utilizing robots from Silicon Valley’s Figure in its facilities since January.
Following Musk’s remarks, Tesla’s stock rose by over 3% on Monday. Year-to-date, shares have remained relatively stable after a significant recovery in recent months. Tesla is scheduled to announce its second-quarter earnings on Tuesday, where Musk is expected to provide updates regarding the delayed rollout of the robotaxi.