Tesla shares saw an increase on Monday as CEO Elon Musk highlighted the anticipated value of the company’s humanoid robots. Musk announced via social media platform X that Tesla plans to have “genuinely useful” humanoid robots ready in limited production for internal use by next year, with an eye on larger-scale production for external customers by 2026.
During Tesla’s annual meeting in April, Musk initially stated that the Optimus robots would enter limited production in 2025, predicting that over 1,000 of them would be in operation at Tesla by the end of that year. Currently, two of these robots are on the factory floor, though the company has not detailed their specific tasks.
Musk has also suggested that the introduction of these robots could significantly boost Tesla’s market capitalization by up to $20 trillion. The robots are projected to hit the market by late 2025, with a price tag ranging from $20,000 to $30,000.
However, some skepticism surrounds the notion of these robots being “genuinely useful,” as previous demonstrations have failed to impress. For instance, an incident in May involved a video showcasing an Optimus robot folding a shirt, which was later revealed to have been controlled by an off-screen individual. This follows a somewhat controversial launch event in 2021 where a person dressed in a robot costume performed a dance routine, leading some industry analysts to question the credibility of Tesla’s advancements in robotics.
Analyst Craig Irwin noted the formidable competition Tesla faces from companies like Boston Dynamics, Honda, and others who have already made strides in humanoid robotics. Meanwhile, many automakers, including Chinese manufacturers and BMW, are incorporating humanoid robots from various tech firms into their production lines.
On the positive front, Tesla’s stock rose over 3% in reaction to Musk’s updates, with shares generally remaining stable year-to-date after a recent rally. The company is scheduled to announce its second-quarter earnings on Tuesday, where Musk is anticipated to provide further updates on the long-awaited unveiling of the robotaxi project.
Overall, despite past challenges, Tesla’s ongoing commitment to innovation and the potential market impact of humanoid robots hint at an exciting future for the company. The optimism surrounding Musk’s vision could foster renewed interest in Tesla’s stock as they navigate this evolving technological landscape.