Tesla’s stock experienced an increase on Monday as Elon Musk highlighted the company’s forthcoming humanoid robots. Musk announced on X that Tesla aims to have functional humanoid robots in low production for internal use by next year, with high production intended for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk mentioned that the Optimus robots would enter limited production in 2025, with expectations that over 1,000 robots would be operational by the end of the year. Currently, two robots are present on the factory floor, but their specific roles have not been disclosed.
Musk speculated that the introduction of these robots could boost Tesla’s market capitalization by $20 trillion. The robots are not anticipated to be available for sale until late 2025, with price estimates ranging from $20,000 to $30,000.
However, there are doubts about the practicality of the robots. Musk’s claim of them being “genuinely useful” is met with skepticism, particularly after previous demonstrations have left much to be desired. For instance, a video was critiqued for showing an Optimus robot folding a shirt, which was later revealed to be maneuvered by an off-screen person.
Historically, Tesla has faced scrutiny for its promotional strategies regarding the robots. The initial unveiling of the Optimus project in 2021 included a performer dressed in a robot costume, raising questions about the seriousness of the product.
MKM analyst Craig Irwin commented on Yahoo Finance, expressing doubts about Tesla’s ability to compete with established companies like Boston Dynamics. He noted that Tesla’s current demonstrations appear outdated compared to industry standards.
Apart from competing with Hyundai’s Boston Dynamics, Tesla also faces challenges from Japan’s Honda and Apptronik. In addition, Chinese companies Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics, while BMW has integrated Figure’s humanoid robots into its operations since January.
Following Musk’s remarks, Tesla’s stock climbed over 3% on Monday, and shares have stabilized year-to-date after a significant recovery in the past two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the anticipated robotaxi launch.