Tesla shares saw an increase on Monday following Elon Musk’s continued emphasis on the potential value of the company’s humanoid robots.
Musk stated on X that Tesla anticipates producing “genuinely useful” humanoid robots for internal use at a low scale next year, with hopes for mass production for other companies by 2026. During Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robot project would enter limited production in 2025, forecasting that over 1,000 robots would be operational at Tesla by year’s end. Currently, two robots are employed on the factory floor, though specific tasks remain undisclosed.
In April, Musk suggested that the introduction of humanoid robots could potentially increase Tesla’s market capitalization by $20 trillion, although the robots are not expected to be available for sale until late 2025, with estimated prices ranging from $20,000 to $30,000.
The true functionality Musk refers to when mentioning the robots as “genuinely useful” is still ambiguous. Previous demonstrations have not met expectations; for instance, Tesla faced criticism for a video showcasing an Optimus robot folding a shirt, which was allegedly controlled by an off-screen person.
Skepticism surrounds Tesla’s approach to the robot project, especially following its 2021 unveiling with a dancer in a robot suit. Craig Irwin, an analyst at Roth MKM, remarked that the company will struggle to compete with established players like Boston Dynamics, suggesting that what Tesla has shown thus far is outdated compared to current technology.
In addition to Boston Dynamics under Hyundai Motor, Tesla faces competition from Honda and Apptronik, as well as Chinese firms like Dongfeng Motor and Nio, which are experimenting with humanoid robots on production lines developed by UBTech Robotics. BMW has also incorporated humanoid robots from Figure, a Silicon Valley startup, into its facilities since January.
Following Musk’s comments, Tesla stock rose over 3% on Monday. Year-to-date, the shares have remained relatively stable after a significant rebound over the last two months. Tesla is set to announce its second-quarter earnings on Tuesday, where Musk is likely to provide updates on the delayed robotaxi rollout.