Tesla’s stock experienced an increase on Monday following Elon Musk’s continued advocacy for the potential of the company’s humanoid robots.
Musk stated on X that Tesla “will have genuinely useful humanoid robots in low production for internal use next year and, hopefully, in high production for other companies by 2026.” In April, during Tesla’s annual shareholder meeting, he mentioned that the Optimus robot would enter limited production in 2025, predicting over 1,000 robots to be operational by year’s end. Currently, two robots are on the factory floor, though Tesla has not disclosed their specific functions.
Musk has previously suggested that this product could contribute an additional $20 trillion to the company’s market capitalization, with robots expected to hit the market by the end of 2025 and retail for between $20,000 and $30,000.
However, the definition of “genuinely useful” remains vague. Tesla’s earlier product showcases have drawn skepticism; in May, the company faced criticism for a video showing an Optimus robot folding a shirt, which was reportedly manipulated by an off-screen operator.
Tesla has a history of dramatizing its product demonstrations, infamously launching the Optimus robot project in 2021 with a dancer in a robot costume.
Craig Irwin, an analyst at MKM Partners, noted on Yahoo Finance that achieving a sentient humanoid robot by 2025 seems unrealistic, especially with the competition from established companies like Boston Dynamics. He remarked that Tesla’s demonstrations seem outdated compared to the advancements made in robotics.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik. Chinese companies Dongfeng Motor and Nio are experimenting with humanoid robots developed by UBTech Robotics in their production facilities, while BMW has integrated Silicon Valley-based Figure’s robots since January.
Following Musk’s statements, Tesla’s stock rose by over 3% on Monday. Year-to-date, shares remain steady after a significant rebound over the last two months.
Tesla is scheduled to report its second-quarter earnings on Tuesday, where Musk is expected to provide an update on the anticipated robotaxi launch.