Tesla’s stock experienced an uptick on Monday as Elon Musk reiterated the potential value of the company’s humanoid robots. Musk took to X to announce that Tesla plans to produce genuinely useful humanoid robots for internal use in low quantities next year, with the hope of scaling up production for other companies by 2026.
During Tesla’s annual meeting in April, Musk indicated that the Optimus robot would enter limited production by 2025, with a goal of having over 1,000 units operational by the end of that year. Although two robots are already on the production floor, Tesla has not disclosed their specific functions.
Musk previously suggested that the humanoid robots could add up to $20 trillion to Tesla’s market capitalization, although the products are not expected to hit the market until late 2025, with prices anticipated to fall between $20,000 and $30,000.
However, the definition of “genuinely useful” robots remains vague, especially given that earlier product demonstrations have faced scrutiny. Reports surfaced in May that one such demonstration involved an Optimus robot folding a shirt, which critics claimed was done with off-screen assistance. Musk’s ambitious proclamations contrast with past presentations, notably the 2021 reveal of the Optimus project featuring a performer in a robot suit.
Analyst Craig Irwin from MKM voiced skepticism in a Monday Yahoo Finance interview, questioning the feasibility of unveiling a fully autonomous humanoid robot by 2025 and highlighting the challenges Tesla faces in competing with established companies like Boston Dynamics. He noted that Tesla’s previous demonstrations seemed outdated.
Alongside Hyundai’s Boston Dynamics, Tesla is also in competition with Honda and Apptronik. Additionally, Chinese automakers Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics in their production lines, while BMW has incorporated humanoid robots from Silicon Valley’s Figure into its operations since early January.
Following Musk’s remarks, Tesla’s shares rose by over 3% on Monday. The stock has remained relatively stable year-to-date after recovering significantly in recent months.
Tesla is set to report its second-quarter earnings on Tuesday, during which Musk is anticipated to provide updates regarding the long-awaited robotaxi project.