Tesla shares saw an increase on Monday as CEO Elon Musk continued to highlight the promising future of the company’s humanoid robots. Musk took to X to announce that Tesla plans to have “genuinely useful humanoid robots” available in limited production for internal use by next year, with the aim of scaling production for other companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk had mentioned that the robots, named Optimus, would enter limited production in 2025, with a projection of having over 1,000 robots operational at Tesla by year-end. Currently, two robots are already present on the factory floor, but their specific functions remain undisclosed.
Musk also speculated that the introduction of these robots could add an astonishing $20 trillion to Tesla’s market capitalization. However, the robots are not anticipated to hit the market until late 2025, with expected prices ranging between $20,000 and $30,000.
The definition of “genuinely useful” robots remains vague, particularly considering past product demonstrations have faced criticism. For instance, in May, Tesla was accused of showcasing a video of an Optimus robot folding laundry, which appeared to be manipulated by an individual off-camera.
Tesla’s previous marketing tactics have raised eyebrows, such as the initial reveal of the Optimus robot project in 2021 featuring a person in a costume dancing. Analyst Craig Irwin from Roth MKM remarked on Yahoo Finance that creating a “sentient humanoid robot” by 2025 seems ambitious, especially given Tesla’s earlier marketing approach.
In addition to competing with Hyundai’s Boston Dynamics, Tesla faces competition from Honda’s robotics division, Apptronik, and Chinese companies like Dongfeng Motor and Nio, which are experimenting with UBTech Robotics’ humanoid robots. BMW has also incorporated Figure’s humanoid robots into its facilities since January.
Following Musk’s announcements, Tesla stocks rose over 3% on Monday. The company’s shares remain relatively stable year-to-date, having experienced a significant rebound in recent months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the long-awaited robotaxi project.