Tesla’s stock saw an increase on Monday as Elon Musk emphasized the potential value of the company’s humanoid robots.
Musk announced on X that Tesla will have practical humanoid robots in low production for internal use by next year, with the aim of launching high production for external companies in 2026. At Tesla’s annual meeting in April, Musk indicated that the robot, named Optimus, is set to enter limited production in 2025. He projected that by the end of that year, over 1,000 robots would be operational within Tesla, although the company has not disclosed their specific functions. Currently, two robots are present on the factory floor.
Musk previously suggested that the humanoid robot line could potentially add $20 trillion to Tesla’s market value. However, these robots are not expected to go on sale until the end of 2025, with an anticipated price range of $20,000 to $30,000.
The precise definition of “genuinely useful” robots as described by Musk remains unclear. Past demonstrations have raised doubts; for instance, in a May incident, Tesla was accused of sharing a manipulated video where an Optimus robot appeared to fold a shirt but was allegedly controlled by someone off-screen.
Tesla has a history of showcasing its projects in a flashy manner. The debut of the Optimus robot in 2021 featured a person dancing in a robot suit, which led to skepticism regarding the seriousness of the venture. Roth MKM analyst Craig Irwin remarked on Yahoo Finance that achieving a sentient humanoid robot by 2025 seems overly ambitious, especially compared to advancements made by competitors such as Boston Dynamics.
In addition to Boston Dynamics, Tesla is facing competition from Japan’s Honda, Apptronik, and Chinese companies like Dongfeng Motor and Nio, which are experimenting with humanoid robots on their production lines. BMW has also integrated humanoid robots developed by Figure into its operations.
On the back of Musk’s statements, Tesla’s stock increased by over 3%. The shares have remained relatively stable year-to-date following a significant recovery in the past two months. Tesla is set to announce its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed robotaxi project.