Tesla’s stock saw an increase on Monday as CEO Elon Musk highlighted the potential of the company’s humanoid robots. Musk mentioned on X that Tesla aims to produce “genuinely useful” humanoid robots in low quantities for internal use in the coming year, with hopes of higher production for external clients by 2026.
During Tesla’s annual meeting in April, Musk indicated that the humanoid robot, named Optimus, would enter limited production in 2025, with a projection of having over 1,000 units operational by the end of that year. Currently, two units are already functioning on the factory floor, though their specific tasks have not been disclosed.
Musk previously suggested that the introduction of these robots could significantly increase Tesla’s market capitalization, potentially adding $20 trillion. However, the robots are not slated for sale until late 2025, with expected price points ranging from $20,000 to $30,000.
Questions remain about the practicality of the robots, especially given past demonstrations that have drawn skepticism. For instance, a recent video showed an Optimus robot folding a shirt, but it was accused of being manipulated by a person off-screen. This is not the first instance where Tesla has been criticized for its presentations; the Optimus project was initially showcased with a dancer in a robot costume in 2021.
Analyst Craig Irwin from Roth MKM expressed doubts about Tesla’s ability to compete against established companies like Boston Dynamics, especially given that their technological advancements appear dated compared to industry standards from 2014.
Tesla will face competition not only from Boston Dynamics, a subsidiary of Hyundai, but also from Honda, Apptronik, and Chinese firms such as Dongfeng Motor and Nio, which are testing humanoid robots from UBTech Robotics. BMW has also integrated humanoid robots from Silicon Valley’s Figure into its production lines since January.
Following Musk’s statements, Tesla shares rose over 3% on Monday. The stock has remained relatively stable year-to-date after experiencing a significant rebound in the last two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the long-awaited robotaxi launch.