Musk Sparks Tesla Rally with Ambitious Robot Plans!

Tesla’s stock saw an increase on Monday following continued remarks from Elon Musk regarding the promising future of the company’s humanoid robots. Musk announced on X that Tesla plans to have “genuinely useful humanoid robots” in limited production for internal purposes by next year, with hopes for larger-scale production for external clients by 2026.

During Tesla’s annual shareholder meeting in April, Musk had indicated that the Optimus robots would enter limited production by 2025, with projections that over 1,000 units would be operational by the end of that year. Currently, two robots are present on the factory floor, though the company has not disclosed their specific roles.

Musk previously suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market capitalization, although the robots are not anticipated to be available for purchase until late 2025, with price estimates ranging from $20,000 to $30,000.

However, the exact definition of “genuinely useful” remains vague, as previous demonstrations have failed to impress. For instance, in May, Tesla faced criticism for sharing a video which portrayed an Optimus robot folding a shirt, an act that was alleged to be manipulated by an off-screen operator.

Critics have pointed out Tesla’s past tendencies to exaggerate its technological advancements. For example, the initial introduction of the Optimus robot in 2021 included a performance by an individual in a robot costume. Analyst Craig Irwin from Roth MKM remarked that the presentation lacked genuine innovation and that it may be challenging for Tesla to compete with established firms like Boston Dynamics.

Tesla is not the only contender in the humanoid robotics sphere; alongside Hyundai’s Boston Dynamics, the company faces competition from Honda, Apptronik, and Chinese firms such as Dongfeng Motor and Nio, which are exploring humanoid robotics manufactured by UBTech Robotics. BMW has also been utilizing humanoid robots from Silicon Valley-based Figure in its operations since early January.

Following Musk’s recent statements, Tesla’s stock rose over 3% on Monday, although shares have largely remained stable year-to-date after a significant recovery over the previous two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the much-anticipated robotaxi project, which has experienced delays.

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