Tesla’s stock saw an uptick on Monday as CEO Elon Musk highlighted the potential value of the company’s humanoid robots. Musk took to social media to announce, “Tesla will have genuinely useful humanoid robots in low production for Tesla internal use next year, and hopefully, we will see high production for other companies by 2026.”
During Tesla’s annual shareholder meeting in April, Musk indicated that the company intended to move its Optimus robots into limited production by 2025, predicting that over 1,000 of these robots would be operational by the end of that year. Currently, two robots are functioning at the Tesla factory, although the specific tasks they perform have not been disclosed.
Musk has previously suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market cap. While there is anticipation for a commercial release, the robots are not expected to hit the market until late 2025, with prices projected between $20,000 and $30,000.
However, the term “genuinely useful” raises questions, especially considering past demonstrations have not always met expectations. In one instance, a video released by Tesla showing an Optimus robot folding a shirt was later criticized as it became known that a person off-screen was controlling the robot’s movements.
Skepticism regarding Tesla’s robotic ambitions has been voiced by analysts, particularly in light of the company’s history of using theatrical presentations to showcase its robotics efforts. “A sentient humanoid robot by 2025? I mean come on, they tried to launch this product with a dancer inside of a robot suit,” commented Roth MKM analyst Craig Irwin. He cautioned that Tesla may struggle to compete with established players such as Boston Dynamics, emphasizing that their current offerings seem outdated compared to industry advancements.
In addition to Tesla, other automakers are also delving into humanoid robotics. Hyundai’s Boston Dynamics, Honda, Apptronik, as well as Chinese companies Dongfeng Motor and Nio, are developing or testing humanoid robots for their production lines. Notably, BMW has been utilizing humanoid robots from Silicon Valley-based Figure since January.
On the back of Musk’s statements, Tesla’s stock increased by over 3% on Monday, although shares have remained relatively steady year-to-date following a significant recovery in the past couple of months. Investors are eager for more information, as Tesla is scheduled to announce its second-quarter earnings on Tuesday, which is expected to include updates on the company’s long-awaited robotaxi initiative.