Tesla shares saw an increase on Monday as CEO Elon Musk spoke about the potential benefits of the company’s humanoid robots. Musk announced on X that Tesla aims to have practical humanoid robots in limited production for internal use by next year, with hopes for broader production for other companies by 2026.
In April, Musk indicated during Tesla’s annual shareholder meeting that the company would start limited production of its robot, named Optimus, in 2025, projecting that over 1,000 of these units could be operational at Tesla by the end of that year. While two robots are currently on the production floor, Tesla has not disclosed their specific functions.
Musk has suggested that the introduction of these robots could add an astronomical $20 trillion to Tesla’s market value. However, the robots are not expected to hit the market until late 2025, with anticipated prices ranging from $20,000 to $30,000.
What Musk means by “genuinely useful” robots remains uncertain. Previous demonstrations have not lived up to expectations; notably, in May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, a task which was later revealed to be controlled by an off-screen person.
Skepticism surrounds Tesla’s capabilities in the robotic field, especially in light of its infamous 2021 launch event, where a person danced in a robot costume to promote the Optimus project. Craig Irwin, an analyst at Roth MKM, remarked on Yahoo Finance that achieving a “sentient humanoid robot by 2025” seems overly ambitious and doubted Tesla’s ability to compete with firms like Boston Dynamics, which he claims have surpassed Tesla’s showcased technology.
Tesla will also face competition from established players like Hyundai’s Boston Dynamics, Japan’s Honda, and Apptronik. Additionally, Chinese companies such as Dongfeng Motor and Nio are exploring humanoid robotics through partnerships with UBTech Robotics, while BMW has been integrating Figure’s robots into their operations since January.
On the back of Musk’s announcement, Tesla’s stock climbed more than 3% on Monday. Overall, shares have remained stable this year following a significant rebound over the last two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to update investors on the delayed rollout of its robotaxi initiative.