Tesla’s stock experienced an increase on Monday as CEO Elon Musk emphasized the potential value of the company’s humanoid robots. Musk stated on social media platform X that Tesla is set to have “genuinely useful” humanoid robots produced in low quantity for internal use by next year, with hopes of ramping up production for external clients by 2026.
Earlier this year, during Tesla’s annual shareholder meeting, Musk revealed that the production of the Optimus robot would begin in a limited capacity in 2025, predicting that over 1,000 units would be operational by the end of that year. Currently, two robots are already functioning at the Tesla factory, although the company has not disclosed their specific tasks.
Musk has made bold claims regarding the market potential of these robots, suggesting they could contribute an astonishing $20 trillion to Tesla’s market cap. The robots are anticipated to hit the market by late 2025 and will likely be priced between $20,000 and $30,000.
However, the exact capabilities Musk refers to as “genuinely useful” remain unclear. Previous demonstrations have faced criticism; notably, a video showing an Optimus robot folding a shirt was alleged to have been manipulated, with off-screen assistance.
Concerns about Tesla’s progress compared to competitors are also prevalent. Analyst Craig Irwin pointed out that Tesla’s initial attempts at showcasing the robot featured a dancer in a costume, raising skepticism about the company’s technological advancement. He noted the challenges Tesla faces in keeping up with established players like Boston Dynamics, which currently leads in robotic technology.
In addition to Boston Dynamics, Tesla is competing with Honda and Apptronik, while Chinese manufacturers Dongfeng Motor and Nio are collaborating with UBTech Robotics on humanoid robots for production lines. BMW has also integrated robots from Figure into its facilities since the beginning of the year.
Following Musk’s optimistic statements, Tesla’s stock rose over 3% on Monday, though its shares have remained mostly steady throughout the year after a significant rebound in recent months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the long-awaited robotaxi project.