Tesla shares experienced an increase on Monday as Elon Musk continued to highlight the potential of the company’s humanoid robots.
Musk announced via X that Tesla is set to have genuinely useful humanoid robots in limited production for internal use next year, with hopes for higher production for other companies by 2026. During Tesla’s annual meeting in April, Musk indicated that the Optimus robot could enter limited production in 2025, predicting over 1,000 robots would be operational within the company by the end of that year. Currently, two robots are on the factory floor, but Tesla has not disclosed their specific functions.
In April, Musk suggested that these robots could potentially add $20 trillion to the company’s market capitalization. While the robots are not anticipated to go on sale until late 2025, their expected prices will range between $20,000 and $30,000.
However, the exact meaning of Musk’s claim that the robots will be “genuinely useful” remains uncertain. Previous demonstrations have raised skepticism; for instance, a video from May showed an Optimus robot folding a shirt, which was reportedly controlled by a person off-screen. This isn’t the first time Tesla’s presentations have raised eyebrows, as the company introduced its Optimus robot project in 2021 featuring a person in a costume performing a dance.
Analyst Craig Irwin from MKM expressed doubts on Yahoo Finance regarding Tesla’s ability to deliver a sentient humanoid robot by 2025, referencing the company’s earlier theatrical attempts to promote the product. He noted that competing with established players like Boston Dynamics would be challenging, stating that their showcased technology falls behind the current state of the art.
In addition to Boston Dynamics, Tesla will face competition from Honda and Apptronik. Chinese firms Dongfeng Motor and Nio are testing humanoid robots developed by UBTech Robotics in their production lines, while BMW has been utilizing humanoid robots from Silicon Valley-based Figure since January.
Following Musk’s remarks, Tesla stock surged over 3% on Monday, with shares remaining stable year-to-date after a significant recovery in the past two months. The company is scheduled to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the much-anticipated robotaxi project.