Tesla’s stock experienced a rise on Monday as CEO Elon Musk highlighted the potential value of the company’s humanoid robots. Musk announced on social media that Tesla is set to begin low production of these robots for internal use next year, with hopes for increased production for external clients by 2026.
During Tesla’s annual shareholders meeting in April, Musk had indicated that the Optimus robots would enter limited production by 2025, estimating that over 1,000 units could be operational within the company by the end of that year. Currently, two robots have been deployed on the factory floor, though Tesla has not disclosed their specific functions.
Musk previously suggested that the introduction of these robots could add up to $20 trillion to Tesla’s market value. However, these humanoid robots are not expected to be available for purchase until the end of 2025, with an estimated price range of $20,000 to $30,000.
The exact definition of “genuinely useful” robots as described by Musk remains uncertain. Previous demonstrations have drawn skepticism; in May, Tesla faced criticism for a video that seemed to show an Optimus robot folding a shirt, which was later revealed to be controlled by an individual off-screen.
This is not the first time Tesla has faced scrutiny over its presentations. The company first introduced the Optimus robot project in 2021, which included a dancer in a robot suit, raising doubts about the project’s authenticity.
Analyst Craig Irwin from Roth MKM remarked that achieving a functioning humanoid robot by 2025 seems unrealistic, especially when comparing Tesla’s efforts to established companies like Boston Dynamics. He noted that Tesla’s technology appears to be lagging behind industry standards from nearly a decade ago.
Tesla will also contend with competition from other companies in the humanoid robot sector, including Hyundai’s Boston Dynamics, Japan’s Honda, Apptronik, and Chinese manufacturers like Dongfeng Motor and Nio, which are testing humanoid robots from UBTech Robotics in production environments. BMW has also integrated humanoid robots from Silicon Valley’s Figure into its operations.
Following Musk’s comments, Tesla’s shares climbed over 3% on Monday. Year-to-date, the stock remains relatively stable after a significant recovery in the past two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide an update on the anticipated robotaxi launch.