Tesla’s stock experienced an uptick on Monday as CEO Elon Musk emphasized the prospective value of the company’s humanoid robots.
In a post on X, Musk stated, “Tesla will have genuinely useful humanoid robots in low production for Tesla internal use next year and, hopefully, high production for other companies in 2026.” This aligns with his comments from April, where he indicated that the Optimus robot would transition to limited production by 2025, with an expectation of over 1,000 robots operational within Tesla by year-end. Currently, two robots are employed on the factory floor, though Tesla has not disclosed their specific tasks.
Musk also presented a scenario in April suggesting that the robots could potentially add $20 trillion to Tesla’s market value. However, these robots are not anticipated to enter the market until late 2025, with an eventual price range between $20,000 and $30,000.
The exact utility Musk attributes to the robots remains unclear, especially considering previous product demonstrations have faced skepticism. In May, Tesla was criticized for a video showing an Optimus robot folding a shirt, which appeared to be controlled by a person just off-camera.
Critics have pointed out that Tesla has previously used misleading presentations to hype the robots. The rollout of the Optimus robot in 2021, for instance, featured a person in a costume performing dance moves.
Craig Irwin, an analyst at Roth MKM, commented on Yahoo Finance Monday, questioning the feasibility of releasing a “sentient humanoid robot” by 2025, citing Tesla’s past promotional tactics as problematic. He added that the company might struggle to compete with established firms like Boston Dynamics given the current capabilities showcased.
Tesla faces competition not only from Boston Dynamics and Hyundai but also from Honda and Apptronik in Japan. Chinese companies, including Dongfeng Motor and Nio, are testing humanoid robots from UBTech Robotics in their production lines, while BMW has been utilizing humanoid robots from Figure in its facilities since late January.
Musk’s comments led to a more than 3% increase in Tesla’s stock on Monday. Despite this bump, shares have remained relatively flat year-to-date after a significant rebound over the last two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide an update on the delayed launch of the robotaxi.