Tesla shares saw an increase on Monday following Elon Musk’s continued advocacy for the potential value of the company’s humanoid robots. Musk stated on social media that Tesla plans to have genuinely useful humanoid robots in limited production for internal use by next year, with hopes for larger production to serve other companies by 2026.
At Tesla’s annual shareholder meeting in April, Musk had suggested that the Optimus robots would enter limited production in 2025, estimating that by the end of that year, over 1,000 robots could be operational at Tesla. Currently, there are two robots in the factory, although their specific roles have not been disclosed.
In April, Musk proposed that the new product could significantly boost the company’s market capitalization by as much as $20 trillion. The robots are expected to hit the market at the end of 2025, selling for an estimated price range of $20,000 to $30,000.
However, it remains ambiguous what Musk means by calling the robots “genuinely useful.” Previous demonstrations have faced criticism, including an incident where a video appeared to show an Optimus robot folding laundry but, in reality, was being manipulated by an off-screen operator.
Tesla has faced skepticism regarding its robot project, which was first introduced in 2021 amidst controversy over the launch featuring an individual dressed in a robot costume. Roth MKM analyst Craig Irwin noted concerns about Tesla’s ability to compete with established robotics firms like Boston Dynamics, suggesting that Tesla’s technological offerings remain behind the current standards.
In addition to competing with Boston Dynamics, Tesla must contend with Japan’s Honda and Apptronik in the humanoid robot space. Chinese companies Dongfeng Motor and Nio are experimenting with humanoid robots created by UBTech Robotics, while BMW has been utilizing humanoid robots from the Silicon Valley-based Figure since January.
Musk’s updates have resulted in a more than 3% rise in Tesla’s stock on Monday. Despite this increase, shares have remained relatively stable throughout the year after experiencing a significant recovery over the last couple of months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide an update on the company’s much-anticipated robotaxi project.