Tesla’s stock experienced an increase on Monday as CEO Elon Musk continued to highlight the potential impact of the company’s humanoid robots. Musk stated on X that Tesla will begin low-production models of these robots for internal use next year, with a goal of high production for external companies by 2026.
During Tesla’s annual meeting in April, Musk had projected that the Optimus robots would enter limited production by 2025, estimating that over 1,000 units would be operational at Tesla by the end of that year. Currently, two robots are already on the assembly line, although Tesla has not disclosed their specific tasks.
Musk previously suggested that this robot initiative could contribute an impressive $20 trillion to the company’s market value. The robots are not expected to go on sale until late 2025, with anticipated prices ranging from $20,000 to $30,000.
The exact nature of what Musk refers to as “genuinely useful” robots remains unclear. Previous demonstrations of the technology have raised skepticism; in one instance, Tesla was criticized for a video showing an Optimus robot folding a shirt, which some claimed featured a person operating it off-screen.
Skeptics have pointed out that Tesla has a history of exaggerating its technological capabilities. Roth MKM analyst Craig Irwin noted on Yahoo Finance that achieving a truly sentient humanoid robot by 2025 seems overly ambitious, especially considering past displays, such as their 2021 reveal of the Optimus project featuring a dancer in a robot costume. He stated that catching up to competitors like Boston Dynamics will be challenging, considering their technology has not evolved significantly since 2014.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik in the humanoid robot arena. Chinese firms Dongfeng Motor and Nio are exploring the use of humanoid robots from UBTech Robotics in their production facilities, while BMW has started utilizing robots developed by Silicon Valley’s Figure since late January.
Musk’s remarks resulted in a more than 3% rise in Tesla’s stock on Monday. Year-to-date, shares remain relatively stable after a significant recovery over the last two months. Tesla is set to release its second-quarter earnings report on Tuesday, where Musk is expected to provide updates on the much-anticipated robotaxi project.