Tesla’s stock price has increased on Monday as Elon Musk continues to highlight the potential value of the company’s humanoid robots. Musk tweeted that Tesla is aiming to have functional humanoid robots in low production for internal purposes by next year and anticipates higher production for external companies by 2026.
During Tesla’s annual meeting in April, Musk announced plans to begin limited production of the Optimus robot by 2025, predicting that more than 1,000 units would be operational at Tesla by the end of that year. Currently, two robots are already present on the factory floor, although Tesla has not disclosed their specific functions.
Musk posited that these robots could significantly increase Tesla’s market capitalization by $20 trillion. However, the robots are not slated for sale until late 2025, with prices expected to range between $20,000 and $30,000.
The exact functionality of the robots remains vague, especially considering previous product demonstrations that have drawn skepticism; a May video displaying an Optimus robot folding shirts was accused of being manipulated by an off-screen operator.
This is not the first instance of Tesla encountering challenges in showcasing its robots. The company initially introduced the Optimus project in 2021 with a choreographed dance performed by someone in a robot suit.
Craig Irwin, a Roth MKM analyst, commented that achieving a truly sentient humanoid robot by 2025 seems optimistic, noting the limitations of Tesla’s past demonstrations, which he claims lag behind contemporary standards.
In addition to competing with Hyundai Motor’s Boston Dynamics, Tesla faces competition from Honda, Apptronik, and Chinese automakers like Dongfeng Motor and Nio, which are testing humanoid robots from UBTech Robotics on their production lines. BMW has also partnered with Figure’s humanoid robots since January.
On the back of Musk’s remarks, Tesla’s stock rose more than 3% on Monday, maintaining a stable trajectory year-to-date after recovering significantly over the past couple of months.
Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide insights on the delayed robotaxi launch.