Tesla’s stock saw an increase on Monday as Elon Musk continued to highlight the potential value of the company’s humanoid robots. Musk stated on social media that Tesla plans to have genuinely useful humanoid robots in low production for internal use by next year, with hopes of ramping up production for other companies by 2026.
During Tesla’s annual meeting in April, Musk indicated that the company’s Optimus robots would enter limited production in 2025, projecting that over 1,000 units could be operational by year’s end. Although two robots are already present on the factory floor, Tesla has not disclosed their specific functions.
Musk previously suggested that the introduction of these robots could significantly boost Tesla’s market capitalization by $20 trillion. The robots are expected to be commercially available by late 2025, with anticipated prices ranging from $20,000 to $30,000.
There are questions about the practicality of Musk’s claims regarding the robots’ usefulness, especially considering previous product demonstrations that have not lived up to expectations. For example, Tesla faced criticism in May over a video showing an Optimus robot folding a shirt, which was later revealed to be controlled by an off-screen individual.
Analysts have raised doubts about Tesla’s ability to meet its ambitious timelines. Craig Irwin, an analyst at Roth MKM, pointed out that the company’s initial demonstration featuring a dancer in a robot suit raises skepticism about its readiness to compete with established firms like Boston Dynamics.
In addition to Boston Dynamics, Tesla faces competition from Honda, Apptronik, and Chinese companies Dongfeng Motor and Nio, both testing humanoid robots on production lines. BMW has also started utilizing humanoid robots from Figure in its operations since January.
Musk’s remarks led to a more than 3% rise in Tesla’s stock on Monday. The shares have remained relatively stable year-to-date following a notable rebound in the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk will likely address the delayed launch of the company’s robotaxi service.