Tesla’s stock experienced an increase on Monday as Elon Musk emphasized the potential of the company’s humanoid robots.
Musk shared on social media that Tesla plans to produce functional humanoid robots next year for its internal use, with expectations for mass production for external clients by 2026. During a recent shareholder meeting, Musk stated that Tesla’s robot, known as Optimus, would enter limited production by 2025, predicting that over 1,000 units might be operational by year’s end. Currently, two prototypes are in place at the factory, though Tesla hasn’t specified their tasks.
In April, Musk suggested that the introduction of these robots could add a staggering $20 trillion to Tesla’s market cap, with a planned retail price between $20,000 and $30,000 when they go on sale at the end of 2025. However, the functionality of these robots has been questioned, especially following a May incident where a video purportedly showcasing an Optimus folding a shirt was revealed to be controlled by an off-screen operator.
Critics note that Tesla’s previous marketing efforts for the Optimus project have raised eyebrows, such as the 2021 reveal featuring a person dressed in a robot costume dancing. Craig Irwin, an analyst at Roth MKM, expressed skepticism regarding Tesla’s capabilities in this arena, especially when compared to established competitors like Boston Dynamics, stating that Tesla’s technology appears outdated.
In addition to Boston Dynamics, Tesla faces competition from Honda in Japan and Apptronik. Chinese companies like Dongfeng Motor and Nio are exploring humanoid robots from UBTech Robotics for their production lines, while BMW has been utilizing robots from Figure since the beginning of the year.
Musk’s recent statements have positively impacted Tesla’s stock, which climbed over 3% on Monday. Year-to-date, shares have remained relatively stable following a significant rise over the past two months. Investors are also eagerly awaiting Tesla’s second-quarter earnings report on Tuesday, where Musk is anticipated to address updates regarding the company’s postponed robotaxi launch.