Tesla’s stock experienced an increase on Monday as CEO Elon Musk highlighted the potential advantages of the company’s humanoid robots. Musk announced on X that Tesla aims to have functional humanoid robots in limited production for internal use by next year, with hopes for wider production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk mentioned that the company’s Optimus project would enter limited production in 2025, anticipating that over 1,000 robots would be operational by year’s end. Currently, two robots have been integrated into Tesla’s factory, although their specific tasks have not been disclosed.
Musk previously speculated that the introduction of these robots could increase Tesla’s market capitalization by $20 trillion. Despite this optimistic outlook, the robots are not expected to be available for sale until late 2025, with projected prices ranging from $20,000 to $30,000.
The practicality of Musk’s claim regarding the robots being “genuinely useful” remains in question. Past demonstrations have not impressed critics, and in one instance, Tesla was accused of presenting a video showing an Optimus robot folding a shirt while it was secretly being controlled by an off-screen person.
Critics have also pointed out that Tesla has previously used questionable tactics to showcase its robots, such as the controversial introduction of the Optimus project featuring a person wearing a robot costume.
Analyst Craig Irwin from Roth MKM stated on Yahoo Finance that meeting the ambitious 2025 timeline for a “sentient” humanoid robot would be a significant challenge, especially in light of the advanced capabilities exhibited by competitors like Boston Dynamics.
Tesla faces competition from several companies in this sector, including Hyundai’s Boston Dynamics, Honda, Apptronik, and Chinese automakers Dongfeng Motor and Nio, which are conducting tests with humanoid robots from UBTech Robotics. Additionally, BMW has been utilizing humanoid robots from Silicon Valley’s Figure since January.
Following Musk’s remarks, Tesla’s stock rose by over 3% on Monday, maintaining a stable position year-to-date after a notable recovery in the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is likely to provide updates on the delayed introduction of the robotaxi.