Tesla’s stock experienced an increase on Monday as Elon Musk highlighted the potential worth of the company’s humanoid robots. Musk announced on X that Tesla is preparing to have “genuinely useful humanoid robots” for internal use at low production levels next year, with the goal of achieving high production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk mentioned that the Optimus robots would enter limited production in 2025, projecting that over 1,000 units would be operational at Tesla by the end of that year. Currently, two robots are functioning on the factory floor, although Tesla has not disclosed their specific roles.
Musk previously suggested that these robots could add up to $20 trillion to Tesla’s market capitalization. However, the robots are not expected to hit the market until late 2025, with prices likely ranging from $20,000 to $30,000.
There is some skepticism regarding Musk’s assertion that the robots are “genuinely useful.” Previous product demos have raised doubts; for instance, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which many believed was controlled by someone off-screen.
Tesla has been known to use showy presentations for its robot projects, including the controversial debut of the Optimus robot in 2021 where a dancer was in a robot suit.
Analyst Craig Irwin from MKM remarked on Yahoo Finance that creating a fully functional humanoid robot by 2025 seems improbable, noting that Tesla’s previous demonstrations have not showcased cutting-edge technology comparable to that of competitors like Boston Dynamics.
In addition to Hyundai’s Boston Dynamics, Tesla will face competition from Honda and Apptronik in Japan. Chinese manufacturers Dongfeng Motor and Nio are utilizing humanoid robots from UBTech Robotics on their production lines, while BMW has been incorporating Figure’s humanoid robots into its operations since January.
Following Musk’s comments, Tesla’s stock rose by over 3% on Monday. The shares have remained relatively stable this year after significant gains in the past two months. Tesla is scheduled to release its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the long-delayed robotaxi project.