Tesla’s stock surged on Monday as CEO Elon Musk highlighted the potential of the company’s humanoid robots. Musk proclaimed on X that Tesla aims to have genuinely useful humanoid robots in low production for internal use by next year, with hopes for high production for external clients by 2026.
At the annual shareholders meeting in April, Musk projected that the Optimus robots would enter limited production by 2025, forecasting that over 1,000 units would be operational at Tesla by year’s end. Currently, two robots are already deployed on the factory floor, although their specific tasks remain undisclosed.
Musk suggested that the impact of these robots could significantly boost Tesla’s market capitalization by as much as $20 trillion. While the robots are not expected to hit the market until the latter part of 2025, their anticipated price ranges from $20,000 to $30,000.
However, it remains unclear exactly what Musk means by “genuinely useful.” Previous demonstrations have faced criticism for lacking substance, such as a May video where an Optimus robot appeared to fold a shirt but was reportedly operated by a person off-screen.
In the past, Tesla has been accused of utilizing misleading presentations, having initially introduced the Optimus robot project in 2021 with a dance performance featuring an individual in a robot costume.
Industry experts also cast doubt on Tesla’s robot aspirations. Craig Irwin, an analyst at MKM, remarked on Yahoo Finance that the concept of a sentient humanoid robot by 2025 seems unrealistic, especially given Tesla’s history of showcasing underwhelming advancements.
Tesla faces stiff competition from established players such as Hyundai’s Boston Dynamics, Honda, and Apptronik, while Chinese automakers Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics in their production facilities. BMW has also incorporated humanoid robots created by Silicon Valley’s Figure since the beginning of the year.
Tesla’s stock rose over 3% in response to Musk’s statements, maintaining a relatively stable position year-to-date after a significant recovery in the past two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to address updates on the delayed robotaxi project.