Musk’s Robot Ambitions: Will Tesla Transform the Future?

Tesla’s stock saw a boost on Monday as Elon Musk highlighted the company’s upcoming humanoid robots, which he claims will add significant value. Musk shared on X that Tesla plans to produce “genuinely useful” humanoid robots for internal use next year, with hopes of larger-scale production for other companies by 2026.

During Tesla’s annual meeting in April, Musk indicated that the Optimus robot would enter limited production in 2025, with expectations that by the year’s end, over 1,000 units would be operational at Tesla facilities. Currently, two robots are in use on the factory floor, though their specific functions remain undisclosed.

Musk has suggested that the introduction of these robots could potentially increase Tesla’s market capitalization by $20 trillion. However, the robots are not expected to be available for sale until late 2025, with prices anticipated to range between $20,000 and $30,000.

Skepticism surrounds Musk’s claims about the robots being “genuinely useful.” Previous demonstrations have drawn criticism; for instance, in May, Tesla faced backlash for a video that appeared to show an Optimus robot folding a shirt, which was later revealed to be controlled by an off-screen person.

Critics, including analyst Craig Irwin from Roth MKM, have pointed out the challenges Tesla faces in competing with established robotics firms like Boston Dynamics. He noted that the technology showcased by Tesla appears outdated compared to current industry standards.

Tesla is competing not only against Boston Dynamics but also against other notable players like Honda, Apptronik, and Chinese manufacturers testing humanoid robots in their facilities. BMW has also integrated humanoid robots developed by the Silicon Valley firm Figure into its operations since the beginning of the year.

Following Musk’s comments, Tesla’s stock increased by more than 3% on Monday. Year-to-date, shares are stable after a significant recovery over the past two months. Tesla is expected to report its second-quarter earnings on Tuesday, where Musk is likely to provide an update on the long-awaited robotaxi project.

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