Musk’s Robot Dream Boosts Tesla Shares: What’s Next?

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Tesla shares saw an increase on Monday as CEO Elon Musk continues to advocate for the promising future of the company’s humanoid robot initiative. Musk shared on social media platform X that Tesla aims to produce genuinely useful humanoid robots for internal use next year, with hopes for high production numbers intended for external clients by 2026.

Previously, during Tesla’s annual shareholder meeting in April, Musk announced plans for the robot named Optimus to enter limited production by 2025, forecasting that over 1,000 of these robots could be operational within the company by the year’s end. Currently, two robots are reported to be on the production floor, although their specific functions remain undisclosed.

Musk has suggested that the widespread adoption of these robots could contribute an astonishing $20 trillion to Tesla’s market value, with sales of the robots expected to commence late in 2025, at prices ranging from $20,000 to $30,000.

However, the viability of these humanoid robots has drawn skepticism. Past demonstrations have not lived up to expectations, highlighted by an incident where Tesla was accused of displaying a video showing an Optimus robot folding a shirt, which was allegedly controlled by an operator off-screen. Critics, including analyst Craig Irwin from Roth MKM, expressed doubt about the ambitious timeline and the company’s ability to rival established competitors such as Boston Dynamics, Honda, and others actively testing similar technologies.

Despite the criticisms, Tesla’s stock rose over 3% on Monday, maintaining momentum from a significant recovery seen in the past two months. Investors eagerly await Tesla’s upcoming second-quarter earnings report on Tuesday, where Musk is anticipated to provide updates on other initiatives, including the long-delayed robotaxi project.

This optimistic outlook on Tesla’s developments in robotics could signify significant advancements in technology and automation, reflecting a growing interest in innovation and its impact on productivity across various industries.

In summary, while skepticism remains prevalent regarding Tesla’s humanoid robots and their market readiness, the positive movement in stock price indicates investor hope in Musk’s ambitious vision, suggesting that the broader narrative of technological advancement persists.

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