Tesla’s stock surged on Monday as Elon Musk emphasized the potential benefits of the company’s humanoid robots. Musk stated on social media that Tesla aims to have “genuinely useful humanoid robots” in low production for internal use by next year, with hopes for higher production for outside companies by 2026.
In April, during Tesla’s annual shareholder meeting, Musk indicated that the humanoid robot, dubbed Optimus, would enter limited production in 2025, with an expectation of having over 1,000 units operational by the year’s end. Currently, two robots are present on the factory floor, though Tesla has not disclosed their specific roles.
Musk projected that the introduction of these robots could increase Tesla’s market capitalization by as much as $20 trillion, despite the fact that they are not expected to be available for sale until late 2025, with prices estimated between $20,000 and $30,000.
However, the utility of these robots remains uncertain. Previous demonstrations have raised skepticism; for instance, a recent video showing an Optimus robot folding a shirt was alleged to be manipulated by an off-screen operator. This follows Tesla’s past attempts to showcase the robots, including a controversial initial reveal of the Optimus project featuring a dancer in a robot suit in 2021.
Analysts are cautious about Tesla’s robot project, with some suggesting that the company faces stiff competition from established players like Boston Dynamics. Roth MKM analyst Craig Irwin pointed out the challenges Tesla faces, noting their previous demonstrations have not matched the current state of robotic technology.
Tesla will also be competing against other companies venturing into humanoid robots, including Hyundai’s Boston Dynamics, Honda, and Apptronik. Additionally, Chinese manufacturers like Dongfeng Motor and Nio are exploring humanoid robots from UBTech Robotics, while BMW has been implementing Figure’s humanoid robots in its operations since January.
On the back of Musk’s announcement, Tesla stock rose over 3% on Monday. The company’s shares have remained relatively stable year-to-date following a significant recovery in the past two months. Investors await Tesla’s second-quarter earnings report on Tuesday, where Musk is expected to provide updates on the long-delayed robotaxi project.