Tesla’s stock experienced an upward trend on Monday following Elon Musk’s continued advocacy for the promising prospects of the company’s humanoid robots.
Musk announced on X that Tesla would aim for limited production of its humanoid robots for internal use by next year, with plans for broader production for other companies by 2026. Earlier, at Tesla’s annual meeting in April, he indicated that the company would initiate the production of its robot, named Optimus, in 2025, projecting that over 1,000 units would be operational by the year’s end. Currently, two robots are present on the factory floor, although Tesla has not disclosed the specific tasks they are assigned.
Musk highlighted a hypothetical scenario in which the robot could contribute an additional $20 trillion to Tesla’s market capitalization. The robots are not expected to be available for purchase until late 2025, with anticipated prices ranging from $20,000 to $30,000.
However, the notion of these robots being “genuinely useful” remains vague. Previous demonstrations of the technology have not been particularly convincing; for instance, in May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which was reportedly operated by an off-screen individual.
Tesla has a history of showcasing their robots in flashy ways, having launched the Optimus project in 2021 with a dancing individual in a robot costume as part of the presentation.
Analyst Craig Irwin from MKM expressed skepticism about Tesla’s ambitions during a Yahoo Finance interview, questioning the feasibility of achieving a “sentient humanoid robot” by 2025, especially in light of the current competition from established companies like Boston Dynamics, which he believes possesses more advanced technology.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik, as well as from Chinese manufacturers Dongfeng Motor and Nio, who are currently testing humanoid robots developed by UBTech Robotics. BMW has also integrated humanoid robots from Silicon Valley-based Figure into its production facilities since January.
Following Musk’s comments, Tesla’s stock rose over 3% on Monday. The shares have remained stable year-to-date after a substantial recovery over the last two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide insights regarding the delayed rollout of the robotaxi service.