Tesla’s stock saw an increase on Monday as CEO Elon Musk reiterated the promising prospects of the company’s humanoid robots. Musk announced on X that Tesla plans to produce “genuinely useful” humanoid robots for internal use next year, with hopes of full-scale production for external clients by 2026.
During Tesla’s annual meeting in April, Musk indicated that the company’s Optimus robots would enter limited production by 2025, predicting that over 1,000 units would be operational by the end of that year. Currently, two robots are already on the factory floor, though Tesla has not specified their functions.
Musk has previously suggested that the robots could potentially add up to $20 trillion to Tesla’s market capitalization. However, the robots are not expected to be available for sale until late 2025, with a projected price range between $20,000 and $30,000.
There is uncertainty surrounding Musk’s definition of “genuinely useful” when referring to the robots. Critics have pointed out that previous demonstrations have not met expectations; for instance, in May, Tesla was accused of misleadingly showcasing a robot folding a shirt, which was alleged to be controlled by someone off-screen.
This is not the first time Tesla has been criticized for its promotional tactics regarding robotics. The company initially introduced its Optimus robot project in 2021 with a demonstration that included a dancer in a robot suit.
Industry analysts have expressed skepticism about Tesla’s ability to compete with established companies like Boston Dynamics. MKM analyst Craig Irwin remarked that it will be challenging for Tesla to catch up, given that what they have demonstrated appears outdated compared to industry standards from nearly a decade ago.
In addition to its rivals like Boston Dynamics, Tesla faces competition from Honda, Apptronik, and Chinese manufacturers Dongfeng Motor and Nio, all of which are exploring humanoid robotics technology. BMW has also integrated humanoid robots developed by Figure into its operations since January.
Following Musk’s comments, Tesla’s stock rose over 3% on Monday. Year-to-date, shares have remained relatively stable after a significant recovery in recent months. The company is set to report its second-quarter earnings on Tuesday, where Musk is likely to provide updates on the long-anticipated robotaxi project.