Tesla shares saw an increase on Monday as CEO Elon Musk promoted the potential of the company’s humanoid robots. Musk announced via X that Tesla is set to produce “genuinely useful” humanoid robots for internal use by next year, with hopes for high production aimed at other companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk projected that the Optimus robots would begin limited production in 2025, with a target of having over 1,000 robots operational by the end of that year. Currently, two robots are reportedly in use on the factory floor, though Tesla has not disclosed their specific tasks.
Musk previously suggested that the introduction of these robots could add as much as $20 trillion to Tesla’s market capitalization. The robots are not expected to be commercially available until late 2025, with an anticipated price range of $20,000 to $30,000 each.
However, the functionality of the robots remains somewhat vague. Previous demonstrations, including one in May where a robot appeared to fold a shirt, faced skepticism after it was revealed that a person was controlling the robot off-screen. Musk’s 2021 introduction of the Optimus project was also met with criticism after the unveiling featured a dancer in a robot suit instead of showcasing actual robotics technology.
Industry analysts, including Craig Irwin from MKM Partners, voiced concerns about Tesla’s ability to compete with established leaders like Boston Dynamics. He noted that the technology exhibited by Tesla seems outdated compared to current standards.
In the competition for humanoid robotics, Tesla faces rivals including Hyundai’s Boston Dynamics, Japan’s Honda, and Apptronik. Additionally, Chinese companies such as Dongfeng Motor and Nio are exploring humanoid robots developed by UBTech Robotics within their manufacturing processes, while BMW has been employing Silicon Valley-based Figure’s robots since early this year.
Following Musk’s remarks, Tesla’s stock rose by over 3% on Monday, although shares remain relatively steady year-to-date after a significant rebound in the previous two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the much-anticipated robotaxi rollout.