Musk’s Robot Revolution: Can Tesla Deliver?

by

in

Tesla’s stock saw an uptick on Monday as CEO Elon Musk highlighted the potential value of the company’s humanoid robots. Musk stated on social media platform X that Tesla anticipates having “genuinely useful humanoid robots” in low production for internal use by next year, and aims for larger-scale production for other companies by 2026.

During Tesla’s annual shareholder meeting in April, Musk projected that the Optimus robots would transition into limited production in 2025, with more than 1,000 units operational at Tesla by year-end. Currently, two robots are present on the factory floor, although Tesla has not disclosed their specific tasks.

Musk previously suggested that these robots could contribute an astounding $20 trillion to Tesla’s market value, with sales expected to begin at the end of 2025. The robots are anticipated to be priced between $20,000 and $30,000.

However, there is some skepticism surrounding Musk’s claim of the robots being “genuinely useful.” Previous demonstrations have been met with criticism; a May video of an Optimus robot folding a shirt was accused of featuring off-screen human control. This is not the first instance of concern regarding Tesla’s promotional tactics, as the company introduced the Optimus project in 2021 with a demonstration involving an individual in a dancing robot costume.

Craig Irwin, an analyst at Roth MKM, expressed doubts on Yahoo Finance, pointing out the significant gap Tesla faces in competition with established firms like Boston Dynamics. Irwin remarked that Tesla’s current offerings seem outdated by comparison.

Tesla’s competition includes Hyundai’s Boston Dynamics, Japan’s Honda, and Apptronik, among others. Notably, Chinese companies like Dongfeng Motor and Nio are already testing humanoid robots from UBTech Robotics in their production lines, while BMW has integrated Silicon Valley’s Figure’s humanoid robots into its operations since early this year.

On the back of Musk’s remarks, Tesla’s stock climbed by more than 3% on Monday. Year-to-date, shares have remained mostly stable following a significant recovery in recent months. Tesla is set to announce its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the delayed robotaxi program.

Popular Categories


Search the website