Tesla shares saw an increase on Monday, buoyed by Elon Musk’s ongoing promotion of the company’s humanoid robot developments. Musk announced via social media that Tesla anticipates having useful humanoid robots in limited production for internal operations by next year, with hopes of ramping up high production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk stated that the company’s humanoid robot, named Optimus, would enter limited production in 2025. He also predicted that by year’s end, over 1,000 of these robots could be operational at Tesla’s facilities. Currently, two robots are already stationed on the factory floor, although their specific functions have not been disclosed.
Musk’s projections suggest that if successful, the Optimus robots could potentially add an astounding $20 trillion to Tesla’s market capitalization. While these robots are not expected to be available for sale until late 2025, they are anticipated to be priced between $20,000 and $30,000.
However, skepticism surrounds Musk’s claims regarding the robots’ utility. Previous demonstrations have raised doubts, including allegations that a video showcasing an Optimus folding a shirt featured a person controlling the robot off-screen. Analysts caution that Tesla’s progress may not rival competitors such as Boston Dynamics, which is widely recognized for advanced robotics technology. Craig Irwin, an analyst at Roth MKM, noted the challenge Tesla faces, especially after the initial unveiling of their robot involved a performer in a costume rather than an advanced robotic prototype.
In addition to Boston Dynamics, Tesla is up against notable companies like Honda and Apptronik. Chinese automotive firms Dongfeng Motor and Nio are also experimenting with humanoid robots developed by UBTech Robotics in their production lines, while BMW has integrated humanoid robots from Silicon Valley-based Figure into its facilities since early this year.
Despite the mixed opinions on Tesla’s robot ambitions, the company’s stock rose over 3% following Musk’s comments. Currently, shares remain relatively stable year-to-date after significant gains over the past two months. Investors are particularly interested in Tesla’s upcoming second-quarter earnings report, where Musk is expected to provide updates on the delayed robotaxi launch.
In summary, while there are notable challenges and skepticism regarding Tesla’s humanoid robots, the potential market impact remains substantial. Should Tesla succeed in overcoming hurdles, it could position itself as a significant player in the evolving robotics landscape. The excitement generated by Musk’s announcements reflects a broader interest in the potential of AI and robotics to transform industries and create new opportunities.