Tesla shares experienced an uptick on Monday as Elon Musk underscored the prospective value of the company’s humanoid robots. Musk announced on X that Tesla plans to produce “genuinely useful humanoid robots” for internal use in low quantities by next year, with hopes of ramping up production for other firms by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that the company’s Optimus robot would enter limited production by 2025, with a target of having over 1,000 robots operational at Tesla by year-end. Currently, two robots are already on the production floor, though Tesla has not disclosed their specific functions.
In April, Musk posited a scenario where the robot’s contribution could add $20 trillion to Tesla’s market capitalization. However, sales of the robots are projected to commence only by late 2025, with prices estimated between $20,000 to $30,000.
What Musk means by “genuinely useful” remains ambiguous, especially given the underwhelming nature of previous product demonstrations. In May, Tesla faced criticism for a video showcasing an Optimus robot folding a shirt, which appeared to be manipulated by a person off-camera.
Tesla’s past presentations have been criticized for lacking substance, notably the 2021 introduction of the Optimus project featuring a dancer in a robot costume.
MKM analyst Craig Irwin commented that expectations for a sentient humanoid robot by 2025 seem overly ambitious, suggesting that Tesla will find it challenging to keep pace with competitors like Boston Dynamics. He remarked that the technology Tesla has revealed is comparable to what was available in 2014.
Aside from Boston Dynamics, Tesla will also contend with automakers like Honda and Apptronik, as well as Chinese companies Dongfeng Motor and Nio, which are experimenting with humanoid robots from UBTech Robotics. Additionally, BMW has integrated humanoid robots from Silicon Valley-based Figure into its operations since January.
Following Musk’s remarks, Tesla’s stock jumped by over 3% on Monday. Year-to-date, shares have remained relatively stable after experiencing a significant rebound over the past two months. Tesla will disclose its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the long-awaited robotaxi project.