Tesla’s stock experienced an uptick on Monday, fueled by Elon Musk’s ongoing promotion of the company’s humanoid robots. Musk announced via X that Tesla plans to begin low production of its humanoid robots for internal use next year, aiming for mass production for external clients by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robots would enter limited production by 2025, with an expectation of over 1,000 units operational by year’s end. Currently, two robots are already on the production floor, although Tesla has not disclosed their specific functions.
Musk has suggested that the introduction of these robots could potentially increase Tesla’s market capitalization by $20 trillion. However, the robots are not anticipated to hit the market until late 2025, with projected prices ranging between $20,000 and $30,000.
The exact capabilities of the robots, which Musk refers to as “genuinely useful,” remain uncertain. Past demonstrations have drawn skepticism; for instance, in May, Tesla was accused of showcasing a video where an Optimus robot appeared to fold a shirt, but it was later revealed that a person was controlling it from off-screen.
Tesla has previously faced criticism for using questionable tactics to promote the robot initiative. Highlighted by analysts, such as MKM’s Craig Irwin, the company once introduced the Optimus project in 2021 with a dancer dressed in a robot suit, casting doubt on its actual development progress.
In addition to competing with Hyundai’s Boston Dynamics, Tesla will also contend with Honda and Apptronik from Japan. Chinese manufacturers like Dongfeng Motor and Nio are experimenting with humanoid robots designed by UBTech Robotics in their production lines, while BMW has integrated humanoid robots from Silicon Valley-based Figure into their operations since January.
In the wake of Musk’s announcements, Tesla shares increased by over 3% on Monday. The stock has remained relatively stable year-to-date after a significant rebound over the past couple of months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the anticipated robotaxi launch, which has encountered delays.