Musk’s Robot Revolution: Can Tesla’s Humanoids Transform the Market?

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Tesla shares experienced an uptick on Monday as CEO Elon Musk continued to emphasize the potential value of the company’s humanoid robots. Musk stated on social media platform X that Tesla plans to have operational humanoid robots for internal use by next year, with plans for mass production by 2026.

During a shareholder meeting in April, Musk revealed that a prototype named Optimus would enter limited production in 2025, with expectations of over 1,000 units operational at Tesla by then. Currently, two robots have been introduced on the production floor, although their specific roles remain undisclosed.

Musk previously suggested that the introduction of these robots could increase Tesla’s market capitalization by an astonishing $20 trillion. The planned retail launch for these robots is set for late 2025, with an anticipated price range of $20,000 to $30,000.

However, the term “genuinely useful” has raised questions regarding the robots’ capabilities, as previous demonstrations have not been particularly convincing. Notably, a May video claimed to show an Optimus robot folding a shirt, which was later alleged to have been manipulated by an off-screen operator.

This isn’t the first time Tesla has faced skepticism regarding its robots. The company unveiled its Optimus project in 2021 with a controversial presentation featuring an individual dressed in a robot costume.

Analysts have cast doubt on the feasibility of a fully functional humanoid robot by 2025. Craig Irwin from Roth MKM remarked that Tesla would have difficulty catching up to established players like Boston Dynamics, noting that Tesla’s current offerings appear outdated.

In addition to Boston Dynamics, Tesla is competing with Honda and Apptronik in the humanoid robot sector. Chinese companies Dongfeng Motor and Nio are also exploring humanoid robots developed by UBTech Robotics for use in their production lines, while BMW has integrated Silicon Valley’s Figure robots into its operations since January.

In reaction to Musk’s comments, Tesla’s stock rose by over 3% on Monday. Despite this increase, shares have remained steady throughout the year after a significant recovery in recent months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide an update on the delayed robotaxi project.

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