Tesla shares are experiencing an uptick on Monday as CEO Elon Musk continues to emphasize the potential value of the company’s humanoid robots. Musk announced on X that Tesla aims to have low production of these robots for internal use next year, with hopes for higher production levels for other companies by 2026.
During Tesla’s annual meeting in April, Musk indicated that the humanoid robot, named Optimus, would enter limited production by 2025. He projected that by the end of that year, over 1,000 robots would be operational within Tesla, although the company has not detailed the tasks being performed by the two robots already present on the factory floor.
Musk had previously suggested that the introduction of these robots could increase Tesla’s market capitalization by up to $20 trillion. Although the robots are not expected to be available for purchase until late 2025, the anticipated price range is between $20,000 and $30,000.
However, the definition of “genuinely useful” regarding these robots remains vague. Earlier product demonstrations have received criticism, including a May incident where Tesla was accused of showcasing a video of an Optimus robot folding a shirt, which some claimed was actually controlled by a human off-screen.
Tesla has had a history of drawing attention to its robot project using dramatic presentations, including the controversial introduction of the Optimus robot in 2021 involving a dancer in a costume.
Analyst Craig Irwin from MKM expressed skepticism about the feasibility of a sentient humanoid robot by 2025, pointing out that Tesla’s showcased technology appears outdated compared to competitors like Boston Dynamics.
In addition to competition from Boston Dynamics, Tesla faces challenges from well-established companies such as Honda and Apptronik, as well as various Chinese automakers like Dongfeng Motor and Nio, which are currently testing humanoid robots from UBTech Robotics. BMW has also integrated humanoid robots from the Silicon Valley startup Figure into its operations.
On Monday, Tesla’s stock increased by over 3% following Musk’s remarks, maintaining a steady position throughout the year after a significant recovery in recent months. The company is set to release its second-quarter earnings on Tuesday, when Musk is expected to address the delayed unveiling of its robotaxi.