Tesla’s stock experienced an increase on Monday as CEO Elon Musk continued to emphasize the potential of the company’s humanoid robots.
Musk announced on social media that Tesla aims to have functional humanoid robots in limited production for internal use by next year, with plans for broader production for external companies by 2026. During Tesla’s annual meeting in April, Musk had mentioned that the Optimus robots would enter limited production in 2025, with the expectation that over 1,000 would be operational by the end of that year. Currently, two robots are already present on the factory floor, though Tesla has not disclosed their specific roles.
In his comments, Musk suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market capitalization, although they are not expected to be available for purchase until late 2025, with projected prices ranging from $20,000 to $30,000.
Musk’s description of the robots as “genuinely useful” raises questions, especially following less-than-stellar product demonstrations. For instance, a video released in May allegedly showed an Optimus robot folding a shirt, but some speculated that it was actually being controlled by a person off-screen. This is not the first instance of Tesla showcasing its robots in a misleading way; the Optimus project was notably launched in 2021 with a dancer in a robot suit.
Skepticism about Tesla’s robotics initiatives is growing. Analyst Craig Irwin from Roth MKM pointed out the challenges Tesla faces in competing with established companies like Boston Dynamics, which has advanced robotics capabilities that date back to 2014.
In addition to Boston Dynamics, Tesla will be competing against Honda and Apptronik from Japan, as well as Chinese companies Dongfeng Motor and Nio, which are working with humanoid robots from UBTech Robotics. BMW has also integrated humanoid robots developed by Figure into its operations since January.
On the back of Musk’s statements, Tesla’s stock rose over 3% on Monday, although shares have remained relatively stable year-to-date after a significant recovery in recent months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the company’s long-awaited robotaxi program.