Tesla’s shares experienced a notable increase on Monday as CEO Elon Musk focused on the company’s advancements in humanoid robots. Musk claimed that Tesla plans to produce genuinely useful humanoid robots for internal use by next year, with a goal of higher production for external clients by 2026.
During Tesla’s annual meeting in April, Musk conveyed that the Optimus robot would enter limited production by 2025, with over 1,000 units expected to be operational at the company by year-end. Currently, two robots have been introduced on the factory floor, though Tesla has not disclosed their specific tasks.
Musk previously suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market cap. However, the robots are not anticipated to be available for purchase until late 2025, and they are projected to retail at prices ranging from $20,000 to $30,000.
There remains some ambiguity regarding Musk’s description of the robots as “genuinely useful.” Previous demonstrations have drawn skepticism; for instance, in May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which some alleged involved off-screen human control.
Tesla has faced scrutiny for its presentation methods, having first introduced the Optimus project in 2021 with a dancer in a robot costume. Analyst Craig Irwin from Roth MKM remarked that achieving a truly functional humanoid robot by 2025 seems ambitious, especially when competing with established companies like Boston Dynamics.
In addition to Hyundai’s Boston Dynamics, Tesla will contend with competitors such as Honda and Apptronik from Japan. Chinese companies like Dongfeng Motor and Nio are actively experimenting with humanoid robots produced by UBTech Robotics in their manufacturing processes, while BMW has integrated humanoid robots from the Silicon Valley-based company Figure in its operations since late January.
Following Musk’s remarks, Tesla’s stock rose by over 3% on Monday, maintaining a stable performance for the year after substantial gains over the past two months. The company is set to announce its second-quarter earnings on Tuesday, where Musk is expected to provide updates regarding the much-anticipated robotaxi rollout.