Tesla’s stock saw an uptick on Monday as CEO Elon Musk underscored the potential value of the company’s humanoid robots. Musk announced on X that Tesla plans to have useful humanoid robots for internal use in low production by next year, with hopes for higher production levels for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that the robots, known as Optimus, would enter limited production in 2025, estimating that over 1,000 units could be operational within the company by year’s end. Currently, two robots are on the factory floor, although the specific tasks they perform have not been disclosed.
Musk previously suggested that the robots could significantly boost the company’s market value, potentially adding $20 trillion in market capitalization. However, the robots are not expected to reach the market until late 2025, with a projected sale price between $20,000 and $30,000.
The exact utility of these robots remains uncertain, as previous demonstrations have drawn skepticism. For instance, a video released by Tesla in May, purportedly showing an Optimus robot folding a shirt, faced accusations of featuring human control from behind the scenes.
Tesla’s history includes moments of skepticism regarding its robotic ambitions, such as the initial reveal of the Optimus project in 2021, which featured an individual in a dance costume simulating a robot. Analyst Craig Irwin from Roth MKM commented on Yahoo Finance, questioning the feasibility of Tesla delivering a sentient humanoid robot by 2025, especially in light of the advancements by competitors like Boston Dynamics.
In addition to Boston Dynamics, Tesla is up against Honda and Apptronik from Japan, as well as Chinese firms like Dongfeng Motor and Nio, who are already integrating humanoid robots from UBTech Robotics into their production lines. BMW has been using humanoid robots from Silicon Valley-based Figure since January.
On the heels of Musk’s announcements, Tesla’s stock rose over 3% on Monday. The stock remains relatively stable for the year following a significant recovery in the past two months. Investors are looking forward to Tesla’s second-quarter earnings report on Tuesday, where Musk is anticipated to provide further details on the company’s postponed robotaxi launch.