Tesla’s stock saw an increase on Monday as Elon Musk continues to highlight the potential impact of the company’s humanoid robots. Musk stated on social media that Tesla plans to have some functional humanoid robots in low production for internal use by next year, with prospects for high production available to other companies by 2026.
During Tesla’s annual meeting in April, Musk mentioned that the Optimus robots would enter limited production in 2025, with an estimate of over 1,000 robots operational at Tesla by the end of that year. Currently, two robots are already on the factory floor, though specifics about their roles have not been disclosed.
Musk has projected that the Optimus product could add up to $20 trillion to Tesla’s market value. However, the robots are not expected to hit the market until late 2025, with a price tag anticipated to range between $20,000 and $30,000.
Nevertheless, there is some skepticism about the actual utility of these robots. Critiques have emerged following previous product demonstrations that failed to impress, including a controversial video from May wherein a robot appeared to fold a shirt but was reportedly controlled by a person off-screen.
Historical presentations of the robot have also raised eyebrows, notably the 2021 launch of the Optimus robot project, which featured a dancer dressed in a robot costume.
Analysts have voiced concerns about Tesla’s ability to compete in the humanoid robot space. Craig Irwin from Roth MKM remarked on Yahoo Finance that, given Tesla’s previous promotional tactics, it may find it challenging to match the advancements of competitors like Boston Dynamics.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik, while Chinese manufacturers Dongfeng Motor and Nio are testing humanoid robots from UBTech Robotics, and BMW has incorporated humanoid robots from Silicon Valley-based Figure into its operations since January.
Following Musk’s statements, Tesla’s stock increased by over 3% on Monday. Year-to-date, the stock remains relatively stable after experiencing a significant rebound in recent months. Tesla is set to announce its second-quarter earnings on Tuesday, where Musk is likely to provide updates on the company’s postponed robotaxi rollout.