Tesla’s stock saw a rise on Monday as CEO Elon Musk continued to highlight the potential value of the company’s humanoid robots. Musk announced via social media that Tesla will produce genuinely useful humanoid robots for internal use in low quantities next year, with hopes of ramping up production for other companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that the humanoid robot, named Optimus, would enter limited production by 2025, with over 1,000 units expected to be operational by year’s end. Currently, two robots are already present on the factory floor, though Tesla has not disclosed their specific functions.
Musk has previously suggested that the introduction of such robots could significantly boost Tesla’s market capitalization by as much as $20 trillion. These robots are anticipated to hit the market by late 2025, with a price range between $20,000 and $30,000.
However, the practicality of these robots remains in question. Past product demonstrations have faced criticism; for instance, there were accusations that a video showing an Optimus robot folding a shirt featured a person controlling it off-screen. Previous presentations included a controversial debut in 2021 where a dancer donned a robot suit to introduce the concept.
Craig Irwin, an analyst at Roth MKM, expressed skepticism about Tesla’s ability to compete in the humanoid robot space, noting that their current output appears outdated compared to rivals like Boston Dynamics. He emphasized the challenges Tesla faces in proving its capabilities.
In addition to Boston Dynamics, Tesla will compete with Honda and Apptronik, as well as several Chinese automakers such as Dongfeng Motor and Nio, which are currently testing humanoid robots from UBTech Robotics on their production lines. BMW has also incorporated humanoid robots from the Silicon Valley company Figure into its operations since early January.
Following Musk’s comments, Tesla’s stock increased by more than 3% on Monday. Year-to-date, the stock has remained relatively stable after a significant recovery over the past two months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is likely to provide updates on the delayed announcement of the company’s robotaxi.