Tesla’s stock experienced an uptick on Monday, fueled by Elon Musk’s ongoing promotion of the company’s humanoid robots. Musk announced on X that Tesla plans to produce “genuinely useful” humanoid robots for internal use in low production by next year, with hopes of ramping up production for external companies by 2026.
At Tesla’s annual shareholder meeting in April, Musk projected that the Optimus robot would begin limited production in 2025, anticipating that over 1,000 units would be operational within the company by the end of that year. Currently, two robots are already present on the factory floor, although their specific functions remain undisclosed.
Musk previously suggested that the introduction of these robots could potentially add as much as $20 trillion to Tesla’s market value. The robots are expected to hit the market around late 2025, retailing for between $20,000 and $30,000.
However, it remains uncertain what Musk means by “genuinely useful,” as previous demonstrations of the robots have drawn criticism for lacking substance. For instance, in May, Tesla faced scrutiny for a video that appeared to showcase Optimus folding a shirt, which was later revealed to have been manipulated by an off-screen operator.
Tesla’s history of drawing attention to its robot project includes a 2021 debut featuring a person dancing in a robot suit, leading to skepticism about the authenticity of its advancements. Analyst Craig Irwin from MKM noted the challenges Tesla faces in competing with established companies like Boston Dynamics, stating, “What they’ve shown us is really state of the art for 2014.”
In addition to Boston Dynamics, Tesla also competes with Honda and Apptronik in the humanoid robot space. Other automotive companies, including Chinese manufacturers Dongfeng Motor and Nio, are integrating humanoid robots from UBTech Robotics into their production lines, while BMW has been using robots from Silicon Valley-based Figure since late January.
Following Musk’s comments, Tesla’s stock rose over 3% on Monday. The shares have remained relatively stable year-to-date after showing significant recovery over the past two months. Investors are looking forward to Tesla’s second-quarter earnings report on Tuesday, during which Musk is anticipated to provide updates regarding the delayed launch of the company’s robotaxi.