Tesla’s stock experienced an increase on Monday as CEO Elon Musk continued to emphasize the potential value of the company’s humanoid robots.
Musk announced on social media that Tesla aims to have “genuinely useful humanoid robots” in limited production for internal use next year, with hopes for larger-scale production for external clients by 2026. In April, he mentioned during a shareholders’ meeting that the robots, known as Optimus, would enter limited production in 2025, predicting that over 1,000 units could be operational at Tesla facilities by year’s end. Currently, two robots are on the factory floor, although Tesla has not disclosed their specific functions.
The CEO previously posed a scenario where the robot venture could potentially add $20 trillion to Tesla’s market capitalization. These robots are not set to be available for purchase until late 2025 and are estimated to sell for between $20,000 and $30,000.
Musk’s description of the robots as “genuinely useful” remains vague, as previous demonstrations have raised skepticism. For instance, in May, a video allegedly showcasing an Optimus robot folding a shirt was claimed to have been controlled by a person off-screen.
Skepticism about Tesla’s robot development is echoed by analysts. Roth MKM analyst Craig Irwin remarked on Yahoo Finance that the concept of a sentient humanoid robot by 2025 seems implausible, pointing to past presentations where a person was seen inside a robot suit during the initial reveal in 2021.
In addition to competing with Hyundai’s Boston Dynamics, Tesla faces competition from Honda and Apptronik in Japan. Chinese companies like Dongfeng Motor and Nio are also experimenting with humanoid robots from UBTech Robotics, while BMW has been integrating Figure’s robots into its operations since January.
Following Musk’s comments, Tesla’s stock rose over 3% on Monday. Year-to-date, the shares remain about flat after witnessing a significant rebound in the last two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed introduction of the robotaxi initiative.