Tesla’s stock experienced a rise on Monday as CEO Elon Musk continues to highlight the potential 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 by next year, with a target for larger-scale production for other companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that production of the humanoid robot, known as Optimus, would begin in 2025, with a projection of over 1,000 robots operating at Tesla by the end of that year. Currently, two robots are already present on the factory floor, although Tesla has not disclosed their specific functions.
Musk has speculated that the introduction of these robots could potentially increase Tesla’s market capitalization by as much as $20 trillion. However, the robots are not expected to be available for sale until late 2025, with a future price estimate ranging between $20,000 and $30,000.
The definition of “genuinely useful” in reference to the robots remains vague. Previous demonstrations have raised skepticism; in one instance, a video showed an Optimus robot folding a shirt, which was later alleged to have been operated by a person off-screen.
This is not the first time Tesla has faced scrutiny over its robotic presentations. The company infamously introduced its Optimus robot in 2021 with a dancer dressed in a robot costume.
Analyst Craig Irwin from MKM expressed doubts, stating that achieving a fully functional humanoid robot by 2025 seems unrealistic. He criticized Tesla’s efforts, suggesting that they are lagging behind competitors like Boston Dynamics, and noted that the technology shown thus far appears outdated.
In addition to Boston Dynamics, Tesla is up against various competitors, including Honda and Apptronik of Japan. Chinese automakers Dongfeng Motor and Nio are also experimenting with humanoid robots from UBTech Robotics on their assembly lines, while BMW has incorporated humanoid robots from Silicon Valley’s Figure into its operations since late January.
On Monday, Tesla’s stock rose by over 3% following Musk’s announcements. Despite the increase, shares have remained relatively stable year-to-date after a significant recovery in the past two months. Tesla is set to report its second-quarter earnings on Tuesday, during which Musk is anticipated to provide insights regarding the delayed unveiling of the robotaxi option.