Illustration of Musk's Robot Vision Boosts Tesla Stock: What's next?

Musk’s Robot Vision Boosts Tesla Stock: What’s next?

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Tesla’s stock experienced an increase on Monday, driven by Elon Musk’s ongoing promotion of the company’s humanoid robot potential. In a post on social media platform X, Musk stated that Tesla plans to roll out humanoid robots for internal use by next year, with hopes for broader production for other companies by 2026.

During Tesla’s annual shareholder meeting in April, Musk hinted that the Optimus robots would enter limited production in 2025, forecasting that over 1,000 of these robots would be operational within the company by the year’s end. Currently, two prototypes are reportedly present on the factory floor, although Tesla has yet to disclose their specific roles.

Musk suggested that the introduction of humanoid robots could significantly impact Tesla’s market cap, with projections hinting at a potential increase of $20 trillion. The robots are not expected to be available for sale until late 2025, and their projected price range is between $20,000 and $30,000.

However, skepticism surrounding the development of these robots remains, especially about Musk’s assertion that they will be “genuinely useful.” Critics have pointed out that prior demonstrations of the robots, such as a video of an Optimus folding a shirt, raised questions about their capabilities, suggesting that the actions were being controlled by an off-screen operator. Furthermore, Musk’s previous showcase of the robot project involved a person dressed in a costume, leading to doubts about the project’s authenticity.

Analyst Craig Irwin from Roth MKM expressed skepticism regarding Tesla’s ability to compete with established robotics firms like Boston Dynamics and others, stating that the advancements showcased by Tesla seem outdated compared to competitors. Other companies in the humanoid robot space include Japan’s Honda and Apptronik, as well as initiatives from Chinese manufacturers like Dongfeng Motor and Nio.

In the wake of Musk’s comments, Tesla’s stock rose over 3%, maintaining relative stability year-to-date. Investors are anticipating updates on the company’s delayed robotaxi unveiling during the second-quarter earnings report scheduled for Tuesday.

This situation showcases Tesla’s attempt to innovate within the competitive landscape of robotics while also highlighting the investor community’s interest in Musk’s vision for the future. While there are challenges ahead, the potential emergence of advanced humanoid robots could pave the way for new technologies that enhance productivity and efficiency across various industries. As developments unfold, stakeholders will be closely observing Tesla’s progress in this ambitious venture.

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