Tesla shares experienced an increase on Monday as Elon Musk highlighted the potential value of the company’s humanoid robots.
Musk announced on X that Tesla plans to have “genuinely useful humanoid robots” in limited production for internal use next year, with hopes for higher production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robot would enter limited production in 2025, predicting that over 1,000 units would be operational within the company by year-end. Currently, two robots are in use at the Tesla factory, although details on their specific functions have not been disclosed.
Musk previously suggested that this product could significantly boost Tesla’s market capitalization by $20 trillion. However, the robots are not expected to go on sale until late 2025, with pricing anticipated to range between $20,000 and $30,000.
There is uncertainty surrounding what Musk means by “genuinely useful,” as earlier demonstrations have not impressed many observers. Notably, in May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which was later revealed to be manipulated by an operator off-camera.
This is not the first time Tesla has faced skepticism regarding its robots; the launch of the Optimus project in 2021 featured a performer in a robot suit, leading to doubts about the product’s maturity.
Analyst Craig Irwin from Roth MKM voiced similar concerns, stating that achieving a sentient humanoid robot by 2025 seems unlikely, especially in light of Tesla’s previous promotional tactics. He noted that the technology demonstrated so far lags behind that of Boston Dynamics and other competitors.
In addition to Boston Dynamics, Tesla will face competition from Honda and Apptronik, as well as Chinese manufacturers Dongfeng Motor and Nio, which are testing humanoid robots by UBTech Robotics. BMW has also integrated robots from Silicon Valley-based Figure into its operations since January.
Following Musk’s comments, Tesla stock rose over 3% on Monday, though it has remained relatively stable year-to-date after a significant rebound in the past two months. The company will report its second-quarter earnings on Tuesday, during which Musk is expected to provide an update on the delayed robotaxi project.