Tesla’s stock experienced an increase on Monday as Elon Musk continued to highlight the potential benefits of the company’s humanoid robots.
Musk stated on X that Tesla aims to have “genuinely useful humanoid robots” in limited production for in-house use next year, with hopes for broader production by 2026. Earlier in April, during Tesla’s annual shareholder meeting, he mentioned that the company’s Optimus robot would enter limited production by 2025, projecting that over 1,000 robots could be operational at Tesla by the year’s end. Currently, two robots have been introduced on the factory floor, though the specific tasks they perform remain undisclosed.
Musk previously suggested that the introduction of these robots could significantly enhance Tesla’s market capitalization, estimating an additional $20 trillion in value. The robots are not expected to hit the market until late 2025, with a projected selling price hovering between $20,000 and $30,000.
There is some ambiguity regarding what Musk means by “genuinely useful” robots, especially considering that past demonstrations have faced scrutiny. In May, Tesla was criticized for sharing a video of an Optimus robot folding a shirt, which was allegedly controlled by an operator hidden from view.
This isn’t the first instance where Tesla has been accused of overhyping its technology. The unveiling of the Optimus robot project in 2021 included a performance featuring a person dancing in a robot costume, leading to skepticism about the company’s capabilities.
Analysts express concerns about Tesla’s ability to compete in the humanoid robot market, particularly against established firms like Boston Dynamics. Craig Irwin, a Roth MKM analyst, remarked on Yahoo Finance that achieving a “sentient humanoid robot by 2025” seems highly ambitious, noting the company’s past promotional tactics.
In addition to Boston Dynamics, Tesla faces competition from Honda, Apptronik, and Chinese firms Dongfeng Motor and Nio, which are testing humanoid robots from UBTech Robotics on their production lines. BMW has also incorporated humanoid robots from Silicon Valley’s Figure into its operations since January.
Following Musk’s latest remarks, Tesla’s stock rose over 3% on Monday. Shares have remained relatively stable year-to-date after a significant recovery in recent months. Tesla will announce its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed robotaxi launch.