Tesla’s stock experienced an increase on Monday as Elon Musk continues to emphasize the potential value of the company’s humanoid robots.
Musk announced on X that Tesla aims to have “genuinely useful” humanoid robots in limited production for internal use next year, with a goal of high production for other companies by 2026. During Tesla’s annual meeting in April, Musk projected that the Optimus robots would start limited production in 2025, estimating that over 1,000 units would be operational within the company by the end of that year. Currently, two prototypes are already on the factory floor, though Tesla hasn’t disclosed their specific functions.
In his April remarks, Musk suggested that these robots could potentially add $20 trillion to Tesla’s market valuation. The robots are not expected to be available for sale until late 2025, with anticipated prices ranging between $20,000 and $30,000.
The definition of “genuinely useful” as described by Musk remains ambiguous. Previous product demonstrations have faced scrutiny; for instance, Tesla was accused of showing a video where an Optimus robot appeared to fold a shirt, but it was revealed that the robot was being operated by someone off-screen.
Tesla has a history of using flashy presentations to showcase its robot capabilities. The Optimus project was first introduced in 2021 with a person performing in a robot costume.
Analyst Craig Irwin from Roth MKM expressed skepticism about Tesla’s timeline for a fully functional humanoid robot, stating that competing with established companies like Boston Dynamics would be challenging. He pointed out that Tesla’s demonstrations appear outdated compared to the current state of the art.
In addition to competition from Hyundai’s Boston Dynamics, Tesla faces challenges from Japan’s Honda and Apptronik, while Chinese companies like Dongfeng Motor and Nio are testing humanoid robots from UBTech Robotics in their assembly lines. BMW has also started utilizing humanoid robots from Figure in its operations since January.
On Monday, Tesla’s stock rose over 3% following Musk’s comments. The shares have remained relatively flat for the year but have seen significant recovery in the past two months.
Tesla is set to release its second-quarter earnings report on Tuesday, and Musk is expected to provide updates on the delayed robotaxi initiative.