Tesla’s stock experienced an increase on Monday as CEO Elon Musk continued to highlight the potential of the company’s humanoid robots. Musk announced on social media that Tesla plans to initiate low production of these humanoid robots for internal use next year, with the goal of higher production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk mentioned that the Optimus robots would enter limited production in 2025, projecting that more than 1,000 units could be operational within the company by the end of that year. Currently, Tesla has two robots on the factory floor, although their specific functions have not been disclosed.
Musk has previously suggested that the robots could significantly boost Tesla’s market value by as much as $20 trillion, although they are not expected to be sold until late 2025, with anticipated prices ranging from $20,000 to $30,000.
There is some skepticism regarding Musk’s description of the robots as “genuinely useful.” Critics have pointed out that past demonstrations have been underwhelming. For instance, Tesla was criticized for showing a video in May that appeared to depict an Optimus robot folding a shirt, which was later revealed to have been controlled by an off-screen individual.
Musk’s ambitions for the humanoid robots echo a history of elaborate presentations from Tesla, including the launch of the Optimus project in 2021 featuring a dancer in a robot costume. Analysts, such as Craig Irwin from Roth MKM, have expressed doubts about Tesla’s ability to compete with established players like Boston Dynamics, questioning the technological advancements shown by Tesla.
Moreover, Tesla will face competition from other companies developing humanoid robots, including Hyundai’s Boston Dynamics, Japan’s Honda, and Apptronik. Chinese automakers like Dongfeng Motor and Nio are also exploring humanoid robotics from UBTech Robotics, while BMW has integrated robots from Figure into its operations.
Following Musk’s comments, Tesla shares surged by over 3% on Monday. Despite this uptick, the stock remains relatively stable year-to-date after experiencing a strong rebound over the previous two months. Tesla is set to release its second-quarter earnings on Tuesday, with Musk expected to provide updates regarding the postponed robotaxi launch.