Tesla shares experienced an uptick on Monday as Elon Musk continued to emphasize the potential of the company’s humanoid robots.
Musk announced on X that Tesla plans to produce genuinely useful humanoid robots for internal use by next year, with the hope of ramping up to production for external companies by 2026. Previously, during Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robots would enter limited production in 2025, aiming for over 1,000 units operational at Tesla by the year’s end. Currently, two robots are on the factory floor, though Tesla has not disclosed their specific functions.
Musk has posited that these robots could significantly boost the company’s market capitalization, potentially adding up to $20 trillion. However, the robots are not expected to hit the market until late 2025, with projected prices ranging between $20,000 and $30,000.
There remains uncertainty around what Musk means by “genuinely useful,” especially in light of previous underwhelming demonstrations. In May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which many claimed was manipulated by an off-screen operator. This has raised concerns about the authenticity of Tesla’s promotional efforts, as the company previously introduced the Optimus project in 2021 with a dancer dressed in a robot costume.
Analysts are skeptical, with Craig Irwin from MKM stating in a Yahoo Finance interview that achieving a functioning humanoid robot by 2025 seems unrealistic, given Tesla’s past showcase of technology that appear outdated compared to industry competitors like Boston Dynamics.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik in Japan. Chinese manufacturers Dongfeng Motor and Nio are testing humanoid robots created by UBTech Robotics, while BMW has integrated Figure’s humanoid robots into its operations since January.
Following Musk’s remarks, Tesla stock rose by over 3% on Monday. Year-to-date, shares have remained relatively stable after a strong recovery in the last two months. Tesla is scheduled to report its second-quarter earnings on Tuesday, where Musk is expected to discuss updates on the company’s delayed robotaxi project.