Tesla’s stock experienced an increase on Monday, driven by Elon Musk’s continued emphasis on the potential of the company’s humanoid robots. Musk stated on social media that Tesla plans to have practical humanoid robots in limited production for internal use by next year, with hopes for higher production levels for external clients by 2026.
Earlier this year, during Tesla’s annual shareholder meeting, Musk indicated that the company’s robot, Optimus, would enter limited production in 2025, with a goal of having over 1,000 robots operational by the end of that year. Currently, two robots have been introduced in Tesla’s factories, though the specific tasks they undertake remain undisclosed.
Musk speculated that the introduction of these robots could add as much as $20 trillion to Tesla’s market valuation. The expected market release for these robots is slated for late 2025, with future pricing projected between $20,000 and $30,000.
However, the definition of “genuinely useful” robots as described by Musk is somewhat ambiguous. Previous product demonstrations have faced criticism; for example, in May, Tesla was accused of showcasing a video of an Optimus robot folding a shirt, which was later revealed to be controlled by a person off-screen.
This is not the first instance where Tesla has faced scrutiny regarding its robot development. The company first introduced the Optimus project in 2021 by featuring a person performing a dance in a robot costume.
Craig Irwin, a Roth MKM analyst, remarked on Yahoo Finance that the timeline for a fully functional humanoid robot by 2025 seems ambitious, especially considering Tesla’s previous marketing strategies. He suggested that competing against established companies like Boston Dynamics will prove challenging for Tesla, as their showcased technology lags behind more advanced developments from the past.
Tesla must also contend with competition from Hyundai’s Boston Dynamics, Honda, and Apptronik, as well as Chinese manufacturers Dongfeng Motor and Nio, both of which are testing humanoid robots created by UBTech Robotics. BMW has been using humanoid robots developed by Silicon Valley-based Figure in its operations since January.
Following Musk’s statements, Tesla’s stock rose by over 3% on Monday. Year-to-date, shares have remained largely stable after a significant rebound over the past couple of months. Tesla is scheduled to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide an update on the much-anticipated robotaxi launch.