Tesla’s stock experienced a rise on Monday as Elon Musk continued to highlight the potential value of the company’s humanoid robots.
On social media platform X, Musk announced that Tesla will have genuinely useful humanoid robots in limited production for internal use next year, with hopes for high production for other companies by 2026. In April, Musk mentioned during Tesla’s annual meeting that the Optimus project would transition to limited production by 2025, predicting that more than 1,000 of the robots would be operational at Tesla by the end of that year. Currently, two robots are reported to be in use on the factory floor, although the specifics of their roles have not been disclosed.
Musk posited a hypothetical scenario in April where the robots could add $20 trillion to Tesla’s market capitalization, yet sales are not expected until late 2025, with potential prices ranging from $20,000 to $30,000. The exact meaning behind Musk’s remark on the robots being “genuinely useful” remains vague, especially considering past product demonstrations have not been particularly compelling. In May, Tesla faced criticism for sharing a video of an Optimus robot folding a shirt, which was revealed to have been controlled by an operator off-screen.
Tesla has a history of using theatrical presentations for its products; the introduction of the Optimus robot project in 2021 featured a individual performing a dance in a robot costume.
Analyst Craig Irwin from MKM raised skepticism about the timeline for a sentient humanoid robot by 2025, emphasizing the challenges Tesla faces to catch up with competitors like Boston Dynamics. He remarked that Tesla’s previous demonstrations appear outdated compared to current technology.
In addition to Boston Dynamics, Tesla will compete with Honda and Apptronik in the humanoid robot sector. Chinese manufacturers Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics in their production lines, while BMW has been utilizing humanoid robots from Figure, based in Silicon Valley, since late January.
Following Musk’s comments, Tesla’s stock price increased by more than 3% on Monday. Year-to-date, shares have stabilized after a significant recovery over the past two months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the long-anticipated robotaxi launch.