Tesla shares saw an increase on Monday as Elon Musk emphasized the potential of the company’s humanoid robots. Musk announced on social media that Tesla plans to have “genuinely useful” humanoid robots in limited production for internal use by next year, with hopes for larger-scale production to commence in 2026 for other businesses.
During Tesla’s annual meeting in April, Musk indicated that the company’s Optimus robots would enter limited production by 2025, estimating that over 1,000 of these robots could be operational at Tesla by the year’s end. Currently, two robots are at the factory, although their specific functions remain undisclosed.
Musk previously suggested that the introduction of these robots could add as much as $20 trillion to Tesla’s market value. The robots are not expected to be available for sale until late 2025, with anticipated prices ranging between $20,000 and $30,000.
However, the specific capabilities of the robots labeled as “genuinely useful” remain ambiguous. Past demonstrations have faced skepticism, including an incident in May where Tesla was accused of showcasing a video of an Optimus robot folding a shirt, which turned out to be controlled by an off-screen person.
Critics like Roth MKM analyst Craig Irwin pointed out the challenges Tesla faces in competing with established robotics firms such as Boston Dynamics. Irwin highlighted past promotional stunts, including the 2021 unveiling of Optimus, which featured a dancer inside a robot suit.
In addition to Boston Dynamics, Tesla will compete with Japan’s Honda and Apptronik, as well as China’s Nio and Dongfeng Motor, both testing humanoid robots from UBTech Robotics. BMW has also incorporated humanoid robots developed by Figure since January.
Following Musk’s remarks, Tesla’s stock rose over 3% on Monday. Year-to-date, shares have remained relatively stable after a significant rebound in the last couple of months. Tesla is scheduled to report its second-quarter earnings on Tuesday, where updates on the long-awaited robotaxi project are anticipated.