Tesla’s stock saw an increase on Monday, fueled by Elon Musk’s continued emphasis on the potential of the company’s humanoid robots.
Musk stated on X that Tesla aims to have functional humanoid robots in limited production for internal use by next year, with hopes for wider production for other companies by 2026. During Tesla’s annual meeting in April, he projected that the Optimus robots would enter limited production in 2025, predicting that over 1,000 units could be operational at Tesla by the end of that year. Currently, two robots are present on the factory floor, although Tesla has not disclosed their specific roles.
In April, Musk suggested that the humanoid robots could potentially increase the company’s market capitalization by $20 trillion. However, these robots are not expected to hit the market until late 2025, with an anticipated price range between $20,000 and $30,000.
The exact meaning of Musk’s description of the robots as “genuinely useful” remains unclear. Previous demonstrations have drawn skepticism; for instance, in May, Tesla was criticized for sharing a video of an Optimus robot folding a shirt that appeared to be controlled from off-screen.
Moreover, it is not the first instance of Tesla appearing to embellish its robotic capabilities. The company unveiled the Optimus project in 2021, featuring a performer dressed in a robot costume.
MKM analyst Craig Irwin remarked on Yahoo Finance that achieving a sentient humanoid robot by 2025 seems unrealistic, citing Tesla’s previous attempts to promote the product. He noted that Tesla might struggle to compete with established companies like Boston Dynamics, questioning the innovation level demonstrated so far.
In addition to Boston Dynamics, Tesla is up against competition from Japan’s Honda and Apptronik. Chinese companies Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics on production lines, while BMW has been utilizing humanoid robots from Silicon Valley’s Figure since January.
Following Musk’s remarks, Tesla shares rose by more than 3% on Monday, although the stock has remained relatively stable year-to-date despite a significant rebound over the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide an update on the long-anticipated robotaxi launch.