Tesla’s stock saw an increase on Monday as CEO Elon Musk continued to highlight the potential advantages of the company’s humanoid robots.
Musk announced on social media that Tesla aims to have genuinely useful humanoid robots in limited production for internal use next year, with the goal of ramping up production for other companies by 2026. During an April shareholder meeting, Musk mentioned that the Optimus robots would enter limited production in 2025, with over 1,000 robots expected to be operational by the end of that year. Currently, two prototypes are already present on the factory floor, although Tesla has not disclosed the specific tasks they are performing.
Musk previously suggested that the introduction of these robots could significantly boost Tesla’s market value, estimating an increase of $20 trillion. The robots are projected to be available for sale toward the end of 2025, with a price range of $20,000 to $30,000.
However, there remains some skepticism regarding Musk’s assurance of the robots being “genuinely useful,” especially considering past product demonstrations have not been very convincing. In May, Tesla faced criticism for a video showing an Optimus robot folding a shirt that was allegedly controlled by an off-screen individual.
This is not the first instance where Tesla has employed flashy presentations to create excitement around their robots, having initially introduced the Optimus project in 2021 with a person dressed in a robot costume.
Analyst Craig Irwin from MKM expressed doubts about Tesla’s ability to compete in this space, especially against established players like Boston Dynamics. He remarked that the capabilities Tesla has showcased seem outdated compared to current advancements in the field.
Additionally, Tesla will face competition from companies like Hyundai Motor’s Boston Dynamics, Honda, and Apptronik, as well as Chinese firms Dongfeng Motor and Nio, both of which are testing humanoid robots developed by UBTech Robotics. BMW, on the other hand, has been utilizing humanoid robots from the Silicon Valley company Figure since January.
In response to Musk’s comments, Tesla’s stock rose more than 3% on Monday, maintaining a stable position year-to-date after rebounding significantly over the last two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed robotaxi project.