Tesla’s stock experienced an increase on Monday as CEO Elon Musk continued to highlight the potential benefits of the company’s humanoid robots.
Musk took to X to announce that Tesla is set to begin low production of its humanoid robots for internal use next year, with hopes for wider production for external companies by 2026. During a shareholder meeting in April, Musk mentioned plans to move the robot initiative, known as Optimus, into limited production by 2025, anticipating over 1,000 of the robots would be operational at Tesla by year-end. Currently, two prototypes are deployed on the factory floor, but the specifics of their tasks remain undisclosed.
Musk previously suggested that the robots could significantly enhance the company’s market cap, potentially adding $20 trillion, though they are not expected to hit the market until late 2025, with projected prices ranging between $20,000 and $30,000.
However, clarity on what Musk considers “genuinely useful” functionality of the robots is lacking. Earlier demonstrations have drawn skepticism; for instance, the company faced criticism for showcasing a video of an Optimus robot allegedly folding a shirt, which was later revealed to be controlled by a person off-screen.
Critics note that Tesla has previously been accused of providing misleading demonstrations of its technology, such as when the Optimus project was first introduced in 2021 with a performer in a robot costume.
Analyst Craig Irwin from Roth MKM commented that achieving the goal of a “sentient humanoid robot by 2025” seems unrealistic, especially given that Tesla’s demonstrations lag behind advancements made by competitors like Boston Dynamics.
Along with Boston Dynamics under Hyundai Motor, Tesla faces competition from Japan’s Honda and Apptronik. Chinese companies, including Dongfeng Motor and Nio, are experimenting with humanoid robots created by UBTech Robotics, while BMW has incorporated humanoid robots from Silicon Valley-based Figure into its operations since January.
Following Musk’s remarks, Tesla’s stock rose over 3% on Monday. Year-to-date, shares have remained mostly stable after a significant recovery in the preceding two months. The company is set to announce its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed robotaxi rollout.