Tesla shares saw an increase on Monday as CEO Elon Musk continues to highlight the potential benefits of the company’s humanoid robots.
Musk announced via social media that Tesla plans to begin limited production of its humanoid robots for internal use next year, with hopes for larger-scale production for other companies by 2026. During Tesla’s annual shareholder meeting in April, he mentioned that the robots, named Optimus, would enter limited production by 2025, aiming for over 1,000 units operational by year’s end. Currently, two robots are already on the factory floor, although Tesla hasn’t disclosed their specific roles.
Musk has previously described a scenario where these robots could contribute an additional $20 trillion to Tesla’s market capitalization, but they are not expected to be available for purchase until late 2025, with projected prices ranging from $20,000 to $30,000.
There is some ambiguity regarding Musk’s assertion of the robots being “genuinely useful.” Earlier product demonstrations have not impressed observers; for instance, Tesla faced criticism for a video in May that purportedly showed an Optimus robot folding laundry, which was later revealed to have been controlled by a person off-screen.
Critics recall Tesla’s 2021 launch of the Optimus robot, which involved a dancer in a robot costume, raising skepticism about the company’s ability to deliver on promises. Craig Irwin, an analyst at MKM, remarked on Yahoo Finance that achieving a truly sentient humanoid robot by 2025 seems unlikely, especially with competitors like Boston Dynamics already showcasing advanced technology.
Tesla will face competition not just from Boston Dynamics but also from Honda, Apptronik, and Chinese firms such as Dongfeng Motor and Nio, which are testing humanoid robots from UBTech Robotics. Furthermore, BMW has been using humanoid robots from Silicon Valley’s Figure in its operations since January.
Following Musk’s comments, Tesla’s stock rose over 3% on Monday. Year-to-date, shares have remained relatively stable after a significant recovery in the past two months. Tesla is scheduled to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide updates on the delayed robotaxi launch.