Tesla’s stock rose on Monday as CEO Elon Musk highlighted the potential value of the company’s humanoid robots. Musk stated on X that Tesla plans to have usable humanoid robots in limited production for internal use by next year, with hopes of ramping up to mass production for other companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk announced that the Optimus robots would enter limited production in 2025, anticipating that over 1,000 robots will be operational at Tesla by the end of that year. Currently, two robots are in operation at the factory, although their specific functions remain undisclosed.
Musk has also suggested that these robots could potentially add $20 trillion to the company’s market capitalization, with the robots expected to go on sale by late 2025 and priced between $20,000 and $30,000.
However, the definition of “genuinely useful” remains ambiguous, as prior demonstrations have not impressed. For instance, a video released in May showed an Optimus robot folding a shirt, but it was later revealed that a person was controlling the action off-camera.
Tesla has a history of using flashy demonstrations; the launch of the Optimus robot project in 2021 featured an individual in a robot suit dancing. Analysts, like Craig Irwin from Roth MKM, have expressed skepticism about Tesla catching up to competitors like Boston Dynamics, noting that the technology seems outdated.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik in the humanoid robot sector. Chinese companies Dongfeng Motor and Nio are also testing humanoid robots developed by UBTech Robotics in their production lines, while BMW has been utilizing humanoid robots from Figure in their facilities since January.
Following Musk’s comments, Tesla’s stock increased by over 3% on Monday. The shares have remained steady year-to-date after a strong recovery in the past two months. Tesla is set to announce its second-quarter earnings on Tuesday, where Musk is expected to discuss updates on the delayed robotaxi initiative.