Tesla’s stock experienced an increase on Monday as CEO Elon Musk highlighted the potential advancements of the company’s humanoid robots. Musk stated on social media that Tesla plans to have functional humanoid robots in limited production for internal use next year, with hopes for extensive production for other companies by 2026.
Back in April, during Tesla’s annual shareholder meeting, Musk indicated that the Optimus robots would enter limited production in 2025, predicting that over 1,000 units could be operational at Tesla by year’s end. Although two robots are currently in use on the factory floor, Tesla has not disclosed their specific roles.
Musk previously suggested that the introduction of these robots could potentially increase the company’s market capitalization by $20 trillion. While the robots are projected to be available for purchase by late 2025, their anticipated price range is between $20,000 and $30,000.
There is some ambiguity regarding Musk’s description of the robots as “genuinely useful.” Previous demonstrations have drawn skepticism; for instance, a May video of an Optimus robot folding a shirt was critiqued for being controlled by an off-screen individual.
Tesla’s promotional strategies have been questioned before. The company first unveiled the Optimus robot concept in 2021, featuring a person in a costume performing a dance.
MKM analyst Craig Irwin commented on the challenges Tesla faces in competing with established companies like Boston Dynamics, noting that the technology presented by Tesla seems outdated compared to advancements in the field, with some developments resembling those from as far back as 2014.
In addition to competition from Hyundai’s Boston Dynamics, Tesla must also contend with Honda, Apptronik, and Chinese firms such as Dongfeng Motor and Nio, which are collaborating with UBTech Robotics. BMW has incorporated humanoid robots from Figure in its operations since January.
Following Musk’s remarks, Tesla’s stock rose more than 3% on Monday. Year-to-date, shares have remained relatively stable after experiencing a notable recovery over the past two months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is anticipated to provide insights on the delayed robotaxi program.