Tesla’s stock saw an increase on Monday, driven by Elon Musk’s ongoing promotion of the potential benefits of the company’s humanoid robots.
Musk shared on social media that Tesla is aiming to produce functional humanoid robots for internal use as early as next year, with plans for larger scale production by 2026. This announcement aligns with his previous statements during Tesla’s annual meeting in April, where he projected that the Optimus robots would enter limited production in 2025, with over 1,000 units anticipated to be operational by year’s end. Currently, two robots are already present on the factory floor, though the specific tasks they perform have not been disclosed by Tesla.
Musk also posited a hypothetical scenario where the introduction of these robots could potentially increase Tesla’s market valuation by $20 trillion. However, the robots are not expected to be available for sale until late 2025, with projected pricing between $20,000 and $30,000 per unit.
The definition of “genuinely useful” that Musk employs remains ambiguous, particularly given that past demonstrations of the robots have raised eyebrows. For instance, a May video showing an Optimus robot folding a shirt was criticized as it was later revealed that an operator off-screen was controlling the movements.
Tesla’s approach to showcasing the robots has included theatrical elements; the project was first introduced in 2021 with the appearance of a dancer in a robot suit, which has led to skepticism about the company’s claims regarding their progress. Analyst Craig Irwin from MKM expressed doubts about Tesla’s ability to compete with established robotics firms like Boston Dynamics, noting that the technology demonstrated so far seems outdated.
In addition to competing against Boston Dynamics, Tesla faces competition from Hyundai’s robotics division, Honda, Apptronik, and Chinese automakers Dongfeng Motor and Nio, which are experimenting with humanoid robots developed by UBTech Robotics. BMW has also incorporated humanoid robots from Figure, based in Silicon Valley, into its operations since the beginning of 2023.
In response to Musk’s announcements, Tesla’s stock rose over 3% on Monday, maintaining a level trajectory for the year after recovering significantly over the past two months. Tesla is set to release its second-quarter earnings on Tuesday, during which Musk is expected to provide updates on the delayed unveiling of the company’s robotaxi project.