Tesla’s stock experienced an increase on Monday following Elon Musk’s continued promotion of the company’s humanoid robots, suggesting they may be valuable assets in the future.
Musk stated on X that Tesla plans to have “genuinely useful” humanoid robots in limited production for internal use by next year and aims for broader production for external companies by 2026. During Tesla’s annual meeting in April, Musk mentioned that Optimus, the humanoid robot project, would enter limited production by 2025, with over 1,000 robots expected to be operational by the end of that year. Currently, two robots are already present on the factory floor, though Tesla has not disclosed their specific roles.
Musk hypothesized that the robots could add up to $20 trillion to Tesla’s market capitalization. However, they are not anticipated to go on sale until the end of 2025, with prices estimated to range from $20,000 to $30,000.
There remains some ambiguity regarding Musk’s definition of “genuinely useful.” Previous product demonstrations have faced criticism; for instance, in May, Tesla was accused of depicting an Optimus robot folding a shirt while a person off-screen controlled the movements.
This isn’t the first time Tesla has relied on theatrics to showcase its robots. The project was initially introduced in 2021 with a person dancing inside a robot suit.
Analyst Craig Irwin from Roth MKM expressed skepticism, stating it will be challenging for Tesla to compete with established players like Boston Dynamics. He noted that Tesla’s demonstrations appear outdated compared to current technology.
Tesla is also facing competition from other companies, such as Hyundai Motor’s Boston Dynamics and Japan’s Honda, as well as Chinese automakers like Dongfeng Motor and Nio, which are testing humanoid robots by UBTech Robotics. BMW has also integrated Figure’s humanoid robots into its operations since January.
Following Musk’s remarks, Tesla’s stock rose over 3% on Monday. Year-to-date, shares have remained relatively stable after a significant recovery in recent months. Tesla is set to report its second-quarter earnings on Tuesday, during which Musk is expected to provide updates on the delayed rollout of the robotaxi.