Tesla’s stock experienced an increase on Monday following Elon Musk’s remarks about the potential of the company’s humanoid robots. Musk announced via X that Tesla aims to have “genuinely useful humanoid robots” in low production for internal use next year, with hopes for broader production for other companies by 2026.
During Tesla’s annual meeting in April, Musk indicated that the company’s Optimus robots would enter limited production in 2025 and suggested that over 1,000 units could be operational by the end of that year. Currently, two robots are already on the factory floor, though Tesla has not disclosed their specific functions.
Musk also speculated that the humanoid robots could add as much as $20 trillion to Tesla’s market cap, with sales anticipated to begin by late 2025 at a price range of $20,000 to $30,000 per unit.
However, uncertainty surrounds Musk’s definition of “genuinely useful.” Previous demonstrations of the robots have faced skepticism; for instance, a video of an Optimus robot folding a shirt was criticized for actually featuring human assistance off-screen. This isn’t the first time Tesla has received criticism for its robot presentations; the initial unveiling of the Optimus project in 2021 included a dancer in a robot costume.
Analysts express doubt about Tesla’s ability to compete in the humanoid robot space, with Craig Irwin from Roth MKM noting, “It’s going to be hard for them to catch up to Boston Dynamics,” pointing out that the technology presented was comparable to innovations from 2014.
Tesla will also face competition from various companies, including Hyundai’s Boston Dynamics, Honda, and Apptronik. In China, automakers like Dongfeng Motor and Nio are exploring humanoid robots from UBTech Robotics, while BMW has been collaborating with Silicon Valley-based Figure to utilize humanoid robots in its operations since January.
In light of Musk’s statements, Tesla’s stock rose over 3% on Monday. The stock has remained relatively stable year-to-date following a significant recovery in the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide insights regarding the company’s delayed robotaxi rollout.