Tesla’s stock experienced a boost on Monday as CEO Elon Musk emphasized the growth potential of the company’s humanoid robots. Musk announced on X that Tesla aims to have its humanoid robots in low production for internal use next year, with hopes for higher production levels for third parties by 2026.
During Tesla’s annual meeting in April, Musk noted that Optimus, the humanoid robot project, would enter limited production in 2025. He projected that over 1,000 units would be operational at Tesla by the end of that year, although only two robots are currently on the factory floor, with their specific tasks undisclosed.
Musk previously suggested that the addition of these robots could potentially increase Tesla’s market valuation by $20 trillion. The robots, however, are not expected to hit the market until late 2025, with projected prices ranging from $20,000 to $30,000.
Concerns remain regarding the practicality of these robots, especially since prior demonstrations have not met expectations. In May, Tesla was accused of airing a video that misleadingly showcased an Optimus robot folding a shirt, which was reportedly controlled by a person off-screen. Additionally, Tesla’s initial introduction of the Optimus project in 2021 drew criticism for using a dancer in a robot suit as a promotional stunt.
Analysts express skepticism about Tesla’s ability to compete with established robotics firms like Boston Dynamics. Craig Irwin from MKM remarked that Tesla faces challenges in catching up to the industry standards, pointing out that the technology seen thus far appears dated.
In the competitive landscape, Tesla will also contend with robots developed by Hyundai Motor’s Boston Dynamics, Japan’s Honda, and Apptronik. Additionally, two Chinese automakers, Dongfeng Motor and Nio, are employing humanoid robots from UBTech Robotics in their production lines, while BMW has utilized humanoid robots from Silicon Valley’s Figure since January.
Following Musk’s comments, Tesla’s stock rose more than 3% on Monday, though it remains steady for the year after significant gains over the past two months. The company is expected to report its second-quarter earnings on Tuesday, where Musk will likely provide updates on the delayed robotaxi project.