Tesla’s stock experienced a rise on Monday as CEO Elon Musk continues to underscore the potential benefits of the company’s humanoid robots. Musk stated on X that Tesla is planning to produce truly useful humanoid robots for internal use in low quantities next year, with a goal for higher production for external companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk projected that the company would initiate limited production of its Optimus robots in 2025, with an expectation that over 1,000 robots would be operational at Tesla by the end of that year. Currently, two robots are in operation on the factory floor, although their specific roles have not been disclosed.
Musk previously mentioned a hypothetical scenario where the introduction of these robots could potentially inflate the company’s market valuation by up to $20 trillion. However, the robots are not anticipated to be available for purchase until late 2025, with their price expected to range between $20,000 and $30,000.
The exact definition of “genuinely useful” as stated by Musk remains ambiguous, especially given that past demonstrations have raised doubts. For instance, in May, Tesla was criticized for allegedly sharing a video of an Optimus robot folding a shirt, which was later claimed to have been operated by an unseen individual.
This is not the first instance where Tesla has faced skepticism regarding its robots. The company introduced its Optimus project in 2021, featuring a person dressed in a robot suit performing a dance.
Industry analyst Craig Irwin from Roth MKM remarked that achieving a sentient humanoid robot by 2025 seems far-fetched, noting past attempts have shown limited progress compared to competitors like Boston Dynamics. He expressed skepticism about Tesla’s ability to catch up, pointing out that what they have demonstrated appears outdated.
In addition to Boston Dynamics, Tesla will face competition from Honda and Apptronik in the humanoid robot space. Chinese manufacturers Dongfeng Motor and Nio are experimenting with humanoid robots from UBTech Robotics, while BMW has been using humanoid robots from Silicon Valley’s Figure since the start of the year.
Musk’s comments resulted in Tesla’s stock climbing over 3% on Monday. Despite this fluctuation, shares have remained relatively stable year-to-date after experiencing a significant recovery in the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide an update on the much-anticipated robotaxi launch.