Tesla’s stock experienced a notable increase on Monday, driven by Elon Musk’s ongoing promotion of the company’s humanoid robots. Musk took to social media platform X, announcing that Tesla plans to have “genuinely useful” humanoid robots in limited production for internal use as early as next year, with hopes of scaling up production for external companies by 2026.
During the Tesla annual meeting in April, Musk had already mentioned plans for the robots, dubbed ‘Optimus’, to begin limited production in 2025, predicting that over 1,000 units would be operational at Tesla by the end of that year. Although two prototypes are currently on the factory floor, their specific roles have not been disclosed by the company.
Musk suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market capitalization. The robots are expected to be available for purchase around the end of 2025, with projected prices ranging between $20,000 and $30,000. However, there is uncertainty over what Musk means by “genuinely useful.” The product demonstrations to date have drawn skepticism, particularly following a controversial video released in May showcasing an Optimus robot “folding a shirt,” which critics claimed was controlled by an off-screen operator.
Notably, the challenges Tesla faces are compounded by competition from established entities like Boston Dynamics, Honda, and emerging players in the field. Other companies, including Chinese automakers and BMW, are also integrating humanoid robots into their production processes.
Despite these challenges, Tesla’s stock surged over 3% during Musk’s latest announcements. Although share values have stabilized this year, they have seen a significant recovery over the past two months. Investors are now looking forward to Tesla’s second-quarter earnings report, which is anticipated to include updates on the long-awaited robotaxi initiative.
This positive uptick in Tesla’s stock highlights investor interest in innovative technologies, even as challenges in production and competition loom. Should Tesla successfully navigate these hurdles, the advancement and integration of humanoid robots could enhance the company’s reputation as a leader in automation technology.
Overall, as the tech landscape evolves, Tesla’s commitment to developing humanoid robots represents a significant step into the future of AI and automation, potentially opening new horizons for the company and the industry at large.