Tesla shares experienced a rise on Monday as CEO Elon Musk highlighted the potential value of the company’s humanoid robots. Musk stated on X that Tesla plans to have genuinely useful humanoid robots in low production for internal use next year, with hopes for high production to begin in 2026.
During Tesla’s annual meeting in April, Musk mentioned that the robots, named Optimus, would enter limited production in 2025, predicting that over 1,000 of them would be operational by the end of the year. Currently, two robots are on the factory floor, although Tesla has not disclosed their specific functions.
Musk also suggested that the introduction of these robots could significantly boost Tesla’s market capitalization by up to $20 trillion. The robots are not expected to be available for sale until late 2025, with potential prices ranging from $20,000 to $30,000.
However, the term “genuinely useful” raised questions, as previous product demonstrations have not been particularly convincing. In May, Tesla faced criticism for releasing a video that appeared to show an Optimus robot folding a shirt, which was reportedly controlled by a person off-screen.
Tesla has a history of creating buzz around its robot initiatives, previously unveiling the Optimus project in 2021 with a person dressed in a robot costume dancing onstage.
Analyst Craig Irwin from MKM pointed out the challenges Tesla might face, emphasizing that competing with established companies like Boston Dynamics will be difficult. He remarked that the technology displayed by Tesla seems outdated compared to current developments in the field.
In addition to Boston Dynamics, Tesla will be competing against Honda and Apptronik in the humanoid robot sector. Chinese manufacturers Dongfeng Motor and Nio are testing humanoid robots from UBTech Robotics in their production lines, while BMW has been utilizing robots from Silicon Valley-based Figure.
Following Musk’s comments, Tesla stock increased by over 3% on Monday, with shares remaining stable year-to-date after a significant rebound in recent months. The company is set to release its second-quarter earnings report on Tuesday, where Musk is expected to provide updates on the long-delayed robotaxi project.