Tesla shares experienced an increase on Monday, buoyed by Elon Musk’s ongoing promotion of the company’s humanoid robot initiative. Musk announced on X that Tesla plans to produce usable humanoid robots in limited quantities for internal purposes next year, with hopes for larger-scale production for external companies by 2026.
During an investor meeting in April, Musk mentioned that the Optimus robots would enter limited production by 2025, predicting that over 1,000 units would be operational at Tesla by the end of that year. Currently, two robots are present on the factory floor, though Tesla has not disclosed their specific functions.
Musk previously suggested that the robots could significantly enhance the company’s market capitalization by up to $20 trillion. The robots are anticipated to be available for purchase by the end of 2025, with prices ranging between $20,000 and $30,000.
However, the exact nature of Musk’s claim about the robots being “genuinely useful” is ambiguous. Previous demonstrations have raised skepticism; for instance, in May, Tesla faced criticism for releasing a video of an Optimus robot folding laundry, which appeared to be operated by a person off-screen.
This isn’t the first time critics have pointed out potential exaggerations from Tesla regarding its robots. The project was first introduced in 2021 through a presentation featuring a dancer inside a robot suit.
Craig Irwin, an analyst from MKM, remarked on Yahoo Finance that achieving a sentient humanoid robot by 2025 seems unrealistic, especially given the company’s previous reveals which he deemed outdated. He noted that catching up to competitors like Boston Dynamics will be a tough challenge.
Tesla will face competition not only from Boston Dynamics but also from Honda, Apptronik, and Chinese firms like Dongfeng Motor and Nio, which are testing humanoid robots in their production facilities. Additionally, BMW has been utilizing humanoid robots from Silicon Valley-based Figure since early this year.
Following Musk’s statements, Tesla’s stock rose by over 3% on Monday, while shares have remained relatively stable year-to-date after a significant recovery in the preceding months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the long-awaited robotaxi project.