Tesla’s Robot Revolution: A Game Changer or Just Hype?

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Tesla shares experienced an uptick on Monday as Elon Musk continues to emphasize the prospective value of the company’s humanoid robots. He stated on social media that Tesla will produce low volumes of “genuinely useful humanoid robots” for internal use next year, with hopes for mass production for other companies by 2026.

During Tesla’s annual meeting in April, Musk indicated that the Optimus project would enter limited production in 2025, aiming to have over 1,000 robots operating within Tesla by the end of that year. Currently, two units are already present on the factory floor, though their specific functions have not been disclosed.

Musk previously suggested that the introduction of these robots could potentially boost the company’s market capitalization by $20 trillion. The robots are not expected for sale until late 2025, with projected prices ranging from $20,000 to $30,000.

However, the term “genuinely useful” remains ambiguous, as past demonstrations have faced skepticism. For instance, in May, Tesla was criticized for releasing a video showcasing an Optimus robot folding a shirt, which appeared to be manipulated by an operator off-screen.

Tesla has a history of utilizing elaborate presentations to promote its robots, including a notable 2021 debut where a person dressed as a robot performed a dance.

Industry analyst Craig Irwin from MKM expressed doubts about Tesla’s ambitions, questioning their ability to match the innovations of competitors like Boston Dynamics, noting that the technology displayed seems outdated compared to current standards.

In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik in Japan, along with Chinese companies like Dongfeng Motor and Nio, which are experimenting with humanoid robots from UBTech Robotics. BMW has also incorporated humanoid robots from Silicon Valley’s Figure into its operations since early this year.

On the back of Musk’s comments, Tesla shares climbed over 3% on Monday. Following a significant rebound over the past two months, the stock remains largely stable year-to-date. Tuesday will see Tesla report its second-quarter earnings, at which time Musk is anticipated to provide an update on the delayed robotaxi project.

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