Tesla’s stock experienced a notable increase on Monday as Elon Musk highlighted the company’s advancements in humanoid robots.
Musk stated on X that Tesla plans to have “genuinely useful humanoid robots” in limited production for internal use next year, with hopes for larger-scale production for other companies by 2026. At Tesla’s annual meeting in April, he mentioned that the robot, named Optimus, would see limited production starting in 2025, predicting that over 1,000 units would be operational at Tesla by the end of that year. Currently, two robots are already on the factory floor, although Tesla has not disclosed their specific functions.
In his April remarks, Musk suggested that the introduction of these robots could add $20 trillion to Tesla’s market capitalization. However, the robots are not expected to be available for sale until late 2025, with anticipated prices ranging from $20,000 to $30,000.
Musk’s claim that these robots would be “genuinely useful” raises questions, especially considering past demonstrations that have drawn skepticism. In May, for instance, Tesla faced criticism for sharing a video that appeared to show an Optimus robot folding a shirt, which was later revealed to have been controlled by a person off-camera. Tesla’s history with flashy presentations has led to doubts, such as the initial launch of its Optimus project in 2021, which featured a dancer in a robot suit.
Analyst Craig Irwin from MKM pointed out the challenges Tesla faces in this market, particularly in competition with advanced firms like Boston Dynamics. He remarked that Tesla’s technological demonstrations appear dated compared to current industry standards.
In addition to Boston Dynamics, Tesla will face competition from Honda and Apptronik in Japan, as well as Chinese companies like Dongfeng Motor and Nio, which are trialing humanoid robots from UBTech Robotics. BMW has also been utilizing Silicon Valley-based Figure’s humanoid robots in its operations since early this year.
On the back of Musk’s statements, Tesla’s stock rose by more than 3% on Monday. Despite fluctuations, shares remain approximately stable throughout the year, following a significant resurgence in the past two months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the postponed robotaxi launch.