Tesla shares experienced an increase on Monday as CEO Elon Musk emphasized the prospective benefits of the company’s humanoid robot initiatives. Musk shared on social media that Tesla aims to produce “genuinely useful humanoid robots” for internal use in 2024, with hopes of launching high-volume production for external clients by 2026.
During Tesla’s annual shareholder meeting in April, Musk mentioned that the development of the Optimus robot would shift to limited production in 2025, predicting that over 1,000 units would be operational within Tesla by then. Currently, two robots are already in use at the factory, although Tesla has not disclosed their specific functions.
Musk has previously suggested that the humanoid robots could significantly boost Tesla’s market value, claiming they might potentially add $20 trillion to the company’s market capitalization. However, these robots are not expected to hit the market until late 2025 and could be priced between $20,000 and $30,000.
Skepticism remains about the practicality of the robots, particularly in light of past performances. Earlier this year, Tesla faced criticism for allegedly showcasing a video where an Optimus robot appeared to fold a shirt, a task that was reportedly controlled off-screen by a human. Analysts, including Craig Irwin from MKM Partners, have voiced doubts about Tesla’s robot capabilities, noting that competitors such as Boston Dynamics have set a high standard.
In addition to Boston Dynamics, Tesla will face competition from established players like Honda and rising companies from China, including Dongfeng Motor and Nio, which are exploring humanoid robots for production processes. Furthermore, BMW has also integrated humanoid robots from the Silicon Valley firm Figure into their operations.
Despite the mixed reactions to Tesla’s robot promises, the stock climbed more than 3% on Monday, and shares have remained stable year-to-date following a significant recovery in the past two months. Investors are looking forward to Tesla’s second-quarter earnings report on Tuesday, where Musk is anticipated to provide updates on the previously delayed robotaxi project.
In summary, while Tesla is making bold claims regarding their humanoid robots, the road to practical deployment is fraught with skepticism and competition. However, the potential advancements in robotic technology could significantly reshape Tesla’s business model and enhance its market standing, presenting a promising outlook for the company’s innovative efforts.