Tesla’s stock experienced a notable rise on Monday, driven by Elon Musk’s enthusiastic promotion of the company’s humanoid robots. Musk announced via X that Tesla will begin low production of these robots for internal use next year, with hopes of ramping up to high production for external clients by 2026.
During the annual Tesla shareholder meeting in April, Musk indicated that the Optimus robot would enter limited production in 2025, anticipating that over 1,000 units would be operational by the end of that year. Currently, two robots are already present on the factory floor, though Tesla has not disclosed their specific tasks.
Musk has made bold claims regarding the potential impact of these robots, suggesting they could contribute an astonishing $20 trillion to the company’s market capitalization. While these robots are not expected to be available for purchase until late 2025, projections place their price between $20,000 to $30,000.
However, some skepticism surrounds Musk’s descriptions of the robots as “genuinely useful.” Previous demonstrations have drawn criticism, such as a recent incident where a video showcased an Optimus robot allegedly folding a shirt, which was later revealed to be performed by an unseen operator. This has contributed to doubts about the practical capabilities of the robots.
Analysts like Craig Irwin from MKM expressed skepticism about Tesla’s ability to compete with established robotics companies such as Boston Dynamics, which are known for their advanced technology. Other competitors such as Honda and Apptronik, as well as Chinese companies like Dongfeng Motor and Nio, are also exploring humanoid robot applications in manufacturing.
Despite this skepticism, Tesla’s stock gained over 3% on Monday, reflecting investor optimism. Year-to-date, shares have remained relatively flat after a significant recovery over the preceding two months. Tesla is expected to release its second-quarter earnings on Tuesday, where Musk will likely provide further updates regarding the much-anticipated robotaxi project.
In summary, while there is excitement around Tesla’s humanoid robots and their potential for future profitability, the company faces significant challenges in convincing skeptics of their practicality and in competing with established players in the robotics field. The promise of advanced robotic technology could indeed shape the future of automation, making this an exciting space to watch as it develops.
This optimistic viewpoint reinforces the potential for technological advancements to change industries significantly, despite the current skepticism surrounding Tesla’s specific offerings.