Tesla’s stock experienced a rise on Monday following Elon Musk’s ongoing promotion of the company’s humanoid robots’ potential value. Musk shared on social media that Tesla aims to have genuinely functional humanoid robots in limited production for internal use next year, with hopes for larger-scale production for external clients by 2026.
At Tesla’s annual meeting in April, Musk indicated that the company’s robotic project, named Optimus, would enter limited production by 2025, with the expectation that over 1,000 robots will be operational at Tesla by the end of that year. Currently, two robots are already present in the factory, although their specific tasks have not been disclosed.
Musk suggested that the humanoid robots could potentially increase Tesla’s market capitalization by $20 trillion, but they are not anticipated to hit the market until late 2025, with estimated prices ranging between $20,000 and $30,000.
There is some skepticism surrounding Musk’s claim of the robots being “genuinely useful,” especially given that previous demonstrations have raised eyebrows; notably, in May, Musk faced criticism for releasing a video showing an Optimus robot folding a shirt, which appeared to be controlled by a person off-screen.
Critics, including Roth MKM analyst Craig Irwin, have pointed out Tesla’s past reliance on spectacle, citing their 2021 robot project launch that featured a dancer in a robot costume. Irwin expressed doubts about Tesla’s ability to compete with established firms in the field, like Boston Dynamics, suggesting that what Tesla has shown so far is outdated.
Aside from Boston Dynamics, Tesla also faces competition from Honda, Apptronik, and Chinese companies such as Dongfeng Motor and Nio, which are experimenting with humanoid robots created by UBTech Robotics. Additionally, BMW has begun utilizing humanoid robots from Silicon Valley-based Figure in its operations since January.
Following Musk’s remarks, Tesla’s stock rose over 3% on Monday, stabilizing year-to-date after a significant recovery in recent months. Tesla is scheduled to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the delayed robotaxi program.