Tesla’s stock experienced an increase on Monday as CEO Elon Musk shared optimistic projections regarding the company’s humanoid robots.
Musk announced on social media that Tesla aims to have genuinely useful humanoid robots in limited production for internal use by next year, with hopes for higher production for external companies by 2026. In April, during Tesla’s annual shareholder meeting, Musk indicated that the robot project, named Optimus, would enter limited production in 2025, forecasting that over 1,000 robots would be operational at Tesla by the end of that year. Currently, two robots are on the factory floor, although Tesla has not detailed their specific roles.
Musk has suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market capitalization, though the robots are not anticipated to be available for sale until late 2025, with a projected price range of $20,000 to $30,000.
However, the description of the robots as “genuinely useful” has raised some skepticism. Previous demonstrations have not met expectations; in one instance, a video of an Optimus robot folding a shirt was criticized for appearing to be manipulated by a person off-screen.
This is not the first time Tesla has faced scrutiny regarding its robot projects. The introduction of the Optimus robot in 2021 included a performance by an individual dressed in a robot costume, leading to questions about the project’s seriousness.
Analyst Craig Irwin from Roth MKM remarked on a Yahoo Finance segment, pointing out the challenges Tesla faces against competitors like Boston Dynamics, Honda, and Apptronik, as well as Chinese companies Dongfeng Motor and Nio, which are also exploring humanoid robots in production environments. BMW has incorporated humanoid robots from Silicon Valley-based Figure into its operations since January.
Despite the doubts surrounding the robot project, Tesla’s stock rose more than 3% on Monday following Musk’s announcements. Shares have remained relatively stable year-to-date, following a significant recovery over the previous two months. The company is set to report its second-quarter earnings on Tuesday, where Musk is expected to provide updates on the much-anticipated robotaxi unveiling.