Tesla’s stock experienced an increase on Monday as CEO Elon Musk showcased the potential benefits of the company’s humanoid robots. Musk announced on social media that Tesla plans to have “genuinely useful humanoid robots” in low production for internal use in the coming year, with hopes for higher production levels available to other companies by 2026.
Earlier this year, during Tesla’s annual shareholder meeting, Musk mentioned that the production of the Optimus robot would commence in a limited capacity in 2025, predicting that over 1,000 units would be operational at Tesla by the end of that year. Currently, two robots have been introduced on the factory floor, though Tesla has not disclosed their specific functionalities.
Musk proposed that the introduction of these robots could add $20 trillion to Tesla’s market valuation. However, the robots are not anticipated to be available for consumer purchase until late 2025, with expected prices ranging from $20,000 to $30,000.
Despite the optimism, there is uncertainty regarding the practical applications of the robots, especially given that previous demonstrations have not been very convincing. In one instance, Tesla was criticized for showing a video of an Optimus robot folding a shirt, which turned out to be manipulated by an off-screen individual.
This isn’t the first time Tesla has been accused of presenting misleading demonstrations; in 2021, the company introduced its Optimus robot project with a person in a costume performing a dance.
Industry analysts have expressed skepticism regarding Tesla’s timeline for a fully autonomous humanoid robot. Craig Irwin, an analyst from MKM, emphasized the challenges Tesla faces in competing with established companies like Boston Dynamics, illustrating concerns by referencing Tesla’s past unconvincing displays of robot technology.
In addition to Boston Dynamics, Tesla will compete with other notable players in the humanoid robot space, including Honda and Apptronik in Japan, as well as Chinese firms Dongfeng Motor and Nio, which are testing humanoid robots from UBTech Robotics. BMW has also integrated humanoid robots from Silicon Valley-based Figure into its facilities since January.
On Monday, following Musk’s remarks, Tesla shares rose by more than 3%. The stock has stabilized year-to-date after a noteworthy recovery in recent months. Tesla is set to report its second-quarter earnings on Tuesday, during which Musk is expected to provide updates on the delayed rollout of the company’s robotaxi service.