Tesla’s stock surged on Monday as Elon Musk highlighted the potential value of the company’s humanoid robots. Musk announced on social media that Tesla aims to initiate low production of these robots for internal use next year, with hopes of ramping up to high production for other companies by 2026.
During Tesla’s annual meeting in April, Musk indicated that their humanoid robot, named Optimus, would enter limited production by 2025. He projected that over 1,000 robots could be operational at Tesla by the end of that year. Currently, two robots are present on the factory floor, though the specific tasks they perform remain undisclosed.
Musk also suggested that the introduction of these robots could significantly enhance Tesla’s market capitalization by as much as $20 trillion. However, the robots are not anticipated to be available for purchase until the end of 2025, with prices expected to range between $20,000 and $30,000.
The definition of “genuinely useful” in relation to the robots is somewhat ambiguous. Previous demonstrations have been criticized, as seen in May when Tesla was accused of misleadingly portraying an Optimus robot folding a shirt while it was actually being operated by an individual off-camera.
Tesla’s approach to showcasing its robots has raised eyebrows in the past. The project was first unveiled in 2021, featuring an individual in a robot costume performing a dance.
Analyst Craig Irwin from Roth MKM expressed skepticism about Tesla’s claims, questioning the feasibility of introducing a fully functional humanoid robot by 2025. He compared Tesla’s progress unfavorably to competitors like Boston Dynamics, suggesting that what Tesla has demonstrated falls short of current standards.
In addition to Boston Dynamics, Tesla faces competition from Honda and Apptronik in the humanoid robotics space. Meanwhile, Chinese automakers Dongfeng and Nio are testing humanoid robots on their factory lines, developed by UBTech Robotics, and BMW has been using Silicon Valley-based Figure’s robots in its operations since January.
Following Musk’s announcement, Tesla’s stock rose by over 3%. Year-to-date, the shares remain mostly unchanged after a significant rally in the past two months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is expected to provide insights on the company’s delayed robotaxi unveiling.