Tesla’s stock experienced an increase on Monday as CEO Elon Musk continued to underscore the potential of the company’s humanoid robots.
Musk announced via social media that Tesla plans to produce humanoid robots for internal use in low quantities next year, with hopes of ramping up production for external clients by 2026. He previously indicated in April that the company’s Optimus robot would enter limited production in 2025, projecting that over 1,000 units would be operational at Tesla by year-end. Currently, two robots are already in use on the factory floor, although their specific roles have not been disclosed.
Musk has suggested that the addition of these robots could dramatically impact Tesla’s market value, with a hypothetical increase of $20 trillion. The robots are anticipated to be available for purchase by the end of 2025, with prices estimated between $20,000 and $30,000.
However, the definition of “genuinely useful” when it comes to these robots remains vague, as past demonstrations have raised skepticism. In a notable incident in May, the company faced criticism for sharing a video that seemed to showcase an Optimus robot folding a shirt, which was later revealed to have been manipulated by a person out of view.
Tesla has previously faced scrutiny for its promotional tactics. The launch of the Optimus robot project in 2021 featured a person performing in a robot costume, leading to doubts about the project’s authenticity. Analyst Craig Irwin from Roth MKM remarked that it would be challenging for Tesla to compete with established players like Boston Dynamics, noting that Tesla’s presentations seem outdated compared to recent advancements in the field.
In addition to Boston Dynamics, Tesla will also compete against Honda, Apptronik, and several Chinese automakers like Dongfeng Motor and Nio, who are currently testing humanoid robots developed by UBTech Robotics. BMW has integrated humanoid robots from Figure into its operations since January.
On the strength of Musk’s announcements, Tesla’s stock rose more than 3% on Monday. Year-to-date, the shares have stabilized after a significant rebound over the last couple of months. Tesla is set to release its second-quarter earnings on Tuesday, where Musk is expected to provide updates about the long-awaited robotaxi project.