Tesla’s Robots: Game Changer or Just Hype?

Tesla’s stock experienced an uptick on Monday as Elon Musk continued to highlight the potential of the company’s humanoid robots. Musk announced via social media that Tesla aims to have functional humanoid robots in limited production for internal use by next year, with hopes to scale up production for external customers by 2026.

During Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robots would be in limited production starting in 2025. He anticipated that by the end of 2025, the company would deploy over 1,000 robots within its operations. Currently, two robots are already present on the factory floor, although Tesla has not disclosed their specific functions.

Musk previously suggested that the introduction of these robots could potentially augment the company’s market capitalization by $20 trillion. Sales of the robots are not expected to begin until late 2025, with anticipated prices ranging from $20,000 to $30,000.

The exact utility of the robots, as described by Musk, remains ambiguous. Recent demonstrations have drawn skepticism; for example, a video released in May depicting an Optimus robot folding a shirt was questioned as it appeared to be controlled by an off-screen person.

Critics have pointed out that Tesla has a history of using elaborate presentations to promote its robot initiatives. The introduction of the Optimus robot project in 2021 included a performer dancing in a robot costume, a move that raised eyebrows in the tech community.

Analyst Craig Irwin from MKM commented on the challenges Tesla faces in catching up with established entities like Boston Dynamics, noting that what Tesla has showcased thus far is reminiscent of technology from nearly a decade ago.

In addition to competition from Hyundai’s Boston Dynamics, Tesla will also contend with Japanese companies like Honda and Apptronik. Chinese firms Dongfeng Motor and Nio are actively testing humanoid robots developed by UBTech Robotics on their production lines, while BMW has integrated humanoid robots from Figure into its operations since January.

Following Musk’s remarks, Tesla’s stock rose over 3% on Monday. Year-to-date, the shares have remained relatively stable after a significant rebound in the last couple of months. Tesla is slated to report its second-quarter earnings on Tuesday, where Musk is expected to provide an update on the much-anticipated robotaxi project.

Popular Categories


Search the website