Tesla’s stock is seeing an increase on Monday as CEO Elon Musk continues to highlight the potential value of the company’s upcoming humanoid robots.
In a tweet, Musk stated that Tesla plans to have genuinely useful humanoid robots in low production for internal use next year, with a target for larger-scale production for external companies by 2026.
During Tesla’s annual meeting in April, Musk had indicated that the Optimus robots would enter limited production in 2025, with hopes of having over 1,000 functioning by the end of that year. Currently, two robots are operational on the factory floor, although Tesla has not disclosed their specific tasks.
Musk also mentioned a scenario where the introduction of these robots could add an impressive $20 trillion to Tesla’s market value. The robots are expected to be available for sale only by late 2025, with pricing projected between $20,000 and $30,000.
However, there is uncertainty surrounding the actual utility of these robots, as past demonstrations have drawn skepticism. In May, Tesla faced criticism for sharing a video that appeared to show an Optimus robot folding a shirt, which was later revealed to be operated by a person off-screen.
Analyst Craig Irwin from Roth MKM commented on the challenges Tesla faces in this competitive market, citing the company’s history of using flashy demonstrations that have not met expectations. He noted the difficulties in matching the advancements of rivals like Boston Dynamics, which is widely recognized for its cutting-edge robotics.
Other competitors in the humanoid robot sector include Hyundai’s Boston Dynamics, Honda, and Apptronik, while Chinese firms Dongfeng Motor and Nio are testing humanoid robots from UBTech Robotics in their production lines. BMW has also integrated humanoid robots developed by Figure into its facilities since January.
On Monday, Tesla’s stock rose more than 3% following Musk’s remarks. The company’s shares have largely remained stable throughout the year after recovering significantly in the past couple of months. Tesla is set to report its second-quarter earnings on Tuesday, where Musk is expected to update on the timeline for the much-anticipated robotaxi initiative.