Tesla’s stock experienced a rise on Monday as Elon Musk highlighted the potential benefits of the company’s humanoid robots. Musk stated on X that Tesla aims to have “genuinely useful humanoid robots” in limited production for internal use by next year, with plans for high production for other companies by 2026.
During Tesla’s annual shareholder meeting in April, Musk indicated that the Optimus robots would enter limited production in 2025, anticipating that over 1,000 of them could be operational at Tesla by the end of that year. Currently, two robots are present on the factory floor, though Tesla has not disclosed their specific tasks.
Musk suggested that the introduction of these robots could significantly boost the company’s market capitalization by as much as $20 trillion, with sales expected to start at the end of 2025 for prices ranging from $20,000 to $30,000. However, the definition of “genuinely useful” robots remains vague, especially in light of past performances that have not met expectations. For instance, in May, Tesla faced criticism for a video showing an Optimus robot folding a shirt, which was revealed to be controlled by an off-screen individual.
Tesla has faced skepticism regarding its robot development efforts. Analyst Craig Irwin from Roth MKM remarked on Yahoo Finance that it would be challenging for Tesla to catch up to competitors like Boston Dynamics, and pointed out that past demonstrations of the technology were outdated.
In addition to Tesla, companies such as Hyundai’s Boston Dynamics, Honda, and Apptronik are also developing humanoid robots. Chinese automakers Dongfeng Motor and Nio are deploying humanoid robots from UBTech Robotics in their production lines, while BMW has been integrating Figure’s humanoid robots into its operations since January.
Musk’s comments contributed to a more than 3% increase in Tesla’s stock on Monday. The shares have seen considerable fluctuations but remain roughly stable year-to-date. Tesla’s second-quarter earnings report is set for Tuesday, where Musk is likely to provide updates on the delayed robotaxi program.