Tesla’s stock experienced a rise on Monday as Elon Musk highlighted the potential value of the company’s humanoid robots.
Musk announced on social media platform X that Tesla will begin limited production of its humanoid robots for internal use next year, with hopes for wider production for other companies by 2026. During an investor meeting in April, he noted that the robot, named Optimus, is expected to enter limited production by 2025, with over 1,000 units operational by the year’s end. Although two robots are currently functioning on the factory floor, Tesla has not disclosed their specific tasks.
In previous statements, Musk suggested that the introduction of these robots could potentially add $20 trillion to Tesla’s market value. The robots are projected to be available for purchase by the end of 2025, with prices ranging from $20,000 to $30,000.
However, there is some ambiguity surrounding Musk’s characterization of the robots as “genuinely useful.” Earlier product demonstrations have faced criticism; for instance, a video released in May featured an Optimus robot folding a shirt, which was later alleged to have been controlled by a person off-screen.
Skepticism about Tesla’s capabilities in the humanoid robot market persists. Industry analysts have noted the challenges Tesla may face in competing with established entities like Boston Dynamics, Honda, and Apptronik. Chinese companies, including Dongfeng Motor and Nio, are exploring humanoid robots developed by UBTech Robotics, while BMW has implemented humanoid robots from Figure in its operations since January.
Following Musk’s remarks, Tesla’s stock climbed over 3% on Monday. Year-to-date, shares have remained relatively stable after experiencing a significant resurgence in the past two months.
Tesla is set to report its second-quarter earnings on Tuesday, where Musk is anticipated to provide an update on the company’s postponed robotaxi launch.