Tesla’s ambitious plans for automation have taken a major step forward with the unveiling of “Optimus,” a humanoid robot that will begin production in small quantities for internal use by next year. The development follows CEO Elon Musk’s promise to mass-produce these robots for other companies by 2026. The announcement, made on social media platform X, highlights Tesla’s pivot toward artificial intelligence and robotics amid fluctuating demand for electric vehicles.
Optimus: The next generation robot
First unveiled in 2021, the Tesla Robot was originally called the Teslabot and has undergone several design changes to arrive at its current form. Optimus stands 170cm tall and weighs approximately 123lbs. Designed to perform repetitive and potentially dangerous tasks, these robots are intended to alleviate labor shortages and increase operational efficiency in a variety of sectors, including logistics, warehousing, and manufacturing.
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In a recent presentation, Musk emphasized that Optimus is “really useful,” suggesting that such robots could one day be mass-produced at a cost of under $20,000. A second-generation prototype was unveiled earlier this year, demonstrating capabilities such as folding a T-shirt, highlighting the robot’s dexterity and potential usefulness in everyday tasks.
Timeline and production goals
Elon Musk’s Optimus plan also includes having the robots running on Tesla’s production lines by the end of 2024. Musk wants to ramp up production to meet external demand by 2026. But it’s worth noting that Musk’s ambitious promises have a history of often being hit with delays. For example, in 2019 he predicted a network of “robo-taxi” autonomous vehicles by 2020, but that hasn’t happened yet, and the latest update suggests further design changes are needed.
Despite the delays, Tesla shares rose modestly by about 1% in premarket trading after the humanoid robot’s unveiling. The gains reflect investor interest in the company’s continued innovation in artificial intelligence and robotics even as it navigates challenges in the electric vehicle market.
Compete in a competitive field
Tesla is not alone in the race to develop humanoid robots: Japanese auto giant Honda and Hyundai’s Boston Dynamics have also made great strides in the field, with Boston Dynamics known for its advanced robots capable of performing complex movements and tasks, often featured in parkour and dance videos.
The competition highlights a broader industry trend toward automation and robotics, driven by labor shortages and the need to improve safety in industrial workplaces. These robots are envisioned to perform tasks that are too repetitive or dangerous for humans, improving productivity and workplace safety.
The road ahead
Musk’s focus on artificial intelligence and robotics comes at a critical time for Tesla: These new technologies are potential growth areas for the company as demand for electric vehicles declines. Tesla’s recent shifts have also included an increased focus on self-driving software, robotaxis and now humanoid robots as part of a broader AI strategy.
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Wall Street will be closely watching Tesla’s upcoming second-quarter earnings report for not only profit margins but also updates on Musk’s ambitious AI and robotics projects. With profit margins expected to fall to their lowest in more than five years, Tesla’s innovation efforts could play a key role in shaping investor sentiment and the company’s future trajectory.
