Tesla CEO Elon Musk announced that the company intends to deploy humanoid robots internally beginning next year and aims for wider production by 2026. Musk recently revealed on social media that these robots, named Optimus, will undertake factory duties this year and may hit the market by late 2025.

Over the years, companies, including Honda and Hyundai’s Boston Dynamics, have dedicated significant resources to developing humanoid robots. The primary aim behind these efforts is to address labor shortages and to enable the performance of repetitive and potentially hazardous tasks within the logistics, warehousing, and manufacturing sectors. These humanoid robots are envisioned to contribute significantly to increased efficiency and safety in these industries.

Key Takeaways

• Deployment and Market Introduction: Tesla plans to use its Optimus humanoid robots in its factories in 2025, with broader production and commercial availability slated for 2026. These robots are intended to perform repetitive, hazardous, or mundane tasks, enhancing efficiency and safety in manufacturing and other sectors.
• Cost and Affordability: The Optimus robots are expected to cost less than a car, making them an affordable solution for businesses looking to automate operations. In 2024, the average price of a Tesla car was just under $45,000.
• Market Impact and Revenue Potential: Elon Musk anticipates that robot sales could surpass Tesla’s primary revenue source, electric vehicles, which currently account for 81% of the company’s revenue. This ambitious projection suggests significant growth potential for Tesla in the robotics sector.
• Competitive Landscape and Industry Trends: Other major companies, including Honda, Hyundai, and BMW, also invest heavily in humanoid robotics to address labor shortages and automate repetitive tasks. Tesla’s Optimus robot joins a growing trend in the manufacturing, warehousing, and logistics industries to adopt advanced robotics for improved productivity and safety.

Tesla’s Optimus Robot Poised to Revolutionize Robotics and Business by 2025

Tesla’s foray into humanoid robotics is set to make significant strides by 2025 with its Optimus robot’s planned release and employment. This development could potentially transform the company into a multi-trillion-dollar entity, according to Tesla CEO Elon Musk. The company envisions these robots performing repetitive, dangerous, or dull tasks, thus freeing up human workers for more complex roles.

Tesla CEO Elon Musk revealed this on Monday (July 22, 2024) on X (previously known as Twitter). This update comes months after Musk initially projected a rollout by the end of 2024.

Musk tweeted that Tesla is on track to produce humanoid robots for internal use in limited quantities next year and intends to scale up production for commercial sales to other businesses by 2026.

Optimus was introduced to the public in 2022 as a bipedal, autonomous robot designed to handle various tasks traditionally assigned to human workers, particularly in manufacturing settings. Named Optimus as a tribute to the leader of the Autobots in the Transformers franchise, the robot stands approximately 1.7 meters tall and weighs 56 kilograms.

Musk has shared updates on the robot’s development, including its ability to fully understand the factory environment and perform tasks like poaching eggs, signaling significant progress in robotic autonomy and functionality.

By 2025, Tesla aims to begin integrating these robots within its operations, setting the stage for potential broader use across various sectors. Musk has suggested that the cost of these robots would be “less than a car,” making them a potentially affordable solution for businesses looking to automate more of their operations. In 2024, the average price of a Tesla car worldwide was just below $45,000.

Musk has stated that he expects robot sales to potentially exceed Tesla’s other products, such as its EV cars, in terms of revenue (which accounts for 81%). He also mentioned that Tesla is in a strong position compared to other humanoid robot manufacturers to achieve mass production while maintaining efficient operations on the robot itself.

Musk announced this on X, just one day before his company was scheduled to release its latest financial results. Following his post, the company’s stock price increased by over 5% by the close of Monday’s trading session in New York.

Musk has frequently not met his ambitious commitments to Wall Street. In 2019, he promised Tesla investors that by 2020, the company would have a fleet of autonomous “robotaxi” vehicles. Recently, he indicated that the launch of the robotaxi would be delayed, mentioning that he had requested a significant redesign at the front of the vehicle. In September 2022, Tesla introduced the first generation of its Optimus robot, named Bumblebee.

Recently, Tesla showcased a video of its second-generation bipedal robot performing tasks like folding a T-shirt at one of its facilities. Over the past few months, Musk has shifted his focus to artificial intelligence, autonomous driving software, robotaxis, and the Optimus robot, as the demand for electric vehicles, which constitute over 80% of Tesla’s quarterly revenue, begins to struggle among different market and compliance complexities.

In the first quarter of 2024, which ended on March 31, the company reported sales of close to 387,000 vehicles, a 9% decrease compared to last year. Musk has not provided a sales prediction for 2024, yet some analysts anticipate that the company will sell 2.2 million vehicles. This estimate suggests a growth of 22%, significantly lower than Musk’s goal of a 50% annual increase for the coming years.

Additionally, Tesla has faced setbacks in its autonomous vehicle development. The National Highway Traffic Safety Administration has requested additional information from Tesla regarding its autopilot system following ongoing accidents, even after a recall of over two million vehicles in December.

The Department of Justice is also examining Tesla for potential securities or wire fraud, investigating if the company misled investors and consumers about the self-driving capabilities of its electric vehicles.

While autonomous technology encounters challenges on public roads, the controlled environments of warehouses and distribution centers offer a distinct setting for this technology to function.

Automobile Industry to Adopt Humanoid Robots

Apart from Honda and Hyundai’s ‘Altas’ humanoid robot, other major companies, including luxury car maker BMW, are actively engaging with this technology. BMW recently introduced its ’01’ humanoid robot at its South Carolina facility. This robot, developed by robotics startup Figure, is tasked with car assembly operations. The ’01’ robot indicates a growing trend where firms invest in humanoid robots to prepare for anticipated labor shortages over the next ten years. These robots are specifically designed to manage repetitive and hazardous tasks unsuitable for humans.

The deployment of these robots is considered a vital step for maintaining productivity and safety in sectors like manufacturing, warehousing, and logistics. Other companies, such as Agility Robotics, are also developing similar technologies.

Manufacturing, warehousing, and logistics sectors rely on humanoid robots to help address expected labor shortages in the coming decade due to their capability to handle repetitive tasks considered risky or monotonous for human workers.

About Tesla

Tesla, Inc. is involved in creating, producing, and selling fully electric vehicles and energy generation and storage systems. The company also operates service centers for its vehicles and charging stations and develops autonomous driving technology. Its product lineup includes the Model S, Model 3, Model X, Model Y, Cybertruck, Tesla Semi, and Tesla Roadster.

Tesla operates in two primary divisions: Automotive, which focuses on the development and production of electric vehicles, and Energy Generation and Storage, which deals with the production and installation of energy storage systems and solar panels, along with selling the electricity these systems generate. Tesla was established by Jeffrey B. Straubel, Elon Musk, Martin Eberhard, and Marc Tarpenning on July 1, 2003, and has its headquarters in Palo Alto, California.

Conclusion

Tesla’s ambitious plan to introduce the humanoid robot Optimus is a major step toward addressing labor shortages and automating repetitive or hazardous tasks. Expected to be employed internally by 2025 and available for broader commercial use by 2026, these robots could transform manufacturing, logistics, and warehousing.

By leveraging advanced robotics, Tesla aims to increase efficiency and safety in various industries, potentially significantly shifting the company’s revenue dynamics. As the company navigates its challenges in autonomous vehicle development and market competition, the success of Optimus could solidify Tesla’s position as a leader in innovative technology solutions.