Elon Musk plans to introduce Tesla’s humanoid robots in 2024, with broader commercial availability by 2026
Tesla CEO Elon Musk announced that the electric car manufacturer will begin producing and utilizing humanoid robots, known as Optimus, in its factories starting next year. Initially, these robots will be used internally by Tesla, with plans to sell them to other companies by 2026.
This announcement comes amid Musk’s efforts to reduce costs at Tesla in response to declining demand for its electric vehicles. The company’s latest financial report showed a significant drop in profits, which fell nearly 50% to $1.5 billion for the second quarter, down from $2.7 billion in the same period last year. Despite a slight increase in overall revenue driven by the growth of its energy storage business, Tesla’s automotive revenue decreased by 7% year-on-year.
Musk shared the news on his social media platform X, formerly known as Twitter, stating, “Tesla will have genuinely useful humanoid robots in low production for Tesla internal use next year and, hopefully, high production for other companies in 2026.”
Tesla’s Optimus robots are designed to perform “unsafe, repetitive, or boring tasks,” with the goal of mass production and a target price of under $20,000 each. While Musk has a history of setting ambitious timelines that are not always met, this development marks a significant step in Tesla’s focus on advanced technologies, including artificial intelligence and autonomous driving.
Other companies, such as Honda and Boston Dynamics, are also working on developing humanoid robots. Tesla’s push into this area highlights its commitment to innovation in the face of a challenging market for electric vehicles.
In related news, Tesla continues to work on its robo-taxi project, although the rollout timing remains uncertain due to the need for regulatory approvals. This follows Musk’s previous statement in 2019, where he expressed confidence in having self-driving taxis on the road by the following year.
Analysis:
Economic:
Tesla’s shift towards advanced robotics and AI technologies is a strategic move to diversify its product offerings and reduce operational costs. This could potentially open new revenue streams and enhance efficiency within its manufacturing processes.
Technological:
The development of humanoid robots capable of performing complex tasks represents a significant technological advancement. If successful, it could revolutionize industries that rely on repetitive or hazardous labour.
Market Impact:
Despite the current dip in profits and stock value, Tesla’s innovation in robotics may bolster investor confidence in the company’s long-term vision and resilience. However, the market’s reception will heavily depend on the successful implementation and scalability of these technologies.
