Thousands of humanoid Optimuses will take over: Tesla could become a $25 trillion company.
Tesla’s humanoid robot Optimus is already present in the company’s factories on a very small scale. According to Elon Musk’s statement, thousands of Optimuses will start working by 2025.
Following the approval of a $56 billion compensation package by shareholders, Elon Musk made significant announcements during Tesla‘s annual shareholders meeting. Musk disclosed that more than 1,000 humanoid Optimus robots will be working in factories by 2025. Musk also stated that through the Optimus program, Tesla could become a $25 trillion company.
Musk’s Bold Statements
Regarding the Optimus robot, Musk mentioned that next year, there will be over 1,000 or even several thousand humanoid robots working in Tesla factories. Musk consistently emphasizes that Optimus will be Tesla’s most important product. According to the CEO, the humanoid robot market is expected to reach approximately 1 billion units annually, and Tesla must capture at least 10% of this market.
Musk also states that Tesla is producing robots at a volume of approximately $10,000 per unit and could sell them for $20,000 each, potentially generating $1 trillion in profit. Tesla recently announced that it already has 2 autonomous Optimus robots operating in its factory. Musk expects this number to increase to several thousand by 2025, although production will be limited. He did not discuss sales to consumers. Finally, the CEO believes that by 2026, Optimus will be fully customizable through software.
Tesla aims to become a $25 trillion company.
Starts at 3:30pm CT https://t.co/M4j55lEht1
— Tesla (@Tesla) June 13, 2024
During the meeting, Musk not only mentioned starting a “new division” within Tesla but also stated that he is in the process of writing an entirely “new book.” As previously noted, the protagonist of this book for the CEO is Optimus. The humanoid robot project, which began in 2021, is progressing rapidly but is still far from the desired level.
Musk suggested that robots could eventually cook or clean for individuals, work in factories, and even teach children. He confidently stated that when that day comes, Optimus will elevate Tesla’s market value to $25 trillion, or at least he believes so.
A $25 trillion valuation would exceed the combined total of the current members of the $3 trillion club (Apple, Microsoft, Nvidia) threefold. As of now, Tesla’s market value stands at $581 billion, making it the 13th most valuable company. Tesla shares have declined by approximately 27% this year.
Musk is truly not a conventional executive. Achieving the goals he sets for Tesla requires immense dedication. However, time remains his greatest obstacle. As the owner and manager of social media company X, CEO of SpaceX, and founder of The Boring Company and Neuralink, Musk established another venture, xAI, last March, which recently raised $6 billion. Managing six companies, Musk’s ambition for a $25 trillion market cap and 1,000 Optimus robots appears optimistic. Even deploying several dozen Optimuses by 2025 would be a significant achievement; no company has autonomously deployed humanoid robots in such numbers. However, it’s worth noting that Musk often misses the mark with such statements. At least Musk did not set a date for his record valuation goal.
