Elon Musk Predicts Optimus Robots Will Elevate Tesla’s Market Value to $25 Trillion

At the annual shareholder meeting, Elon Musk revealed plans to mass-produce the robot in 2025 and test it in Tesla factories the following year

by Sededin Dedovic
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Elon Musk Predicts Optimus Robots Will Elevate Tesla’s Market Value to $25 Trillion
© Tesla / Youtube channel

Tesla's CEO, Elon Musk, stated on Thursday that Optimus humanoid robots could eventually make the car manufacturer worth more than half the total value of the New York Stock Exchange. Elon Musk, who describes himself as "pathologically optimistic," said at the annual shareholder meeting in Austin, Texas, that Tesla is not just starting a new chapter in its life, but writing a completely new book.

It appears that Optimus is one of the main characters. Tesla first revealed its plans to work on humanoid robots in 2021 during an AI Day event, showcasing a dancer in a leotard who looked like a sleek, androgynous robot. In January, Tesla showcased Optimus robots folding laundry in a demo video that was immediately criticized by robotics engineers as misleading.

The robots were not autonomous but were controlled by humans.

Elon Musk describes himself as "pathologically optimistic."

At the shareholder meeting on Thursday, Musk did not disclose exactly what Optimus can do today.

He suggested that one day the robots will function like R2-D2 and C-3PO from Star Wars. They could cook or clean for you, work in a factory, or even teach your children, Musk suggested. In terms of shareholder value, Musk said Optimus could be the catalyst for raising Tesla's market value to $25 trillion one day.

Speaking before an audience mainly composed of fans in the auditorium at the Gigafactory, Elon Musk promised that Tesla would enter “limited production” of Optimus robots in 2025 and test humanoid robots in its factories next year.

He predicted that the company would have "over 1,000, or several thousand" Optimus robots working at Tesla by 2025.

Optimus Gen 2 features Tesla-designed actuators and sensors, faster and more capable hands, faster walking, lower total weight, © Tesla / Youtube channelž

These are distant goals even for Musk, who is known for ambitious promises to investors and customers that he often fails to fulfill — from developing software that can turn an existing Tesla car into an autonomous vehicle via an update, to EV battery swapping stations.

Optimus humanoids in Tesla factories starting next year.

Reaching a market value of $25 trillion would mean that Tesla would be worth about eight times more than Apple is today. The iPhone maker is currently the largest company in the world by market value, just ahead of Microsoft.

At the close of the stock market on Thursday, Tesla was worth about $580 billion, making it the tenth most valuable company in the S&P 500. Musk did not provide a timeframe for reaching $25 trillion. He said that autonomous vehicles could bring the company to a market value of $5 trillion to $7 trillion.

Elon Musk said he agrees with the estimates of longtime Tesla supporter Cathie Wood, the director of ARK Invest. This week, ARK set a target price for Tesla stock at $2,600 by 2029, betting on the commercial robotaxi business the company has yet to start.

Wood's target price corresponds to a market value of over $8 trillion for Tesla. Musk's comments at the annual meeting came after shareholders voted to re-adopt the $56 billion director compensation package, five months after a Delaware court ordered the company to rescind the package.

The audience cheered when the proposal was read aloud and when the preliminary results were announced.

Tesla shares have fallen 27% this year.

Tesla shares have fallen 27% this year as the company struggles with declining sales, partly due to an outdated portfolio of electric vehicles and increased competition in China.

The company has also carried out mass layoffs. Musk encouraged investors to look beyond the current state of the business and more toward the future of autonomous driving, robots, and artificial intelligence. Among his boldest claims on Thursday was Musk's statement that Tesla has made so much progress in silicon development that it has surpassed Nvidia in inference, the process trained machine learning models use to draw conclusions from new data.

Nvidia's shares have risen nearly nine times since the end of 2022, thanks to demand for its AI chips. The company is now worth about $3.2 trillion.

Tesla has outperformed Nvidia?

One of the concerns surrounding Musk is his focus on Tesla given all his other commitments.

He owns and runs the social media company X, is the CEO of SpaceX, and founded The Boring Co. and Neuralink. He launched another startup, xAI, in March last year, and the company recently raised $6 billion in venture capital.

Musk asked a shareholder at the meeting how important he is personally for Tesla's future. “I am a useful accelerator of that future,” he said, emphasizing his role in innovations. He said that when it comes to humanoid robots, other companies, including tech startups, are entering the market.

Among the competitors are Boston Dynamics, Agility, Neura, and Apptronik. “What really matters is, can we be much faster than everyone else and have our product ready several years before theirs and be better,” Musk said.

Source: MSNBC

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