Tesla CEO Elon Musk recently announced that the electric car maker will start producing and using humanoid robots next year. In a social media post, Musk revealed that the robots, initially for Tesla’s internal use, will be available for sale starting in 2026.
Focus on Cost Reduction
This announcement comes as Tesla faces a challenging period of declining demand for its vehicles. On Tuesday, the company reported that profits had plummeted by nearly half for the three months ending in June, dropping from $2.7 billion (£2.09 billion) to less than $1.5 billion (£1.16 billion). The decrease was attributed to a slump in sales.
“Overall, our focus remains on company-wide cost reduction,” Tesla stated in its update for investors.
Revenue and Market Performance
Despite a series of price cuts and incentives designed to attract customers, Tesla’s automotive revenue fell by 7% year-on-year in the quarter. However, the company managed a 2% overall revenue increase, thanks to growth in its energy storage business. Nonetheless, Tesla’s shares dropped by nearly 8% in after-hours trading.
Shift Towards Advanced Technologies
Musk’s businesses are increasingly focusing on advanced technologies such as artificial intelligence, autonomous driving, and robotics. At a time when demand for electric vehicles is slowing, these technologies represent a new frontier for the company.
Previously, Musk had indicated that the humanoid robot, named Optimus, would be operational in Tesla factories by the end of this year. “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,” Musk posted on his social media platform X, formerly known as Twitter.
Industry Competition
Tesla isn’t alone in the development of humanoid robots. Other companies, including Honda and Boston Dynamics, are also making strides in this area. Tesla aims to build an “autonomous humanoid robot” capable of performing “unsafe, repetitive, or boring tasks.”
Musk has previously set ambitious goals for Tesla’s robots, stating that they should be mass-produced and cost less than $20,000 (£17,900) each. However, he has a history of setting ambitious timelines that aren’t always met. In 2019, he confidently predicted that Tesla would have self-driving taxis on the road by the following year, a goal that remains unmet.
Future Prospects
Earlier this year, Musk announced that the long-awaited robo-taxi would be unveiled on August 8, but that event has reportedly been delayed. Tesla continues to work “vigorously” on robo-taxis, though the timing of their rollout will depend partly on regulatory approval.
Conclusion
Musk’s latest announcement underscores Tesla’s ongoing efforts to innovate amid market challenges. While the timeline for Tesla’s humanoid robots and other advanced technologies remains ambitious, the company continues to push the boundaries of what’s possible in the tech and automotive industries.
