In a competitive market, $Tesla Motors(TSLA)$ stands out. The company doesn’t rely on massive advertising campaigns. Instead, CEO Elon Musk acts as a super influencer, drawing global attention.
Recently, Musk claimed Tesla is facing a $200 trillion business opportunity with its new project—Optimus. The most striking part? This new venture has nothing to do with Tesla’s core electric vehicle business.
What is Tesla Optimus?
Most people know Tesla for its electric cars, but the company is also making bold moves in AI. Enter Optimus: Tesla’s humanoid robot project.
In simple terms, Tesla plans to use machine learning to train these robots for basic tasks, with the ultimate goal of having them work in Tesla’s factories.
$200 Trillion Market?
During Tesla’s Q2 earnings call, Musk shared his optimistic view, saying Optimus could be worth more than all of Tesla’s other businesses combined, with a market potential of up to $200 trillion.
While Musk’s comments are stirring, investors should stay grounded and consider some key facts.
First, Tesla isn’t the only player in humanoid robotics. Companies like Figure AI, backed by $NVIDIA Corp(NVDA)$ $Intel(INTC)$ $Microsoft(MSFT)$, are also in the game. Figure AI envisions robots impacting various sectors, including logistics, warehousing, retail, and elderly care. They estimate a potential market of $42 trillion for labor-displacing robots.
Other major competitors include Boston Dynamics, 1X, and numerous Chinese startups. A Goldman Sachs report suggests the humanoid robot market could reach $38 billion in the next decade.
Second, predictions about the humanoid robot market’s potential vary widely, from billions to trillions of dollars. While Tesla hasn’t yet revealed when it will ramp up Optimus production to 10 billion units, such ambitious forecasts are certainly bold.
Investors don’t need to get bogged down by these projections. In two years, when Optimus hits the market, they’ll get a clear view of demand. Whether humanoid robots succeed and whether Optimus becomes a market leader is still uncertain. But like Tesla’s other products, Musk’s story about Optimus is compelling and sparks excitement about the future.
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