Elon Musk Announces Tesla’s Plan to Use Humanoid Robots

Elon Musk, the CEO of Tesla, has announced that the company will begin producing and utilizing humanoid robots starting next year. This ambitious move was revealed in a social media post by Musk, where he detailed that these robots will initially be employed within Tesla before being made available for sale in 2026.

The introduction of humanoid robots comes at a time when Musk is striving to reduce operational costs at Tesla amid declining demand for its electric vehicles. This strategic shift was highlighted following Tesla’s recent financial report, which showed a significant drop in profits for the quarter ending in June. The company’s profits fell from $2.7 billion (£2.09 billion) to under $1.5 billion (£1.16 billion), a nearly 50% decrease, attributed to a slump in sales.

Despite these challenges, Tesla managed to achieve a 2% increase in overall revenue, thanks largely to its burgeoning energy storage business. However, the automotive sector saw a 7% year-on-year revenue decline despite various price cuts and incentives aimed at boosting sales. The financial strain was reflected in the after-hours trading, where Tesla’s shares dropped by almost 8%.

In an update to investors, Tesla reiterated its focus on company-wide cost reduction. The statement underscored the necessity of tightening expenses amidst the current economic climate, where the demand for electric vehicles is waning.

Musk’s announcement about humanoid robots aligns with his broader vision of integrating advanced technologies such as artificial intelligence, autonomous driving, and robotics into Tesla’s operations. He had previously mentioned that the robot, named Optimus, was expected to be operational in Tesla factories by the end of this year.

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“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 stated on his social media platform X, formerly known as Twitter. This timeline reflects Musk’s typical pattern of setting ambitious goals, though not always meeting them as scheduled.

The initiative to develop humanoid robots is not unique to Tesla. Other companies like Honda and Boston Dynamics have been advancing their own versions of humanoid robots. Tesla’s goal is to create an “autonomous humanoid robot” capable of performing tasks that are unsafe, repetitive, or boring for humans. Musk has previously suggested that these robots could be mass-produced at a cost of less than $20,000 (£17,900) each.

Musk’s reputation for setting bold timelines is well-known, though his projects sometimes experience delays. For instance, in 2019, he expressed strong confidence that Tesla would have self-driving taxis on the road by the following year. Similarly, the unveiling of Tesla’s long-awaited robo-taxi, initially scheduled for 8 August, has reportedly been delayed.

Despite these setbacks, Tesla remains committed to its autonomous vehicle program. The company stated on Tuesday that it continues to work “vigorously” on developing robo-taxis, with the timeline for rollout contingent upon regulatory approval.

The introduction of humanoid robots marks a significant step in Tesla’s evolution from an electric car manufacturer to a multifaceted technology company. As Tesla navigates the challenges of a fluctuating market, the integration of advanced robotics and AI could pave the way for new growth opportunities and operational efficiencies. Whether Musk’s ambitious timelines will be met remains to be seen, but the announcement has certainly captured the attention of both the tech and automotive industries.

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