American business tycoon Elon Musk expects the Optimus program to boost Tesla’s valuation by tens of trillions of dollars, further teasing plans to deploy more than 1,000 humanoid bots across its production lines in 2025.
Musk predicts 1,000+ Optimus in production lines next year
During the 2024 Annual Shareholder Meeting in Austin on Thursday, Tesla CEO Elon Musk urged the audience to check Cathie Wood and Ark Invest’s price target and valuation report.
The Tesla boss previewed that the report estimates a $5 trillion valuation for Tesla, excluding the Optimus Bot program’s potential impact.
“I agree with that.”
Tesla CEO Elon Musk
CEO Musk further asserted that Optimus’ true worth might be underestimated, considering Tesla could potentially produce billions per year.
“Who doesn’t want a C-3PO? It’s like C-3PO plus R2-D2.”
Tesla CEO Elon Musk
CEO Musk also projected that Optimus would cost less than a car. Nonetheless, the program could still generate annual profits of $1 trillion at large-scale efforts.
The American billionaire also disclosed that Tesla has already deployed two Optimus bots at the Fremont factory. Now, CEO Musk is highly optimistic that Tesla can launch more than 1,000 Optimus bots across its production lines.
All these considered, CEO Musk projects Tesla to become tenfold more valuable than today. Specifically, he forecasts a valuation exceeding $33 trillion for the electric vehicle giant.
Notably, this ambitious projection comes in light of Apple and Microsoft’s current market capitalizations, both hovering around the $3.3 trillion mark.
“When I say starting a new book, it’s gonna be the best book.”
Tesla CEO Elon Musk
Production plans
Tesla CEO Musk projects the market for humanoid bots to hit approximately 1 billion units annually. He aims to have the electric automaker capture “at least 10% of it”.
In order to do that, CEO Musk mulls mass-producing Optimus bots for around $10,000 per unit in the future. It will then sell each unit for $20,000, resulting in a $1 trillion profit.
In late April, Tesla’s boss said he expected the company to sell robots to customers as early as next year. Now, he asserted that production would initially be limited without mentioning customer deliveries.
Nonetheless, CEO Musk shared his prediction that Optimus will be a “fully software customizable robot” by 2026.
Tesla shares surged 1% to $183.85 in after-hours trading Thursday.
