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With Tesla's core auto business continuing to contend with anemic demand - at least until the advent of newer models - in an environment of escalating competition, especially from China, Elon Musk is increasingly banking on the EV giant's FSD capabilities and the Optimus humanoid robot to drive the narrative around Tesla shares.
🚨 ELON: HUMANOID ROBOTS WILL BE THE BIGGEST PRODUCT EVER AND LEAD TO UNIVERSAL HIGH INCOME
"Humanoid robots will be the biggest product in history.
Every human will likely want one—or even two.
My guess is a 3:1, 4:1, or even 5:1 ratio of robots to humans, meaning 20-30… https://t.co/f12OSa81pY pic.twitter.com/CYky2J7lhV
— Mario Nawfal (@MarioNawfal) January 9, 2025
To wit, in an online interview on X, Elon Musk stated that "humanoid robots will be the biggest product in history," and that the eventual ratio of humans to robots could end up at 5:1, corresponding to 30 billion robots operating worldwide.
NEWS: Elon Musk says Tesla is aiming to build several thousand of its Optimus humanoid robots this year.
“Assuming things go well, we’ll 10x that output next year (2026), so we’ll aim to do maybe 50,000-100,000 humanoid robots next year, and then 10x it again the following… pic.twitter.com/Lv5Udf9k3c
— Sawyer Merritt (@SawyerMerritt) January 9, 2025
Elsewhere, Elon Musk stated that Tesla was aiming to produce between 50,000 and 100,000 units of the Optimus robot in 2026 "and then 10x it again the following year," which corresponds to a 2027 production target of between 500,000 and 1 million units.
This follows a November meeting between Elon Musk and TSMC's Chairman CC Wei, where the CEO of Tesla reportedly declared that Tesla's future direction would be predominantly tilted towards the Optimus robot instead of cars.
Bear in mind that Bank of America (BofA) analyst John Murphy believes that Tesla will be able to deploy around 1,000 Optimus robots on its factory floors by the end of 2025.
As a refresher, the Optimus robot leverages a neural network-trained, AI-equipped brain that allows it to interact with the external elements. While currently powered by the AI4 chip, which is the same processor used by Tesla's FSD, the commercial version of the Optimus robot is likely to be powered by the AI5 chip, which is expected to enter into production this year.
Do note that Deutsche Bank sees Tesla's Optimus bringing in $10 billion in annual revenue by 2035, based on a sales volume of 200,000 units and an ASP of $50,000. This, of course, is a much more conservative production ramp-up timeline for Tesla's bespoke humanoid robot, and stands in stark contrast to Elon Musk's recently delineated ambitious target.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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