While Tesla Inc. (NASDAQ:TSLA) has struggled in recent months to show demand for its electric vehicles around the world, CEO Elon Musk isn't worried, with a focus on other company segments to drive future growth.
Optimus To The Rescue
While electric vehicles remain a key focus for Musk and Tesla, attention is shifting towards autonomous vehicles and the company's upcoming Optimus humanoid robot.
In Musk's race to make Tesla the most valuable company in the world, the CEO recently hinted at just how much Optimus could be worth to his company in the future.
Replying to a user on X, Musk said scaling FSD and Optimus are "the biggest factors" in Tesla achieving its Master Plan Part 4.
"80% of Tesla's value will be Optimus," Musk tweeted.
Currently valued at $1.06 trillion and trailing market leader Nvidia Corporation ($4.09 trillion), Musk has said previously that Tesla could hit a future valuation of $25 trillion.
With the call-out of 80% of the company's value, Musk is placing a valuation of around $20 trillion for Optimus.
After the company's second-quarter financial results, Musk said Optimus’ three prototypes are likely to be available by the end of 2025, with scaled production of Optimus coming in 2026.
Musk said the company would try to get to his annual production goal of one million units "as fast as it's humanly possible." Within five years, Musk sees 100,000 Optimus units being produced annually.
Speaking virtually at the X Takeover event in July, Musk said a $25 trillion market capitalization is possible thanks to robotaxis and robots.
“I think that’s probably correct if we execute well on autonomous transport and Optimus,” Musk said.
In June 2024, Musk also said Optimus could help Tesla hit a $25 trillion market capitalization.
Read Also: Elon Musk Says Tesla’s Optimus Can Learn Tasks By Watching YouTube Videos Just Like A Human
Optimus in the Future
During his interview at the X Takeover, Musk said Optimus could be life-changing for a lot of people.
“Optimus could be like a 24-hour day nurse or helper to someone who’s paraplegic or needs physical help.”
Musk said Optimus could also be used in situations where the work is dangerous or there are a lot of repetitive tasks.
The Tesla CEO isn't the only person with big hopes or financial targets for Optimus. Nvidia CEO Jensen Huang said Optimus could be the first humanoid robot to reach high production volume and scale.
"I think this is likely to be the next multi-trillion-dollar industry," Huang told Bloomberg.
RBC Capital analyst Tom Narayan has emphasized the future value of Tesla coming from robotaxis, FSD and humanoid robots.
Narayan has an Overweight rating and price target of $325 on Tesla.
In a recent investor note, Narayan factored in a global valuation for the Optimus Bot into a sum-of-the-parts valuation.
“Humanoid robots could be significant," Narayan said.
Narayan's estimate includes Optimus being used for manufacturing jobs, while the analyst also notes there are future uses for the humanoid bots.
“The reality is should these be used for home/retail purposes, the potential upside could be far greater than any other Tesla business.”
Narayan put a base value of $36.6 billion for humanoid robots in the short term, while saying this could be conservative.
Analysts are likely to increase their valuations for the Optimus segment as the robot gets close to full scale production.
Musk remains extremely optimistic on the future of robots and his latest tweet helps investors quantify the opportunity.
Tesla Stock Price Action
Tesla stock is down 1.4% to $329.30 on Tuesday versus a 52-week trading range of $209.64 to $488.54. Tesla stock is down 13.2% year-to-date in 2025.
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Photo: Around the World Photos/Shutterstock
