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With plans to mass produce its humanoid robot, Optimus, TSLA (TSLA, Financial) is getting ready to churn out several thousand units in 2025. Aiming to increase production by a factor of ten by 2026, Musk has shared ambitious growth targets, predicting he'll hit between 50,000 and 100,000 units next year. Tesla's future vision is to ramp up production greatly, which is something that Musk himself confirms in the statement. The robots are intended to help with manual work, such as lifting heavy objects, performing manufacturing tasks, and for potential home or workplace use.
With its first step into humanoid robotics, Tesla looks to be a revolutionary step in filling labour shortages and boosting productivity in multiple industries. Analysts are cautious about the timeline, however. Earlier this month, Bank of America downgraded Tesla's stock from 'buy' to 'neutral' due to concerns over the execution risks implied in the robotaxi service and the mass production of robots.
Humanoid robots' deployment could have expansive societal and economic effects with regard to what work will and won't entail and how automation plays out across a number of industries. The company is making headway toward reshaping robotics and artificial intelligence's landscape, and stakeholders are keeping a close eye on it.
This article first appeared on GuruFocus.