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A segment of Wall Street that remains uber-bullish on Tesla typically identifies three critical catalysts to drive the EV giant's future growth: a $25,000 Model 2, the robotaxi, and the Optimus humanoid robot. Today, Elon Musk relayed positive developments vis-à-vis the imminent launch of the Optimus robot, albeit marred by another of his characteristically impish X post that has the potential of sparking a severe backlash in China.
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
— Elon Musk (@elonmusk) July 22, 2024
In response to an X post that illustrated the AI-related prognostications of the celebrated British film writer and director Daniel Kokotajlo, Elon Musk announced today that Tesla will start using its Optimus humanoid robot internally in small numbers in 2025. By 2026, the EV giant intends to ramp-up the humanoid robot's production and formally add it to its product portfolio.
A Primer On Tesla's Optimus
Elon Musk first announced the Optimus robot during Tesla's AI Day event in 2021. A year later, Tesla offered some of the first glimpses of the self-mobile, bipedal robot.
Optimus leverages a neural network-trained, AI-equipped brain that allows it to interact with the external elements.
The bipedal robot is currently capable of performing menial, labor-intensive tasks, with significant AI capabilities in the pipeline.
Tesla's humanoid robot also leverages its bespoke neural network to map and navigate obstacles as well as track objects.
Despite its heft, Optimus is equipped with sensitive tactile finger sensors that allow the bipedal robot to pick up an egg with finesse.
Back in 2022, Elon Musk had endorsed a $40 trillion market opportunity for the Optimus robot, where each unit is expected to sell at a sub-$20,000 price point.
Elon Musk's X Post And China's Sensitivities
High time for an AI fashion show pic.twitter.com/ra6cHQ4AAu
— Elon Musk (@elonmusk) July 22, 2024
This brings us to the other topic of today's discussion. By now, most are accustomed to Elon Musk's characteristically impish and nonchalant attitude that often manifests in the form of witty memes.
Sometimes though, this procilivity does land the world's richest person in trouble. Consider Musk's recent X post that depicts an AI-enabled fashion show of some of the most famous personalities around the globe.
Winnie the Pooh memes are banned in China because they're an insult to Xi Jinping who some say looks like Pooh.
China is where $TSLA built its most profitable factory, which generated 70% of global profits in 2023.
One must be on drugs to tweet something this reckless. pic.twitter.com/4YWt8OrvrL
— Motorhead (@BradMunchen) July 22, 2024
In the video, the Chinese President Xi Jinping is depicted clad in a Winnie-the-Pooh costume. Do note that such memes are banned in China for their perceived insult to the Asian giant's president. Consequently, Elon Musk's X post can spark a severe backlash from the Chinese authorities.
Given Tesla's enormous stakes in China, such a reaction could morph into a crisis for the world's largest manufacturer of electric vehicles.
