Tesla’s CEO, Elon Musk, announced that the company will begin producing and using Humanoid Robots starting next year. Initially, these robots will be used by Tesla, with plans to sell them by 2026.
This news comes as Musk focuses on reducing costs at Tesla due to a drop in demand for their cars. Recently, Tesla reported that its profits for the three months ending in June fell nearly by half, from $2.7 billion to less than $1.5 billion, due to declining sales.
Tesla Focuses on Cost Reduction
On Tuesday, Tesla emphasized its commitment to cutting costs across the company in a message to investors. Despite offering discounts and incentives to attract buyers, Tesla’s automotive revenue dropped by 7% compared to the same quarter last year. However, the company’s overall revenue still grew by 2%, thanks to its expanding energy storage business. Tesla’s shares fell by nearly 8% in after-hours trading.
Elon Musk’s ventures have been shifting focus toward technologies like artificial intelligence, self-driving cars, and robots as demand for electric vehicles slows. Musk previously mentioned that their robot, named Optimus, is expected to be ready for use in Tesla factories by the end of this year.
Tesla Plans to Introduce Humanoid Robots for Internal Use
Elon Musk announced on his social media platform, X (formerly Twitter), that Tesla will start producing useful humanoid robots in low quantities for internal use next year, with plans for mass production by 2026 for other companies. Other companies like Honda and Boston Dynamics are also developing their own humanoid robots.
Tesla aims to create an “autonomous humanoid robot” to handle dangerous, repetitive, or dull tasks. Musk has mentioned that these robots are intended to be mass-produced and sold for under $20,000 each. While Musk is known for setting ambitious timelines, he hasn’t always met them in the past.
Delays in Tesla’s Self-Driving Taxi Plans
In 2019, Elon Musk expressed strong confidence that Tesla would have self-driving taxis on the road by the following year. Earlier this year, he announced that Tesla would unveil its long-awaited robo-taxi on August 8, but this event has reportedly been delayed.
On Tuesday, Tesla stated that they are still actively working on the robo-taxis, but the timeline for their release will depend partly on getting regulatory approval.