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Tesla Likely To Sell Optimus To Rivals In 2026, Elon Musk Says Revenue Potential Of Bot North Of $10 Trillion: 'It's Real Bananas'

Anan Ashraf
January 29, 2025

Tesla Inc (NASDAQ:TSLA) CEO Elon Musk on Wednesday said that the company intends to make several thousand units of its Optimus humanoid robot this year for deployment in its own factory which will inform the next version of the robot slated for launch next year and likely to be sold to rival companies.

What Happened: Musk said on Wednesday that the company will make a few thousand Optimus robots this year which will do chores at the Tesla factory by the end of the year which employees do not like to do. These robots will inform the production of the next version of the robot which will be launched mid-next year and be likely sold to other companies, the CEO said, while adding that there is a lack of certainty on the exact timing.

“I think long-term Optimus has the potential to be north of $10 trillion in revenue. Like, it’s real bananas,” Musk said. Musk himself said that his revenue predictions sound “absolutely insane” but expressed optimism that they will prove to be accurate. “My prediction long term is that Optimus will be overwhelmingly the value of the company.”

Talking about the price of the humanoid robot, Musk said that the robot’s production cost will be below $20,000 once production touches a million units a year. However, the price of Optimus will be set by market demand, Musk said, while also stating that he expects demand will not be a problem even at a high price.

Why It Matters: In November, Musk said that Optimus is already doing some tasks at the Tesla factory and its ability is increasing rapidly,

“The toughest part by far is improving the design of Optimus for ease of manufacturing and tooling up a complex supply chain, so it can be made in significant numbers,” Musk then said.

During Tesla's annual shareholder meeting in June, Musk said that there will be at least one humanoid robot for every person in the world in the future, implying a total humanoid robot population of at least 10 billion or more, of which the EV company will have a significant share.

“While autonomous vehicle is a $5-$7 trillion market cap situation, Optimus is a $25 trillion market cap situation,” Musk then said.

In October, the company showcased its Optimus bots at its robotaxi unveiling event in Los Angeles. About 20 active robots walked through the crowd assembled at the event. Optimus poured drinks, handed out snacks, and performed dance moves. However, the robots were human-assisted to “some extent" to showcase the company's vision at the event,  Head of Engineering For Optimus Milan Kovac said in a post on X.

Tesla reported fourth-quarter earnings and revenue below estimates after market close on Wednesday. However, the company also assured the start of production of new and more affordable models in the first half of 2025, spurring stock growth after hours.

Photo courtesy: Shutterstock

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next:

  • Trump’s Proposed Corporate Tax Cuts Could Boost Tesla’s FY25 EPS by 4%, Says Analyst

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