Musk expressed confidence in strong demand for the Optimus robot, even at higher price points.

Tesla CEO Elon Musk announced plans to produce several thousand units of the Optimus humanoid robot in 2025 for deployment in the company's factories.

Musk highlighted that the main challenge lies in enhancing the design for easier manufacturing and establishing a complex supply chain for mass production.

The Optimus robots are intended to handle tasks that Tesla employees prefer not to do, with their performance expected to inform the development of a more advanced version set to launch in mid-2026.

Musk compared the market potential of Optimus, which he estimates could reach a $25 trillion market cap, to the $5-$7 trillion market cap of autonomous vehicles.

During a previous shareholder meeting, Musk suggested a future where there could be at least one humanoid robot for every person on Earth, estimating a potential market of 10 billion robots.

Tesla showcased its Optimus robots at a robotaxi unveiling event in October 2024, where they performed tasks like pouring drinks and dancing, albeit with some human assistance.

Despite reporting lower-than-expected revenue for the fourth quarter, Tesla announced plans to start production of new, more affordable models in the first half of 2025, which led to a spike in stock prices.

He projected that the long-term revenue potential of Optimus could exceed $10 trillion, a figure he acknowledged might sound 'absolutely insane.'

In late 2024, Musk reported that Optimus robots were already performing tasks at Tesla factories, with rapid improvements in their capabilities.