Investing.com -- Tesla (NASDAQ:TSLA) intends to build 5,000 units of its Optimus humanoid robot this year, CEO Elon Musk told employees during an all-hands meeting, where he also encouraged them to hold on to their shares despite the ongoing sell-off.
Musk said the company will begin pilot production of Optimus in 2025, leveraging its existing self-driving technology to accelerate the development of the robot, which is capable of performing simple tasks like walking and catching objects.
“Optimus has gone from being an idea to the most sophisticated humanoid robot on earth,” Musk said, adding that Tesla remains the only company capable of making intelligent humanoid robots at scale.
Musk told employees that Tesla currently has enough components to produce between 10,000 and 12,000 Optimus units this year. However, given that it’s still an early-stage product, the company is targeting 5,000 units for 2025. Looking ahead, he said Tesla aims to scale production to 50,000 robots in 2026.
He also mentioned that Optimus is expected to operate beyond controlled environments in the second half of next year, with initial access granted to Tesla employees.
Wedbush analyst Daniel Ives said Musk’s decision to host an all-hands meeting is "a big step forward" for Tesla given the tough spell the automaker is going through currently.
"We applaud Musk for "reading the room" and showing important hand holding at this key time for employees and investors," Ives said in a note.
"Challenges clearly remain for Musk and Telsa to navigate this volatile period but last night was the first step in doing this for employees, shareholders, and partners," he noted.
Tesla’s push into robotics comes at a turbulent time for the EV maker. The company’s shares have dropped roughly 41% year-to-date, weighed down by slowing electric vehicle demand, Musk’s focus on politics, and growing competition from Chinese rival BYD (SZ:002594).
At the Thursday meeting, Musk urged employees not to sell their Tesla shares.
“There are times when there are rocky moments, a little bit of stormy weather but I’m here to tell you the future is bright and exciting," he said.
Tesla’s announcement also comes as the humanoid robotics sector gears up for a wave of new releases. Major tech firms including Apple (NASDAQ:AAPL), Huawei, Meta (NASDAQ:META), and Tencent (HK:0700) have all revealed plans to launch their own models this year.