Tesla’s ambitious plans for its humanoid robotics division face new challenges as Milan Kovac, the company’s vice president of Optimus robotics, announced his departure in June after nine years with the automaker. This leadership shake-up comes at a critical juncture for Tesla. The company is increasing its focus on creating the humanoid Optimus robot, and CEO Elon Musk has called it a future key driver of Tesla’s valuation.
Kovac’s announcement underscores some important changes within Tesla’s robotics team. And with the company ramping up its robotaxi tests in Austin, Texas, and San Francisco, the pressure is on. In March, Musk had predicted that Tesla would be able to mass produce 5,000 of the Optimus robots this year. He stressed how important this initiative is to winning the long-game on where the company goes.
Musk’s made a number of other optimistic pronouncements on just how much the new robot could eventually be worth to Tesla’s total valuation. In a post on X, he stated, “~80% of Tesla’s value will be Optimus,” signaling his belief that the success of these robots could redefine the company’s market position. He subsequently developed this vision with an audacious prediction. Provided that they succeed, by mid-2024 a fleet of Optimus robots might make Tesla a $25 trillion company.
The collaborative project reflects that positive energy, brimming with lessons learned from 1X CEO. They predict that Tesla’s Optimus robots would go full autonomy by 2027. Recent developments This timeline matches up with a growing boom of competition in the sector of humanoid robotics. Indeed, Chinese companies such as Unitree have already been advancing to international competitions at top tier events such as the World Humanoid Robot Games.
As Tesla processes these changes, it’s dealing with an avalanche of lawsuits. The firm is looking to overturn a $243 million damages award in a related federal court lawsuit over a deadly Autopilot crash. This ongoing litigation adds another layer of complexity to Tesla’s operations as it pushes forward with its ambitious robotics agenda.
Musk’s claims
During Tesla’s recent quarterly earnings call, Musk repeated long-standing claims about Tesla’s dominance in the field of artificial intelligence.
“It is important to note that Tesla is by far the best in the world at real-world AI.” – Elon Musk
With the troubled waters of executive replacements and increased competition from other EV makers, Tesla continues to march ahead with its Optimus project. Industry observers are watching closely how these pieces will come together to define the company’s future in the years ahead.