Musk has bet Tesla’s future on humanoid robots he says could generate “infinite” revenue and become “the biggest product of all time.” His new compensation package ties $1 trillion in potential payouts to selling at least one million bots and making Tesla an $8.5 trillion company.
The vision: robots that work factories, handle chores, perform surgeries, and colonize Mars. The reality: bots that practice sorting Legos and are often remotely operated by humans at public events.
Robots at Tesla’s 2024 event were teleoperated by engineers in body suits and VR headsets—each bot required several engineers monitoring constantly. In labs, Optimus practices rote tasks like folding laundry.
“Getting these robots to do something useful is the problem,” says a Berkeley roboticist. The gap between demonstration and deployment remains enormous.
Hands Are the Hard Part
Tesla has struggled to create hands with both sensitivity and dexterity of humans. The control systems to perceive environments and compensate for uncertainty remain the research frontier. “Even a child could clear a dinner table”—robots cannot.
Internal Skepticism Exists
Manufacturing engineers have questioned whether Optimus would actually be useful in factories. Most factory jobs are better done by robots shaped for specific tasks, not humanoids. Some competitors conclude that wheels beat legs for stability and safety.
The Timeline Has Slipped
Tesla backed away from putting commercial Optimus into its own factories by end of 2025. The company is now on its third-generation design. Each iteration improves capabilities—but commercial deployment keeps receding.
The Market Opportunity—If Achievable
Morgan Stanley predicts humanoids will generate $7.5 trillion in annual revenue globally by 2050. Even ARK Invest, a Tesla bull, excludes Optimus from its 2029 model because commercial success comes later.
Optimus represents Musk’s characteristic pattern: audacious vision, aggressive timelines, eventual delivery on a longer horizon. Whether the business model works depends on execution timelines that keep extending.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
