Investment bank Morgan Stanley has boldly predicted that the humanoid robot market could grow to $5 trillion in annual revenue by 2050. This would make it nearly double the combined sales of the world’s 20 biggest car companies. One major company that could benefit from this growth is Tesla.
Tesla is working hard to develop its humanoid robot, called Optimus. CEO Elon Musk has said that Optimus could become more valuable than Tesla’s car business. Tesla plans to make around 10,000 robots this year and grow to 50,000 next year.
According to Morgan Stanley, humanoid robots will initially be used mainly in commercial and industrial settings, especially for repetitive tasks. The bank expects 13 million robots to be in use by 2035 and as many as 1 billion by 2050.
Morgan Stanley believes Tesla has a strong advantage because it controls the hardware, software, and AI technology behind its robots. Other tech companies like Nvidia, Google, Microsoft, Amazon, and Meta are also expected to play important roles by building the AI systems that power these robots.
Cathie Wood’s investment firm ARK Invest is also very positive about Tesla. ARK believes Tesla stock could reach $2,600 per share by 2029, driven mostly by Tesla’s robotaxi business. The firm thinks nearly 90% of Tesla’s earnings by then will come from robotaxis, with electric cars making up just 10%.
Tesla’s car production is expected to grow by 45% each year, going from 1.8 million vehicles today to as many as 14.4 million by 2029. ARK also sees other growth areas for Tesla, such as the Optimus robot, energy storage, and its Supercharger network.
Currently, Tesla is valued close to $1 trillion, making it the world’s most valuable car company. But its stock has dropped about 40% from its highest point and is underperforming the market. Analysts are split on the stock’s future: 16 rate it a “Strong Buy,” while 10 say “Strong Sell.” The average price target is $283, lower than where it trades now.
Still, with big bets on robots and AI, Tesla could be in for a major shift in the years ahead.
