Why Tesla Share Price Could Soar if Musk Spilled the Beans on Optimus Production

Tesla's (TSLA) share price would get an immediate boost if boss Elon Musk was more open about the production of its humanoid robot Optimus.Claim 30% Off TipRanksNew trading tool for TSLA bears 1 Million Robots Per Year In its Q1 results this week, Tesla said that preparations for the company's first large-scale Optimus factory "will begin shortly in Q2." The first-generation production line will be located at Tesla's Fremont plant, where the Model S and Model X assembly lines will be converted for Optimus production. Tesla said this line could potentially produce 1 million robots per year. Kathleen Brooks, research director at XTB, however, said that Musk had to do more to convince analysts and by extension investors that his big plans, including Optimus, are going to hit their "ambitious target dates." "For example, plans to transform the company's Fremont, California factory to produce Optimus humanoid robots is expected to begin this quarter, and Musk said that first generation of these robots will hit 1 million. However, it is unclear if there is a demand for these robots, and whether the factory can produce Optimus at this scale," she said. "Rather than produce frame by frame analysis of Optimus now, Musk said that he would rather unveil the humanoid closer to the start of production, which means that analysts are left with scant details about its features, and this makes it hard to price in to Tesla's share price. This is one reason why the share price eroded earlier gains and fell 1% while Musk was talking." Is Caution the Word? Other analysts, however, understood the caution around Optimus. William Blair's Jed Dorsheimer said: "Optimus V3 was supposed to debut in April, but Musk pushed that back because competitors analyze and copy. The production start is slated for July/August, but the ramp-up is literally impossible to predict," he said. "To Musk's credit, fully disassembling a vehicle line and standing up a completely new product line in a few months is a herculean task." Tesla is facing huge competition in the humanoid race, particularly from China, in the form of Unitree and Agibot. Their robots have dazzled Chinese TV audiences and investors with their athletic and balletic skills. But those capabilities are steadily being commercialized such as Unitree's R1 model, which is described as a consumer humanoid, so mainly used for personal assistance tasks. It was recently made available on AliExpress with shipping to the U.S. free of charge to robot fans. What are the Best Robotics Stocks to Buy Now? We have rounded up the best robotics stocks to buy now using our TipRanks comparison tool. As can be seen below, Serve Robotics (SERV) has the best upside of 108.15%.