Tesla has surprising plans in store for the upcoming year. Elon Musk revealed that the company’s focus in 2025 will be on advancing “autonomous vehicles and autonomous humanoid robots,” following significant progress made last year. Tesla is currently laying the groundwork needed to develop the crucial technology identified by Musk. While the internal goal is to produce around 10,000 Optimus robots, Musk admits this target may be ambitious. He anticipates success in creating several thousand Optimus robots by the end of the year, which will be utilized internally at Tesla factories to handle mundane and sometimes hazardous tasks. These models will also influence the design of the next production iteration, set to launch in 2026. When Optimus robots are ready for external sale, Musk estimates they may cost between $20,000 to $30,000 each.
Tesla’s primary objective is to rapidly scale up Optimus production. Musk envisions a significant increase in output, with the potential to manufacture 100 million robots annually within a few years. In the realm of autonomous vehicles, Musk aims to achieve fully self-driving cars by 2025. He anticipates the widespread deployment of unsupervised Full Self-Driving (FSD) technology, pending regulatory approval, with plans for nationwide coverage in the US next year. While regulatory challenges may arise, Tesla has demonstrated the capabilities of FSD technology in real-world scenarios, both at its California factory and on public roads in Austin and California.
Despite past delays in delivering FSD, Musk is confident in Tesla’s ability to fulfill its promises. He assures that the technology is tangible and close to becoming accessible to the public. Musk also hints at the introduction of a more affordable Tesla model in 2025, potentially priced around $25,000, offering a lower-cost option for consumers.
“We’re still on track to unveil a more budget-friendly Tesla model in the first half of 2025 and will continue to broaden our range from there,” stated Vaibhav Taneja, Tesla’s Chief Financial Officer, during the company’s most recent earnings call. Tesla experienced a drop in sales last year amidst a broader slowdown in the electric vehicle (EV) market and heightened competition, notably from Chinese competitor BYD, which offers a $9,500 EV for sale. Despite Elon Musk’s overarching emphasis on autonomy, a significant portion of Tesla’s profits still derive from EV sales, a trend that a more affordable model could potentially enhance. The economical vehicle might be constructed on Tesla’s “next-generation” vehicle platform, with the same production lines churning out both Tesla’s $25,000 vehicle and the forthcoming Cybercab robotaxi. It remains uncertain what the lower-priced vehicle will entail, given Musk’s previous remarks that Tesla doesn’t intend to merely introduce a version of the Cybercab equipped with a steering wheel and pedals.
