Tesla, Inc. TSLA surprised everyone with the announcement concerning a humanoid Tesla bot, internally codenamed ‘Optimus.' At the launch event, CEO Elon Musk said the Tesla bot is likely to help with dangerous and repetitive tasks.
What Happened: Musk now suggests Optimus could be sent to work on Mars, where his space transportation and communications company, SpaceX, is planning to take humans after successfully landing people on the Moon. This use case emerged when a Twitter user asked whether Optimus is going to be mass produced and sent to Mars. Musk implied through a terse reply that it is a possibility.
Hopefully
— Elon Musk (@elonmusk) August 21, 2021
Related Link: Elon Musk Doesn't Like Apple News
Why It's Important: Tesla's decision to develop a robot came as a surprise as Musk had shunned AI in the past, stating it posed an "existential threat" to humanity. The Tesla bot will run on the same AI that Tesla's autonomous EVs use. Presentation at the AI Day revealed that Optimus will be a 5-foot-8-inches robot weighing about 125 pounds. The surprise unveiling has polarized analysts and the investing community alike.
In a note reviewing the AI event, Tesla bull Daniel Ives questioned the logic behind the company's focus on a non-core project even as its core EV business is facing multiple risks, including intensifying EV competition, safety issues with its vehicles and weaker showing in China. Tesla's shares ended Friday's session up 1.01% at $680.26, although they are off last Monday's intraday high of $729.90.
Related Link: How Will Tesla's Auto Pilot Safety Probe Affect The EV Maker And The Industry?
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