Investor Ross Gerber of investment firm Gerber Kawasaki has expressed doubts about Elon Musk’s ability to turn Tesla’s Optimus project into a commercial success. According to Gerber, humanoid robots are difficult to build and are unlikely to generate revenue anytime soon.
Human Hands, Feet, and Eyes Remain a Challenge
Gerber believes that the biggest hurdle for humanoid robots is replicating the physical capabilities that make humans unique. He notes that “God was pretty good at making humans over millions of years of evolution. Hands are tough, feet are tough, and eyes are tough.” Gerber also mentions that robots using wheels, tracks, and other systems have historically been easier to build than machines designed to walk like humans.
Gerber Questions Near-Term Revenue
Gerber has questioned the commercial opportunity for consumer-focused humanoid robots, stating that the level of investment does not match the near-term revenue potential. He says, “Spending a trillion dollars to build a robot to fold clothes doesn’t make any sense to me at all.” Gerber believes that military, space, and industrial applications make more sense, but notes that Tesla is “spending a lot of money, and there’s no revenue coming anytime soon.”
Tesla Continues to Bet Big on Optimus
Despite Gerber’s doubts, Tesla continues to invest heavily in the Optimus project. Earlier this month, Elon Musk called the humanoid robot the company’s “biggest product of all time.” Tesla has begun converting factory space in Fremont, California, for Optimus production and is testing the robot internally. Musk has also stated that China will be Tesla’s biggest competitor in humanoid robotics.
Wall Street Bets Big on Humanoids
Morgan Stanley estimates that the global humanoid robot market could reach $5 trillion by 2050, while Goldman Sachs forecasts the industry could reach $38 billion by 2035. These predictions are driven by advances in artificial intelligence, which are expected to accelerate the commercialization of humanoid robots.
Price Action
Shares of Tesla fell 14.52% on Thursday to $319.69 and tumbled 13.37% in Friday’s pre-market hours. According to rankings, Tesla has a Momentum score in the 14th percentile and a Growth score in the 88th percentile.