Investor Ross Gerber of investment firm Gerber Kawasaki said Elon Musk could face a long road to turning Tesla Inc.‘s (NASDAQ:TSLA) Optimus into a commercial success, saying humanoid robots remain difficult to build and are unlikely to generate revenue anytime soon.
Human Hands, Feet And Eyes Remain A Challenge
Gerber said the biggest hurdle for humanoid robots was replicating the physical capabilities that make humans unique.
“God was pretty good at making humans over millions of years of evolution. Hands are tough, feet are tough, and eyes are tough,” Gerber said in an interview with The Information.
He added 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 also questioned the commercial opportunity for consumer-focused humanoid robots, saying the level of investment does not match the near-term revenue potential.
“Spending a trillion dollars to build a robot to fold clothes doesn’t make any sense to me at all,” he added.
Gerber said that military, space, and industrial applications made more sense, but said Tesla was “spending a lot of money, and there’s no revenue coming anytime soon.”
Tesla Continues To Bet Big On Optimus
Earlier this month, Musk called the humanoid robot the company’s “biggest product of all time,” while Tesla began converting factory space in Fremont, California, for Optimus production.
Musk said China will be Tesla’s biggest competitor in humanoid robotics, while the company continues testing Optimus internally and plans to ramp production as development progresses.
Wall Street Bets Big on Humanoids
Morgan Stanley estimates the global humanoid robot market could eventually reach about $5 trillion by 2050, while Goldman Sachs forecasts the industry could reach roughly $38 billion by 2035 as advances in artificial intelligence accelerate commercialization.
Price Action: Shares of Tesla fell 14.52% on Thursday to $319.69 and tumbled 13.37% in Friday’s pre-market hours.
Benzinga edge rankings indicate TSLA has a Momentum score in the 14th percentile and a Growth score in the 88th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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