The story of Optimus, the humanoid robot at the heart of Elon Musk's growth plans for Tesla

Elon Musk has been generating buzz around Optimus V3 since September, revealing significant changes in how Tesla trains its humanoid robots. Despite facing production hurdles amid new tariffs, Musk remains optimistic about scaling up the production of these robots by the end of 2025. Optimus took the spotlight at Tesla's 2024 'We Robot' event, showcasing the advancements made since the introduction of Optimus Gen 2 in 2023, and an initial prototype in 2022. Musk, who first unveiled the concept of the Tesla Bot in 2021, believes that the future of Tesla lies beyond its electric vehicles — he envisions a world where Optimus could represent around 80% of the company's overall value. Musk's aspirations are bold; he has stated that Optimus could help elevate Tesla's market cap to a staggering $25 trillion. He confidently remarked, "Even the most optimistic estimates I've seen for Optimus underestimate the magnitude of what the robot will be able to do." This ambition aligns with Musk's incentives tied to Tesla's stock performance, as he aims to meet specific benchmarks for a proposed $1 trillion pay package. Initially introduced as the Tesla Bot, Optimus is designed to assist with everyday tasks, featuring a height of 5'8" and a weight of 125 pounds, with capabilities to deadlift 150 pounds and carry 45 pounds. The robot's design leverages eight cameras and Tesla's Autopilot technology, with Musk promising that physical labor will one day be a choice rather than a necessity. However, the first presentation was more of a spectacle than a demonstration, featuring a performer in a robot suit rather than the anticipated prototype. By early 2022, Musk had expressed that developing Optimus was Tesla's top priority, and later that year, he revealed an official prototype during Tesla AI Day. Attendees were impressed as they witnessed the robot walking and performing simple tasks like delivering packages and watering plants. Yet, Musk acknowledged that there is still much work ahead to refine Optimus. In late 2023, Tesla showcased Optimus Gen 2, which featured a 30% increase in walking speed and enhanced full-body control. Demonstrations of the robot doing squats and delicately picking up an egg underscored Tesla's rapid advancements in humanoid robotics, with the company ensuring that all showcased footage was genuine and not computer-generated. At the recent 'We Robot' event, Optimus robots captivated the audience by serving drinks and engaging in games, but it was revealed that they were still reliant on human operators. This revelation led to a lukewarm reception from Wall Street analysts, contributing to a significant drop in Musk's net worth. Looking ahead, Musk has committed to deploying Optimus robots within Tesla factories by the end of 2025, with projections of thousands of units in operation soon. He expressed confidence in reaching one million units per year by 2030, a goal he believes is achievable within four to five years. However, challenges remain, particularly with supply chain issues concerning rare-earth materials from China, crucial for the robot's actuators. Tesla is exploring alternative sources to mitigate these constraints. Additionally, the company is revamping its training approach for Optimus, focusing on video recordings of human tasks rather than using motion capture technology. Musk envisions a future where Optimus 3 will exhibit agility comparable to that of a human. As he continues to promote the upcoming models, including the much-anticipated Optimus V3, the potential of humanoid robotics appears poised for significant strides under Musk's leadership.