EV maker Tesla (TSLA) may be planning to use its Shanghai Gigafactory for more than just electric cars, as it looks to scale production of its Optimus humanoid robot. Indeed, Tesla China president Wang Hao said that the Shanghai factory is already capable of building robots and could play a major role in future production. He even called the site the “golden key” to solving the problem of producing Optimus at scale.
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Forget margin or options. Here's how the pros trade TSLAFor context, Elon Musk has previously said that scaling Optimus will not be easy. However, the Shanghai factory has several advantages, such as advanced automation, a strong network of nearby suppliers, and a trained workforce. As a result, it is seen as one of the best places for Tesla to handle the complexity of building humanoid robots, especially if the company wants to produce them at a level similar to cars.
Importantly, Tesla wants Optimus to be a relatively affordable robot that can do many different physical tasks in factories and warehouses, and eventually in homes and service jobs. The company has suggested a price range of about $20,000 to $30,000. In addition, the robot is expected to look and move like a human, walk on two legs, and run for a full work shift on a 2.3 kWh battery. It could also reach speeds of around 5 miles per hour and has highly flexible hands that can handle delicate tasks.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 13 Buys, 11 Holds, and six Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $402.29 per share implies 10.5% upside potential.
