EV maker Tesla’s (TSLA) dreams of dominating the humanoid robot market with its Optimus design have a new challenge today as Norwegian tech group 1X plans to build thousands of robots in a nearby Californian factory.
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The Scandinavian tech firm, backed by OpenAI, has opened a new 58,000-square-foot factory in Hayward, California – according to a Bloomberg report – to build humanoids at consumer scale. It has a capacity to build 10,000 robots in its first year and 100,000 by the end of 2027.
It said that it hoped to become one of the first humanoid makers to build robots for consumers at scale. It is reported that this will be driven by its vertically integrated manufacturing process, which means making its own parts in-house, including motors, electronics and batteries to speed up development. It is also planning to open a larger manufacturing facility in San Carlos, California.
Shipments of its ‘Neo’ humanoid, which is available for pre-order at $20,000, are being tipped to begin by the end of this year. It can apparently help with household chores such as laundry, folding clothes and tidying up.
Should Tesla Be Worried?
In its recent Q1 results, Tesla said that preparations for the company’s first large-scale Optimus factory “will begin shortly in Q2.” The first-generation production line will be located at Tesla’s Fremont, California plant, where the Model S and Model X assembly lines will be converted for Optimus production. Tesla said this line could potentially produce 1 million robots per year.
That will clearly dwarf the number being produced by 1X, but its arrival further increases the competition in the humanoid marketplace.
China currently leads the way through innovations from companies such as Unitree and Agibot. Their robots have dazzled Chinese TV audiences and investors with their athletic and balletic skills.
These capabilities are also steadily being commercialized such as Unitree’s R1 model, which is described as a consumer humanoid, so mainly used for personal assistance tasks. It was recently made available on AliExpress with shipping to the U.S. free of charge to robot fans.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Moderate Buy consensus based on 13 Buy, 12 Hold and 5 Sell ratings. Its highest price target is $600. TSLA stock’s consensus price target is $410.21, implying an 8.40% upside.
