Elon Musk Says Tesla’s Robots Will Surpass Its EV Business

Elon Musk says Tesla’s humanoid robots could eventually become more valuable than its electric vehicle business, positioning robotics as the company’s long-term growth engine.

By Laura Bennett Published: Updated:
Elon Musk Says Tesla’s Robots Will Surpass Its EV Business
Tesla’s Optimus humanoid robot is presented as part of the company’s long-term vision for physical AI and autonomous labor. Photo: Tesla Optimus / X

Elon Musk has once again pushed Tesla’s ambitions beyond cars, predicting that the company’s humanoid robots could ultimately outgrow its electric vehicle business. Speaking in recent public remarks and investor discussions, Musk framed robotics not as a side project, but as a future pillar that could redefine Tesla’s identity over the coming decade.

Tesla’s humanoid robot, known as Optimus, is designed to perform repetitive and physically demanding tasks in factories, warehouses, and eventually homes. Musk has repeatedly argued that the long-term economic value of autonomous labor far exceeds that of vehicle manufacturing, particularly as global labor shortages intensify and wages rise across industrial economies.

While Tesla remains one of the world’s most valuable automakers, Musk suggested that robots could unlock an entirely new market measured in trillions of dollars. Unlike cars, which are constrained by consumer purchasing power and replacement cycles, general-purpose robots could be deployed continuously across manufacturing, logistics, healthcare, and domestic services.

Robots as Tesla’s Next Growth Engine

Tesla’s robotics program draws heavily from the same core technologies that power its vehicles. The Optimus platform uses Tesla’s full self-driving neural networks, computer vision systems, and custom AI chips, allowing the company to reuse years of autonomy research. Musk has emphasized that this software-first approach gives Tesla a structural advantage over robotics startups that must build perception, planning, and control systems from scratch.

Optimus is expected to operate initially inside Tesla’s own factories, handling material transport and basic assembly tasks. These controlled environments allow the company to train robots at scale while generating real operational value. Musk has indicated that internal deployments could begin ramping before broader commercial availability.

Over time, Tesla envisions Optimus evolving into a general-purpose worker capable of understanding instructions, navigating complex spaces, and manipulating objects with human-like dexterity. If successful, this would place Tesla among a small group of companies attempting to commercialize humanoid robots at scale.

Physical AI Beyond Autonomous Vehicles

Musk’s comments reflect a broader industry shift toward what many executives now call physical AI — systems that can perceive, reason, and act in the real world. Unlike digital AI products, physical AI must meet far higher safety, reliability, and cost constraints, especially when operating alongside humans.

Tesla’s strategy mirrors developments across the robotics sector, where companies are racing to combine large-scale AI models with real-world embodiment. Musk argues that once robots reach sufficient intelligence and reliability, manufacturing capacity becomes the primary constraint, not demand.

He has suggested that a mature robotics business could eventually dwarf Tesla’s vehicle revenues, even if EV sales continue to grow. In Musk’s framing, cars may become just one application of a much larger AI and robotics platform.

Skepticism and Execution Risk

Despite the bold vision, significant challenges remain. Humanoid robots must operate safely in unpredictable environments, manipulate a vast range of objects, and perform tasks reliably over long periods. Battery life, actuator durability, and cost-efficient manufacturing all remain open questions.

Analysts also note that Tesla has a history of ambitious timelines that often slip. While Optimus prototypes have demonstrated walking, object handling, and basic autonomy, large-scale commercial deployment is still unproven.

Nevertheless, Musk’s prediction underscores Tesla’s long-term direction. Rather than viewing robotics as experimental, Tesla is positioning humanoid robots as a central business line that could redefine how work is performed across the global economy.

If Tesla succeeds, the company best known for electric cars could ultimately be remembered for something far more transformative: machines that replace human labor at scale.

Humanoid Robot Escorted by Police After Startling Pedestrian in Macau

A humanoid robot used for promotional activities in Macau was escorted away by police after startling a pedestrian, highlighting new challenges as robots increasingly appear in public spaces.

By Daniel Krauss | Edited by Kseniia Klichova Published: Updated:
Humanoid Robot Escorted by Police After Startling Pedestrian in Macau
A humanoid robot stands on a city street during a public demonstration as police intervene after the machine startled a pedestrian in Macau. Photo: Kseniia Klichova / RobotsBeat

A humanoid robot operating in a residential neighborhood in Macau was escorted away by police after startling an elderly pedestrian, an incident that has sparked debate about how robots should operate in public spaces.

The episode occurred near a housing complex in the Patane district when a Unitree G1 humanoid robot was reportedly following behind a woman walking along the street. According to local reports, the 70-year-old pedestrian became alarmed after noticing the robot behind her while she was checking her phone.

A video circulating online shows the woman confronting the robot while several onlookers watch. Police later arrived at the scene and escorted the robot away from the area.

The woman was later taken to a hospital after reporting that she felt unwell. Authorities said she was examined and discharged, and that no physical contact or injuries occurred.

A Promotional Robot in the Wrong Place

Local officials said the robot belonged to an educational center and had been used for promotional activities in the neighborhood.

According to representatives from the organization operating the machine, the encounter was accidental. The woman had stopped in the middle of the walkway while looking at her phone, and the robot – unable to navigate around her – remained stationary behind her until she turned around and noticed it.

The robot’s illuminated sensors and late-evening timing may have contributed to the surprise.

Police returned the machine to its operator and advised him to exercise greater caution when using robots in public areas.

Public Robots and Social Reactions

The incident quickly spread online after video footage showed officers walking the humanoid robot away from the scene in what many viewers described as an unusual “perp walk”.

The moment triggered widespread discussion across social media platforms.

Some observers treated the situation humorously, joking that the robot had been “arrested”. Others used the moment to raise more serious questions about safety, consent, and etiquette when robots interact with people in public environments.

Humanoid robots such as the Unitree G1 have become increasingly visible in Chinese cities and online videos, where they are often used for demonstrations, entertainment, and social media content.

However, their presence in everyday public spaces remains relatively new.

The Challenge of Robots in Public Spaces

As robotics technology becomes more accessible, incidents like the Macau encounter highlight the growing need for guidelines governing how machines operate in shared environments.

Unlike industrial robots or delivery robots that follow defined paths, humanoid robots can move through public spaces designed for human interaction.

That flexibility raises new questions about awareness, human perception, and social expectations.

Even when operating safely, robots can surprise or confuse people who are not accustomed to encountering autonomous machines in everyday settings.

Researchers studying human-robot interaction note that designing robots that behave predictably – and communicate their intentions clearly – will be essential as machines become more visible in public life.

For now, the Macau incident serves as a reminder that the social side of robotics may be just as important as the technical one.

News, Robots & Robotics

STMicroelectronics Plans Humanoid Robots and Worker Retraining to Modernize Chip Factories

STMicroelectronics plans to deploy humanoid robots and retrain workers in older semiconductor plants as the European chipmaker looks to boost efficiency and avoid factory closures.

By Rachel Whitman | Edited by Kseniia Klichova Published: Updated:
STMicroelectronics Plans Humanoid Robots and Worker Retraining to Modernize Chip Factories
A robotic system handles silicon wafer carriers inside a semiconductor fabrication facility as chipmakers explore automation to modernize aging plants. Photo: STMicroelectronics

European semiconductor manufacturer STMicroelectronics is preparing to introduce humanoid robots into its production facilities while retraining employees for new roles, as the company attempts to modernize aging chip factories without shutting them down.

The plan was outlined by company executives during a semiconductor industry conference in Sopot, Poland, where STMicroelectronics’ manufacturing leadership demonstrated early robotics deployments designed to automate repetitive production tasks.

The initiative reflects the growing role of robotics in semiconductor manufacturing as companies attempt to maintain competitiveness against newer, highly automated facilities in Asia.

Automating Repetitive Tasks in Older Fabs

According to STMicroelectronics, robots are being introduced to handle physically demanding or repetitive work inside fabrication plants.

One demonstration showed a robotic system loading silicon wafer carriers into production equipment, a task that requires precision and repetition across continuous shifts.

Executives indicated that the company could deploy more than 100 humanoid robots across its facilities over the next few years.

The machines are expected to work alongside existing automation systems already used in semiconductor manufacturing.

While fabs are already among the most automated industrial environments, certain tasks still require human operators, particularly in older plants that were built before current automation technologies became standard.

Humanoid robots are being explored as a way to bridge that gap without requiring complete redesigns of existing factories.

Modernizing Aging Semiconductor Facilities

The strategy comes as European semiconductor companies face increasing competition from highly automated production lines in countries such as China.

Many of Europe’s chip fabrication plants were built decades ago and require substantial investment to remain competitive.

However, rebuilding or replacing existing fabs can be prohibitively expensive, particularly in regions where regulatory processes and labor negotiations add complexity to large industrial projects.

By introducing robotics and improving workforce skills, STMicroelectronics hopes to extend the lifespan of its older facilities while improving productivity.

The company has stated that maintaining manufacturing capacity in Europe remains a priority.

Workforce Transition and Skills Development

Alongside robotics deployment, the company plans to retrain workers for higher-skilled roles in semiconductor manufacturing.

The shift reflects a broader transformation taking place across industrial sectors where automation is increasingly changing the nature of factory work.

Instead of eliminating jobs entirely, the company aims to move employees into positions that require technical expertise in operating and maintaining advanced manufacturing systems.

Industry executives say these skills are already in short supply.

Humanoid robots are expected to cover certain repetitive roles across multiple shifts. In factories that operate continuously, a single robot could potentially replace several shift positions performing the same task.

However, company leaders emphasize that the goal of the initiative is to improve efficiency rather than close facilities.

Robotics and Europe’s Semiconductor Strategy

The move also intersects with broader debates about Europe’s semiconductor strategy.

Government programs such as the European Chips Act are designed primarily to support new semiconductor projects rather than upgrades to older facilities.

Industry groups are now advocating for expanded support in a potential “Chips Act 2.0”, arguing that existing production infrastructure should also receive investment.

For companies like STMicroelectronics, robotics could become a key tool for keeping older manufacturing plants economically viable while avoiding costly closures.

As semiconductor manufacturing becomes more complex and globally competitive, automation may increasingly determine whether long-established facilities remain part of the industry’s future.

Rivian-Founded Mind Robotics Secures $500 Million for Industrial AI

Mind Robotics, a startup spun out of electric vehicle maker Rivian, has raised $500 million to develop AI-powered industrial robots designed for more adaptable factory automation.

By Daniel Krauss | Edited by Kseniia Klichova Published:
Rivian-Founded Mind Robotics Secures $500 Million for Industrial AI
RJ Scaringe, founder and CEO of Rivian and chairman of Mind Robotics, the industrial AI robotics startup that recently raised $500 million to develop next-generation factory automation systems. Photo: Rivian

A robotics startup spun out of electric vehicle manufacturer Rivian has raised $500 million to build a new generation of industrial robots powered by artificial intelligence.

The company, called Mind Robotics, announced the Series A round this week, bringing its total funding to approximately $615 million only months after its launch. The investment values the company at around $2 billion and was co-led by venture firms Accel and Andreessen Horowitz.

Mind Robotics was created in late 2025 by Rivian founder and CEO RJ Scaringe, who now serves as chairman of the robotics startup.

The company’s goal is to address one of the biggest limitations in modern factory automation: the difficulty robots have performing tasks that require dexterity, adaptability, and real-world reasoning.

A Different Approach to Industrial Robotics

Industrial robots have been used in manufacturing for decades, but most systems remain limited to highly structured tasks such as welding, assembly, or material handling.

These machines perform best when working with predictable objects and fixed production lines.

Mind Robotics is attempting to develop robots capable of operating in more dynamic manufacturing environments where parts vary, conditions change, and tasks require human-like manipulation.

The startup plans to build AI systems that allow robots to interpret their surroundings and adapt their movements in real time.

Unlike many robotics startups that are focusing on humanoid machines, Mind Robotics is taking a more traditional approach to hardware design.

Scaringe has suggested that the company’s focus is on practical factory automation rather than building robots designed to resemble humans.

Training Robots with Factory Data

One advantage the startup brings to the robotics industry is access to manufacturing data from Rivian’s electric vehicle factories.

These facilities provide a real-world environment where robotic systems can be trained and tested on production tasks.

The company aims to use this data to develop AI models that help robots understand physical interactions and perform tasks requiring precision and adaptability.

According to Mind Robotics, much of the value generated inside factories today still depends on human workers performing tasks that traditional automation cannot easily replicate.

By combining robotics hardware with AI models capable of learning from real-world data, the company hopes to automate a broader range of manufacturing activities.

A Growing Investment Wave in Physical AI

The large funding round reflects growing investor interest in robotics companies building AI-driven physical systems.

Over the past year, venture capital firms have increasingly backed startups focused on what many researchers call physical AI – systems that combine machine learning with robots operating in the real world.

Mind Robotics is part of a broader shift toward integrating artificial intelligence directly into industrial automation.

Scaringe has said the company expects to deploy significant numbers of its robots within factories before the end of the year, suggesting an aggressive timeline for moving from research to deployment.

Ties to Rivian’s Technology Ecosystem

Although Mind Robotics operates as an independent company, its relationship with Rivian could extend beyond manufacturing data.

Rivian has recently developed custom semiconductor chips designed to run autonomous driving software inside its vehicles.

Those processors could potentially be used to power robotics systems as well, creating a shared technology foundation between the two companies.

The spinout is also part of a broader pattern emerging at Rivian, which has begun launching new technology ventures alongside its core automotive business.

In 2025 the company also created another startup focused on electric mobility platforms for small cargo vehicles and e-bikes.

Together, these efforts suggest that Rivian is positioning itself not only as a vehicle manufacturer but as a broader developer of robotics and AI technologies.

For Mind Robotics, the next challenge will be proving that AI-powered robots can deliver tangible productivity gains on real factory floors.

Zoox Expands Robotaxi Testing to Phoenix and Dallas

Zoox is expanding testing of its autonomous driving system to Phoenix and Dallas while preparing to deploy its purpose-built robotaxi and integrate its service with the Uber platform.

By Rachel Whitman | Edited by Kseniia Klichova Published:
Zoox Expands Robotaxi Testing to Phoenix and Dallas
Zoox’s purpose-built robotaxi is designed for autonomous ride-hailing, featuring a bidirectional vehicle layout and face-to-face seating for passengers. Photo: Zoox

Amazon-owned autonomous vehicle company Zoox is expanding its robotaxi testing program to Phoenix, Arizona, and Dallas, Texas, as the company continues building toward commercial deployment of its purpose-built autonomous vehicles.

The expansion will introduce Zoox’s autonomous driving technology into two additional urban environments while also supporting the launch of new operational infrastructure, including fleet depots and a new operations center in Scottsdale, Arizona.

With these additions, Zoox now operates testing fleets across ten major U.S. markets, reflecting a broader effort by autonomous vehicle developers to gather real-world data across diverse driving conditions.

Testing in New Environments

The first phase of Zoox’s rollout in Phoenix and Dallas will involve a small number of retrofitted SUVs used for mapping and early testing.

These vehicles will initially be driven manually as engineers map city streets and gather environmental data. Autonomous testing will follow, with safety drivers remaining behind the wheel to intervene if necessary.

Once the company completes this phase, Zoox plans to deploy its purpose-built robotaxi vehicles in both cities.

Each location presents unique testing conditions. Phoenix offers an opportunity to evaluate sensor performance and vehicle durability in extreme heat and dusty environments, particularly on high-speed roads common in the region.

Dallas, meanwhile, provides a complex road network and more variable weather patterns, helping engineers refine how the autonomous system handles diverse driving scenarios.

A Partnership with Uber

At the same time, Zoox is expanding its distribution strategy through a new partnership with Uber.

Under a multi-year agreement, Zoox robotaxis will be integrated into Uber’s ride-hailing platform, allowing users to request autonomous rides through the Uber app in selected cities.

The first integration is expected to begin in Las Vegas later this year, followed by Los Angeles in 2027.

Zoox will continue offering rides through its own mobile application as well, effectively operating on both its proprietary platform and Uber’s global network.

The partnership reflects Uber’s strategy of collaborating with autonomous vehicle developers rather than building its own driverless technology.

Uber previously ran an in-house autonomous vehicle program but sold the division after a fatal crash in 2018. Since then, the company has shifted toward forming partnerships with technology developers.

Building the Infrastructure for Autonomous Fleets

Supporting Zoox’s growing robotaxi program is a network of facilities known as Fusion Centers.

The company is opening a third such facility in Scottsdale, Arizona, joining existing centers in Las Vegas and the San Francisco Bay Area.

These facilities function as operational command centers, coordinating autonomous fleets through teleoperations, mission control, and rider support systems.

Fusion Centers allow human operators to assist vehicles in complex scenarios, manage fleet operations, and provide customer service for passengers.

Since launching its early robotaxi service in Las Vegas and testing programs in San Francisco, Zoox says its vehicles have completed more than one million autonomous miles and transported over 300,000 passengers.

The company’s robotaxi design differs from traditional vehicles. The fully autonomous platform eliminates the steering wheel and pedals, replacing them with a bidirectional cabin featuring face-to-face seating intended to encourage social interaction among riders.

The Growing Robotaxi Race

Zoox’s expansion highlights the intensifying competition among companies seeking to deploy autonomous ride-hailing services.

Developers such as Waymo, Cruise, and several emerging startups are all testing driverless vehicles across multiple U.S. cities, racing to demonstrate safe and scalable operations.

For Zoox, the strategy combines purpose-built vehicles, extensive real-world testing, and partnerships with major mobility platforms.

As autonomous driving technology moves from pilot programs toward commercial deployment, cities like Phoenix and Dallas are becoming critical testing grounds for the next phase of driverless transportation.

Automation, Business & Markets, News, Robots & Robotics

iRobot Expands Roomba Mini Launch to Europe and the U.K.

iRobot has introduced its compact Roomba Mini robot vacuum to Europe and the U.K., marking the company’s first product rollout since emerging from Chapter 11 restructuring earlier this year.

By Laura Bennett | Edited by Kseniia Klichova Published:
iRobot Expands Roomba Mini Launch to Europe and the U.K.
The compact Roomba Mini robot vacuum navigates tight spaces using lidar-based mapping as iRobot expands the device to European markets. Photo: iRobot

iRobot has begun rolling out its smallest robotic vacuum cleaner, the Roomba Mini, across Europe and the United Kingdom, marking the company’s first major product launch since emerging from bankruptcy earlier this year.

The compact robot, which combines vacuuming and mopping capabilities, was previously introduced in Japan and is now being positioned as a cleaning device designed specifically for smaller homes and apartments.

The expansion comes as iRobot attempts to regain momentum following a pre-packaged Chapter 11 restructuring completed in January and a change in ownership that placed the company under the control of its longtime manufacturing partner, Picea.

A Smaller Robot for Smaller Homes

The Roomba Mini is designed to address a practical challenge that has long affected robot vacuums: reaching tight spaces.

According to iRobot, the new model’s compact footprint allows it to navigate narrow corners and areas that are often inaccessible to standard-sized robotic vacuums or traditional upright cleaners.

The robot uses a lidar-based navigation system called ClearView, enabling it to map its surroundings, avoid obstacles, and detect rugs while operating in mopping mode.

Users can control the device through the Roomba Home mobile application, voice assistants, or directly through onboard controls. The system can also operate without a Wi-Fi connection, allowing basic cleaning functionality even when offline.

An AutoEmpty Dock collects debris into an AllergenLock bag capable of holding several months’ worth of dust and dirt, reducing the need for frequent maintenance.

Early Demand Signals in Japan

The Roomba Mini first launched in Japan in February, where iRobot reported strong early demand.

According to company representatives, the black version of the device sold out within the first week of availability.

While the robot was initially designed with compact Japanese homes in mind, iRobot executives say the same characteristics make it suitable for European living spaces, which often feature tighter layouts than homes in North America.

The robot is now available through iRobot’s European online store with a retail price of approximately €399 in the European Union and £379 in the United Kingdom.

A Strategic Moment for iRobot

The European launch arrives at a pivotal moment for the company.

iRobot, once the dominant name in robotic vacuum cleaners, has faced increasing competition in recent years from a growing number of consumer robotics companies offering lower-cost devices with advanced features.

The company’s financial challenges culminated in a bankruptcy restructuring earlier this year. As part of that process, iRobot was acquired by Picea, a firm that previously served as both a manufacturing partner and lender to the company.

Executives say the Roomba Mini was developed before the acquisition and that the ownership transition did not influence the product’s design or release timeline.

However, under Picea’s ownership, iRobot may benefit from expanded manufacturing capabilities and distribution networks across Asia and other global markets.

The Next Phase of Consumer Robotics

The launch of the Roomba Mini also reflects a broader shift within the consumer robotics market.

As robotic vacuum technology matures, manufacturers are increasingly focusing on specialized designs that address specific living environments rather than relying on a single universal product.

Smaller robots capable of navigating dense household layouts may become particularly relevant in urban markets where apartments dominate the housing landscape.

For iRobot, the success of such products could help determine whether the company can maintain its position in an increasingly crowded consumer robotics industry.

Business & Markets, News, Robots & Robotics