Elon Musk Suggests Using Optimus Robots in Tesla Factories Amid Labor Shortage
According to Tesla CEO Elon Musk, the company's humanoid robot, which the world first heard about five months ago, could be the most important product the automaker is working on and could potentially be more significant than its car business.
Elon Musk has placed the robot, known internally as Optimus, above the models the company has been developing for years. During a discussion of profits and losses, Musk said the Semi and Roadster were first presented in 2017, and the Cybertruck, shown in 2019, is falling even further behind schedule and, he hopes, will enter production in 2023.
Elon Musk said that the first use of the Tesla robot will likely be at the company's own facilities, citing moving parts around the factory as an example. He first unveiled the product after a person dressed as a robot performed a dance routine at an August event showcasing Tesla's artificial intelligence efforts.
“Labor is the foundation of the economy. So what happens if you really don't have a labor shortage? I don't even know what the economy is in that case. This is what Optimus is”
In August, Musk said Tesla plans to place the cameras used for the Autopilot driver assistance system in the head of the humanoid robot. The computer, which the company hopes will ultimately enable full self-driving in cars, will be built into the bot's torso.
Tesla is working on supply chain problems that will limit production in 2022, although Musk said he expects the company to "comfortably" exceed 50% annual growth. The automaker will not launch new models in 2022, and will instead focus on expanding production at existing factories and starting Model Y production at new plants in Austin, Texas, and near Berlin.
When Musk first showed prototypes of the Semi and Roadster, the CEO said the former would enter production in 2019 and the latter would be available the following year. The Cybertruck was originally scheduled for release at the end of 2021.
Tesla has postponed the release of new models to 2023, betting that the best way to keep expanding sales amid supply chain problems will be to rely further on a narrow group of large sellers.
The automaker will focus on increasing production in 2022 to continue what Elon Musk called a breakthrough year for both Tesla and electric vehicles in general. Relying on just two vehicles, the Model 3 and Y, for 97% of deliveries has helped ease problems caused by the semiconductor shortage that is limiting auto industry production.
“Both last year and this year, if we introduced new cars, total car production would decrease. Releasing the Cybertruck, Semi or Roadster in 2022 makes no sense, because we will still be constrained by the number of parts”
Although the need to buy chips for only a few models has been an advantage for Tesla, delaying the launch of new products carries certain risks. Rivian Automotive is ramping up production of its R1T electric pickup, while truck segment leader Ford Motor is entering the market with a plug-in version of its popular F-150 in the coming months.
With no upcoming additions to Tesla's showrooms to promote, Musk spent much of the earnings call discussing the potential of autonomous driving technology and the humanoid robot the company is developing.
Although for years Tesla has charged thousands of dollars for full self-driving capability, which it says will someday live up to its name, the features are still in beta testing and people must keep their hands on the wheel.
Musk said the robot, which he first announced five months ago, could turn out to be the company's most important product and play a major role.
This will be a difficult task, at least in terms of profit. Revenue from car sales in the fourth quarter of 2021 rose to nearly $16 billion and accounted for 90% of total sales. Adjusted earnings jumped to $2.54 per share, beating analysts' average estimate of $2.36 per share.
In 2021, Tesla delivered more than 936,000 vehicles worldwide, up 87% from a year earlier and above the 50% average annual growth it had projected for several years. While Musk expects to again confidently exceed that growth in 2022, the company warned that its factories will likely continue to run below full capacity this year due to supply chain problems.
Musk said Tesla will complete engineering and tooling work this year to prepare the Cybertruck, Semi and Roadster for production. He said Tesla's full self-driving capability will eventually become the company's most important source of profitability.
