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Elon Musk on Optimus humanoid robot production and price: “less than a car”

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Elon Musk revealed the production timeline and estimated price of Tesla’s humanoid robot Optimus when he recently appeared on TED. The Tesla CEO talked with Chris Anderson about Optimus and the humanoid robot’s future in society. 

Optimus Production and Applications

“You know, the first units that we [Tesla] tend to make are for jobs that are dangerous, boring, repetitive, and things people don’t want to do,” Elon Musk told Anderson. 

Musk estimated that Tesla would reveal an “interesting prototype” of the Optimus robot sometime this year and “might have something useful” by 2023. He predicts that Tesla will see growth in the humanoid robot project within the next two years. Around 2025, Musk thinks there will be rapid growth year-over-year in the usefulness of Optimus. 

During their talk, Anderson and Musk took some time to imagine how Optimus would function in a home setting rather than a work setting. Anderson referred to Tesla’s humanoid robot as a personal butler of sorts. Elon Musk referred to Optimus as more of a buddy robot with many useful applications and forms, including a catgirl.

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Optimus’s Price

As the humanoid robots useful functions expand, Musk believes Tesla will see a decrease in cost while Tesla scales production of Optimus. As for the price of Optimus Elon Musk had this to say: “I think the cost is actually not going to be crazy high, like less than a car.” 

Unfortunately, Elon Musk did not say the make or model of the car he used as a basis for Optimus’ price. However, Anderson suggested around $25,000. 

Optimus vs Human Workers

Anderson then asked the question that has been in the minds of quite a few people since Tesla unveiled Optimus: how would it affect the job market. Musk has repeatedly said that Optimus will initially be made for dangerous, monotonous jobs. However, as Tesla’s humanoid robot gains more advanced functionalities, a few people have wondered about its effect on the job market. 

Anderson argued that the price of a humanoid robot worker would be much lower yearly compared to a human employee. Plus, a human worker would not be able to work the same long hours as a humanoid robot and would not want to go on vacations.

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“I wouldn’t worry about putting people out of the job thing,” Musk replied. “I think we’re actually going to have and already do have a massive shortage of labor. So I think we’ll have not people out of work, but actually still a short of labor even in the future.” 

The Tesla CEO has talked about the shortage of human workers in the past. The human labor shortages could be attributed to declining birth rates across the globe. Musk briefly talked about declining birth rates in an interview at the Wall Street Journal’s CEO Council Summit. 

(Credit: Ryan Lash/TED)

The Dystopian Scenario

Elon Musk also talked about the possibility of a dystopian scenario with Optimus. Before Tesla revealed plans to produce a humanoid robot, Musk was vocal about AI’s impact on human existence. The Tesla CEO has always provided cautionary warnings about developing AI and still maintains his beliefs today. 

Musk mentioned putting some safety protocols in place for Tesla’s humanoid robot, showing the amount of forethought he has already put into Optimus’ design. 

“I mean, obviously, we have to be careful [that] this doesn’t turn into a dystopian situation,” Musk said. “I think one of the things that’s going to be important is to have a localized rom chip on the robot that cannot be updated over the air, where if you — for example —were to say ‘stop stop stop’ that would — if anyone said that — then the robot would stop.”

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Maria--aka "M"-- is an experienced writer and book editor. She's written about several topics including health, tech, and politics. As a book editor, she's worked with authors who write Sci-Fi, Romance, and Dark Fantasy. M loves hearing from TESLARATI readers. If you have any tips or article ideas, contact her at maria@teslarati.com or via X, @Writer_01001101.

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Tesla Cybercab display highlights interior wizardry in the small two-seater

Photos and videos of the production Cybercab were shared in posts on social media platform X.

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Credit: Tesla Robotaxi/X

The Tesla Cybercab is currently on display at the U.S. Department of Transportation in Washington, D.C., and observations of the production vehicle are highlighting some of its notable design details. 

Photos and videos of the production Cybercab were shared in posts on social media platform X.

Observers of the Cybercab display unit noted that the two-seat Robotaxi provides unusually generous legroom for a vehicle of its size. Based on the vehicle’s video, the compact two-seater appears to offer more legroom than Tesla’s larger vehicles such as the Model Y, Model X, and Cybertruck.

The Cybercab’s layout allows Tesla to dedicate nearly the entire cabin to passengers. The vehicle is designed without a steering wheel or pedals, which helps maximize interior space.

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Footage from the display also highlights the Cybercab’s large center screen, which is positioned prominently in front of the passenger bench. The display appears intended to provide entertainment and ride information while the vehicle operates autonomously.

Images of the vehicle also show an additional camera integrated into the Cybercab’s C-pillar. The extra camera appears to expand the vehicle’s field of view, which would be useful as Tesla works toward fully unsupervised Full Self-Driving.

Tesla engineers have previously explained that the Cybercab was designed to be highly efficient both in manufacturing and in operation. Cybercab Lead Engineer Eric E. stated in 2024 that the Robotaxi would be built with roughly half the number of parts used in a Model 3 sedan.

“Two seats unlocks a lot of opportunity aerodynamically. It also means we cut the part count of Cybercab down by a substantial margin. We’re gonna be delivering a car that has roughly half the parts of Model 3 today,” the Tesla engineer said.

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The Tesla engineer also noted that the Cybercab’s cargo area can accommodate multiple golf bags, two carry-on suitcases, and two full-size checked bags. The trunk can also fit certain bicycles and a foldable wheelchair depending on size, which is quite impressive for a small car like the Cybercab.

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Elon Musk’s xAI wins permit for power plant supporting AI data centers

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

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Mississippi regulators have approved a permit allowing Elon Musk’s artificial intelligence company xAI to construct a natural gas power plant in Southaven. The facility is expected to support the company’s expanding AI infrastructure tied to its Colossus data center operations near Memphis.

The development was reported by CNBC, citing confirmation from the Mississippi Department of Environmental Quality (MDEQ).

According to the report, regulators “voted to approve the permit” of xAI subsidiary MZX Tech LLC to construct a power plant featuring 41 natural gas-burning turbines “after careful consideration of all public comments and community concerns.”

The Mississippi Department of Environmental Quality stated that the permit followed a regulatory review process that included public comments and community input. Jaricus Whitlock, air division chief for the MDEQ, stated that the project met all applicable environmental standards.

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“The proposed PSD permit in front of the board today not only meets all state and federal permitting regulations, but goes above and beyond what is required by law. MDEQ and the EPA agree that not a single person around our facilities will be exposed to unhealthy levels of air pollution,” Whitlock stated.

The planned facility will help provide electricity for xAI’s AI computing infrastructure in the Memphis region.

The Southaven project forms part of xAI’s efforts to scale computing capacity for its artificial intelligence systems.

The company currently operates two major data centers in Memphis, known as Colossus 1 and Colossus 2, which provide computing power for xAI’s Grok AI models. xAI is also planning to build another large data center in Southaven called Macrohardrr, which would be located in a warehouse previously used by GXO Logistics.

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Large-scale AI training requires substantial computing power and electricity, prompting technology companies to develop dedicated energy infrastructure for their data centers.

SpaceX President Gwynne Shotwell previously stated that xAI plans to develop 1.2 gigawatts of power capacity for its Memphis-area AI supercomputer site as part of the federal government’s Ratepayer Protection Pledge. The commitment was announced during an event with United States President Donald Trump.

“As part of today’s commitment, we will take extensive additional steps to continue to reduce the costs of electricity for our neighbors. xAI will therefore commit to develop 1.2 GW of power as our supercomputer’s primary power source. That will be for every additional data center as well. We will expand what is already the largest global Megapack power installation in the world,” Shotwell said.

“The installation will provide enough backup power to power the city of Memphis, and more than sufficient energy to power the town of Southaven, Mississippi where the data center resides. We will build new substations and invest in electrical infrastructure to provide stability to the area’s grid.”

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Tesla China teases Optimus robot’s human-looking next-gen hands

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

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Credit: Tesla China

A new teaser shared by Tesla’s China team appears to show a pair of unusually human-like hands for Optimus. 

The image was shared by Tesla AI’s account on Weibo and later reposted by Tesla community members on X.

As could be seen in the teaser image, the new version of Optimus’ hands features proportions and finger structures that look strikingly similar to those of a human hand. Their appearance suggests that they might have dexterity approaching that of a human hand.

If the image reflects a new generation of Optimus’ hands, it could indicate Tesla is continuing to refine one of the most critical components of its humanoid robot.

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Hands are widely viewed as one of the most difficult engineering challenges in robotics. For Optimus to perform complex real-world work, from manufacturing tasks to household activities, its hands would need to be the best in the industry.

Elon Musk has repeatedly described Optimus as Tesla’s most important long-term product. In posts on social media platform X, Musk has stated that Optimus could eventually become the first real-world Von Neumann machine.

In theory, a Von Neumann machine is a self-replicating system capable of building copies of itself using available materials. The concept was originally proposed by mathematician John von Neumann in the mid-20th century.

“Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet,” Musk wrote in a post on X.

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If Optimus is expected to carry out complex work autonomously in the future, high levels of dexterity will likely be essential. This makes the development of advanced robotic hands a key step towards Musk’s long-term expectations for the product.

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