Musk envisions a future in which there will be at least one humanoid robot for every person on Earth, and Tesla aims to capture a significant share of this burgeoning market.

Optimus, the humanoid robot developed and manufactured by Tesla, is currently being deployed in various capacities. Two Optimus bots are already employed at Tesla's Fremont factory, handling tasks such as removing cells from the production line. Additionally, several others can be found patrolling Tesla's offices in Palo Alto.

Musk announced that after a major hardware revision expected by the end of this year or early next year, limited production of the Optimus will commence. These robots will be put to work in Tesla's factories to test their capabilities. Musk predicts that the ratio of humanoid robots to humans will eventually reach at least one-to-one, resulting in a staggering population of 10 billion or more humanoid bots. Tesla plans to deliver a significant share of this robot army.

If Tesla were to achieve a 10% market share, each humanoid bot sold for $20,000 could generate an astronomical annual profit of one trillion dollars for the company. Musk aims to price the Optimus between $10,000 and $20,000, making it more affordable than Tesla's cheapest Model 3 sedan once high-volume production is achieved.

While several robot startups are also vying to create humanoid robots, Musk believes that it would be challenging for them to replicate Optimus due to its complex manufacturing process. According to him, prototypes are relatively simple compared to volume manufacturing. Musk warns that without the ability to mass-produce, these robots would likely cost hundreds of thousands of dollars each.

Tesla faced the challenge of building Optimus from scratch as no existing supply chain could provide the necessary motors and other components for a humanoid robot. However, the company is continuously enhancing Optimus's capabilities, with plans to enable it to play the piano in the next iteration and respond to voice commands in the future.

Musk announced that next year, Tesla will deploy at least a thousand Optimus bots to perform various tasks at its factories. He has previously expressed the intention to potentially start selling Optimus to external customers by the end of 2025.

Elon Musk, known for his bold predictions, referred to Optimus as a "$25 trillion market cap situation," surpassing even the potential of the autonomous vehicle market, which he estimated to be valued at $5-$7 trillion. Musk acknowledged his "pathological optimism" during the shareholder meeting, but emphasized his track record of delivering on his promises.

Originally introduced with the goal of handling unsafe and repetitive tasks, Optimus has evolved into a versatile companion. Musk envisions the robot being able to serve as a babysitter, perform household chores, and navigate reality to fulfill various requests.

The news of Tesla's Optimus ambitions has generated excitement among investors, as Tesla shares saw a 1.30% increase in premarket trading on Friday. With the promise of a future filled with humanoid robots, Tesla aims to revolutionize industries and tap into the massive economic potential they offer.