Elon Musk Says 80% Of Tesla's Value Lies In Robots While China's UBTech Scores Record Deal, JPMorgan Sees Beijing Firms Leading The Humanoid Boom

Benzinga
2025.09.05 03:14
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Tesla CEO Elon Musk predicts that the company's Optimus humanoid robots will account for 80% of its value. This comes as Chinese firm UBTech secures a $35 million contract for humanoid robots, marking a significant milestone in the industry. JPMorgan identifies Chinese companies as key players in the humanoid robotics market, noting a shift from R&D to delivery capabilities. Tesla's focus on robotics coincides with declining EV sales, prompting strategic changes in its Master Plan IV, emphasizing AI and robotics over new vehicle development.

Tesla Inc. TSLA CEO Elon Musk doubled down on his robotics vision on Tuesday, predicting that the company’s Optimus humanoid robots will eventually represent approximately 80% of Tesla’s total value.

The bold forecast comes as Chinese robotics firm UBTech secured a record-breaking $35 million contract for its Walker S2 humanoid robots—the largest single order for humanoid robots globally.

JPMorgan Identifies Chinese Leaders in Humanoid Race

JPMorgan analysts highlighted the accelerating commercialization of humanoid robotics in a Thursday research note, identifying Chinese companies as primary beneficiaries of the emerging market, according to CNBC. The investment bank maintained overweight ratings on four Chinese firms: UBTech, Sanhua Intelligent, Leader Drive and Hengli Hydraulic.

“2025 has marked a turning point for the humanoid robot industry, as order volumes and contract values have grown sharply,” JPMorgan’s infrastructure team wrote, according to the report, noting the shift from R&D to actual delivery capabilities.

Tesla’s AI Pivot Amid Declining EV Sales

Musk’s robotics emphasis coincides with Tesla’s struggling vehicle sales. European deliveries plummeted 40.2% in July, while Chinese rival BYD Co. Ltd. BYDDY surged 225% in the same period. Tesla responded with price cuts on its Model 3 Long Range in China and introduced $0 down leases for used vehicles in the U.S.

Investment firm Gerber Kawasaki‘s Ross Gerber questioned Tesla’s robotics strategy, posting on X: “If they won’t buy his cars. Why would they buy a huge robot for their home from him?”

Master Plan IV Prioritizes Robotics Over EVs

Tesla’s newly released Master Plan IV reflects the company’s strategic pivot toward artificial intelligence and robotics, with minimal mention of new vehicle development.

The humanoid robotics market is attracting significant investment, with Musk’s AI company xAI reportedly investing over $40 billion in its Memphis data center to support the Colossus 1 supercomputer training the Grok AI model.

  • Elon Musk's xAI Hit By CFO Exit, Adding To Wave Of Leadership Departures: Report

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