Tesla is targeting annual production of 10 million Optimus humanoid robots at its Texas factories, a volume that would generate $250 billion in yearly sales at the company's planned $25,000 price point. Shares rose on the news, and analysts point to mechanical and chip suppliers, including Moog, Amphenol, and Texas Instruments, as potential beneficiaries of the buildout.
Tesla shares climbed 4.77% to $371.01 after CEO Elon Musk said he believes the company can produce 10 million Optimus humanoid robots a year at its Texas factories. Tesla wants to sell the robots for around $25,000 each.
Tesla's robot math
At 10 million units and $25,000 apiece, Optimus sales would reach $250 billion a year, larger than Tesla's current automotive business. An exact date for reaching that production level has not been set, and Optimus remains a prototype today. However, the company sees uses spanning household chores, construction, and farming, along with commercial and industrial applications.
Mechanical suppliers in line
Precise actuators, controls, and connectors will drive up robot costs, which points to established industrial suppliers. Moog, a longtime maker of precision actuators and electronic systems for aircraft, has posted revenue growth of 847% cumulatively since the start of the century, a pace that could accelerate if the humanoid market expands. Amphenol, which supplies sensors, interconnectors, and cables, posted 30% organic growth last quarter to reach $8.8 billion in revenue, a market that has been booming due to the artificial intelligence infrastructure build-out.
Chips and computing power behind the robots
Humanoids will also need chips and cloud computing to run their AI systems, a market where Nvidia and Taiwan Semiconductor Manufacturing already carry premium valuations. Texas Instruments, which sells a broad range of basic chips across robotics much as it does in automotives, grew revenue 23% year over year last quarter to $5.46 billion. It trades at a price-to-earnings ratio of 44. Its dividend per share has risen 184% over the last decade.
Source: Fool
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