TLDR
- Tesla stock rose 1% after reports emerged that the Trump administration plans to accelerate robotics industry development through potential executive orders
- Commerce Secretary Howard Lutnick has been meeting with robotics CEOs and is described as “all in” on growing the sector
- Other robotics stocks saw bigger gains, with Serve Robotics up 8%, Richtech Robotics up 11%, and Teradyne up 1%
- The Commerce Department stated robotics and advanced manufacturing are central to bringing critical production back to the United States
- Tesla continues developing its Optimus humanoid robot, which recently demonstrated jogging capabilities and improved dexterity at industry conferences
Tesla stock climbed 1% on Wednesday after reports surfaced that the incoming Trump administration is preparing to prioritize robotics industry development. The move could provide a tailwind for the company’s Optimus humanoid robot project.
Commerce Secretary Howard Lutnick has been holding meetings with robotics industry CEOs. Sources told Politico he is “all in” on accelerating the sector’s growth. The administration is considering issuing an executive order on robotics next year.
The Commerce Department confirmed its commitment to the industry. “We are committed to robotics and advanced manufacturing because they are central to bringing critical production back to the United States,” the department stated.
This robotics initiative follows an artificial intelligence acceleration plan that the administration released five months ago. The Department of Transportation is preparing to announce a robotics working group, possibly before year-end.
Republicans in Congress attempted to include an amendment in the National Defense Authorization Act that would have created a national robotics commission. While that amendment didn’t make the final bill, other legislative efforts are reportedly underway.
Market Response Across Robotics Sector
Other robotics-related stocks posted stronger gains than Tesla on the news. Serve Robotics jumped 8% during trading. Richtech Robotics surged 11%.
Teradyne rose 1%. The market response suggests investors see potential in government support for the robotics sector.
Tesla’s stock movement was more modest compared to smaller robotics companies. The company has multiple business lines beyond robotics development.
Tesla’s Optimus Development Continues
Tesla recently showcased new capabilities for its Optimus humanoid robot in a video. The robot demonstrated a light jog with natural-looking form.
The robot made appearances at the Neural Information Processing Systems Conference. Spectators shared videos showing Optimus’s charging setup and movement patterns.
CEO Elon Musk has called Optimus the biggest product in history. He believes the robot will eliminate the need for humans to perform repetitive tasks.
Musk recently revealed larger ambitions for the project. He thinks Optimus could relieve humans of work entirely within 20 years.
The hand remains one of the toughest engineering challenges for the development team. Musk discussed this during the Q3 earnings call. “It’s an incredibly difficult thing, especially to create a hand that is as dexterous and capable as the human hand,” Musk said.
He noted that studying the human hand reveals why every finger length and muscle strength serves a purpose. Tesla has made progress on movement and mobility aspects.
Without functional hands and fingers, the robot’s usefulness would be limited for many tasks. The company is working on its third-generation version of Optimus.
Development continues as Tesla prepares for eventual mass production and customer sales. The Department of Transportation is preparing to announce a robotics working group, possibly before the end of the year.
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