Felicity Bradstock
Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.
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By Felicity Bradstock – Feb 07, 2026, 4:00 PM CST
- Automakers are prioritizing long-term automation gains over current productivity limits of humanoid robots.
- Tesla and Hyundai are among the leaders pushing humanoid robots into factories within the next few years.
- Labor groups and experts warn that technical hurdles and employment disruptions remain significant risks.
Several automakers are investing heavily in robots in a bid to further automate operations in the future. It does not seem to matter that the current generation of humanoid robots works at a slower pace than humans, as automakers still view these machines as more cost-efficient for their factories. While Elon Musk invests heavily in Tesla’s Optimus Robots, Hyundai has big plans for incorporating robots in its United States operations in the coming years.
A recent estimate by Barclays suggests that the current humanoid robot market has a value of between $2 billion and $3 billion, which is expected to grow to at least $40 billion by 2035, as AI-powered robots are deployed.
Tesla’s CEO, Elon Musk, recently announced that the firm’s long-awaited humanoid robot, Optimus, is nearing completion. Speaking at the World Economic Forum 2026 in Davos, Switzerland, in January, Musk said that Tesla plans to “make its Optimus robots available for sale to the public by the end of 2027.” He added, “My prediction is there will be more robots than people.”
Musk expects the robots to be highly reliable, safe, and functional by this time, and, therefore, capable of performing a diverse range of tasks. If successful, Tesla will be one of the few companies offering consumers general-purpose humanoid robots for the home, at a cost of between $20,000 and $30,000.
Tesla already has some Optimus units in operation at its facilities, capable of performing basic tasks. Musk expects these robots to be able to manage more complex tasks by the end of the year, thanks to the rapid speed at which they can learn. In January, Tesla announced that it plans to carry out data collection to train its humanoid robot at its Austin Gigafactory, to teach the Optimus how to operate in the Texas facility. The firm has already been collecting data and training Optimus prototypes in its Fremont facility in California for over a year.
However, experts say that mass-producing highly capable humanoid robots is extremely complicated, and many doubt that Tesla will meet its 2027 release deadline. It is one thing to have these robots performing monotonous tasks in just one space, but it is a very different thing to create a machine that can perform a wide range of tasks in the home. Due to the uncertainties around robot production, several investors are waiting for proof that Tesla can deploy this level of technology.
Tesla is not the only automaker with big plans for robots, with Korea’s Hyundai announcing plans to roll out humanoid robots at its U.S. plant by 2028. In January, Hyundai Motor Group presented Boston Dynamics’ Atlas robot at the Consumer Electronics Show in Las Vegas. The firm said it aims to construct a factory capable of producing 30,000 robots a year by 2028 and to start deploying humanoid robots at its Georgia facility that same year.
The announcement sent Hyundai’s shares soaring. However, the company’s labour union is less enthusiastic about the move, suggesting that it will spur mass layoffs. The union accused Hyundai of putting its profits above its commitment to its workers. “Under no circumstances will workers welcome the plan, as the robot deployment will bring a huge employment shock,” a spokesperson stated. “The union warns that not a single robot can be deployed at worksites without an agreement between the union and management.”
Hyundai has defended the move by suggesting that robots can be tasked with operations that are dangerous for humans. However, as robots cost relatively little to maintain and do not require sick days, vacation time, rest, or lunch breaks, the potential cost reduction is clearly attractive.
In addition to contributing to mass layoffs, many are questioning the efficiency of using robots. The Chinese firm UBTech Robotics, one of the country’s leading robotics developers, recently admitted that its latest Walker S2 humanoids are capable of just 30 to 50 percent of a human worker’s productivity, suggesting that major advancements are needed to warrant the replacement of humans with robots in production lines and other operations.
Nevertheless, orders have increased in recent months, with Chinese electric vehicle makers, such as BYD and Foxconn, experimenting with offsetting labour shortages by using humanoid robots. “You can imagine … if Tesla has the advantage of deploying their own human robots into the manufacturing line, that means maybe BYD, they are staying behind,” explained UBTech’s chief brand officer, Michael Tam.
The age of the humanoid robot is coming, as several automakers in the United States and elsewhere invest in developing the capabilities of these bots. This could eventually lead to mass layoffs, as companies use the robots to perform simple or dangerous tasks in place of humans. However, significant technical advances must still be made to enhance efficiency and produce robots that are capable of carrying out a more diverse range of tasks.
By Felicity Bradstock for Oilprice.com
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Felicity Bradstock
Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.
