Automakers are increasingly betting on humanoid robots as a cornerstone of future factory automation, even though today’s machines remain slower and less productive than human workers. Companies such as Tesla and Hyundai Motor Group are prioritizing long-term efficiency and cost savings over short-term performance limits, signaling a major shift in how vehicle manufacturing could evolve over the next decade.
According to Barclays, the global humanoid robot market is currently worth between $2 billion and $3 billion, but could grow to at least $40 billion by 2035 as AI-powered machines become more capable and widely deployed. Much of this momentum is driven by Tesla’s Optimus project, championed by CEO Elon Musk, who recently said at World Economic Forum that Tesla plans to sell its general-purpose robots to the public by the end of 2027. Musk predicts a future with more robots than people and believes Optimus will eventually handle a wide range of tasks safely and reliably, with consumer models priced between $20,000 and $30,000.
Tesla has already begun using Optimus prototypes in its factories, where they perform basic operations while gathering data to improve their learning systems. However, many experts remain skeptical about Tesla’s ambitious timeline. Building robots that can reliably operate across diverse environments—especially homes—is far more complex than programming them for repetitive factory tasks. Investors are also waiting for concrete proof that mass production of advanced humanoid robots is commercially viable.
Hyundai is pursuing a parallel strategy. The company plans to deploy robots at its U.S. manufacturing facilities by 2028 and showcased Boston Dynamics’ Atlas robot at CES earlier this year. Hyundai aims to construct a plant capable of producing 30,000 robots annually, starting deployment at its Georgia factory the same year. While the announcement boosted Hyundai’s stock, labor unions warned of severe employment impacts, arguing that large-scale robot adoption could trigger mass layoffs unless worker protections are negotiated.
Manufacturers often frame robots as a way to handle dangerous or physically demanding tasks. Still, the economic appeal is clear: robots do not require breaks, sick leave, or benefits. Yet efficiency remains a major concern. China’s UBTech Robotics has acknowledged that its Walker S2 robots achieve only 30–50% of a human worker’s productivity, highlighting how much technical progress is still needed before widespread replacement of labor makes operational sense.
Despite these limitations, demand is growing. Chinese firms such as BYD and Foxconn are experimenting with robots to offset labor shortages, wary of falling behind competitors that integrate automation faster. Industry leaders argue that early adopters could gain a strategic manufacturing edge.
In short, the age of humanoid robots is approaching, driven by automakers willing to absorb short-term inefficiencies for long-term gains. While these machines promise safer workplaces and lower operating costs, they also raise serious concerns about job displacement and technological readiness. For now, humanoid robots remain a bold investment in an uncertain future—one that hinges on rapid advances in AI, reliability, and real-world productivity before they can truly transform factories and society at scale.
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