One of the most challenging aspects of running a business is marketing. Essentially, marketing involves the art of narrative creation. When companies are unable to develop engaging narratives, it becomes difficult to connect with customers.
One company that stands out for not heavily relying on advertising is Tesla ( TSLA 0.58% ) In the face of fierce rivalry, Tesla possesses a unique advantage that sets it apart from its competitors. This advantage is not related to superior technology or a large quantity of resources. A creation of the mind that is protected by law, such as inventions, literary and artistic works, and symbols, names, and images used in commerce. (IP).
I’m referring to the company’s vocal CEO. Elon Musk There are only a small number of business leaders who have the same level of influence as Musk in the business world. Whenever Musk speaks, it appears that people pay attention to him regardless of the situation.
Musk recently suggested that Tesla is facing a massive opportunity worth $200 trillion named Optimus. What’s exciting is that this opportunity is unrelated to the company’s main electric vehicle (EV) business.
Let’s delve into Musk’s comments and examine the extent of the potential opportunity.
Can you please provide more information about Tesla Optimus for me to help you further?
Many individuals are aware of Tesla primarily for its electric vehicles. However, what might be less known is that Tesla also holds various aspirations in the field of AI (AI).
One of the major AI projects undertaken by the company focuses on robotics that resemble humans , named Optimus by Tesla. In essence, Tesla is utilizing Artificial intelligence technique that involves training computers to learn from data and make decisions or predictions. to teach robots of human size how to carry out simple duties.
The goal is for Optimus bots to become skilled enough to assist the human employees at Tesla’s factories.
Photo credit: Getty Images.
Is there a market worth $200 trillion?
During The financial report for Tesla in the second quarter. Musk reiterated his optimistic view of Optimus by stating that he believes it will hold greater value compared to all other assets combined.
In the video, Musk discusses his views on Optimus and its opportunity to become a $200 trillion enterprise.
The final outcome
While Musk’s remarks might generate enthusiasm, it is crucial to consider some significant points of caution.
Tesla is not the sole company working on humanoid robotics, as there are other competitors in the field, with one of the significant ones being mentioned here. Figure AI , a new company supported by Nvidia , Intel , and Microsoft .
Figure AI foresees a future where humanoid robots are deeply embedded in various facets of society, including logistics, warehouse work, retail, and care for the elderly. The company believes that revolutionizing manual labor on a large scale could create a market opportunity worth $42 trillion.
In addition to Optimus and Figure AI, other significant participants in the field of humanoid robotics consist of Boston Dynamics, 1X, and numerous emerging companies in China. With such a considerable focus on this area, it is not unexpected that Goldman Sachs outlines The market for humanoid robotics is valued at $38 billion. Within the next ten years.
Investors should also be aware of the second point, which is that… Total addressable market (TAM) refers to the overall revenue opportunity that is available for a product or service within a specific market. Estimates for the number of humanoid robots vary greatly, from tens of billions to hundreds of trillions. Although we don’t know exactly when we might reach 10 billion units like Optimus, the concept of having more humanoid robots than humans on Earth is certainly a daring notion.
Nevertheless, investors should not become overly focused on the precise details of the prediction. The process of bringing Optimus to market for profit. Scheduled to take place in two years, investors might find out sooner rather than later how demand is shaping up.
It is currently uncertain whether humanoid robots will be successful, including whether Optimus will emerge as a prominent figure in this field. However, similar to Tesla’s other offerings, Musk has effectively promoted the potential of Optimus and generated enthusiasm among investors for what lies ahead.
