Nvidia CEO Jensen Huang Thinks Tesla Has a Multitrillion-Greenback Synthetic Intelligence (AI) Alternative Up Its Sleeve (Trace: It is Not Robotaxi)

Tesla‘s (TSLA -2.19%) quest to revolutionize the car trade isn’t restricted to mass-producing electrical automobiles (EV). Whereas vehicles signify Tesla’s main product right this moment, the corporate has a imaginative and prescient to turn out to be a synthetic intelligence (AI) empire.

Essentially the most direct manner that Tesla is deploying AI is thru the introduction of autonomous automobiles. Tesla is in search of to create a fleet of self-driving vehicles, generally known as the robotaxi, that may be hailed by shoppers — just like purposes similar to Uber or Lyft. Whereas that is an thrilling initiative, Tesla has one other AI mission that receives little consideration: humanoid robotics.

Just lately, Nvidia CEO Jensen Huang proclaimed that humanoid robotics could possibly be a “multitrillion-dollar trade.” Moreover, Huang particularly referenced the Tesla Optimus as one of many main robotics companies that excites him.

Let’s discover the completely different ways in which Optimus may assist Tesla. As well as, I am going to analyze latest worth motion in Tesla inventory to evaluate if now is an effective time to purchase the inventory.

Why is humanoid robotics essential?

On the floor, the concept of humanoid robots may sound like one thing out of a science fiction novel. Nonetheless, what traders might not understand is that Tesla is way from the one firm exploring the intersection of robotics and AI.

In relation to humanoid bots particularly, one of many extra distinguished start-ups is Determine AI — which attracted various high-profile traders, together with Nvidia.

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Watch Helix’s neural community do 60 minutes of uninterrupted logistics work

Helix now incorporates contact and short-term reminiscence and it is efficiency constantly improves over time pic.twitter.com/DvfBe9IdGH

— Determine (@Figure_robot) June 7, 2025

The video above demonstrates an instance of how Determine AI plans to deploy its robots in labor-intensive environments , similar to factories. The thought right here is that complementing human employees alongside robotics can yield a brand new degree of productiveness, automation, and effectivity within the workforce.

How may Optimus revolutionize Tesla?

I see two main ways in which Tesla stands to learn from Optimus.

Using machine studying may assist prepare Optimus on duties which can be at present carried out by human employees alongside Tesla’s meeting line. Over time, Optimus may turn out to be refined sufficient to finish essential facets of the manufacturing course of. In concept, Tesla may subsequently deploy fleets of Optimus bots throughout its varied factories worldwide — having them work across the clock. At scale, this might result in a serious improve in car manufacturing.

This concept could possibly be parlayed into extra purposes. For instance, Tesla not solely stands to learn from promoting Optimus to different labor-heavy industries, nevertheless it may additionally introduce the know-how into extra mundane settings past manufacturing facility work.

The notion that humanoid robots may complement and even change bodily employees throughout the globe is what’s driving Musk’s projection that Optimus could possibly be price a number of trillion sooner or later — far higher than the core EV enterprise.

Is Tesla inventory a purchase proper now?

With Tesla shares up practically 30%, it is essential to zoom out and think about why Tesla inventory is shifting so sharply proper now.

TSLA knowledge by YCharts

For the time being, the largest storyline surrounding Tesla is the long-awaited robotaxi launch. With preliminary deployment in Texas this week, Tesla bulls have been cheering on the inventory.

Whereas I personally stay a Tesla optimist, I feel the inventory has gotten forward of itself. Given the dynamics of the value motion above, it could seem that the near-term upside from a profitable robotaxi launch is already baked into Tesla inventory.

As I’ve written beforehand, Tesla is a inventory that tends to maneuver based mostly on narratives fairly than the underlying realities surrounding the corporate. I see Optimus and the concept of humanoid robotics as no completely different than the robotaxi.

Though Optimus has the potential to utterly rework Tesla, the timeline on which this new enterprise scales and its execution relative to the competitors stay query marks.

I feel sensible traders ought to proceed to watch Tesla’s progress within the AI realm however wait till these varied ambitions start shifting the needle for the corporate earlier than shopping for the inventory.

Adam Spatacco has positions in Nvidia and Tesla. The Motley Idiot has positions in and recommends Nvidia, Tesla, and Uber Applied sciences. The Motley Idiot recommends Lyft. The Motley Idiot has a disclosure coverage.