Hyundai isn’t claiming that robots will take over the world or save humanity, but at CES this past Monday, they might have significantly shaken investor confidence in Elon Musk and Tesla.
Here’s the kicker: Hyundai produces dramatically more cars than Tesla. Over the last three years, Hyundai has sold approximately 7 million cars annually, while Tesla has managed just around 1.8 million sales per year. That’s a monumental difference.
What makes Tesla the darling of Wall Street isn’t just their current output; it’s the captivating narratives that inspire investors. A big part of this narrative is Musk’s ambitious vision of a self-driving car future where Tesla could overshadow competitors like Waymo. Even more intriguing are Musk’s grand claims about his Optimus robots, suggesting they could one day end poverty, become the “biggest product of all time,” and generate “infinite” revenue.
But there’s a catch. Tesla’s robots have a mountain to climb in terms of credibility. Just five years ago, Musk unveiled a robot prototype that turned out to be just a person in a bodysuit—awkward and not particularly impressive.
In contrast, Hyundai’s acquisition of Boston Dynamics gives them a solid foundation in robotics. Boston Dynamics, established for over 30 years, has led the way in developing those famously agile, and sometimes eerie, quadrupedal and bipedal robots that once took the internet by storm.
So, let’s hear from the head of Boston Dynamics’ Atlas program, Zachary Jackowski, who’s aware of their competition. He asserts that while the current model is merely a research prototype, his team is set to produce “the best and actually simplest robot that we have ever built.” This new Atlas will be water-resistant and operate in a wide array of temperatures, from -20°C to 40°C.
Jackowski states that Boston Dynamics and Hyundai are amassing “the most complete dataset in the world to train humanoid skills.” The future vision includes a robotics factory capable of churning out 30,000 Atlas robots each year to support their automotive operations.
Of course, this is all part of the marketing spectacle. It’s hard to distinguish between what genuinely calms worried investors eager to reduce labor costs and what is meant to woo potential customers looking to buy humanoid robots.
Meanwhile, Musk has tied his substantial pay package—a staggering trillion-dollar potential—to the deployment of 1 million Optimus robots. It’s clear what’s pushing him forward. However, he has postponed the rollout of these robots, which were initially slated for production in Tesla factories by 2025 and available for other businesses by 2026. Musk keeps expanding the potential applications for these robots, once even comparing them to a “personal C-3PO/R2-D2.”
Now, whether you feel a spark of confidence in Tesla or find Hyundai equally daunting isn’t the heart of the matter. Both giants are tangled in complex narratives with far-reaching implications. As a Chaebol, Hyundai operates in a web of connections with South Korea’s government, thus posing its own set of challenges. The ultimate question isn’t whether to root for one over the other; it’s about assessing which story you find more credible and compelling.
What is Hyundai’s strategy in the robotics market?
Hyundai aims to leverage its acquisition of Boston Dynamics to innovate and produce humanoid robots, specifically targeting manufacturing applications.
How does Tesla’s production scale compare to Hyundai’s?
Hyundai far exceeds Tesla in production scale, with approximately 7 million cars sold annually compared to Tesla’s 1.8 million.
What are the claims surrounding Tesla’s Optimus robots?
Elon Musk has suggested that Tesla’s Optimus robots could tackle vast societal issues, even claiming they could generate “infinite” revenue.
What advancements has Boston Dynamics introduced in robotics?
Boston Dynamics has pioneered advanced robotics with tools and prototypes like Atlas, promising enhanced capabilities and durability in their upcoming models.
Should investors be concerned about Hyundai and Tesla’s narratives?
Both companies have narratives that are full of ambition, but the credibility and feasibility of those narratives should be critically examined by investors.
What do you think? Is Hyundai’s robotics vision more plausible than Tesla’s ambitious claims? Share your thoughts in the comments below!