Editor’s note: “Musk’s Boldest Vision Yet: How Optimus Could Be the iPhone of Robotics” was originally published in April 2025 and has been updated to reflect the latest information.

If you thought the Tesla (TSLA) Cybertruck was bold, consider this: Elon Musk’s most transformative product may not be a car, rocket, social media platform, or AI chatbot. Instead, many believe his humanoid robot, Optimus, could be his most significant achievement yet.

Musk asserts that Optimus could become the most valuable product in history, possibly even surpassing the iPhone.

This humanoid robot employs the same AI and Full Self-Driving (FSD) technology that powers Tesla’s autonomous vehicles. Unlike cars, however, Optimus can walk, talk, lift, carry, assemble, cook, clean, and, most importantly, learn.

Already operational, Optimus assists with light tasks in Tesla factories while gaining experience in real-world settings. Tesla aims to manufacture thousands this year, with plans to sell to businesses in 2025 and later to consumers.

During a recent Wall Street conference call, Musk stated:

“Optimus will be the overwhelming majority of Tesla’s value… It has the potential to generate over $10 trillion in revenue.”

This proclamation comes from the leader of not only the world’s most valuable car company but also of a successful space exploration firm, SpaceX, and a major player in renewable energy with Tesla Energy. Even with such accomplishments, Musk considers Optimus his crown jewel.

What drives Musk’s fascination with this technology?

Potential for Humanoid Robots to Revolutionize Industry

Many factors align to place humanoid robots at the forefront of American industry and daily life sooner than expected.

AI technology is advancing rapidly. For instance, average IQ scores for AI models have increased from 80 to 93 in September 2024 to between 95 and 130 today—just a six-month period.

Combine this intelligence with a human-like physicality, and the result is a potential unlimited, 24/7 labor force. Optimus promises productivity without the constraints of wages, breaks, or benefits.

Musk is actively building this future. Optimus could dramatically disrupt numerous sectors, providing support in warehouses, factories, restaurants, and homes, along with security and elder care.

In essence, this technology could significantly replace and augment human labor across the global economy.

Given Tesla’s scale, vertical integration, and AI expertise, it seems uniquely positioned to manufacture humanoid robots efficiently.

Political Connections and Pro-Robot Policies Under Review

As of 2025, Musk has forged a close relationship with U.S. President Donald Trump, which has been one of the year’s notable behind-the-scenes political shifts. For example, Trump now utilizes robotic dogs for security at Mar-a-Lago, showcasing the technological wave Musk represents.

Musk is also playing an advisory role within the White House regarding robotics efforts. Reports indicate he may step away from this role to focus more on his businesses.

This raises an important question: What will Musk do with his newfound time?

His goal is clear: accelerate the development of Optimus.

While still promoting Tesla’s Model 3 or Powerwall, Musk’s enthusiasm for Optimus is evident. He frequently shares videos, statements, and demonstrations, viewing the robot as a major advancement.

While it’s more than just a pocket assistant, Optimus represents a tangible personal assistant capable of performing everyday household tasks.

Final Thoughts: Assessing Market Perception of Musk’s Vision

Investors should note the increasing alignment between Musk and federal policy regarding automation and robotics. If the Trump Administration continues its focus on domestic manufacturing and economic revitalization, Optimus could emerge as a national priority.

This scenario could lead to significant federal support for robotics research and development, favorable regulations for automation, and government contracts.

Unlike competitors, Musk’s close relationship with the administration could provide Tesla with a distinct advantage.

While none of this is certain, the following factors hint at significant opportunity:

• Musk stepping back from political duties.
• His full attention reverting to Tesla.
• His commitment to improving Optimus.
• The robot is already functional.
• The economy’s need for more labor at reduced costs.

The market may not yet fully appreciate this potential. When it does, the upside could be significant.

As Wall Street debates interest rates and chipmakers, discerning investors are already anticipating the Robot Revolution.

_{On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.}