In a bold pivot that underscores Elon Musk’s penchant for disruptive innovation, Tesla Inc. has unveiled its Master Plan Part IV, shifting its core focus from electric vehicles to artificial intelligence and humanoid robotics. The plan, detailed in a recent announcement, positions the Optimus robot as the linchpin of Tesla’s future growth, potentially eclipsing the company’s storied EV business amid slowing sales and intensifying competition.

According to insights from TipRanks, Tesla’s strategy now emphasizes AI-driven technologies, with Optimus designed to handle repetitive tasks in factories and homes. This move comes as EV demand softens globally, prompting Musk to bet on robotics as a new revenue engine.

Tesla’s leadership envisions Optimus not just as a product, but as a transformative force that could redefine labor markets and boost productivity across industries.

Musk has projected that by 2029, robotics and AI could account for 80% of Tesla’s enterprise value, a stark contrast to its current reliance on vehicle sales. Data from Bloomberg highlights Musk’s assertion that Optimus will drive the bulk of the company’s worth, even as car margins face pressure from price cuts and rivals like BYD.

The plan builds on Tesla’s existing AI infrastructure, including the Cortex training cluster in Austin, which powers advancements in full self-driving technology. As reported in Fortune, Tesla aims to deploy unsupervised autonomous driving in select cities by mid-2025, with Optimus prototypes expected to enter limited production soon after.

This strategic realignment reflects broader industry trends, where AI integration is seen as essential for sustaining growth beyond traditional automotive boundaries.

Critics, however, question the feasibility. Skeptics point to past delays in Tesla’s ambitious timelines, such as those for full self-driving capabilities. Wikipedia notes historical skepticism around Optimus, labeling early announcements as potential “mission creep” outside Tesla’s clean-energy roots.

Yet, Musk remains undeterred, forecasting mass production of Optimus by 2026, with internal goals for thousands of units operational in Tesla factories this year. Posts on X, formerly Twitter, from users like investor Herbert Ong echo this optimism, citing Musk’s plans for 10,000 robots in 2025, though acknowledging potential shortfalls.

Investors are weighing the risks, as Tesla’s stock volatility underscores the uncertainty of pivoting from proven EV dominance to uncharted robotic territories.

Financial analysts at Morgan Stanley, as shared in X discussions, project a $5 trillion humanoid robot market by 2050, with Tesla poised to capture a significant share through its AI prowess. This aligns with Tesla’s energy storage successes, which hit record highs last quarter, providing a buffer as robotics ramps up.

The Master Plan also outlines ambitious goals like sending Optimus to Mars in 2026 via SpaceX, blending Tesla’s ecosystem with Musk’s broader ventures. As detailed in Built In, Optimus stands 5 feet 8 inches tall, with 11 degrees of freedom in its hands, tailored for tasks from manufacturing to household chores.

Ultimately, this bet on Optimus could either propel Tesla to unprecedented valuations or expose vulnerabilities if technical hurdles persist.

For industry insiders, the shift signals a maturation of Tesla from an EV pioneer to an AI powerhouse. While EV growth plateaus, robotics offers a high-stakes opportunity to dominate emerging markets. Musk’s vision, as articulated in recent calls, positions Tesla to “accelerate the world’s transition to sustainable energy” through intelligent machines, potentially worth more than the top five companies combined. Whether this gamble pays off will depend on execution, but it undeniably redefines Tesla’s trajectory in the tech arena.