Nvidia CEO Jensen Huang Thinks Tesla Has a Multitrillion-Dollar Artificial Intelligence (AI) Opportunity Up Its Sleeve (Hint: It's Not Robotaxi)
Tesla's (NASDAQ: TSLA) quest to revolutionize the automobile industry is not limited to mass-producing electric vehicles (EV). While cars represent Tesla's primary product today, the company has a vision to become an artificial intelligence (AI) empire.
The most direct way that Tesla is deploying AI is through the introduction of autonomous vehicles. Tesla is seeking to create a fleet of self-driving cars, known as the robotaxi, that can be hailed by consumers -- similar to applications such as Uber or Lyft. While this is an exciting initiative, Tesla has another AI project that receives little attention: humanoid robotics.
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Recently, Nvidia CEO Jensen Huang proclaimed that humanoid robotics could be a "multitrillion-dollar industry." Furthermore, Huang specifically referenced the Tesla Optimus as one of the leading robotics businesses that excites him.
Let's explore the different ways that Optimus might help Tesla. In addition, I'll analyze recent price action in Tesla stock to assess if now is a good time to buy the stock.
Why is humanoid robotics important?
On the surface, the idea of humanoid robots might sound like something out of a science fiction novel. However, what investors may not realize is that Tesla is far from the only company exploring the intersection of robotics and AI.
When it comes to humanoid bots specifically, one of the more prominent start-ups is Figure AI -- which attracted a number of high-profile investors, including Nvidia.
Watch Helix's neural network do 60 minutes of uninterrupted logistics work
-- Figure (@Figure_robot) June 7, 2025
Helix now incorporates touch and short-term memory and it's performance continuously improves over time pic.twitter.com/DvfBe9IdGH
The video above demonstrates an example of how Figure AI plans to deploy its robots in labor-intensive environments , such as factories. The idea here is that complementing human workers alongside robotics can yield a new level of productivity, automation, and efficiency in the workforce.
How could Optimus revolutionize Tesla?
I see two major ways that Tesla stands to benefit from Optimus.
The use of machine learning could help train Optimus on tasks that are currently performed by human workers along Tesla's assembly line. Over time, Optimus could become sophisticated enough to complete important aspects of the manufacturing process. In theory, Tesla could subsequently deploy fleets of Optimus bots across its various factories worldwide -- having them work around the clock. At scale, this could lead to a major increase in vehicle production.
This idea could be parlayed into more applications. For example, Tesla not only stands to benefit from selling Optimus to other labor-heavy industries, but it could also introduce the technology into more mundane settings beyond factory work.
The notion that humanoid robots could complement or even replace physical workers across the globe is what is driving Musk's projection that Optimus could be worth several trillion in the future -- far greater than the core EV business.
Image source: Getty Images.
Is Tesla stock a buy right now?
With Tesla shares up nearly 30%, it's important to zoom out and consider why Tesla stock is moving so sharply right now.
TSLA data by YCharts
At the moment, the biggest storyline surrounding Tesla is the long-awaited robotaxi launch. With initial deployment in Texas this week, Tesla bulls have been cheering on the stock.
While I personally remain a Tesla optimist, I think the stock has gotten ahead of itself. Given the dynamics of the price action above, it would appear that the near-term upside from a successful robotaxi launch is already baked into Tesla stock.
As I've written previously, Tesla is a stock that tends to move based on narratives rather than the underlying realities surrounding the company. I see Optimus and the idea of humanoid robotics as no different than the robotaxi.
Although Optimus has the potential to completely transform Tesla, the timeline on which this new business scales and its execution relative to the competition remain question marks.
I think smart investors should continue to monitor Tesla's progress in the AI realm but wait until these various ambitions begin moving the needle for the company before buying the stock.
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Adam Spatacco has positions in Nvidia and Tesla. The Motley Fool has positions in and recommends Nvidia, Tesla, and Uber Technologies. The Motley Fool recommends Lyft. The Motley Fool has a disclosure policy.
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