Elon Musk says Tesla will sell humanoid robots to public by 2027, expects FSD approval next month

Reviewed byNidhi Govil

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Elon Musk outlined ambitious timelines for Tesla's future at the World Economic Forum in Davos. The CEO announced plans to sell Optimus humanoid robots to the public by the end of 2027, while expecting regulatory approval for the Full Self-Driving system in Europe and China as early as next month. These moves come as Tesla seeks to diversify revenue streams beyond its struggling electric vehicle business.

Tesla Pushes Humanoid Robots and FSD Approval as EV Sales Struggle

Elon Musk delivered a series of bold predictions at the World Economic Forum in Davos, announcing that Tesla plans to sell its Optimus humanoid robot to the public by the end of 2027, assuming the machines meet rigorous standards for safety and reliability

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. The timeline marks a more concrete commitment from the Tesla CEO, who has positioned humanoid robots as central to the company's future alongside artificial intelligence and autonomous vehicles. Speaking with BlackRock CEO Larry Fink, Musk emphasized that public sales by next year would only proceed once Tesla achieves "very high reliability, very high safety, and the range of functionality is also very high"

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Source: Seattle Times

Source: Seattle Times

The announcement comes as Tesla faces mounting pressure to diversify revenue streams beyond its core electric vehicle business, which has suffered two consecutive years of declining deliveries. The company ceded its position as the world's largest EV maker to China's BYD, while registration of Tesla's vehicles fell 11.4% in California last year, with market share slipping below 50%

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. Competition in the EV market has intensified, and slowing vehicle sales have made software revenue and robotics increasingly critical to Tesla's growth strategy.

Optimus Already Performing Simple Factory Tasks

Tesla's Optimus humanoid robot is already performing simple factory tasks at the company's facilities, with Musk predicting that the machines would handle "more complex tasks" by the end of 2026

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. These internal deployments serve as a testing ground for the robotics platform before broader commercial use. Originally unveiled as the Tesla Bot in 2021, Optimus has undergone multiple prototype iterations as Tesla works to address the considerable technical challenges inherent in humanoid robotics

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Source: Digital Trends

Source: Digital Trends

During a January 2025 earnings call, Musk offered a "very rough guess" that Tesla would start delivering Optimus robots to other companies in the second half of 2026, before expanding to consumer sales in 2027

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. However, skepticism persists among industry experts. Recent public demonstrations revealed that Optimus robots were being remotely piloted by human operators rather than acting autonomously, raising questions about the timeline's feasibility

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. Ken Mahoney, CEO of Tesla shareholder Mahoney Asset Management, noted that the market needs "credible evidence of scalable manufacturing, a regulatory path, and unit economics if possible"

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Regulatory Approval in Europe and China Expected Next Month

Musk also announced that Tesla expects regulatory approval for its Full Self-Driving system in Europe and China as early as next month, a development that would prove crucial for generating software revenue outside the United States

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. "We hope to get Supervised Full Self-Driving approval in Europe, hopefully next month, and then maybe a similar timing for China," Musk stated at Davos

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. Shares of the automaker rose approximately 1.5% following the announcement.

Tesla has faced significant hurdles securing FSD approval in Europe, where tougher vehicle safety rules and a fragmented regulatory framework have slowed deployment compared to the U.S. The Dutch vehicle authority RDW indicated in November that it expects to decide on FSD software in February, and once approval is secured in the Netherlands, other EU countries could recognize the exemption and allow rollout ahead of formal EU approval

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. The system, classified as an advanced driver assistance feature requiring drivers to remain attentive, has faced scrutiny from regulators concerned about the safety and oversight of automated driving technologies

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AI to Surpass Human Intelligence This Year, Musk Predicts

Beyond robotics and autonomous driving, Musk made sweeping predictions about artificial intelligence, stating that AI could surpass human intelligence as soon as this year. "I think we might have AI that is smarter than any human by the end of this year. No later than next year," Musk told the World Economic Forum audience

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. He added that by around 2030 or 2031, AI could become "smarter than all of humanity collectively."

Source: ET

Source: ET

The Tesla, SpaceX, and xAI CEO argued that the main bottleneck slowing AI deployment is electricity generation, not chips or models, and advocated for large-scale solar power deployment

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. Musk envisions a future where "ubiquitous AI" and "ubiquitous robotics" create "an explosion in the global economy," with humanoid robots eventually outnumbering humans

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. However, he acknowledged the risks, warning against a Terminator scenario and stressing the need for careful development of advanced AI and robotics

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Musk has repeatedly stated that much of the artificial intelligence developed for autonomous vehicles will also underpin Tesla's planned humanoid robots

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. Yet industry experts remain cautious, noting that scaling humanoid robots for real-world use faces technical complexity, particularly due to a lack of data needed to train the AI models that underpin robot behavior

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. Gary Marcus, a cognitive scientist at New York University, previously characterized Musk's predictions as "overoptimistic," calling it "fantasy to imagine selling 200 times as many humanoid robots in the nearish term when nobody knows how to build a single safe, reliable, generally useful humanoid right now, at any price"

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