Humanoid Robots Poised for Explosive Growth: Tesla and Other Robotics Stocks to Watch

The robotics industry is entering a phase of accelerated growth, fueled by artificial intelligence (AI) advancements and rising global automation demand. Humanoid robots, once a concept of science fiction, are now becoming a multi-trillion-dollar market opportunity. With Wall Street giants like Goldman Sachs, Morgan Stanley, and Citigroup issuing bullish projections, investors are eyeing robotics stocks as the next big growth play.

Robotics Market Set for Massive Expansion

According to a recent Goldman Sachs report, the total addressable market (TAM) for humanoid robots is expected to surpass $38 billion by 2035—a dramatic upgrade from the previous $6 billion estimate in 2023. Morgan Stanley predicts that humanoid robot units will reach 40,000 by 2030 and surge to over 63 million by 2050. Citigroup is even more optimistic, projecting a staggering $7 trillion market by 2050, with 1.19 billion humanoid robots in use globally.

The growth is already visible. The 2023 World Robotics report revealed that approximately 4.28 million robots were operating in factories worldwide, marking a 10% increase from 2022. Asia remains the dominant market, with China alone installing 276,288 industrial robots in 2023, accounting for 51% of global installations. Meanwhile, the U.S. holds the largest robotics market share in the Americas, representing 68% of regional installations.

Tesla Leading the Robotics Revolution

While Tesla Inc. (NASDAQ:TSLA) is widely recognized for its electric vehicles (EVs), its expanding focus on robotics is attracting substantial investor attention. CEO Elon Musk has positioned Tesla as a major robotics player through its Optimus robot and the anticipated Cybercab robotaxi.

Wedbush analyst Daniel Ives recently reiterated an Outperform rating on Tesla with a $550 price target, highlighting its autonomous ambitions. According to Ives, the upcoming Cybercab, Tesla’s full self-driving (FSD) expansion, and the launch of a more affordable EV later this year could drive significant growth.

Cathie Wood’s Ark Invest Management is even more bullish, predicting Tesla shares could surge to $2,600 by 2029. Ark’s models suggest that by 2029, EV sales will represent only 26% of Tesla’s revenue, with autonomous ride-hailing making up the majority. The Cybercab, powered by FSD software, is expected to be a game-changer, making Tesla a leader in both EVs and robotics.

Robotics ETFs Under Pressure Despite Long-Term Potential

Despite the promising outlook, robotics-focused exchange-traded funds (ETFs) have struggled year-to-date, reflecting broader market pressures. The Global X Robotics & Artificial Intelligence ETF (BOTZ) and Robo Global Robotics and Automation Index ETF (ROBO), which delivered over 11% returns in 2024, have dropped nearly 10% and 7%, respectively, in 2025.

The decline comes amid broader market headwinds, including tariffs and geopolitical tensions. However, analysts view the current dip as a potential buying opportunity, considering the long-term growth potential of the robotics sector.

Billionaire Investors Betting on Robotics Stocks

Institutional investors and billionaires are piling into robotics stocks, recognizing their disruptive potential. Tesla, in particular, is widely held by billionaires, with 21 billionaire investors and 126 hedge funds holding the stock as of Q4 2024. The growing institutional interest signals confidence in the sector’s future growth.

Key Takeaway: Robotics Stocks Could Drive the Next Tech Boom

The robotics industry is at the forefront of technological innovation, with humanoid robots becoming a trillion-dollar opportunity. Tesla’s aggressive push into robotics with its Optimus and Cybercab platforms positions it as a key player in this space. While short-term market challenges persist, the long-term growth trajectory for robotics stocks appears highly promising, making them an attractive consideration for growth-focused investors.