Elon Musk says future Tesla robots could reach AGI-level intelligence

Tesla (TSLA) CEO Elon Musk said the company will be one of the first companies to make artificial general intelligence and “probably the first to make it in humanoid/atom-shaping form,” as he remains confident in the AI future.

AGI is roughly defined as a hypothetical kind of AI that can understand, learn, and perform essentially any intellectual task a human can, at roughly human level or beyond. That advanced humanoid robot concept would appear to be a generation or two beyond what Tesla (TSLA) is anticipated to reveal with Optimus Gen 3, which is anticipated to be a humanoid robot designed to perform industrial and household tasks using Tesla’s (TSLA) full self-driving–style AI stack.

Earlier this year, Tesla said it plans to announce Optimus Gen 3 in the first quarter of 2026, describing it as the first version designed for mass manufacturing rather than demo.

Morgan Stanley expects that Optimus Gen 3 will largely be contained to Tesla (TSLA) factories this year, where it can collect critical real-world data to train its models and trial novel hardware designs in a controlled, lower-risk environment. “Given that it would be over two years since the last major, full-body Optimus update and the numerous pivots the company has made… we would not be surprised if Gen 3 is a substantial departure from the current version,” updated analyst Adam Jonas. He thinks Optimus Gen 3 could actually be simpler than expected.

Elon Musk has suggested that Optimus Gen 3 could scale rather quickly to roughly 1M units per year.

Shares of Tesla (TSLA) were down 0.8% in premarket trading on Thursday to $402.80.

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