Elon Musk

But I think it is accurate to say that if successful, Optimus will be the biggest product ever.

I think that the marginal cost of production, once you hit a million units per year, is probably around the $20,000 range.

It sort of depends on how much you spend on the AI chip in the robot.

And you need to achieve a lot of efficiencies in the actuators.

There are 26 actuators per arm.

Like 26 motors, gearboxes, and power electronics.

So the AI chip will be pretty expensive.

That might be like $5,000 or $6,000 of the bill of materials, maybe more.

But I think at volume, at a million units a year, the production cost is probably in the order of $20,000, maybe $25,000, something like that.

And the price will be as a function of demand.

It turns out that human hands are incredibly, they've evolved to be this incredibly sophisticated machine.

Your hand is actually a remarkable thing.

Look closely at your hands and think of all the things you can do with your hands, which is a lot.

I was just thinking about something.

Your hands are a very versatile instrument.

Very versatile.

You know, you can swing a baseball bat.

You can thread needles.

You can put thread in a needle.

You can play the piano with violin.