Tesla (TSLA) Stock Climbs as Elon's Robots Prepare for Chinese Showdown

TLDR

Table of Contents

Tesla stock rose 0.2% in premarket trading as investors await robo-taxi expansion news
Elon Musk’s new pay package could be worth $1 trillion if Tesla hits $400 billion annual EBITDA targets
Tesla launched a new AI social media account on Chinese platform Weibo, gaining over 12,000 followers
The company faces intense competition in China’s humanoid robot market from local companies like Unitree
Goldman Sachs estimates the global humanoid robot market could reach $38 billion by 2035

Tesla shares edged higher in early Tuesday trading as investors continue to focus on the company’s robo-taxi rollout plans. The stock gained 0.2% to $347.60 in premarket action.

There wasn’t much specific news driving Tuesday’s modest increase. However, Tesla stock had jumped 3.6% on Friday after the company’s 2025 proxy statement revealed details about CEO Elon Musk’s massive new compensation package.

The pay plan would grant Musk roughly 425 million stock options. That represents about 12% of Tesla’s outstanding shares.

If Musk hits all his performance targets, the package could be worth around $1 trillion. The most challenging target requires Tesla to generate $400 billion in annual EBITDA.

It’s an unprecedented compensation structure, but investors seem comfortable keeping Musk at the helm. With leadership questions settled, attention turns back to Tesla’s business expansion plans.

The robo-taxi service launched in Austin, Texas in June. Currently, safety monitors still sit in the front passenger seat during rides.

Musk said in July that Tesla’s robo-taxi service could reach half the U.S. population by year-end. Expansion to additional cities would likely boost the stock, which currently trades at a $1.1 trillion market cap.

Chinese Market Push

Tesla is also making moves in China’s competitive AI landscape. The company launched a new social media account called TeslaAI on Chinese platform Weibo over the weekend.

The account has already attracted more than 12,000 followers. Tesla’s first posts featured videos of its Optimus humanoid robot along with the phrase “Accelerating Evolution.”

I’ve been working on my figure pic.twitter.com/u7trMda7eM
— Tesla Optimus (@Tesla_Optimus) September 6, 2025

Going forward, the account will showcase Tesla’s progress in autonomous driving, ride-hailing services, and its Cortex supercomputer. The timing coincides with Tesla’s Master Plan Part IV, which positions AI and robotics as key growth drivers.

Musk believes about 80% of Tesla’s long-term value will come from the Optimus robot project. Some analysts think Tesla could be preparing to introduce Optimus robots into the Chinese market.

Competition Heats Up

If Tesla does bring robots to China, it will face tough local competition. Chinese tech giant Alibaba just led a $100 million funding round for humanoid robot startup X Square Robot.

X Square Robot is already generating revenue from sales to schools, hotels, and retirement homes. Chinese robot maker Unitree is also reportedly nearing an IPO with a $7 billion valuation.

Unitree released videos last year showing its robots walking, climbing, and carrying loads. The company won multiple medals at the World Humanoid Robot Games this summer, including the 4×100 relay.

President Xi Jinping supports China’s tech companies in robotics, semiconductors, and AI development. This backing helps Chinese firms compete with U.S. rivals like Tesla.

Goldman Sachs projects the global humanoid robot market could grow from $3 billion in 2023 to $38 billion by 2035. Morgan Stanley forecasts even faster expansion, estimating the sector could reach $5 trillion by 2050.

China currently holds about 40% of the global robotics market share. Tesla’s year-to-date performance shows the stock down roughly 14%, though it’s gained about 60% over the past 12 months.

Tesla stock has a Hold rating consensus on TipRanks, with analysts setting a $306.42 average price target that implies 11.54% downside from current levels.

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