Are Tesla (TSLA.US) robots actually not that smart? Optimus was revealed to be remotely controlled at the press conference

Zhitong Finance learned that, according to people familiar with the matter, Tesla (TSLA.US) used humans to remotely control some of the functions of its Optimus robot prototype during the recent “Robotaxi Day” event to stimulate investors' enthusiasm for upcoming products. People familiar with the matter pointed out that at the press conference on the same day, Tesla employees from other places remotely monitored many of the interactions between Optimus and the guests, but in fact, they weren't as smart as shown.

People familiar with the matter said that when discussing the company's operations, employees elsewhere were responsible for overseeing many of the interactions between humanoid machines and participants. People familiar with the matter say Optimus can walk through artificial intelligence without external control.

Some participants later said on social media that the robot was helped, and at least an online video allegedly from the Cybercab event on October 10 showed an Optimus bartender admitting it had “human help.” Tesla CEO Elon Musk didn't mention this during a webcast.

The use of human input has raised questions about the robot's capabilities and market readiness. Musk said last week that he expects the robot to be “the biggest product ever.” The CEO told everyone that it can handle many household tasks and could eventually be sold to consumers for $20,000 to $30,000 each.

Although Tesla has previously shown an Optimus prototype, last week was the first time non-employees had the opportunity to directly interact with this black and white machine. They poured drinks, gave high fives, and even played stone scissors for the attendees, which were a few highlights of the conference.

The robot's performance has been closely watched by investors for a long time, although the timing of the product's launch is still uncertain. Observers pointed out that in 2022, the early prototype had to be taken to the stage by people, but now it can walk on its own.

Analysts' Opinions

Initially, Optimus won't be showing up at last week's event at all. Musk asked to include them about three weeks ago, according to a source familiar with the matter. The person familiar with the matter said that the urgent notice meant there was no time for the software to be upgraded, so remote operation was necessary.

Like the Cybercab driverless taxi and van concept car, the Optimus was one of several products highlighted at this event. The guests invited to the press conference — including investors, Wall Street analysts, and fans — took a short trip in a driverless autonomous vehicle.

This grand event held at a film studio was generally regarded as unimpressive due to lack of technical details and vague plans for the driverless taxi business. The next day, Tesla's stock price experienced its biggest drop in more than two months.

According to a source familiar with the matter, Musk was supposed to be on stage to discuss a wider range of autonomous driving-related projects. The demo will include more details about Tesla's Semi truck autonomous technology plans, details on the apps behind future ride-hailing services, and pricing for the software suite. But Musk either skipped the material or removed it from the event.

After the previous event, Morgan Stanley analyst Adam Jonas said that overall, the press conference was disappointing due to a lack of data on FSD/technology, the ride-sharing economy, and CyberCab's listing strategy. Jonas said that when attending the press conference, the company had many expectations about what the market might learn, and believed that this had an important impact on the stock's direction and controversy. “Other than mentioning inductive charging, Cybercab's features are not discussed in detail, including technology (inference hardware, sensor kit, lidar, L4/L5), range, safety, practicality, and flexibility/configuration. Many people have commented that it looks like a 'Model 2' prototype repackaged into an autonomous vehicle.

Barclays also believes that the information revealed in this incident did not highlight any recent opportunities for Tesla. Dan Levy wrote: “As expected, like previous Tesla product launches, this conference did not reveal details, but instead emphasized Tesla's vision for AI/AV (autonomous vehicle) development.” He also stressed that Tesla did not show the low-cost models it plans to produce in the first half of 2025.

Roth MKM analyst Craig Irwin said, “We are disappointed with the limited evidence provided by Tesla — FSD is credible in pure optical systems.”

However, many participants also said that their interaction with Optimus was a prominent feature of Tesla's display. Nancy Tengler, CEO of Laffer Tengler Investments, said in a report to clients after attending the event: “In my opinion, Optimus stole the limelight. “Optimus walked in wobbly and danced, looking a lot like a human being.”

Wedbush analyst Dan Ives called the party a “glimpse into the future,” and he said in an article that robots that mimic humans “may be closer to reality than imagined at night.”

Gene Munster, managing partner at growth investment firm Deepwater Asset Management, believes Optimus was remotely controlled and said he was “fooled” during the incident. However, in an article published on Musk's X platform, he said this “provides a window into the potential of these products.”