Elon Musk says the upcoming humanoid robot could solve labor shortages

Elon Musk, Tesla CEO, believes that the upcoming humanoid robot, Optimus, also known as the Tesla Bot, can help solve labor shortages, especially the one the U.S. is currently experiencing.

The tech billionaire described the humanoid robot, unveiled during Tesla AI Day in August 2021, as the most important product development we're doing this year during the company's earnings call Wednesday.

He said that it might be the solution to the labor shortage that the U.S. is facing at the moment.

Musk said that the foundation of the economy is labor and capital equipment is distilled labor.

What happens if you don't have a labor shortage? I'm not sure what an economy even means at that point. He added that it was very important.

Musk said that the robot has the potential to be more significant than the vehicle business over time. During the Wall Street Journal's WSJ CEO Council last month, Musk talked about what the robot could potentially do in the face of declining population.

The Tesla Bot could be a generalized substitute for human labor over time. Capital equipment is distilled labor. The fundamental constraint is labor. He said that one of the biggest risks for civilizations is the low birthrate and the rapidly declining birthrate.

Optimus will most likely work first at Tesla factories. The 5' 8, 125 pound machine is designed to take over physical tasks that are repetitive and dangerous for humans. It will house the same AI system that powers Tesla's Autopilot and other driver-assistance technology.

When Musk announced the robot, many were surprised when he announced that he was an electronic vehicle maker.

The billionaire said later that developing the robot is a natural progression for Tesla, considering that the cars it creates are like semi-sentient robots on wheels due to their neural networks and software gadgetry. He said it makes sense to put that on to a humanoid form.