Tesla faces stiffer competition from tech giants like Apple in AI and robotics rather than traditional automakers such as Ford or GM. Analysts highlight Apple's potential entry into the robotics market as a significant challenge for Tesla's ambitions. This shift underscores the growing role of physical AI in the industry.
Tesla, known for manufacturing electric vehicles, now contends with rivals that resemble tech powerhouses more than conventional carmakers. According to a Barron’s analysis by Al Root, Apple's resources position it as a formidable competitor in commercializing AI technologies, particularly in robotics.
Morgan Stanley analyst Adam Jonas, citing a Bloomberg report, noted that Apple is considering a small AI-trained robot launch in 2026 or 2027. “A $3.6 trillion company with Apple’s resources and pedigree can have a deterministic impact on the world of robotics,” Jonas wrote.
Tesla has been leveraging AI for autonomous driving and humanoid robots. The company launched a robotaxi service in Austin, Texas, in June and aims to sell significant quantities of robots starting in 2026. An incentive in CEO Elon Musk’s proposed trillion-dollar pay package, up for shareholder vote in November, includes delivering one million humanoid robots.
Jonas observed, “Elon Musk may have been early on identifying the opportunity of physical AI… However, the secret is out.” He pointed out that the Magnificent Seven tech firms—Apple, Nvidia, Alphabet, Meta Platforms, Microsoft, Amazon, and Tesla—are developing AI-enabled robots, intensifying competition for AI and manufacturing talent.
As robotics expert Cynthia Breazeal remarked, “If you look at the field of robotics today, you can say robots have been in the deepest oceans, they’ve been to Mars, you know? They’ve been all these places, but they’re just now starting to come into your living room. Your living room is the final frontier for robots.” This convergence of tech giants in robotics signals a transformative phase for the sector.