Tesla and Amazon are leading efforts to integrate artificial intelligence with robotics for greater automation. Tesla focuses on autonomous vehicles and humanoid robots, while Amazon deploys robots in its warehouses. Analysts compare the two companies' progress and investment potential.
Electric vehicle maker Tesla and e-commerce giant Amazon are both pushing boundaries in automation by combining AI with robotics. Tesla's roadmap includes full automation for its vehicles and the Optimus humanoid robot. CEO Elon Musk predicts millions of Teslas will operate fully autonomously by the end of 2026 and aims for production of 1,000,000 Optimus robots per year by 2030, though he has a history of missing deadlines.
Tesla's Full Self-Driving (FSD) technology has shown significant improvements. According to Tesla's Q2 2025 safety report, a vehicle with supervised FSD is over six times safer than one without and about seven times safer than non-Tesla vehicles. Tesla's autonomous cars have accumulated over 4.8 billion miles of driving, up from an estimated 1.5 billion the previous year. The company has begun rolling out a supervised robotaxi fleet in Texas, with fewer than 100 vehicles currently. ARK Invest estimates a $10 trillion market opportunity for automation by the 2030s. However, challenges include fragmented U.S. regulations and competition from companies like Waymo and BYD. Tesla trades at a forward price-to-earnings ratio of 175 times.
Amazon has deployed over 1,000,000 robots across more than 300 facilities since acquiring Kiva Systems in 2012. Deployment grew rapidly: from about 1,000 robots initially to 15,000, 30,000, 520,000, 750,000, and reaching 1,000,000 by June 2025, based on ARK Invest, Amazon blog, and Amazon's about page. This fleet generates data for AI improvements, including the DeepFleet model, which is expected to reduce robot travel time by 10% and enhance delivery speeds over time. Amazon faces internal challenges, having laid off 27,000 employees between 2022 and 2023. It trades at a forward P/E of 28 times.
Both companies target vast markets in automated vehicles, robots, manufacturing, and logistics, but their approaches differ: Tesla emphasizes future autonomy, while Amazon scales current operations.