On Friday Tesla Inc (NASDAQ:TSLA) boss Elon Musk is expected to unveil a prototype humanoid robot, Optimus, as part of the company's 'AI Day'.
The focus on artificial intelligence is due to include a number of other next-generation technologies in the research & development stage, including full self driving (FSD) and its Dojo supercomputer.
A first image of how the Optimus minion would look was flagged just over a year ago, when Musk said it would be designed to eliminate “dangerous, repetitive and boring tasks” so that “essentially the future of physical work will be a choice”, and also driving down labour costs.
According to initial specs, Optimus will be bipedal, standing 5ft8 and weighing 125lbs, able to carry 45lbs and walk at 5mph.
Amid scepticism from investors, the purpose of the tech showcase is for Musk to highlight how AI activity in hardware and software will play a key role in the evolution of the Tesla ecosystem, where Optimus will initially be deployed within the company's own gigafactories before being sold to other manufacturers.
"Since the product was announced at last year’s AI Day, Musk has faced skeptics as the Street focuses on driving near-term battery technology enhancements, capacity build outs (Berlin, Austin), and fending off rising EV competition from all angles globally, and not humanoid robots," said analyst Daniel Ives at broker Wedbush.
"This will be a key event for Musk to prove there is a strategic path on the Optimus front."
An update on FSD will be "front and center", Ives added.
"The holy grail for Tesla is all about FSD and differentiating the company’s technology versus increasing competition in the autonomous and self-driving space."
The company also announced Dojo, its supercomputer program, at last year’s AI Day.
Based on the 'D1' chip, Dojo is a neural network training computer that Musk says will be able to process vast amounts of camera imaging data much faster than existing computing systems.
"To this point, Tesla remains under major scrutiny for safety issues on FSD with the US probe ramping up as Tesla recognizes the deficiencies in its current process that must be significantly improved through real-time AI to reach the eventual aspirational goal of true FSD over the coming years," said Ives.
"FSD is a key part of the Tesla growth story over the next decade and this is a pivotal event tomorrow for Musk to lay out technology enhancements and improvements over the next year."