When Tesla showed off its Optimus humanoid robot at the Autopilot Technology Show in Miami in early December 2025, it was a sensation, but not for the reasons the company had hoped. Recorded on the company’s “Autonomy Visualized” show, a leaked video shows an Optimus robot purportedly autonomously handing out bottles of water to guests before downing its wares, raising its hands in mock disbelief and falling back in a cascade of flailing limbs. While it circulated on social media as an undeniably brilliant piece of slapstick comedy, the video also drew harsh criticism, with critics noting that the Keatonesque gag points to broader problems in Tesla’s robotics business, revealing that the company may be further from achieving its profitable goals than advertised.
Much of that criticism is rooted in wildly optimistic promises from Tesla chief Elon Musk, who has spent years touting the progress of his company’s humanoid robotics program. In February 2025, for example, Musk predicted that Tesla’s bipedal robot Optimus alone would generate more than $10 trillion in revenue. In light of several public setbacks, including the aforementioned downturn, many observers are skeptical of such stunning predictions.
Of course, Musk isn’t the only billionaire hoping to capitalize on the market, as some of the world’s most powerful tech giants, including Nvidia, OpenAI, Alphabet and Meta, have all invested heavily in the burgeoning market. The biggest competitive concern for Musk, however, may come from China, where a nationwide investment strategy has produced an embodied AI capable of goofy moves that currently elude American firms, such as Unitree’s $16,000 G1 humanoid robot. Despite these developments, many insiders are cautious about the industry’s immediate potential. So if you’re worried about an AI robot riot, put your mind at ease with the viral Optimus video.
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The schadenfreude-inducing video is much more than just a reel of scattered water bottles and splattering animatronics. Several armchair engineers have speculated that the gestures, in which the humanoid robot reaches forward before falling, do not reflect a human emotion of horrified shock, but an unseen operator removing a VR headset. Such speculation is somewhat warranted, as Tesla has used unseen remote operators in previous demonstrations of its Optimus robot, including at the “We, Robot” event in October 2024, according to the Los Angeles Times.
To date, neither Tesla nor Elon Musk have commented on the incident. However, in an October 2025 investor call, the billionaire touted Optimus’ enhanced capabilities, detailing how the robot “was at the Tron premiere doing kung fu” alongside star Jared Leto, according to Fortune. Earlier, Musk pointed out in an X post that the robot’s martial arts skills were “AI, not teleoperated.” Even if the video doesn’t reveal what Elecktrek called a “Wizard of Oz moment,” it could have major implications for investors looking to gauge Tesla’s progress toward a fully autonomous robot, which Musk has previously declared to be “the biggest product ever.”
The crash comes shortly after Tesla released a series of videos showing the 160-pound robot’s increased mobility, including an X-video of the robot hitting a personal record speed in Tesla’s lab. However, a July 2025 report by The Information revealed that the EV giant was well behind its stated goal of building 5,000 Optimus robots by the end of 2025, with total production only reaching the hundreds. For what it’s worth, in November 2025 Tesla announced that it expected to begin production of its Gen 3 line in 2026, which it aimed to retail for around $20,000.
The stakes behind these robots are high as Tesla looks to pioneer what Morgan Stanley has predicted will grow into a $5 trillion industry, with 1 billion humanoid robots potentially flooding the market by 2050. Musk himself has predicted much of his company’s future success with the technology, saying in June 2024 that Optimus could push the company’s market cap by $25. But Tesla is far from the only domestic company betting big on robotics. Startup Figure AI, for example, includes OpenAI, Nvidia, Microsoft, Intel and Amazon among its list of investors. Meanwhile, Meta is poised to spend billions on “Metabot” and the AI software that enables it, The Verge reports. Alphabet, for its part, launched its Gemini Robotics program in March 2025 as it aims to develop embedded AI software. Boston Dynamics, which is majority owned by Hyundai, is another major domestic competitor.
However, Tesla’s biggest competition may come from several Chinese firms, including EngineAI Robotics, Unitree and UBTech. Embedded AI is a strategic priority in Beijing’s race to AI dominance, potentially revolutionizing its manufacturing and military expansion efforts. However, some observers have expressed concerns about bubbles, noting that China’s investment in the industry could far outpace the rate of its technological development. China currently has 150 embodied AI manufacturers, garnering more than $5 billion in investment in 2025 alone—roughly matching the totals of the last half decade. Whether China can capitalize on this investment to the same extent as its electric vehicle industry remains to be seen.
Despite this excitement, industry professionals stress patience. According to a report by The Wall Street Journal, AI insiders warn that there is a significant technology gap between providing stunt videos and “well-defined products.” As Tesla’s viral crash attests, a “me, robot” economy is not likely in the immediate future.
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