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Tesla could soon face another publicly-listed Chinese robot rival.
Another of Tesla’s (TSLA) “brainy” Chinese robot rivals is planning to go public to fund expansion.
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Just days after robot group Unitree was reported to likely to be valued at $7 billion when it launches its planned IPO in Shanghai, Chinese peer AI2 Robotics has said it also wants to list in one to two years.
Factory Bots
As reported by Reuters, the group, founded in early 2023, has raised an estimated $140 million from venture capital firms to date which Chief Executive Eric Guo has said would be enough for 10 years at its current cash burn rate.
He did not reveal the company’s current valuation but said it is a “unicorn” – a firm with a valuation of more than $1 billion.
The humanoid robot maker said it is counting on robust revenue growth in the industrial sector as demand grows for non-humans in factories. The company makes general-purpose robots, called AlphaBot2, that are capable of doing assembly tasks, quality inspections and testing. The upper half is humanoid in form, but they move around on six wheels.
They are controlled by its AI foundational model Alpha Brain, which has been trained in-house and is now open-sourced.
“Our key advantage is that our robot has a brain, so we don’t need remote control to get the robot to work in our customer’s place,” Guo said.
Indeed, it announced today that it has secured a contract with semiconductor display manufacturer HKC Corporation for more than 1,000 humanoid robots over three years.
Revenue Boost
Guo estimated that the deal is worth $70 million, compared with the over $15 million in revenues it has made to date in the first half of the year. “We’re looking at 10 times growth (in revenue) pretty much every year,” he said.
Unitree revealed recently on its X account that it was actively advancing the IPO preparations and was expecting to submit the listing application documents in the fourth quarter of the year. It did not provide other details, including a timeline for a potential listing.
Unitree released a number of videos last year showing its robots walking, climbing and carrying loads. It also won multiple medals at the World Humanoid Robot Games this summer, including the 4X100 relay.
Tesla, arguably best known for its electric vehicles, recently unveiled its Master Plan Part IV, highlighting AI and robotics as the primary drivers of much-needed future growth. Chief Executive Elon Musk claims that about 80% of Tesla’s long-term value will come from its Optimus humanoid robot project.
It is an ever-important part of the new Tesla ecosystem – see below:
According to Morgan Stanley, the number of robots that resemble and act like humans is likely to reach nearly 1 billion by 2050, with China currently leading in development.
Tesla needs to think smart to keep up.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 13 Buy, 13 Hold and 8 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $306.42, implying an 11.69% downside.
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