Jichong Finance learned that, according to insiders, at the recent 'Robotaxi Day' event, Tesla (TSLA.US) used people to remotely control some functions of its Optimus robot prototype to inspire investors' enthusiasm for the upcoming products. Insiders pointed out that at the event, Tesla employees from other locations remotely supervised many interactions between Optimus and guests, which did not actually demonstrate as intelligent as it seemed.

Insiders said that when discussing the company's operations, employees from other locations were responsible for supervising many interactions between humanoid machines and participants. The insiders said that Optimus can walk without external control through artificial intelligence.

Some participants later stated on social media that the robot was assisted, and there is at least one video online purportedly from the October 10 Cybercab event, showing a bartender Optimus admitting that it received 'human help.' Tesla CEO Elon Musk did not mention this in a live webcast.

The use of human input has raised doubts about the capabilities and market readiness of this robot. Musk stated last week that he expects this robot to be the 'biggest product ever.' The CEO told everyone that it can handle many household tasks and may eventually be sold to consumers at a price ranging from 0.02 million to 0.03 million dollars per unit.

Although Tesla had previously showcased the prototype of Optimus, last week was the first time non-employees had the opportunity to interact directly with this black-and-white robot. They served drinks to attendees, high-fived, and even played rock-paper-scissors, which was one of the few highlights of the event.

The performance of this robot has long been closely watched by investors, despite the uncertainty about the product's release date. Observers noted that in 2022, early prototypes had to be carried onto the stage by people, but now it can walk on its own.

Analysts' Views.

Initially, Optimus was not supposed to appear at last week's event. According to a source, Musk requested their inclusion about three weeks ago, which led to urgent notice meaning there was no time for software upgrades, requiring remote operation.

Similar to the Cybercab self-driving taxi and truck concept vehicles, Optimus was one of the key products highlighted in this event. Guests invited to the presentation, including investors, Wall Street analysts, and fans, took short trips in self-driving automated cars.

The grand event held at a movie studio was widely seen as unimpressive due to the lack of technical details and vague plans for the self-driving taxi business, failing to leave a lasting impression on attendees. The following day, Tesla's stock price experienced its largest drop in over two months.

According to a source, Musk was supposed to discuss broader autonomous driving-related projects on stage. The presentation was expected to include more details about Tesla's Semi truck autonomous driving technology plans, details behind the future ride-hailing service application, and pricing of software suites. However, Musk either skipped or removed these materials from the event.

Following the event, Morgan Stanley analyst Adam Jonas expressed disappointment overall, citing a lack of data on FSD/technology, ride-sharing economy, and CyberCab's market listing strategy. Jonas mentioned that there were high expectations from the market attending the event and believed it would have a significant impact on the stock price and debates. Besides mentioning inductive charging, there was no detailed discussion of Cybercab's features, including technology (inference hardware, sensor suite, lidar, L4/L5), range, safety, practicality, and flexibility/configuration. Many commented that it seemed like a repackaged 'Model 2' prototype car as a self-driving vehicle.

Barclays also believes that the information disclosed during this event did not highlight any recent opportunities for Tesla. Dan Levy wrote: "As anticipated, similar to previous Tesla product launches, this event did not reveal details but emphasized Tesla's vision in the AI/AV (autonomous driving vehicle) field." He also stressed that Tesla did not showcase plans to produce a low-cost model in the first half of 2025.

Roth MKM analyst Craig Irwin pointed out: "We are disappointed by the limited evidence Tesla provided - FSD's reliability in a purely optical system."

However, many attendees also expressed that their interaction with Optimus was a highlight of Tesla's display. Nancy Tengler, CEO of Laffer Tengler Investments, stated in a report to clients after the event: "In my opinion, Optimus stole the show. Optimus walked in grandiosely, danced, and looked very human-like."

Wedbush analyst Dan Ives described the event as a "glimpse into the future," saying in an article that humanoid robots "may be closer to reality than one might imagine."

Gene Munster, Managing Partner of growth investment firm Deepwater Asset Management, believes Optimus is remotely controlled and noted that he felt "duped" during the event. However, in an article published on Musk's X platform, he mentioned that this provided a "window" to understanding the potential of these products.