Elon Musk says it’s more important for Tesla to make a robot than new car models this year

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Tesla CEO Elon Musk said on the company’s fourth-quarter earnings call that a humanoid robot is the “most important product” that Tesla is developing this year, putting it ahead of the much-hyped Cybertruck and other vehicles.

, warning during the company's "AI Day" that it "probably won't work" but added that he hoped to have a prototype in the next year.

"I think it has the potential to be more significant than the vehicle business over time," Musk said of the robot, which is code-named Optimus.and that it isn't currently working on a $25,000 vehicle. The lingering chip shortage hampers the release of new models without resulting in fewer total vehicles being delivered, he said.

"If you think about the economy, it is — the foundation of the economy is labor," he said. "Capital equipment is distilled labor. So what happens if you don't actually have a labor shortage? I'm not sure what an economy even means at that point. That's what Optimus is about, so [it's] very important."

Advances in robotics have allowed companies to replace certain workers with machines, but the limitations of current technology are such that many tasks still need to be done by humans.

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