News broke late last week that Tesla’s second Artificial Intelligence Day has been pushed back to September 30 as the firm may have a working Optimus prototype by then.
Oppenheimer analyst Colin Rush told Nasdaq he sees Optimus generating economies of scale at Tesla, adding that it could help automate production, slashing car production costs as it boosts production at its fledgling factories in Texas and Germany, Nasdaq reported.
“There’s an enormous opportunity around automation,” Rush told Nasdaq. “We’re in a very tight labor market right now across the economy… And so anywhere where we’re seeing savings around labor rates or, you know, just efficiency within operations, there’s a lot of value release.”
The timing of Optimus is highly favorable for investors considering the $1.1 billion humanoid market is set to grow 35% annually between 2022 to 2031 as Robocop-like machines get involved in entertainment, education, and even space exploration, according to a report by Bizwit Research & Consulting.
There are a few offerings in ARK’s lineup that provide meaningful exposure to the innovation happening at Tesla as of June 6, including the ARK Innovation ETF (ARKK, 8.45% weight), the ARK Autonomous Technology & Robotics ETF (ARKQ, 8.05% weight), and the ARK Next Generation Internet ETF (ARKW, 7.02% weight), according to VettaFi.
Companies within ARKK include those that rely on or benefit from the development of new products or services, technological improvements, and advancements in scientific research relating to the areas of DNA technologies and the genomic revolution; automation, robotics, and energy storage; artificial intelligence and the “next-generation internet”; and fintech innovation, according to the fund’s website.
ARKQ invests in companies focused on and expected to substantially benefit from the development of new products or services, technological improvements, and advancements in scientific research related to, among other things, energy, automation and manufacturing, materials, artificial intelligence, and transportation. These companies may develop, produce, or enable autonomous transportation, robotics and automation, 3D printing, energy storage, and space exploration.
Companies within ARKW are focused on and expected to benefit from shifting the bases of technology infrastructure to the cloud, enabling mobile, new and local services, such as companies that rely on or benefit from the increased use of shared technology, infrastructure and services, internet-based products and services, new payment methods, big data, the internet of things, and social distribution and media. These companies may develop, produce or enable cloud computing & cyber security, e-commerce, big data and artificial intelligence, mobile technology and internet of things, social platforms, and blockchain and P2P.
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