Tesla’s push into humanoid robots is set to benefit these 5 global stocks in the supply chain, HSBC says
HSBC identified key stocks in the supply chain that may benefit from Tesla’s push into humanoid robots. Tesla launched its human-shaped robot, called “Tesla Bot,” last September. The company claims it will eventually be capable of “performing unsafe, repetitive or boring tasks.” In May, the company showed off a significantly improved version . It highlighted progress in walking posture, control of joint actuators, environmental sensing capabilities, and artificial intelligence training. But compared with its more seasoned counterpart, Boston Dynamics’ Atlas, the Tesla Bot lacks advanced motion control capabilities, HSBC said. The Atlas, launched in 2013, can perform complex tasks like jumping onto platforms and doing backflips, while the Tesla Bot can only walk, the investment bank said. However, HSBC’s report noted two key areas in which Tesla may beat Boston Dynamics in the race toward commercialization: cost and AI capabilities. Chief executive Elon Musk previously said that the Tesla Bot is expected to retail at around $20,000 per unit, much cheaper than the Atlas’ reported price tag of $150,000. The report also highlighted Tesla’s advanced AI capabilities, developed through its work on autonomous driving technology. The analysts said Tesla’s progress in training AI for its robot — using knowledge derived from its self-driving cars — will be a crucial factor in commercializing the product. “Given that many components of the [Tesla Bot] overlap with Tesla’s existing EV production line, we see a cost advantage,” said analysts led by Helen Fang, head of industrials research at HSBC, in a note to clients on July 10. The table below shows the five buy-rated stocks expected to be in the supply chain for such robots, according to HSBC. The analysts expect several opportunities for investors as the global service robotics market is forecast to grow from $34 billion in 2020 to about $110 billion in 2026. These companies — Japan’s Keyence, South Korea’s LG Energy Solution, Chinese firms Inovance, Contemporary Amperex Technology (CATL), and Zhejiang Sanhua — are involved in different aspects of the supply chain for humanoid robots, HSBC said. They manufacture vital components such as machine vision systems, control systems, servo motors, and human-computer interaction display systems. At the moment, humanoid robots are primarily being used for simple tasks like logistics-handling in warehouses, and consumer services, such as acting as tour guides, according to the bank’s research. However, more advanced and capable robots like the Tesla Bot may soon be able to perform complex tasks in industries ranging from health care to manufacturing, HSBC forecast. HSBC also cautioned investors that this sector has significant hurdles and risks. “We believe that for humanoid robots to thrive, they will need to perform tasks on par with their substitutes or offer stronger general intelligence to operate in an undefined environment,” the analysts said. “We suspect that this will take time to perfect, just like it is taking longer than the industry expected to achieve advanced Level 5 autonomous driving given the need to acquire so-called long-tail corner cases (driving situations that occur outside of normal operating parameters).” It also highlighted the prospect of increased competition as more companies, such as Xiaomi and Dyson, express interest in the humanoid robot sector.
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