Robot Revolution in Autos: MBLY, TSLA, Hyundai & Peers in Focus

The auto industry is changing fast. After actively focusing on electric vehicles, autonomous driving and advanced driver assistance systems, a new wave is emerging now. Automakers are moving beyond vehicles and stepping into humanoid robotics and physical AI (artificial intelligence). The latest big move in this direction comes from Mobileye Global Inc. MBLY.

This Israeli technology company has agreed to acquire Mentee Robotics, a Tel Aviv-based humanoid robotics start-up, in a deal valued at around $900 million. The company will pay about $612 million in cash and the rest through up to 26.2 million shares of common stock. The transaction has already received approval from Mobileye’s board and Intel, its largest shareholder, and is expected to be closed in the first quarter.

With this acquisition, Mobileye is buying an entry ticket into the world of “physical AI.” The company says the move will help combine its deep experience in AI, perception, computing, and large-scale production with Mentee’s humanoid robotics platform and AI talent. Together, they aim to build safe, intelligent robots that can operate independently in real-world environments.

The companies expect first on-site proof-of-concept deployments by 2026. These robots are intended to work autonomously without teleoperation. If things progress as planned, full-scale commercialization could begin by 2028.

Auto Companies Getting Interested in Robots

Mobileye is not alone in chasing this opportunity. In fact, it is joining a fast-growing group of major automakers who are already exploring robots inside factories and production environments. Companies like Mercedes-Benz Group AG MBGYY, Hyundai Motors HYMLF, BMW BAMXF and Tesla TSLA are moving quickly to test, deploy and eventually scale humanoid and autonomous robots.

The motivation is simple. Manufacturing is becoming smarter, more digital and more automated. Automakers are looking for ways to improve efficiency, reduce repetitive strain on workers, enhance precision, and create more flexible production systems. That’s where robots will come into play. They can work in spaces designed for humans, handle complex tasks and learn quickly through AI and data.

Hyundai’s Ambition: A Full Robotics Value Chain

Hyundai is building a robotics strategy at an industrial scale. After acquiring Boston Dynamics in 2021, Hyundai has been steadily preparing to integrate humanoid robots into its operations. The company plans to deploy the Atlas humanoid robot in its factories by 2028. It is targeting to manufacture around 30,000 robots a year. 

Initially, Atlas will focus on parts sequencing, ensuring components are placed in the right locations at the right time. By 2030, Hyundai expects Atlas to take on more advanced assembly functions and heavy, repetitive tasks. Hyundai is also planning something bigger than just internal deployment. Using Hyundai Mobis and Hyundai Glovis, it aims to build a full robotics value chain.

Mercedes-Benz: Building the Factory of the Future

Mercedes-Benz has taken a structured approach to robotics integration as part of its digitalization strategy. At its Düsseldorf Vans plant, a robotic dog named Aris is already patrolling facilities as part of security and monitoring operations.

Beyond that, the company has partnered with Apptronik to bring Apollo humanoid robots into its production systems. Mercedes-Benz is making a low double-digit million-euro investment for that. Apollo is already being trained in real factory environments within the company’s MO360 digital production ecosystem. Workers are teaching the robot using teleoperation and augmented reality systems. The next step is even more important. Mercedes is preparing Apollo for fully autonomous operations, aiming to make it a smart production assistant in the factory of the future.

Tesla: Racing Toward Large-Scale Robot Production

Tesla is also pushing aggressively into humanoid robots through its Optimus program. Some Optimus robots are already performing useful work inside Tesla factories, handling basic material movement tasks.

Tesla plans to reveal the production-intent Optimus Gen 3 robot in early 2026, followed by low-volume internal production and then high-volume manufacturing, eventually targeting up to one million units annually. Tesla is vertically integrating robot components just as it does with cars, aiming to scale fast and control technology deeply.

BMW: Moving from Testing to Real Production Use

BMW has moved beyond trials and into active deployment. Through its partnership with California-based robotics firm Figure, BMW has tested humanoid robots at its Spartanburg plant. These robots assist in physically demanding tasks such as loading sheet-metal parts and supporting chassis assembly.

Over an extended deployment period, the F.02 humanoid robots helped produce more than 30,000 BMW X3 vehicles and handled more than 90,000 parts while operating in daily, full-shift production environments. BMW is now using learnings of F.02 robots to advance the next generation of humanoid robots.

Last Word

Humanoid robotics is no longer science fiction. For automakers, it is quickly becoming the next frontier in efficiency, flexibility and technological leadership. As mobility, manufacturing, and intelligent physical systems begin to merge, the industry may be entering one of its most important transformations of the coming decade.

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This article originally published on Zacks Investment Research (zacks.com).

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