Dax 40-listed Bayerische Motoren Werke AG or BMW (DE:BMW) has teamed up with the U.S.-based Figure, maker of autonomous humanoid robots, to integrate robots and AI (artificial intelligence) into BMW’s production, resulting in efficiency and safety. The deal also reflects a competitive move to challenge EV giant Tesla Inc. (NASDAQ:TSLA), which recently unveiled its new humanoid robot, Optimus Gen 2.
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BMW share price was trading down by 0.34% at the time of writing today. BMW is a luxury car manufacturer globally recognized for brands like BMW, MINI, Rolls-Royce, and BMW Motorrad, etc.
The Deal’s Specifics
Under the deal, BMW Manufacturing Co. (a subsidiary of BMW AG) and Figure will execute the deal in multiple phases. Initially, Figure will implement its robots in automotive production in specific use cases. Upon the completion of this phase, Figure robots will be gradually deployed at BMW’s manufacturing facility in Spartanburg, South Carolina.
Changing Landscape of the Automotive Industry
The automotive industry is experiencing a huge shift with the integration of robotics, resulting in higher efficiency and innovation. This will help auto companies reduce their labor costs and improve production turnover, leading to more cost savings in the long term. These AI-powered robots are also garnering interest from investors, given their ability to execute a broad range of tasks.
BMW’s deal is in sync with the increasing industry-wide adoption of human-like robots. The company remains committed to incorporating such innovative technologies into its production systems, solidifying its position to stay competitive.
BMW Share Price Target
According to TipRanks, BMW stock has received a Hold consensus rating, backed by seven Buy, seven Hold, and four Sell recommendations. The BMW share price target is €104.31, which implies an upside of 12% from the current trading level.
