Move Over, Tesla: This Robotics Stock Is the Better Buy
The U.S. has nearly 300 robots per 10,000 manufacturing workers, and the International Federation of Robotics projects that figure could rise as re-shoring pushes domestic factories to become more productive and globally competitive.
Headlines around robotics tend to focus on flashy humanoids like Tesla‘s (TSLA -0.86%) Optimus. However, Optimus faces real manufacturing and technical hurdles, and the bigger transformation is already underway on factory floors.
Rockwell Automation (ROK -3.37%) supplies the critical hardware and software that power this shift, making it a compelling “pick-and-shovel” play on the robotics boom. Here’s why Rockwell could be a better buy than Tesla right now.
Image source: Getty Images.
Tesla’s Optimus is in very early production stages
Tesla first rolled out its Optimus robots in a 2021 demonstration and has since unveiled several prototypes with mixed results. CEO Elon Musk believes Optimus will become the biggest product ever.
During its third-quarter earnings call, Musk said the company has converted part of its former EV manufacturing space at its Fremont facility to build the first batch of Optimus units. Tesla won’t begin delivering its Optimus robots until at least the end of 2027, and many are skeptical the robot will be ready by then.
$399.81-$3.49 (-0.86%)
NASDAQ · As of 4:00 PM ET 10/30/26
Rockwell Automation is a key player in factory automation
While Tesla develops Optimus, Rockwell Automation has been developing the electrical components, software, and equipment that form the backbone of modern industrial plants for decades.
The company’s offerings include programmable logic controllers, which manage high-speed machinery and automation systems. It also provides motion control, drives, actuators, safety switches, and software to manage industrial processes. Its products ultimately help connect data across an organization, enabling industrial operators to achieve faster production times and greater efficiency.
In Rockwell’s third quarter (ended June 30), the company reported sales of $2.3 billion, an 8% year-over-year increase. Adjusted earnings per share rose 22% to $3.49, and the operating margin rose to 22.3% due to higher sales volume and a more favorable sales mix.
ROK Rockwell Automation
$436.20-$15.20 (-3.37%)
NYSE · As of 4:00 PM ET 10/30/26
The company is seeing very strong growth in certain customer subsets, including e-commerce, warehouse automation, and data centers, with particularly strong growth in North America. One major driver for Rockwell’s growth is the reshoring of U.S. manufacturing.
CEO Blake Moret noted that reestablishing domestic production requires a trained workforce along with advanced automation technology, and that “America continues to be interested in bringing more manufacturing on board.”
Rockwell Automation is a pick-and-shovel investment in robotics
Rockwell Automation isn’t a high-flying growth stock with pie-in-the-sky projections. But it provides the backbone of factory automation and is well-positioned to support the reshoring of domestic manufacturing in the U.S.
If you’re seeking exposure to the growing use of robotics and the U.S. reshoring theme, Rockwell Automation is a solid stock to buy today.