Investing.com -- Shares of Vishay Precision Group (NYSE: VPG ) surged 13% after Citron Research highlighted the company as a key player in the emerging humanoid robotics market, potentially linked to Tesla (NASDAQ: TSLA )’s Optimus project.

Citron Research’s report drew attention to Vishay Precision Group’s niche in precision measurement and sensing technologies, which are essential for the kind of dexterity required in advanced robotics. The firm’s analysis suggests that VPG has secured a significant design contract with a leading humanoid robot developer, believed to be associated with Tesla’s ambitious Optimus robot.

The report connects several dots to support its conclusion, including a design win announced by VPG in November 2023 for a humanoid robot in the beta phase, followed by Tesla’s reveal of the second generation of its Optimus robot in December 2023. Additionally, on VPG’s August 2024 earnings call, the management’s comments on production timelines closely matched those made by Tesla CEO Elon Musk regarding the internal deployment of thousands of robots by the end of 2025.

Citron’s analysis argues that the market has yet to fully recognize the implications of VPG’s involvement in this sector. They believe that the company’s current $300 million market cap significantly undervalues its potential, particularly if its association with Tesla’s Optimus project is confirmed.

Investors reacted positively to the report, driving up the stock price in anticipation of the company’s potential growth driven by the robotics sector. The report suggests that Vishay Precision Group could be a speculative play for those bullish on the future of robotics or looking for a direct link to Tesla’s robotics endeavors.

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