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Cramer’s Bold Call: Tesla Investors Must Approve Musk’s Historic $1 Trillion Compensation Deal

Cramer’s Bold Call: Tesla Investors Must Approve Musk’s Historic $1 Trillion Compensation Deal

Published:
2025-10-27 08:51:23
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Jim Cramer throws weight behind Elon Musk's unprecedented pay package—arguing it's essential for Tesla's future dominance.

The $1 Trillion Gamble

Market commentator Cramer makes explosive case for shareholders to back Musk's compensation package, calling it critical for maintaining Tesla's innovation edge. The controversial proposal would tie Musk's earnings directly to Tesla's market performance—potentially creating the first trillion-dollar executive payout in corporate history.

Shareholder Showdown

Investors face pivotal vote on compensation structure that could redefine executive pay standards across tech industries. Cramer's endorsement comes as institutional investors weigh whether Musk's visionary leadership justifies the astronomical numbers—because what's another trillion between friends when stock prices keep climbing?

Wall Street's favorite entertainer delivers his verdict: pay the man or risk watching Tesla's momentum stall. After all, in today's market, why settle for billions when you can chase trillions?

TLDR

  • Jim Cramer supports Tesla CEO Elon Musk’s $1 trillion pay package, calling him one of the few CEOs “actually worth it”
  • Musk said he needs more voting control to manage Tesla’s growing robot fleet and avoid removal by activist shareholders
  • Tesla shareholders will vote on the compensation plan on November 6, 2025
  • Proxy advisory firms ISS and Glass Lewis recommend voting against the package, which Musk called “corporate terrorists”
  • Wall Street analysts have a Hold rating on Tesla stock with an average price target suggesting 14.7% downside

CNBC’s Mad Money host Jim Cramer has voiced his support for Elon Musk’s $1 trillion pay package from Tesla. The compensation plan will go to a shareholder vote on November 6.


TSLA Stock Card
Tesla, Inc., TSLA

Cramer said shareholders should approve the package because Tesla extends beyond electric vehicles. He emphasized the company’s work in robotics, Full Self-Driving technology, and battery development.

During Tesla’s Q3 2025 earnings call, Musk explained why he needs the compensation package. He said he wants enough voting control to develop Tesla’s Optimus robot fleet safely.

Musk stated he doesn’t want complete power but needs protection from activist shareholders. He specifically criticized proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis.

“I just don’t feel comfortable building a robot army here and then being ousted because of some asinine recommendations from ISS and Glass Lewis, who have no freaking clue,” Musk said during the call. He referred to these firms as “corporate terrorists.”

Why Cramer Supports the Package

Cramer defended Musk as one of the few CEOs deserving of such a large pay package. He praised Musk’s work in artificial intelligence and self-driving technology.

“He’s using AI to make the best full self-driving car,” Cramer wrote on social media platform X. He called Musk “real smart” regardless of personal opinions about him.

Cramer compared Musk’s situation to Meta CEO Mark Zuckerberg. Zuckerberg has dual-class stock structure that gives him control over company decisions.

Tesla doesn’t have a dual-class structure because Musk didn’t found the company. Cramer said the pay package serves as an alternative way to give Musk the control he seeks.

Opposition from Proxy Firms

Both ISS and Glass Lewis have recommended shareholders vote against the pay package. These firms advise institutional investors on governance issues.

Musk expressed concern about their influence during the earnings call. He said he worries about being removed after building powerful technology without control over its use.

The CEO wants enough voting power to prevent removal but not so much that he couldn’t be ousted if needed. He seeks a middle ground between complete control and vulnerability.

|Square

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