Jim Cramer Supports Elon Musk’s $1 Trillion Pay Package
Renowned television host Jim Cramer expressed strong support for Elon Musk and his ambitious $1 trillion pay package during a recent segment of his show, *Mad Money*. Cramer highlighted the innovation at Tesla Inc. (NASDAQ: TSLA), particularly in self-driving technology, robotics, and artificial intelligence, while emphasizing Musk’s significant contributions to the company.
Cramer noted that, according to him, Tesla has the “best self-driving alternative on a price basis.” He underscored the potential of Tesla’s energy storage business as a crucial growth driver. “Musk has put AI to the test, and he recognized that if you could develop better and bigger, and stronger batteries, that might be the answer for our energy-starved country,” Cramer stated. He also described Tesla’s Optimus robot as “the most exciting part of Musk’s investible empire.”
Cramer’s comments came in response to criticism surrounding Musk’s compensation. He urged Tesla’s board to approve the pay package “he wants,” asserting that “unlike so many other CEOs, he’s actually worth it.” Cramer had previously echoed these sentiments on the social media platform X, encouraging investors to embrace a broader perspective on Musk’s financial rewards.
Elon Musk’s Critique of Proxy Advisors
In a related development, Elon Musk has publicly criticized proxy advisory firms International Shareholder Services (ISS) and Glass Lewis, labeling them “corporate terrorists.” Musk argued that these firms, which oppose his pay package, lack actual ownership and often vote based on unrelated political lines rather than shareholder interests.
Despite Musk’s controversial statements, he defended his role as CEO, highlighting Tesla’s market capitalization of over $1.4 trillion and its status as the largest automaker in the world by market cap. During a recent earnings call, Tesla reported a revenue of $28.095 billion, exceeding Wall Street’s estimates of $26.239 billion.
Future Prospects and Robotaxi Plans
During Tesla’s third-quarter earnings conference, Musk shared updates about the company’s ambitious plans for Robotaxis. Initially, he had projected that these vehicles would serve half of the U.S. population by the end of the year. However, he has since adjusted this goal, now targeting the deployment of Robotaxis across 8 to 10 major cities in the United States by the end of 2025.
Robyn Denholm, Chair of Tesla’s Board of Directors, also came to Musk’s defense, writing a letter to investors that criticized the “one-size-fits-all” approach of proxy advisory firms. Denholm argued that this perspective does not align with Tesla’s unique position in the automotive industry, which challenges conventional standards.
She pointed out that Tesla performs well in metrics such as momentum, quality, and growth, despite offering a less favorable value proposition. Denholm emphasized that Tesla’s favorable price trends over short, medium, and long-term periods should be considered when evaluating Musk’s compensation.
As Tesla continues to innovate and expand, the discussions surrounding Musk’s pay package and the company’s strategic direction remain pivotal in shaping investor sentiment and market dynamics.
