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.
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.
Wall Street analysts currently rate Tesla stock as a Hold. The consensus includes 14 Buy ratings, 13 Hold ratings, and 10 Sell ratings from the past three months. The average price target of $375.63 per share represents a potential 14.7% decline from current levels.
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