Tesla After Musk Pay Package Approval, Adobe's AI Rally, Markets' Record Run 6/14/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Carl Quintanilla (0:07)

Elon Musk celebrating yesterday at Tesla's annual meeting after shareholders did ratify his 2018 pay package. Good Friday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Futures are soft, or Europe's under some pressure. The focus once again on France. Equity's not able to enjoy more disinflation today and import prices 10 year hugs for two lowest in almost three months. Our roadmap begins with what's next for Tesla and Musk as his pay package and the Texas incorporation resolutions were approved by shareholders.

David Faber (0:38)

Well, yesterday it was Broadcom, today it's Adobe riding that AI rally. Those shares are surging on quarterly results and guidance that was raised.

And of course, we'll stick with tech. Why not Apple and Microsoft continue to battle it out for the title of the most valuable company in the United States?

Carl Quintanilla (0:57)

Let's begin with Musk's pay package being approved by Tesla shareholders. Jim, it was not close.

Some 77 percent, he's got Vanguard to thank, it looks like.

Jim Cramer (1:05)

Yeah, I also think that there was a belief that there would be an existential crisis without Musk, that Musk certainly could take his bat and ball, go home.

The energized Musk is very exciting for me because maybe he has something up his sleeve. He tends to have something up his sleeve. I remember that Jensen Wong continuing to tell me, do not call it a vehicle company. It's an autonomous machine. David, an autonomous machine has many uses, vehicle minimal uses.

David Faber (1:35)

Yes, autonomy has many uses, and he believes will add to an enormous amount of market cap, shareholder value. Obviously, we're talking about a pay package, which he has now again has been bestowed upon him as a result of creating enormous shareholder value over the last six years. Not so much the last couple of years, as we pointed out many times. Just to remind people, that pay package was at the time, in 2018, worth some $2.6 billion on a $59 billion market cap at the time. Obviously, fast forward, we're talking around $50 billion, let's call it, on the current market cap.

It's going to be dilutive. You're going back to Delaware Court to get this thing ratified. It's not completely clear what Chancellor McCormick is going to do here, but with the reincorporation in Texas and the fact that you've put it to shareholders again, and they have once again, overwhelmingly approved it, we'll see.

I mean, but you'd imagine it, just say, okay, fine.

Jim Cramer (2:46)

But what do you think about the energized, dancing, obviously very at home, love of Tesla, let's go beat the Chinese, that's my own.

David Faber (2:55)

You know, what struck on any number of people, of course, to your point, Jim, was not just his discussion about autonomy. Remember, he's already famously said, we're not a car company. What he does appear to be focusing on now, and I was at the annual meeting a year ago, he makes claims that, you know, are long-term in nature, to say the least. But what he has focused on would appear in terms of what may be the main driver of value at Tesla over let's call it the next 10, 15 years, is robots. And he basically said optimists, and we've shown you videos of it in the past, and they continue to sort of advance in terms of what optimists is able to do.

He sees a world in which, you know, you're talking about potentially as many as a billion robots a year being made. They have 10% market share. So just follow the math with me. 100 million robots are being made by Tesla. He says we sell them for 20,000 bucks. We make 10,000 in profit. Therefore, we make a trillion dollars.

And I'll let him pick it up from there.

Elon Musk (4:02)

I'm confident of the prediction that there will be more, like the ratio of humanoid robots to humans will be greater than one to one.

So there will be more than 10 billion humanoid robots in the world, probably 20 or more. And Tesla is going to be by far the leader in that.

Jim Cramer (4:26)

He reiterates what you had to say, man.

David Faber (4:27)

What we were hoping he would say, and we have him obviously, is they're going to get a 20 multiple on a trillion dollars in profit. So it's going to be a 20 to 25 trillion dollar market cap opportunity.