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Tesla CEO Elon Musk has rekindled his long-standing feud with Microsoft co-founder Bill Gates, suggesting that Gates might face bankruptcy if Tesla achieves its vision of becoming “the world’s most valuable company by far.” Musk made the statement on X (formerly known as Twitter), referencing Gates’ short position against Tesla.
Currently, Tesla’s market capitalization stands at $1.251 trillion, significantly trailing Apple Inc., the world’s largest company, which boasts a valuation of $3.729 trillion. For Tesla to surpass Apple, its value would need to grow by nearly 200%. Musk posted, “If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates.”
What is a Short Position?
A short position refers to a stock market strategy where an investor borrows shares they do not own, sells them at the current market price, and hopes to repurchase them later at a lower price. The profit comes from the decline in the stock’s value.
Bill Gates’ Short Position in Tesla
The tension between Musk and Gates stems from Gates’ reported short position against Tesla’s stock. Earlier in 2022, Gates admitted in interviews that he had bet against Tesla. According to Walter Isaacson’s 2023 biography of Musk, this short position reportedly cost Gates a staggering $1.5 billion.
Recently, an X user, Teslaconomics, shared an old tweet from Musk, where he criticized Gates for his decision to short Tesla. Musk stated, “Taking out a short position against Tesla, as Gates did, results in the highest return only if a company goes bankrupt! Gates placed a massive bet on Tesla dying when our company was at one of its weakest moments several years ago. Such a big short position also drives the stock down for everyday investors.”
Musk added, “To the best of my knowledge, Gates still has that massive bet against Tesla on the table. Someone should ask him if he does. The lack of self-awareness and hypocrisy of Gates—who had the nerve to ask me to donate to his mostly window-dressing environmental causes, while simultaneously aiming to make $500M from Tesla’s demise—is astounding.”
The Teslaconomics user amplified Musk’s sentiment by resharing the tweet, stating, “This is why it’s been a big ‘fuck you’ to Bill Gates since day one for $TSLA.”
Tesla has experienced a stellar rise in its stock this year, surging by 56.91%. This growth has been fueled by political developments, including President-elect Donald Trump’s 2024 election victory, and Elon Musk’s increasingly influential ties with the administration. Tesla’s shares recently hit a record high of $400 after Goldman Sachs raised its price target for the stock.
