Elon Musk, the world's wealthiest individual, has reignited his long-standing and highly public feud with Microsoft co-founder Bill Gates, specifically commenting on the possibility that Gates could face financial ruin due to his involvement with Tesla, the electric vehicle company Musk leads. This comment comes as Tesla’s stock experiences a meteoric rise and further highlights the ongoing tension between the two billionaires.
Musk made his controversial remark on X (formerly Twitter), where he boldly wrote, “If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates.” This comment reignited the debate about Gates’ alleged short position in Tesla, which Musk has previously mentioned. His remark was in response to a reshared post by Teslaconomics, a Twitter user who highlighted Musk’s prior explanation regarding short selling and Gates’ position in Tesla.
Musk took the opportunity to clarify the dynamics of short selling for the public, writing, “Just so that the public understands: 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.” He further elaborated on the consequences of Gates' actions, noting, “Such a big short position also drives the stock down for everyday investors.” Musk also suggested that Gates may still hold this short position and urged the public to ask Gates about it.
In addition, Musk expressed his discontent with what he perceived as Gates’ hypocrisy, particularly given that Gates had previously asked him to contribute to his environmental initiatives. Musk pointed out the contradiction of Gates seeking financial support for his environmental causes while simultaneously betting against Tesla's success, claiming, “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, boggles the mind…”
The feud dates back several years to when Gates allegedly took a short position in Tesla, betting that the electric vehicle company would fail. According to Walter Isaacson’s 2023 biography of Musk, this bet, which Musk has publicly criticized, led to a loss of approximately $1.5 billion for Gates.
For those unfamiliar with the concept, a short position is a trading strategy where an investor borrows shares of a stock from a broker, sells them on the open market, and later aims to buy them back at a lower price, hoping to profit from the stock’s decline. The strategy can be highly risky, as it relies on the price of the stock decreasing. If the price rises instead, the investor suffers a loss.
The timing of Musk’s recent comments comes on the back of Tesla’s impressive stock performance in 2024. Tesla’s stock surged by 56.91%, largely driven by two key factors: the political momentum surrounding the victory of Donald Trump in the 2024 presidential election and Musk’s growing association with the President-elect. These factors, combined with Tesla’s solid financial performance and Musk’s strategic moves, have led the electric vehicle company’s shares to reach a record high of $400. Goldman Sachs also raised its price target for the company, further boosting investor confidence.
The feud between Musk and Gates over Tesla’s stock has been a topic of public discussion for years, but the recent surge in Tesla’s stock has brought it back into the spotlight. Gates, for his part, has not publicly confirmed or denied his short position in Tesla. In a 2021 interview, Gates declined to comment on the specifics of his Tesla investment but did praise Musk’s leadership at Tesla, stating, “What Elon’s done with Tesla is fantastic.” Despite this somewhat diplomatic statement, Musk has continued to express his disdain for Gates' alleged financial bet against Tesla, fueling their ongoing rivalry.
The tension between Musk and Gates serves as a microcosm of the larger conflict between traditional business magnates and the new wave of technology entrepreneurs, particularly those involved in groundbreaking industries like electric vehicles, space exploration, and artificial intelligence. Musk, who has long been a champion of Tesla’s mission to accelerate the world’s transition to sustainable energy, sees Gates’ short position as a direct contradiction to that mission. Gates, on the other hand, has focused much of his philanthropic efforts on global health and climate change through the Bill and Melinda Gates Foundation, but his involvement in financial strategies like short selling has drawn sharp criticism from Musk.
As Tesla continues to push forward in its quest to dominate the electric vehicle market and advance sustainable technologies, the rift between Musk and Gates is likely to remain a topic of public interest. The implications of this feud go beyond just the two billionaires; it underscores the broader financial and ideological battles taking place in the world of technology and finance, where the future of entire industries can hinge on the decisions and strategies of a few influential figures. For now, it seems that Musk’s comments are not just about financial strategies but are also a reflection of the larger philosophical and strategic divide between him and Gates.
