Elon Musk has reignited his long-standing feud with Microsoft co-founder Bill Gates, taking to social media platform X (formerly Twitter) to comment on Gates’ alleged short position against Tesla stock. Musk suggested that Gates could face financial trouble if Tesla surpasses Apple to become the world’s most valuable company.
In a pointed remark, Musk wrote, “If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates.”
The comment alludes to Gates’ previously disclosed bet against Tesla, which, according to Walter Isaacson’s 2023 biography of Musk, cost Gates $1.5 billion when Tesla shares surged.
A short position is a stock market strategy where an investor borrows shares they don’t own, sells them on the open market, and aims to repurchase them later at a lower price. This approach profits from a decline in the stock’s value.
Musk has previously criticised Gates for his short position, particularly during Tesla’s earlier struggles. “Taking out a short position against Tesla, as Gates did, results in the highest return only if a company goes bankrupt!” Musk said in a 2022 tweet.
In earlier interviews, Gates admitted to placing a short position against Tesla. Musk, however, has accused Gates of hypocrisy, citing his environmental philanthropy while allegedly betting on the failure of Tesla, a company central to the green energy movement.
“To the best of my knowledge, Gates still has that massive bet against Tesla on the table. The lack of self-awareness and hypocrisy of Gates… is astounding,” Musk said in a past tweet, reshared recently by a user with the caption, “This is why it’s a big ‘f*ck you’ to Bill Gates since day 1 $TSLA.”
Tesla’s stock has surged by 56.91% this year, buoyed by market optimism following President-elect Donald Trump’s victory in the 2024 elections and Musk’s strengthened ties with Trump’s administration. The rally hit a peak when Tesla shares reached a record high of $400, driven by Goldman Sachs’ increased price target.
Despite Tesla’s remarkable growth, it still trails behind Apple in market capitalisation, requiring a nearly 200% increase to claim the title of the world’s most valuable company.