• Source:JND


Elon Musk, CEO of Tesla and SpaceX, has hinted that Microsoft co-founder Bill Gates could go bankrupt because of his investment in Tesla stock. Musk’s tweet about this has gone viral, bringing attention back to their ongoing feud. The conflict started in 2022 when Gates reportedly lost $1.5 billion due to a short position in Tesla.

Elon Musk posted on X, "If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates." He was referring to Gates' bet against Tesla's success, which could backfire if Tesla continues to rise in value. Musk has repeatedly called out Gates over this issue.

Currently, Tesla's market value is $1.251 trillion, but it is still behind Apple Inc, which is worth $3.729 trillion.

Recently, an X user, Teslaconomics, resurfaced a tweet from Musk where he explained, "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 continued, stating, "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."

For those who don't know a short position is a stock market strategy where an investor borrows shares they do not own, sells them, and then aims to repurchase them later at a lower price, profiting from the stock’s decline.

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What is the conflict between Elon Musk and Bill Gates?

The tension between the two billionaires Elon Musk and Bill Gates started when Gates undisclosed short position in Tesla stock, which reportedly resulted in a $1.5 billion loss for Gates, according to Walter Isaacson’s 2023 biography of Musk. When confronted about the investment during a 2021 CNBC interview, Gates declined to comment on his positions but praised Tesla’s achievements, stating, “What Elon’s done with Tesla is fantastic.”

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