Elon Musk Issues Ultimatum to Bill Gates Over Tesla Short Position

Tesla CEO Elon Musk has publicly issued a "final warning" to Microsoft co-founder Bill Gates regarding his significant short position against Tesla stock. The confrontation, detailed in Walter Isaacson's biography of Musk, stems from Gates's bet on Tesla's failure, which has proven costly as the company's stock has surged.

Key Takeaways

• Bill Gates admitted to holding a "massive bet on Tesla dying" several years ago.

• Elon Musk reacted "super mean" to Gates's disclosure.

• Gates reportedly shorted Tesla stock with a $500 million position.

• Musk has warned Gates to close his "crazy short position" soon.

The Genesis of the Beef

According to Isaacson's biography, Gates revealed his short position to Musk during a period when they were exploring philanthropic collaborations. Musk's response was reportedly harsh, given Gates's substantial financial bet against Tesla's success. A short position allows an investor to profit if a stock's price declines, meaning Gates was betting on Tesla's downfall.

Tesla's Resurgence and Gates's Losses

Despite Gates's skepticism, Tesla's stock performance has been remarkable. The company's shares have seen significant growth, increasing over six percent this year and nearly 150 percent over the past five years. This upward trend has likely resulted in substantial losses for Gates's short position.

Musk's Public Warning

Following the revelation that the Gates Foundation had divested a significant portion of its Microsoft holdings, Musk took to X (formerly Twitter) to issue a direct warning. He stated, "If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon."

This public admonishment suggests a lingering animosity from Musk, though some interpret it as a form of "soft spot" for giving Gates a heads-up rather than letting him suffer the consequences without warning.