Tesla CEO Elon Musk has reignited a long-running dispute with Bill Gates, warning the Microsoft cofounder that his short position against Tesla could now translate into losses of roughly $1.5 billion. Musk issued the warning in a recent post on X, escalating a feud that has stretched across philanthropy, technology and capital markets.
Musk wrote on X: "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." The remark appeared in response to a comment referencing the Gates Foundation's decision to reduce its holdings in Microsoft. Gates has never publicly disclosed when the short bet began, but the two men acknowledged discussing it privately in 2022.
According to Walter Isaacson's biography of Musk, Gates was already "approximately $1.5 billion underwater" when Tesla traded near $400 per share. Tesla shares have remained above that level this week, meaning the short position-reported to be around $500 million-would still be deeply negative.
Isaacson wrote that Musk directly confronted Gates about the trade, asking if he had shorted Tesla. After Gates confirmed, Musk reportedly responded: "Sorry, I cannot take your philanthropy on climate change seriously when you have a massive short position against Tesla, the company doing the most to solve climate change." Gates later told the BBC that his short bet "has nothing to do with climate change. I have ways of diversifying."
In the biography, Gates said Musk reacted harshly after discovering the short: "He's super mean to so many people, so you can't take it too personally." Musk also mocked Gates's weight in a subsequent post on X, adding another layer of tension to their exchanges.
Musk's latest comments surfaced days after he secured a $1 trillion pay package tied to Tesla's long-term growth targets. Under the plan, Musk must raise Tesla's annual adjusted profit to $50 billion, ultimately reaching $400 billion, while pushing the company toward a market value of $8.5 trillion. Tesla will also need to deliver 20 million electric vehicles, maintain 10 million Full Self-Driving subscriptions, deploy 1 million Optimus humanoid robots and operate 1 million robotaxis. As of September, Tesla has delivered just over 8 million vehicles.
