Elon Musk claims Bill Gates could face bankruptcy over his alleged Tesla short position if the company dominates globally.

Elon Musk recently suggested that Microsoft co-founder Bill Gates could face bankruptcy under certain circumstances. (Photo: GettyImages)

Elon Musk, the world’s richest man, said that Microsoft co-founder Bill Gates could face bankruptcy under certain circumstances involving Tesla, the electric vehicle company Musk leads.

Musk wrote on X, “If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates.” This comment has reignited their long-standing feud over Gates’ alleged short position in Tesla stock.

Musk’s response followed a reshared tweet from a user (Teslaconomics), highlighting Musk’s previous explanation of short selling and Gates’ position.

Musk explained, “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. Such a big short position also drives the stock down for everyday investors. 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, boggles the mind…”

This year, Tesla’s stock has seen a remarkable rise of 56.91%, driven by two key factors: Donald Trump’s victory in the 2024 presidential election and Elon Musk’s growing association with the President-elect. Following this momentum, Tesla’s shares hit a record high of $400, buoyed further by Goldman Sachs increasing its price target for the company’s stock.

The rift between the two billionaires stems from Gates’ undisclosed short position in Tesla, which reportedly led to a $1.5 billion loss, as detailed in Walter Isaacson’s 2023 biography of Musk.

A short position is a stock market strategy where an investor borrows shares they don’t own, sells them, and plans to buy them back later at a lower price, hoping to profit from the price drop.

A short position is a trading strategy where an investor borrows shares, sells them, and

When asked about his position during a 2021 interview, Gates declined to comment but praised Tesla, saying, “What Elon’s done with Tesla is fantastic.”