San Francisco: The long-running rivalry between Elon Musk and Bill Gates has resurfaced yet again, this time over Tesla’s stock and past allegations linked to disgraced financier Jeffrey Epstein.
The fresh exchange began after Musk reacted to a social media post on X that linked Tesla short sellers with questions of ethics and morality. The post referenced a report by The New York Times about Gates apologising to staff at the Bill & Melinda Gates Foundation over his past associations with Epstein and acknowledging personal misconduct.
“I’ve often found that Tesla short sellers don’t have the best moral compass,” an X user wrote while quoting the report. Musk responded with a brief but pointed remark: “Karma is real.”
Though short, the comment reignited public discussion about the years-old tension between the Tesla CEO and the Microsoft co-founder.
Origins of the rivalry
The friction between Musk and Gates dates back to Gates’ reported decision to short Tesla stock. According to accounts detailed in Elon Musk by biographer Walter Isaacson, Gates had taken a short position worth about $500 million against Tesla.
Short selling is an investment strategy in which traders borrow shares and sell them at the current market price, hoping to buy them back later at a lower price. If the stock price falls, they profit from the difference. However, if the stock rises, losses can escalate significantly.
In Isaacson’s biography, Gates revealed that his short position prompted a personal message from Musk, who bluntly asked whether Gates had indeed bet against Tesla. Gates confirmed that he had, though he expressed interest in discussing philanthropy and climate initiatives.
Musk, however, was reportedly unimpressed. He 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.”
Financial stakes and market performance
According to Isaacson’s account, Gates’ short bet at one point left him “underwater” by about $1.5 billion when Tesla shares were trading at around $400 per share. As of the latest market data, Tesla stock is hovering at approximately $417 per share, underscoring the risks inherent in short selling volatile growth stocks.
Tesla has grown dramatically over the past decade, becoming one of the world’s most valuable automotive and clean energy companies. Its market capitalisation has often fluctuated sharply, making it both attractive and risky for traders employing aggressive strategies such as short selling.
Musk has repeatedly criticised short sellers, arguing that they profit from a company’s failure rather than its success. Over the years, he has used social media to mock those betting against Tesla, occasionally warning that persistent short positions could lead to massive losses.
“Will bankrupt even Bill Gates”
The public sparring escalated again in late 2024 when Musk posted on X: “If Tesla does become the world’s most valuable company by far, that short position will bankrupt even Bill Gates.”
Last year, following shareholder approval of his massive pay package at Tesla, Musk revisited the issue once more. “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,” he wrote.
While it remains unclear whether Gates has fully exited his short position, the remarks indicate that Musk continues to view the bet as both financially and philosophically contradictory, particularly given Gates’ advocacy for climate action.
Broader implications
Beyond personal rivalry, the dispute highlights deeper differences in approach between two of the technology sector’s most influential figures. Musk has positioned Tesla as a central force in accelerating the global shift to sustainable energy, while Gates has focused much of his post-Microsoft career on philanthropy, global health and climate initiatives through his foundation.
Their disagreement also reflects broader debates within financial markets about short selling. Supporters argue that it promotes price discovery and market efficiency, while critics claim it can incentivise negative campaigning and volatility.
For now, Musk’s brief “Karma is real” comment has once again brought the long-simmering feud into public view. Whether the rivalry will escalate further may depend as much on Tesla’s stock performance as on social media exchanges between two of the world’s most prominent billionaires.