The comment escalates the ongoing tension between the two billionaires, rooted in Gates’ short position on Tesla stock.
Tesla CEO Elon Musk recently drew attention with a post on social media platform X, where he suggested that Microsoft co-founder Bill Gates might face “bankruptcy” if Tesla were to become “the most valuable company in the world.” This remark escalated the longstanding tension between the two billionaires, which stems from Gates’ short position on Tesla stock—a bet that the company’s share price would decline.
The origin of the conflict
Musk’s statement comes as Tesla’s market capitalization reaches $1.251 trillion, still significantly below Apple’s $3.729 trillion. To surpass Apple and become the world’s most valuable company, Tesla would need nearly 200% growth.
The tension between Musk and Gates began with Gates’ undisclosed short position on Tesla stock. According to Walter Isaacson’s 2023 biography, this bet reportedly led to a $1.5 billion loss for Gates.
In 2021, when asked about this investment during a CNBC interview, Gates avoided directly addressing his stance but praised Tesla’s achievements, saying, “What Elon has done with Tesla is amazing.”
The feud peaked during a March 2022 meeting at Tesla’s Austin factory, where the two discussed philanthropy and climate change. During the meeting, Gates apologized for his short position. However, according to Isaacson’s book, Musk rejected the apology, arguing that Gates’ actions contradicted his claims of supporting climate change initiatives.
“It’s hard to understand how someone claims to care about climate change but bets against the world’s largest electric car company,” Musk told Isaacson.
Despite the unresolved conflict, Gates has publicly acknowledged Musk’s contributions. At a dinner in Washington, D.C., Gates remarked, “No one in our era has done more than he has to push the boundaries of science and innovation.”
Tesla stock and the dream of becoming the “most valuable company in the world”
As of early 2024, Tesla stock has risen by 56.91%, fueled by Donald Trump’s victory in the U.S. presidential election and his growing alignment with Musk. This victory has also positioned Musk as a contender for leading the newly established Department of Government Efficiency.
To become the world’s most valuable company, Tesla must surpass other tech giants like Microsoft, Meta Platforms, Alphabet, NVIDIA, and even oil giant Saudi Aramco.
Currently, Elon Musk leads Bloomberg’s global billionaire rankings with a net worth of $376 billion, while Bill Gates ranks sixth with $166 billion.
