Tesla CEO Elon Musk warns Bill Gates to close $1.5 Billion short as their long-running conflict resurfaces amid Tesla’s record-breaking pay deal.
Elon Musk has reignited his long-standing conflict with Microsoft Co-Founder Bill Gates, calling on Gates to close out a multi-billion-dollar short position against Tesla. The dispute, which dates back to 2022, resurfaced publicly after Musk, celebrating Tesla’s approval of his unprecedented $1 trillion pay package, issued a warning on the social media platform 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,” Musk wrote in response to a comment about Gates’ recent offloading of Microsoft stock.
The feud traces back to Gates reportedly shorting Tesla shares by approximately $500 million. Gates later told biographer Walter Isaacson that Musk’s reaction was unusually hostile, including a blunt text asking if the bet was true. Musk refused to entertain Gates’ overtures regarding climate philanthropy while the short position was active, stating, “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 downplayed the personal dimension of the dispute, telling the BBC the short “has nothing to do with climate change” and was part of his broader diversification strategy. He added that Musk is “super mean to so many people, so you can’t take it too personally.”
Read Also: Elon Musk Warns “Artificial Intelligence” Will Rule Humanity
Despite the tension, Tesla’s stock has surged in recent years, leaving Gates’ bet reportedly underwater by $1.5 billion when shares were trading near $400. As of Monday November 17, 2025, Tesla shares were valued at approximately $408, highlighting the costly miscalculation of the short position.
Musk’s renewed remarks coincide with Tesla shareholders approving a historic compensation plan for the CEO. The package, potentially worth $1 trillion, ties payouts to ambitious performance milestones, including raising Tesla’s market capitalization to $8.5 trillion—an unprecedented valuation in modern corporate history.
The renewed friction underscores the intersection of personal rivalries, climate advocacy, and high-stakes finance in the tech and EV sectors. Musk, whose net worth is estimated at $431 billion by the Bloomberg Billionaires Index, has become the world’s richest individual, while Gates faces the financial consequences of a short strategy that has turned against him.
Market analysts say the feud illustrates the risks associated with high-profile short positions in volatile technology stocks, as well as the enduring public attention commanded by billionaire entrepreneurs. For Musk, the dispute is a reminder of Tesla’s dominance in the electric vehicle market and the personal stakes tied to its valuation.
