In a bold prediction, Elon Musk has claimed that fellow billionaire Bill Gates will face severe financial repercussions for shorting Tesla stock. This statement reignites a longstanding feud between the two tech moguls, who have frequently clashed over issues such as climate change, the coronavirus, and electric vehicles.
Musk's prediction came via his social media platform, X, in response to a query about his thoughts on "Tesla bears"—Wall Street investors skeptical of Tesla's valuation. Musk asserted that once Tesla achieves full self-driving autonomy and mass-produces its Optimus robots, short sellers, including Bill Gates, would be "obliterated."
Tesla’s recent performance seems to support Musk's confidence. The company's stock surged over 17% in the past two days following a better-than-expected quarterly vehicle delivery report, despite a 5% drop in deliveries. This surge has reportedly cost short sellers approximately $3.5 billion, based on data from S3 Partners.
Currently, Tesla's short interest stands at 3.5% of its float, equating to 97 million shares worth $22.4 billion. It remains unclear if Gates still holds any short positions on Tesla stocks, as representatives for Gates have not commented.
Tesla's stock has rallied over 40% in the last month, bouncing back from a prolonged slump caused by declining sales and increased competition, particularly from Chinese EV brands like BYD, which is backed by Warren Buffett.
Musk, who tops the Bloomberg Billionaires Index with a net worth of $252 billion, has a significant financial edge over Gates, who is ranked eighth with $158 billion. Their feud dates back to 2022 when Gates admitted to shorting Tesla stock. Musk had then criticized Gates for his contradictory stance on climate change, given Tesla’s pivotal role in promoting electric vehicles.
Gates had reportedly apologized for shorting Tesla, but the tension persisted, especially during the early days of the COVID-19 pandemic. Gates criticized Musk for downplaying the virus's severity, while Musk made light of their rivalry on social media.
Despite occasional compliments from Gates regarding Tesla’s impact on climate change, the feud has continued. Gates has maintained that his philanthropic efforts and investments have made a more substantial impact on climate change than Musk's ventures. This rivalry extends to their differing views on space colonization, with Gates expressing skepticism about Musk's Mars ambitions.
As Tesla continues to rebound and innovate, the financial and ideological battle between Musk and Gates shows no sign of abating, promising further developments in their high-profile rivalry.
Disclaimer:
The information provided in this article is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions. T
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