Tesla CEO Elon Musk recently suggested on X (formerly Twitter) that Microsoft co-founder Bill Gates could face bankruptcy if Tesla’s market capitalization surpasses all other companies by a significant margin. This comment reignites a long-standing feud between the two billionaires, rooted in Gates’ previous short position against Tesla stock.
Tesla’s current market cap stands at $1.251 trillion, considerably less than Apple’s $3.729 trillion. For Tesla to claim the top spot, its value would need to increase by approximately 200%. This substantial growth would require Tesla to outperform industry giants like Apple, Microsoft, Meta, Alphabet, Nvidia, and Saudi Aramco.
The conflict between Musk and Gates originated from Gates’ undisclosed short position in Tesla, a bet against the company’s stock performance. According to Walter Isaacson’s 2023 biography of Musk, Gates reportedly lost $1.5 billion on this investment. In a 2021 CNBC interview, Gates declined to discuss his specific positions but acknowledged Tesla’s significant achievements, praising Musk’s efforts.
The disagreement escalated in March 2022 during a meeting at Tesla’s Austin factory. While Gates apologized for the short position, according to Isaacson’s book, Musk remained unconvinced, perceiving Gates’ actions as hypocritical given his public stance on climate change. Musk questioned how someone advocating for climate action could bet against a leading electric vehicle company. He expressed this sentiment to Isaacson, highlighting the perceived contradiction between Gates’ words and actions.
Despite their differences, Gates has recognized Musk’s significant contributions to science and innovation. At a Washington D.C. dinner, Gates acknowledged Musk’s unparalleled impact in these fields.
Tesla’s stock has seen a significant surge this year, attributed to factors such as President-elect Donald Trump’s victory and Musk’s strengthening relationship with him. This connection even led to Musk’s nomination to head the newly established Department of Government Efficiency.
Currently, Musk holds the top position in global wealth rankings with a net worth of $376 billion, while Gates ranks sixth with $166 billion, according to the Bloomberg Billionaires Index. Musk’s playful jab at Gates regarding potential bankruptcy underscores the competitive landscape of the tech industry and the significant financial implications of Tesla’s continued growth. Whether Tesla will achieve the market dominance Musk envisions remains to be seen, but the rivalry between these two influential figures continues to captivate public attention.
