Billionaire entrepreneur Elon Musk has once again criticized Microsoft (MSFT) co-founder Bill Gates for maintaining a long-standing short position against his electric vehicle (EV) company Tesla (TSLA). Musk called Gates’ bet “crazy” and urged him to close it immediately. He wrote on X, “If Gates hasn’t fully closed out the crazy short position he has held against Tesla for about eight years, he had better do so soon.”
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Musk’s remarks came shortly after reports surfaced that the Bill & Melinda Gates Foundation Trust had sold around 65% of its Microsoft shares, earning an estimated $8.8 billion in profits according to its recent 13F filing. Meanwhile, Tesla’s share price has gained more than 19% over the past year, adding fuel to Musk’s renewed commentary.
This is not the first time Musk has targeted Gates over the short position. Last year, he warned that if Tesla becomes the world’s most valuable company, Gates’ short trade could potentially bankrupt his philanthropic wealth.
The Long-Standing Feud between Musk and Gates
Tensions between the two billionaires date back several years. In 2022, Gates reported a $1.5 billion loss from his bet against Tesla’s stock price performance. Gates had initially invested $500 million against Tesla, shorting the stock and hoping to profit from its failure.
Musk has long argued that Gates placed a substantial wager against Tesla during a crucial period for the EV company. He suggested that this move could harm retail investors by driving the stock price lower.
Short selling is a way to make money from a stock’s price decline. It involves borrowing shares, selling them at the current price, and later repurchasing them at a lower price to return to the lender. If the stock rises instead, the short seller incurs losses.
Gates’ Other Portfolio Shuffles in Q3
Apart from selling a large chunk of MSFT shares, the Gates Foundation also exited its entire positions in United Parcel Service (UPS) and Crown Castle (CCI). At the same time, the fund sold shares of Berkshire Hathaway (BRK.B), Waste Management (WM), Caterpillar (CAT), Canadian National Railway (CNI), Walmart (WMT), FedEx (FDX), and Kraft Heinz (KHC) among others.
TSLA or MSFT: Which Is the Better Stock to Buy Now, According to Analysts?
We used the TipRanks Stock Comparison Tool to determine which stock among the two is currently preferred by analysts.
Wall Street has a “Strong Buy” consensus rating on MSFT shares, with a nearly 24% upside potential over the next twelve months.
