TLDR
- Elon Musk told Bill Gates to close his Tesla short position soon, citing the bet has been active for roughly eight years with an original value of $500 million.
- Tesla shares trade at $404.35, holding in a consolidation pattern with support at $380 and resistance near $430 as market participants wait for catalysts.
- Gates confirmed his short position directly to Musk years ago, while Tesla stock has rallied 6% year-to-date and 150% over five years.
- The warning followed the Gates Foundation selling 65% of its Microsoft position for approximately $9 billion in proceeds.
- Cathie Wood’s ARK Invest dumped Tesla shares across four consecutive trading sessions through November 13, signaling a tactical shift.
Elon Musk issued a pointed message to Bill Gates about closing his Tesla short position. The warning comes as Gates’ foundation makes major portfolio changes.
Musk stated that Gates should exit his short position soon if he hasn’t already. The bet against Tesla has persisted for approximately eight years. Gates initially wagered $500 million that Tesla would fail.
The former Microsoft CEO admitted the short position to Musk during conversations about philanthropic opportunities. Musk’s reaction was harsh, according to Walter Isaacson’s biography. The encounter soured any potential collaboration between them.
Short positions profit when stock prices decline. Gates’ strategy hasn’t worked. Tesla shares are up 6% in 2025 and have jumped 150% over five years.
Trading at Key Levels
Tesla closed at $404.35 on November 17, gaining 0.6% for the session. The stock has been range-bound between $381 and $412 recently. Charts show indecision as traders wait for the next move.
The $380 to $390 zone represents strong support. Buyers have defended this area across multiple tests. Falling through $380 would likely accelerate selling pressure toward $350.
Resistance clusters between $420 and $430. Previous rallies stalled at these prices. A clean break above $430 on heavy volume could propel shares toward $460 or higher.
Both the 50-day and 200-day moving averages show flattening patterns. The RSI indicator sits in neutral territory. These signals point to consolidation rather than trending behavior.
Foundation Moves and Institutional Selling
The Gates Foundation recently sold 65% of its Microsoft holdings. That transaction generated roughly $9 billion. The sale timing coincided with Musk’s renewed criticism of Gates’ Tesla short.
Tesla shareholders backed Musk’s new $1 trillion compensation plan at the latest Annual Shareholder Meeting. The approval rate hit 76.6%. The package breaks into twelve separate tranches, each requiring specific company and product milestones.
Musk earned his previous compensation package through performance. A Delaware court prevented its distribution despite him meeting all targets. His ability to drive shareholder returns remains proven.
ARK Invest sold Tesla positions for four straight days ending November 13. The sales represent an unusual move from Cathie Wood’s firm. ARK has been one of Tesla’s most vocal supporters. Tesla remains the fund’s largest holding even after the sales.
Market Dynamics and Valuation
Musk has repeatedly criticized short sellers over the years. He frames their positions as bets against technological progress. His latest comments highlight Tesla’s artificial intelligence and robotics development.
Tesla’s premium valuation depends on future product execution. The Optimus humanoid robot and autonomous vehicle technology must deliver results. Full Self-Driving technology faces ongoing regulatory review that could slow progress.
Gates has publicly questioned Tesla’s long-term prospects multiple times. The exact size and status of his current short position isn’t publicly known. Musk’s warning gives Gates notice to adjust his position before potential losses mount.
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