TLDR
- Elon Musk publicly warned Bill Gates to close his Tesla short position, which has been active for approximately eight years and originally totaled $500 million.
- Tesla stock trades at $404.35 with key support at $380 and resistance at $430 as investors await the next directional move.
- Gates admitted his short position to Musk years ago during philanthropic discussions, while Tesla shares have climbed 150% over five years.
- The Gates Foundation recently liquidated 65% of its Microsoft stake for $9 billion, triggering Musk’s renewed warning.
- ARK Invest sold Tesla shares for four consecutive sessions, representing a shift from the fund’s typically bullish stance.
Elon Musk delivered a sharp warning to Bill Gates regarding his long-standing short position against Tesla. The Tesla CEO’s statement came shortly after Gates’ foundation sold a major chunk of Microsoft stock.
Musk wrote that Gates should close his “crazy short position” soon. The position has reportedly been active for about eight years. Gates originally bet $500 million against Tesla’s success.
The two billionaires have clashed over this issue before. Gates revealed the short position directly to Musk during talks about potential charitable work. Walter Isaacson’s Musk biography describes the Tesla CEO’s reaction as “super mean.”
A short position makes money when stock prices fall. Gates’ bet hasn’t paid off. Tesla shares have gained 6% this year and surged 150% over the past five years.
Current Stock Performance
Tesla closed at $404.35 on November 17, up 0.6% from the previous day. The stock has been trading sideways between $381 and $412. Technical indicators show consolidation as the market waits for direction.
Support holds between $380 and $390. Multiple buying waves have emerged at these levels. A breakdown below $380 could push shares toward $350.
Resistance sits at $420 to $430. Sellers have capped rallies at this zone consistently. Breaking above $430 with volume could target $460.
The 50-day moving average hovers near current prices. The 200-day average provides support underneath. The RSI remains neutral, confirming the lack of momentum.
Shareholder Actions and Compensation
Tesla shareholders approved Musk’s new $1 trillion compensation package at the recent Annual Shareholder Meeting. The vote showed 76.6% support. The package includes twelve tranches tied to valuation and product milestones.
Musk completed his previous compensation plan, though a Delaware court blocked its distribution. His track record of delivering shareholder value remains strong.
Cathie Wood’s ARK Invest sold Tesla shares for four straight sessions through November 13. This marks a rare bearish move from one of Tesla’s biggest believers. Tesla still ranks as ARK’s top holding despite the sales.
The Gates Foundation’s recent $9 billion Microsoft sale triggered Musk’s latest comments. The timing suggests Musk sees this as the moment for Gates to exit his Tesla short.
Short Seller Tensions
Musk has battled short sellers throughout Tesla’s history. He views short positions as bets against innovation. His comments often reference Tesla’s progress in artificial intelligence and robotics.
The company’s high valuation depends on future products delivering. Autonomous vehicles and the Optimus robot represent key pillars. Regulatory challenges around Full Self-Driving technology could create headwinds.
Gates previously expressed skepticism about Tesla’s prospects. The current status of his exact position remains unconfirmed. Musk’s warning provides advance notice rather than catching Gates off guard.