Musk Urges Gates to Reconsider His Position

Tesla Inc. (TSLA) CEO Elon Musk has a message for Microsoft Corp. (MSFT) co-founder Bill Gates: it's time to close out that short position.

The exchange happened on X over the weekend, after the Tesla Owners Silicon Valley account suggested that Gates might be covering his Tesla short following news that the Bill Gates Foundation was selling off 65% of its Microsoft holdings—a massive $8.8 billion divestment. Musk jumped into the conversation with characteristic directness.

"If Gates hasn't fully closed out the crazy short position he has held against Tesla for ~8 years," Musk wrote, he should do it "soon." The comment reignited an ongoing tension between the two billionaires over Gates's bet against the electric vehicle maker.

Where Gates's Money Actually Lives

The Gates Foundation Trust maintains a fairly concentrated portfolio, with the bulk of its investments spread across just four companies. Besides Microsoft, the foundation holds significant stakes in Berkshire Hathaway Inc. (BRK.B) (BRK.A)—Warren Buffett's investment vehicle—along with Waste Management Inc. (WM) and Canadian National Railway Co. (CNI). These four positions represent more than 79% of Gates's investment portfolio, making the foundation's recent Microsoft sale all the more notable.

Tesla's Recent Challenges

Tesla stock has been under pressure lately, dipping as low as $386.34 on Friday before staging a rebound. Gary Black, managing director of The Future Fund LLC, pointed to several factors behind the decline. Weakening EV demand in China and Europe has weighed on investor sentiment, while Cathie Wood's ARK Invest ETFs have been shedding millions of dollars worth of Tesla shares.

Adding to Tesla's challenges, a showroom outside Marseille, France recently experienced a serious fire incident. Twenty-four Tesla vehicles were destroyed in the showroom's parking lot, and authorities have launched an investigation into the cause. Arson is being considered as one possible explanation for the blaze.

The Numbers

Despite the recent volatility, Tesla closed Friday's regular trading session up 0.59% at $404.35, then added another 0.27% in after-hours trading to reach $405.45. The stock has shown favorable price trends across short, medium, and long-term timeframes, scoring well on momentum and quality metrics. Growth indicators look satisfactory, though value metrics remain less impressive.

Whether Gates will heed Musk's advice remains to be seen. The short position has been a point of contention between the two tech titans for years, and with Tesla's stock showing resilience despite recent headwinds, the pressure is mounting on anyone betting against the EV maker.