Tesla (TSLA) Stock: Musk Warns Gates to Exit Short Position as Shares Consolidate

Tesla (TSLA) Stock: Musk Warns Gates to Exit Short Position as Shares Consolidate

TLDR

  • Tesla CEO Elon Musk warned Bill Gates to close his short position against Tesla stock, which Gates has reportedly held for approximately eight years.
  • Gates previously confirmed to Musk that he held a $500 million short position betting Tesla shares would decline, while Tesla stock has risen 6% this year and 150% over five years.
  • Tesla stock is trading at $404.35, consolidating between support at $380 and resistance at $430 as the market awaits direction.
  • The Gates Foundation recently sold 65% of its Microsoft holdings for nearly $9 billion, prompting Musk’s renewed warning about the Tesla short position.
  • Cathie Wood’s ARK Invest sold Tesla shares for four consecutive sessions through November 13, marking a rare move from one of Tesla’s biggest supporters.

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Elon Musk issued a direct warning to Bill Gates about his Tesla short position. The message came after Gates’ foundation dumped a large portion of its Microsoft holdings.

Tesla, Inc., TSLA

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk wrote. The statement marks another chapter in the ongoing tension between the two tech billionaires.

Gates confirmed his short position directly to Musk several years ago during discussions about potential philanthropic work. Gates had placed $500 million betting against Tesla’s success.

A short position means Gates profits if Tesla’s stock price falls. The bet hasn’t worked out in his favor. Tesla shares are up 6% this year and have climbed nearly 150% over the past five years.

The warning came after the Gates Foundation sold 65% of its Microsoft position. That sale generated approximately $9 billion. Musk’s timing suggests he sees an opportunity for Gates to reassess his Tesla bet.

Tesla stock closed at $404.35 on November 17. The shares gained 0.6% in the previous 24 hours. The stock has been trading in a tight range between $381 and $412.

According to Walter Isaacson’s biography of Musk, the Tesla CEO was “super mean” to Gates after learning about the short position. The revelation came during their philanthropic discussions years ago.

Stock Technical Analysis

Tesla faces key resistance near $420 to $430. Sellers have consistently prevented moves above this level. Support sits between $380 and $390, where buyers have stepped in during recent sessions.

A break below $380 would likely trigger downside momentum. The next major support level appears around $350. Conversely, a breakout above $430 on strong volume could push shares toward $460.

The stock trades near its 50-day moving average. The 200-day average provides structural support below current price levels. The Relative Strength Index sits in neutral territory, showing no clear momentum in either direction.

Recent Shareholder Developments

At Tesla’s recent Annual Shareholder Meeting, Musk outlined plans for future projects across multiple industries. Shareholders approved his new $1 trillion compensation package with 76.6% voting in favor.

The package will be awarded in twelve tranches. Each tranche combines a company valuation goal with an individual product-related goal. Musk previously completed his last compensation package, though a Delaware Chancery Court ruling prevented its award.

Cathie Wood’s ARK Invest sold Tesla shares for four straight sessions through November 13. The move represents a rare shift from one of the stock’s strongest advocates. Tesla remains the top holding in ARK’s ETFs despite the sales.

Musk has long viewed short positions in Tesla as bets against innovation. He’s previously clashed with short sellers over the years. His latest comments reference Tesla’s work in artificial intelligence and robotics as reasons short sellers could face losses.

Gates previously expressed skepticism about Tesla. The exact current status of his short position remains unclear. Musk’s warning gives Gates advance notice rather than surprising him with potential losses.

Tesla’s valuation relies heavily on future expectations. These include autonomous vehicles, the Optimus humanoid robot, and energy solutions. Delays in these areas could pressure the stock’s high valuation multiples.

Regulatory scrutiny of Full Self-Driving technology represents a potential headwind. The company must deliver on its technological promises to justify current price levels.

Market analysts view the consolidation phase as a period of indecision. Investors appear to be waiting for clearer signals from earnings, product updates, or broader economic trends before making major moves.



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