Disagreements between Elon Musk and Bill Gates—two of the most famous figures in the global technology and business space—have once again come to the fore, The Times of India reported. The latest exchange unfolded on microblogging platform X following a post on Tesla short sellers.
An X user wrote: “I've often found that Tesla short sellers don't have the best moral compass,” while citing a post from the New York Post. The post referenced Bill Gates apologising to Gates Foundation staff over his past association with Jeffrey Epstein and acknowledging extramrital affairs with two Russian women.
I've often found that Tesla short sellers don't have the best moral compass https://t.co/IqRYX9F3Yn
— Whole Mars Catalog (@wholemars) February 25, 2026
Reacting to the post, Musk responded briefly with the comment, “Karma is real.”
Karma is real
— Elon Musk (@elonmusk) February 25, 2026
What led to the spat betwen Musk and Gates?
The tension between the two businessmen is rooted in Bill Gates' reported decision to short, or bet against, the Tesla stock.
According to accounts cited by The Times of India, Gates took a short position worth around $500 million against Tesla
In an interview with Musk's biographer Walter Isaacson, Gates said the move prompted a personal message from Musk and led to what he described as “super mean” behaviour.
Gates recalled that Musk directly asked him whether he had taken a short position against Tesla. Gates confirmed he had, but added he also mentioned an interest in discussing potential philanthropic collaboration.
Musk rejected the idea and replied, “Sorry, I cannot take your philanthropy on climate change seriously when you have a massive short position against Tesla, the company doing the most to solve climate change.”
ALSO READ: Bill Gates Apologises To Foundation Staff Over Epstein Ties: Report
What Is Short Selling ?
Short selling is a trading method where investors profit from a fall in a company's share price. In this process, shares are borrowed and sold at the current price, with the expectation that they can be bought back later at a lower price. If the stock price drops, the investor gains from the difference. If the stock price rises instead, losses increase.
According to Isaacson's biography, Gates' short position against Tesla left him facing losses of about $1.5 billion when Tesla shares were trading at $400 each. As of today, Tesla's stock price stands at $417 per share, further highlighting the scale of the risk involved in the bet.
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The spat resurfaced again in late 2024 when Musk shared a post stating, “If Tesla does become the world's most valuable company by far, that short position will bankrupt even Bill Gates.”
Earlier, after Tesla shareholders approved Musk's massive $1 trillion pay package, the Tesla CEO made another pointed remark, saying, “If Gates hasn't fully closed out the crazy short position he has held against Tesla for around eight years, he had better do so soon.”
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