Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk has once again taken aim at Microsoft Corp. (NASDAQ: MSFT) co-founder Bill Gates, suggesting on X that Gates could face bankruptcy if Tesla becomes “the world’s most valuable company by far.” The remark is the latest development in a long-standing dispute between the two billionaires over Gates’ short position in Tesla stock.

Tesla’s Path to Market Domination

Musk’s comment comes as Tesla’s market capitalization sits at $1.251 trillion, trailing far behind Apple Inc.’s (NASDAQ: AAPL) valuation of $3.729 trillion. For Tesla to claim the title of the world’s most valuable company, its valuation would need to grow by nearly 200%, a daunting but not impossible feat given Tesla’s aggressive expansion into new markets and industries.

Origins of the Feud

The conflict between Musk and Gates reportedly began when Gates took a short position against Tesla. According to Walter Isaacson’s 2023 biography of Musk, Gates’ bet against the electric vehicle maker resulted in a $1.5 billion loss. Gates has largely avoided discussing his investment strategy in public but praised Tesla’s accomplishments in a 2021 CNBC interview, calling Musk’s achievements “fantastic.”

Tensions Come to a Head

Tensions between the two tech icons peaked during a March 2022 meeting at Tesla’s Austin factory, where Gates and Musk discussed philanthropy and climate change. According to Isaacson, Gates apologized for his short position but failed to win Musk’s approval. Musk criticized Gates for what he viewed as hypocrisy, stating, “How can someone say they are passionate about fighting climate change and then do something that reduced the overall investment in the company doing the most?”

Musk has frequently highlighted Tesla’s role as a leader in the fight against climate change, making Gates’ bet against the company a particularly sensitive issue.

Looking Ahead

While Gates has remained largely silent on the feud, Musk continues to use his platform to highlight what he sees as contradictions in Gates’ actions. Tesla’s path to becoming the most valuable company globally remains uncertain, but the rivalry between Musk and Gates underscores the high stakes in the race to dominate the future of technology and sustainable energy.