Bill Gates received a severe warning from Elon Musk on Tuesday, alerting the Microsoft cofounder to the dangers of placing a bet against Tesla. Musk said that if Gates kept shorting Tesla, he would suffer dire financial consequences since he believes the firm would become a $30 trillion artificial intelligence powerhouse by developing driverless cars and humanoid robots.
Musk has high goals for Tesla, two of which include mass-producing the Optimus droid and attaining complete autonomy. He underlined that after these benchmarks are met, Gates and everyone else in a low position will be “obliterated”. This conflict began in 2022, when leaked communications disclosed Musk’s reluctance to endorse Gates’ charitable endeavors because of Gates’ substantial short position against Tesla.
Unable to be reached for comment, Gates apparently regretted his pessimistic attitude on Tesla. Musk’s current warning is a brave move, particularly in light of Tesla’s difficulties this year, which include a 6.6% drop in car sales and issues with the Cybertruck. Musk has persevered despite these losses, having previously outlasted other well-known Tesla shorts.
Musk’s confidence in Tesla’s future is buoyed by recent developments. In April, he hinted at a new “CyberCab” robo-taxi model, and in 2025, he expects a resurgence in EV sales with the introduction of new low-cost models. Furthermore, Tesla’s strategic decisions, such as liquidating excess inventory and reallocating battery cells to its energy storage business, have contributed to a recent $100 billion increase in market capitalization.
Although Tesla’s current trading multiple is high, Musk’s projections for the Optimus droid market are even more audacious. He envisions a billion droids sold annually, generating substantial profits and elevating Tesla’s market cap to unprecedented levels. Critics, however, question the feasibility of Musk’s forecasts, citing potential discrepancies in market demand and economic output.
Ultimately, whether Musk’s lofty goals will materialize remains uncertain. If they do, investors could see remarkable returns, but without solid figures to substantiate his claims, Gates and others might still find reasons to bet against Tesla.