Elon Musk Said Bill Gates Would Be 'Obliterated' for Shorting Tesla—But Short Sellers Just Made $16.2 Billion In 3 Months Betting Against Him

Remember when Elon Musk fired off that bold prediction on X? "Once Tesla TSLA fully solves autonomy and has Optimus in volume production, anyone still holding a short position will be obliterated. Even Gates." That was last July—Musk basically dared short-sellers, including Bill Gates, to bet against Tesla, warning they'd be crushed once self-driving tech and Optimus robots took off. But now, in March, it's not the short-sellers feeling the heat—it's Tesla's stock.

Instead of soaring to unstoppable heights, Tesla's shares have plunged roughly 53% from their December peak, sitting around $225. The biggest winners? The very same short sellers Musk warned, who have raked in a staggering $16.2 billion in profits over the last three months, according to Business Insider. If obliteration was on the table, it sure didn't land where Musk expected.

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Gates, one of the most high-profile Tesla bears, first revealed his short position back in 2022, fueling an already simmering feud with Musk. Their clash wasn't just about stock—it was personal. 

Gates had approached Musk to collaborate on climate change initiatives, only for Musk to shut it down entirely, firing back, "Sorry, but 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." That text exchange, which Musk gleefully made public, cemented their billionaire beef for years to come.

But why is Tesla's stock tanking while short-sellers cash in? For starters, Chinese EV makers aren't just competing—they're coming for Tesla's lunch. BYD, one of China's biggest auto players, just rolled out a lightning-fast charging system that delivers 400 kilometers of range in five minutes, leaving Tesla scrambling to keep up. Then there's Wall Street's shifting mood—RBC just slashed its Tesla price target from $440 to $320, dialing back expectations for its self-driving tech and robotaxi rollout. Add in a brutal 49% year-over-year drop in Tesla's China shipments last month, and investors are hitting the brakes hard.

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Meanwhile, Musk's latest moonshot—er, Mars-shot—plan to send the Optimus robot to the Red Planet by 2026 might sound impressive, but it's doing little to reassure shareholders that Tesla's real-world business is on solid ground. While Musk is talking about robots in space, investors are more concerned with what's happening on Earth—where Tesla's dominance is getting chipped away.

Musk's warning wasn't just about short-term stock movement. His vision for Tesla remains locked on a future where self-driving technology and humanoid robots aren't just ideas but market-shifting realities. If he's right, Tesla could still make an explosive comeback, and today's short-seller profits might look like pocket change in hindsight. 

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Markets go up, markets go down—that's just how the game works. Tesla's stock may be struggling now, but if there's one thing Musk doesn't do, it's stop. The man is relentless, always pushing forward, whether it's EVs, AI, or even robots bound for Mars.

Even Gates—despite their long-running feud—has acknowledged Musk's impact. In an interview with The Independent last month, Gates said, "I'm in awe of the great work he did at SpaceX and Tesla." He even credited Tesla with forcing the auto industry to improve electric vehicles, calling it a "gigantic contribution" to climate change solutions.

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