Microsoft (NASDAQ: MSFT) founder and philanthropist Bill Gates might be massively underwater on his significant short position on Tesla (NASDAQ: TSLA) stock.
In this line, Tesla CEO Elon Musk alleged on February 17, 2026, that Gates continues to hold the position, potentially resulting in losses of up to $10 billion or more.
Musk claimed the position equates to approximately 1% of Tesla’s shares when the company’s market capitalization was around $40 billion.
He alleged that the late financier Jeffrey Epstein encouraged Gates to enter the bet after Musk declined Epstein’s invitations, though the Tesla boss provided no evidence for this assertion. Musk added that, to his knowledge, Gates has not closed the position.
Tesla’s market capitalization has grown substantially since that period, recently hovering around $1.5 trillion to $1.57 trillion as of mid-February 2026.
Tesla stock price volatility
Tesla shares have experienced volatility in early 2026, with recent declines contributing to a lower market cap in some reports compared to late-2025 peaks.
As of press time, TSLA stock was down more than 3%, trading at $403. Year-to-date, the stock remains down 10%.
Tesla stock YTD price chart. Source: FinboldA short position of that size, if held throughout Tesla’s multi-year rally, would have resulted in substantial unrealized losses. While the bet would gain if Tesla’s share price fell, it carries rising costs, including potential margin requirements, as the stock climbs.
Notably, Gates previously acknowledged shorting Tesla, including in Walter Isaacson’s 2023 biography of Musk.
Musk brought the matter to public attention in 2022, sharing text messages referencing an estimated $500 million short position.
Gates has not commented on the current status or any updated loss estimates.
There is no independent confirmation of the position’s exact size, entry point, or whether it remains active, as personal short holdings are not always publicly disclosed like long positions.
Featured image via Shutterstock
Source: https://finbold.com/bill-gates-could-be-down-an-estimated-10-billion-on-his-tesla-short-bet/


