Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk quipped on X that Microsoft Corp. (NASDAQ:MSFT) co-founder Bill Gates could face bankruptcy if Tesla becomes "the world's most valuable company by far," escalating their long-running dispute over Gates' short position in the electric vehicle maker.

What Happened: The statement comes as Tesla's market capitalization stands at $1.251 trillion, still significantly behind Apple Inc. (NASDAQ:AAPL) at $3.729 trillion. To achieve the top position, Tesla would need to grow by nearly 200%.

The conflict between the two billionaires stems from Gates' undisclosed short position in Tesla stock, which reportedly resulted in a $1.5 billion loss for Gates, according to Walter Isaacson's 2023 biography of Musk.

When confronted about the investment during a 2021 CNBC interview, Gates declined to comment on his positions but praised Tesla's achievements, stating, "What Elon's done with Tesla is fantastic."

The tension peaked during a March 2022 meeting at Tesla's Austin factory, where Gates and Musk discussed philanthropy and climate change. According to Isaacson's book, Gates apologized for the short position, but Musk remained unplacated, viewing it as hypocritical for someone concerned about climate change to bet against an electric vehicle company.

"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 told Isaacson.

What Happened: Despite their differences, Gates has publicly acknowledged Musk's contributions, stating at a Washington D.C. dinner that "there is no one in our time who has done more to push the bounds of science and innovation than he has."

Tesla's stock has surged 56.91% this year, driven by President-elect Donald Trump's victory in the 2024 election and Musk's growing relationship with Trump, which also led to Tesla CEO being nominated to lead the newly formed Department of Government Efficiency.

Tesla would need to surpass tech giants like Microsoft, Meta Platforms Inc. (NASDAQ:META), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and NVIDIA Corp. (NASDAQ:NVDA), along with Saudi Aramco, to become the world's most valuable company.

Currently, Musk leads the global wealth rankings with a net worth of $376 billion, while Gates ranks sixth at $166 billion, according to the Bloomberg Billionaires Index.

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Image via European Commission/ Lukasz Kobus

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.