Elon Musk Drops Bombshell: Jeffrey Epstein Orchestrated Bill Gates’ Tesla Short Position
Elon Musk just lobbed a financial grenade into Silicon Valley's polite cocktail circuit. The Tesla CEO alleges the late financier and convicted sex offender Jeffrey Epstein was the puppet master behind Bill Gates' decision to short Tesla stock—a revelation that ties one of tech's biggest rivalries to one of its darkest figures.
The Epstein Connection
Musk's claim, delivered via his preferred megaphone, suggests Gates' financial maneuvering wasn't just a bet against electric vehicles. It was, allegedly, strategy by proxy. This paints a picture where Epstein—a man with no formal tech background—held sway over investment decisions at the highest levels. It re-frames a billionaire feud as something far more sinister.
Short Sellers in the Crosshairs
The allegation lands like a sledgehammer on Wall Street's short-selling community. If a titan like Gates could be influenced, what about the hedge funds with their complex algorithms and whispered tips? It exposes the human layer—the dinners, the calls, the undisclosed advisors—that no Bloomberg terminal can quantify. Suddenly, every short position feels a little less clinical.
A Legacy of Leverage
Epstein's shadow over finance was long, but this direct link to a specific, market-moving trade is new. It suggests his influence wasn't just about social climbing; it was about moving capital. For crypto natives watching, it's a stark reminder: traditional finance's 'trusted networks' can be its greatest vulnerability. Your decentralized ledger doesn't take meetings on a private island.
The Gates of Perception
For Bill Gates, the allegation is a reputational quagmire. It forces a re-examination of his associations and, more critically, his investment thesis. Was shorting Tesla purely a financial calculation, or was it personal? In the world of high-stakes investing, the line is often blurry—and rarely this publicly litigated.
Musk's narrative, whether fully proven or not, has already done its damage. It weaponizes Epstein's legacy to question the integrity of a rival's trade. In the end, it's a masterclass in financial warfare—where the most valuable currency isn't dollars, but doubt. And as any good short seller knows, doubt has a way of becoming self-fulfilling.
Musk calls out Gates for taking Epstein’s advice to short Tesla
Musk weighed in on the post, once again bringing attention to the 1% short position of the company’s total shares outstanding that he claimed Gates has held against Tesla for the past eight years. “As far as I know, Gates still has the short open. Someone should ask him how that’s working out,” Musk wrote.
In December, Musk claimed that the position has since cost the Microsoft co-founder as much as $10 billion, as Tesla shares soared over the past few years. Tesla shares most recently closed at $417.44, with the stock up 17.3% over the past year and 100.4% over the past three years.
Several other institutional investors have changed their positions in TSLA. Vanguard Group Inc. increased its stake in Tesla by 0.4% during the third quarter. Geode Capital Management LLC grew its holdings in shares of Tesla by 2.0% during the 2nd quarter.
Additionally, Norges Bank purchased a new position in Tesla in the second quarter valued at approximately $11,839,824,000. Legal & General Group Plc lifted its position in Tesla by 5.9% during the second quarter. Amundi also increased its Tesla shareholding by 20.4% in the second quarter.
Meanwhile, Tigress Financial analyst Ivan Feinseth initiated coverage with a Buy rating and $550 price target, implying 31.9% upside potential. On the other hand, Morgan Stanley analyst Andrew Percoco maintained his Hold rating and $415 price target, suggesting that shares are fully valued at current levels.
Epstein advises on the structure of Tesla
A batch of DOJ documents shows that Epstein was involved with Tesla in 2018. Musk posted on social media that he was “considering taking Tesla private” in a MOVE that never came to fruition.
One of the CEO’s surrogates was sounding out Epstein for advice on financing the deal and potential board members for a reorganized Tesla. They also went back and forth over Musk’s leadership qualities.
That year, Musk was having a rough time. His companies were struggling, and his behavior on social media was becoming increasingly unpredictable, which seemed to be hurting his public image.
Musk took counsel from the high-powered former lobbyist and corporate consultant Juleanna Glover as he sought to limit blowback. It was Glover who WOULD later backchannel with Epstein about a plan to take Tesla private.
The idea of buying Tesla was sketchily outlined in another of Musk’s now-infamous tweets. “Am considering taking Tesla private at $420,” he posted in August. This tweet caused a backlash because he had not secured those funds.
On September 27, the US SEC filed fraud charges against Musk, alleging “securities fraud for a series of false and misleading tweets.”
Musk quickly settled to the tune of a $20 million fine, with Tesla paying an equal penalty, and stepped down as chairman of the electric vehicle company. In the weeks between Musk’s tweet and the SEC charge, Glover was working behind the scenes to make the deal a reality and sought Epstein’s counsel.
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