Musk: "Bill Gates Faces 2 Trillion Won Loss Due to Tesla Short Selling"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] Elon Musk, CEO of Tesla, claimed that "Bill Gates, who short-sold Tesla stock, is facing a massive loss."

On the 27th (local time), according to Bloomberg News, Musk stated on his Twitter account that the amount Gates would need to cover his short position on Tesla could currently reach $1.5 billion to $2 billion (approximately 1.8 trillion to 2.5 trillion KRW).

Short selling is an investment method that profits when stock prices are expected to fall. It involves borrowing shares that one does not own and selling them. If the stock price drops, the shares are bought back at a lower price to repay the loan, securing a profit. However, if the stock price rises, significant losses can occur.

Musk said that the amount Gates initially needed to cover his short position was about $500 million (approximately 630 billion KRW), but Tesla's stock price has since risen sharply.

Last year, Gates appeared on CNBC and was asked whether he had shorted Tesla stock. He replied, "I don't talk about my investments." However, Musk revealed that in April, he confronted Gates about whether he had shorted Tesla stock worth $500 million.

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