Heads Up for Tesla Bears

Now that Musk has the $3B funding (gap) secured for 2019 debt obligations via the SpaceX Moon Reservations, what's going to be even more impressive is how he'll manage to David Copperfield that cash onto Tesla's balance sheet.

TSLA shorts beware: Though the DOJ probe complicates an equity raise in the near future, that doesn't necessarily prevent the company from obtaining a bridge loan from a bank or hedge fund in the interim until the case(s) are settled.

The SpaceX Moon trip equity raise implies the 2019 $3.5B debt-service funding gap has been closed for the near term. Now the company is only short 2019 operating expenses.

Tesla Stock and Rocket Man's Incentive

At some time, 28.7M shares of Tesla common stock (TSLA) must be purchased in the open market by the short interest, which is ~$10,390,659,760 of buying power. If Rocket Man shorted $1B worth of TSLA at today's close and put the price up 10 by bidding to cover, he would lose $28M on the trade, however, his total net worth would increase by $382M, and presto: a $354M net profit or >1,200% risk adjusted return, by shorting your own stock. A thing of beauty.