The end of 'Musk Inc' basket

what stocks benefit from musk's fallout with the USG

With Musk and Trump now officially on the outs, given Trump’s comments on Sunday that he doesn’t see them reconciling any time soon, its time to talk about three themes that Musk was neck deep in that have multiple other players in them, all of which could benefit if the US government creates some parody and picks new preferred vendors.

Before we jump in I want to talk briefly about my positioning in these names. I’m not long any name mentioned here today, though I have bolded three names that I think I will be starting positions in at some point this week. Many of these names I’m not entirely familiar with because of their highly speculative nature of not just the name specifically, but the entire sector. Please be careful and understand that you could wake up on morning to a massive dilution or outright issue that cuts the stock in half. There’s a reason I rarely talk about these sectors.

To put a fine point on this piece, the entire thesis is one that if musk inc might have gone too far and will not be the winner in its various spaces. In fact the best way to play this theory might be to short SpaceX via either DXYZ or XOVR both of which are public privates. XOVR has a 10% stake in spaceX (as a value of book based on its marks) and DXYZ had a 50% stake (using the same metrics).

Also be aware of the very obvious downside, that Musk’s fall out is limited in scope to him personally and don’t expand to his companies. Given how tighten wrapped up in cult of personalities his companies are to him, I’m not sure about this bear case.