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Elon Musk's SolarCity jumps 16%

May 20, 2013: 2:25 PM ET

Investors can't seem to get enough of Elon Musk.

Just take a look at SolarCity (SCTY).

Shares of the Musk-backed solar energy company rallied 16% Monday.

Shares took a hit last week after the company reported a wider-than-expected first-quarter loss. But the stock quickly bounced back after SolarCity reached a deal with Goldman Sachs (GS) to finance $500 million of solar projects.

Investors on StockTwits were quick to jump on the Musk bandwagon.

Very few entrepreneurs succeed in turning an idea to a $1B+ business. Elon Musk has done it 4 times: $TSLA $SCTY $PAYPAL $SPACEX. Incredible

Musk, who is the chairman of SolarCity, was a co-founder of Internet payment system Paypal.

But he's perhaps best known as the founder of electric car company Tesla (TSLA), which makes what Consumer Reports called the best car it ever tested. That would be the Model S, for anyone who missed it.

$SCTY Out of this one for a huge gain thanks Musk u are the best if only $AAPL Tim Cook learn how to be like u

Poor Tim Cook. It's not like Apple's products have fallen out of favor... at least not as much as the stock. Shares of Apple (AAPL) are down nearly 40% from their all-time high above $700.

One die hard Musk fan was pining to get in on Musk's privately-held space exploration and transportation company, SpaceX.

$SCTY When will they give us SpaceX? I will be getting in on Day One!

Not everyone was so bullish. Some traders pointed out that SolarCity has been heavily shorted and that the rally is being driven by investors buying back shares to cover those bets.

Related: Tesla may be a bubble ... but nobody cares

Overheard: "$SCTY, best short EVER". #SlapsHead.

$SCTY called the short squeeze almost to the day! thats what happens when 40% of float is get lightning ina bottle on news

Shares of SolarCity have been on a tear in the past few months, more than quadrupling in value since debuting on the Nasdaq in December at an IPO price of $8.

With the shorts being squeezed out, some traders see more upside for SolarCity.

$SCTY Sell off done, ride this!

For one other trader, the Musk trade works in mysterious ways.

$SCTY not sure how, but somehow seems to be headed higher...

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Ben Rooney
Ben Rooney
Staff writer, CNNMoney

Ben Rooney is a staff writer for CNNMoney. He covers the European debt crisis and other international finance stories, in addition to writing about stocks, bonds, investing and other Wall Street-related news. Follow Ben on Twitter: @ben_rooney

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