Elon Musk's response to short sellers might have just gotten some teeth behind it.

After warning short sellers they have three weeks to jump ship before their position explodes, an analyst from Berenberg has tapped Musk's tunneling business, The Boring Company, as a "viable and potentially exceptionally profitable infrastructure business," that could turn into a valuable asset for Tesla Inc. (TSLA) - Get Report .

Berenberg analyst Alexander Haissl has valued Musk's side project The Boring Company at $16 billion. The valuation estimate comes in the wake of the company's approval to start construction on an underground, high-speed transit system in Chicago.

That project, which will connect the city's downtown with O'Hare International Airport, "provided the foundation and legitimacy that can turn The Boring Company into a highly valuable asset," according to the Haissl's note. The tunnel is expected to gross $140 million in operating profit by itself, according to Haissl.

The incredibly high valuation also stems from the company's obvious connection with Tesla, and Haissl expects Musk's main business to be a major supplier or even future partner of The Boring Company, according to the note.

Haissl has a "buy" recommendation on Tesla and a per share price target of $500, which is a 34% bump from its current price of $370. He is one of the few on Wall Street that remain optimistic about the company's growth prospects, but he's in the minority. Analysts have three buy, four hold and six sell recommendations on Tesla.

Tesla closed the day up $12.66 per share, or 3.53%, to $370.83.