If the market going up again (Step 4) is a sure thing, then Step 3 is obviously sub-optimal. If that is not a sure thing, then they've still got a potential ~$1B net loss.

I am not asserting that Elan's and Tesla's motives were pure. Nor that they complied with all applicable laws, regulations, etc. But "classic pump-and-dump" is a poor and very misleading description of the events to date.