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Apple Inc. Vs. Tesla Motors Inc: Would Hedge Funds Approve Of a Merger?

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Yesterday we took a look at  Tesla Motors Inc (NASDAQ:TSLA) and Apple Inc. (NASDAQ:AAPL) and analyzed the confidence of investors in both companies among the 700+ hedge funds that we track. Both companies are very popular and are always on the radars due to their innovative products aimed towards revolutionizing the industries in which they are operating. However, investors are more confident to invest their money in Apple Inc. (NASDAQ:AAPL), rather than Tesla, which is supported by the fact that Apple for years has been among top three most popular stocks among hedge funds. At the end of 2014 there were 149 investors reported holding $20.88 billion worth of Apple’s stock, versus 25 funds holding long positions in Tesla, with an aggregate value of $1.38 billion.

Should this Concern Apple Inc. (AAPL) and Google Inc (GOOG)?

Apple Inc. (NASDAQ:AAPL)’s financial results for the fourth quarter and full year 2014 have been very impressive. Among other things, what really excited investors is the fact that Apple has around $178 billion in cash, which can be used for many purposes such as acquisitions, dividends and buyback programs. This already sparked a lot of rumors and speculations, one of the most common being a possible acquisition of Tesla Motors Inc (NASDAQ:TSLA). It makes sense, since Tesla currently has a market capitalization of $24 billion, so Apple could buy it and still have a pile of money left. Moreover, such a deal would be a great addition to Apple’s portfolio of products and work team, especially taking into account latest reports that Apple might be working on its own electric vehicle. Apple’s interest in cars is also supported by the latest developments of the company, which recently released its CarPlay system designed to offer drivers an easier and safer interaction with their iPhones.  In case Apple Inc. (NASDAQ:AAPL) decides to acquire  Tesla Motors Inc (NASDAQ:TSLA), the combination of technology, design and innovative forces of both companies would create a great symbiosis that could lead to the creation of a staggering vehicle. Let’s only hope that they are not going to make a gold version of it.

However, before we jump to any conclusions, let’s see what would shareholders of both companies think?

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