Tesla Motors Inc (TSLA) Has Yet to Win Investors’ Confidence

For Tesla Motors Inc (NASDAQ:TSLA) the same trend can be noticed as at the end of the third quarter 31 funds held $1.73 billion worth of stock, significantly above the latest figures. Tesla’s latest earnings report showed an expansion in net loss to $107.60 million in the fourth quarter, from $74.7 million a year earlier. Nevertheless, the automaker promised to address the issues it faces currently in China that led to a decrease in sales and it has its Model X on its way, with deliveries expected in the third quarter, which means that 2015 has high chances to be more successful for the company.

Even though both companies have a promising future, it is clear that investors are more confident regarding Apple Inc. (NASDAQ:AAPL) rather than Tesla Motors Inc (NASDAQ:TSLA), if we take each fund separately. For example among the funds that we track, the largest shareholder of Apple is billionaire Carl Icahn, who owns 52.71 million shares of the company, the $5.82 billion stake amassing 18% of his equity portfolio. On the other hand, the largest shareholder of Tesla is Daniel Bentor‘s Andor Capital Management, which owns 1.25 million shares, valued at $278.01 million, representing 17% of its equity portfolio. Andor also holds 3.0 million shares of Apple Inc. (NASDAQ:AAPL), valued at $331.14 million, representing 21% of the equity portfolio. Moreover, the trend shows that billionaire investors prefer to hold common shares of Apple Inc. (NASDAQ:AAPL), while in Tesla, they choose options or bonds.

The bottom line for now is that Tesla Motors Inc (NASDAQ:TSLA)’s shares are overvalued, which explains investors’ bearish sentiment towards holding the stock. Tesla is a great company with huge prospects of revolutionizing the auto industry, but it has to convince investors into holding the stock for the long term, despite many analysts considering that the stock could soar even more in the next couple of years. Apple Inc. (NASDAQ:AAPL) has already proven its reliability over the years and if the company manages to keep its pace in bringing innovative products, it will continue to bring value to shareholders.

Disclosure: none