Tesla is in high gear.

The stock gained 2% on Tuesday ahead of the company's annual shareholder meeting.

Shares of the Palo Alto-based company are now up more than 17% for June — pacing for its best month since last October. But Blue Line Futures' Bill Baruch and S&P Global's Erin Gibbs say don't be fooled by the short-term bounce, because ultimately this stock is heading lower.

Baruch says much of Tuesday's gain was due to short covering ahead of the investor meeting rather than the Street turning bullish on the stock.

"Elon Musk is going to try to boost the stock the best he can. There's still fundamental challenges," Baruch said Tuesday on CNBC's "Trading Nation."

He says investors may even have an opportunity to short the stock.

"I'm looking at $250 area, $245 as being an area to look to sell this. As long as it stays contained through this investor meeting then I think you'll have a short opportunity," he said. According to FactSet, 31.4% of Tesla's float is short interest, which makes it one of the most heavily shorted stocks.

While Tesla may have started June on a high note, it's been a volatile year for the stock — and the company. Among other things, Elon Musk battled the SEC over his now-infamous "funding secured" tweet. There were multiple investigations surrounding the safety of the company's autopilot feature. The company missed earnings estimates and delivery expectations multiple times.

Gibbs says the stock is still in a downtrend that began in December and she would need to see earnings estimates stabilize before buying the stock.

"We're still seeing constant revisions downward. I do see this pop ahead of the shareholder meeting. It's a great opportunity for Musk to promise a unicorn with wings, reassuring investors for a couple of weeks. But then reality hits," she said.

The stock has bounced more than 20% off its 52-week low last Monday, but Gibbs says it may soon retest that level. "We just don't see a bottom yet," she concluded.

June's gains notwithstanding, Tesla is still more than 40% away from its 52-week intraday high of $387.46.