Should Tesla stock be bought before June 13th?

Tesla's probably at the forefront of the problemMass layoffsthat's it. Just a few weeks after the EV maker announced it would cut employee expenses by 14,000, management announced it would further reduce headcount. The company announced earlier this week that employees in multiple departments, including software, engineering and services, will face an axe.

What people involved in TSLA stock are particularly concerned about is that personnel cuts will affect roles that require education and insight, such as user experience (UX) design. However, management positions personnel reductions as an effort to eliminate surplus personnel. Nevertheless, this cutting board activity is consistent with Tesla's decline in earnings, while sales of EVs are increasing at conventional automobile manufacturers.

Another cause of concern is the management of Tesla's EV charging network “supercharger.” Recently, the company got nervous when it cut 500 employees from this business unit. The pink slip extended to Rebecca Tinucci, the unit's top executive. At the same time, Tesla CEO Elon Musk vowed to grow superchargers despite personnel cuts.

TSLA shares have gained strong support among individual investors, but there is a possibility that this commitment will be tested on 6/13. As Morgan Stanley analysts pointed out, shareholders' meetings will play an important role in the company's “long-term strategic direction.”

Experts stated in the investigation document that “it is impossible to predict the results, but we anticipate that this event may cause drastic changes in stock prices.” Among the matters that shareholders vote on, Mr. Musk's controversial reward package is also included. Earlier this year, a Delaware judge upheld an investor lawsuit against Tesla, arguing that the compensation system was “excessive.”

Morgan Stanley pointed out that Tesla is the only company in Musk's business portfolio where he lacks control or interferes with minority votes.

As if that wasn't enough drama for TSLA stock, Tesla may have to respond to potential criticism related to the cancellation of long-awaited low-priced “fighter” cars that would fuel sales growth. This clearly contrasts with Musk's previous vision of first establishing a footprint in the luxury segment before utilizing profits to raise funds for “low-cost family cars.”

Unfortunately, that plan has collapsed due to fierce competition with Chinese manufacturers, and questions about TSLA inventory have further increased.

For bullish investors, much depends on whether the market can establish a support baseline for TSLA shares. However, considering the competitive environment, this is a very difficult proposition. Not only have conventional automobile manufacturers strengthened their EV strategies, but sales of hybrid vehicles have also increased rapidly. Such headwinds are likely to hinder markets that Tesla should tackle for the time being.