AUSTIN, TX – In a significant executive shake-up, Tesla CEO Elon Musk has reportedly fired Omead Afshar, the automaker’s Vice President of Manufacturing and Operations, as the company grapples with a steep decline in car sales across key global markets. The dismissal, confirmed by CNBC and first reported by Forbes, comes as Tesla’s stock price slides and its European sales experience a fifth consecutive month of decline.
About Omead Afshar
Afshar, a high-level executive who reported directly to Musk and oversaw a team including the VPs of North American sales and Europe, Middle East, and Africa operations, had been a prominent figure within Tesla. His termination follows closely on the heels of the resignation of Milan Kovac, former head of Tesla’s Optimus humanoid robotics program.
The move underscores the growing pressure on Tesla as it faces intensified competition from European brands and increasingly affordable Chinese electric vehicles. Data from the European Automobile Manufacturers Association (ACEA) released this week revealed a significant drop in Tesla’s new car sales in Europe for May, further highlighting the company’s struggles.
Afshar’s departure is particularly notable given his close ties to Musk. He was the subject of an internal investigation at Tesla in 2022 concerning orders of specialized construction materials for a secretive project for Musk. Following that probe, Afshar briefly worked for SpaceX, another Musk-led company, before returning to Tesla and being promoted to his vice president role. Despite his reported termination, Afshar’s profile on X (formerly Twitter) still lists him as being with Tesla, and he recently praised Musk for the launch of the company’s pilot Robotaxi service in Austin, writing, “Thank you, Elon, for pushing us all!”
This executive upheaval and the declining sales figures arrive amidst broader brand and reputational challenges for Tesla. Elon Musk’s increasingly incendiary rhetoric and political activities, including his substantial financial support for U.S. President Donald Trump’s re-election campaign and his formal endorsement of Germany’s far-right, anti-immigrant AfD party, have been cited as contributing factors to consumer backlash, particularly in Europe.
As Tesla’s stock price is down 19% this year, significantly underperforming the Nasdaq, the company appears to be doubling down on its future vision, with Musk betting heavily on robotaxis. The pilot Robotaxi service recently launched in Austin, Texas, is a testament to this strategic pivot, even as the company’s core car sales face significant headwinds.
The question remains how Tesla will navigate these turbulent waters, balancing its ambitious autonomous driving goals with the immediate need to revitalize its flagging sales and address its public image. The removal of a key manufacturing executive like Afshar suggests a firm hand from Musk in response to performance pressures, but the path forward for the EV giant remains uncertain in an increasingly competitive and politically charged landscape
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