In a dramatic leadership shakeup, Tesla CEO Elon Musk has fired Omead Afshar, one of his most trusted lieutenants and the company’s head of operations for North America and Europe. The move comes at a precarious time for the electric vehicle (EV) giant, which is struggling with falling sales, intensifying competition, and a controversial shift in strategic direction.
Afshar’s removal, confirmed by multiple sources close to the company, occurred just days before the end of Tesla’s second fiscal quarter, a critical reporting period that analysts predict will reflect a global sales decline of over 10%. His ouster signals internal discontent with how Tesla’s performance has deteriorated across its most crucial markets.
A Trusted Insider Falls from Grace
Omead Afshar had long been considered one of Elon Musk’s most indispensable executives. He joined Tesla in 2011 as an engineer and quickly rose through the ranks. In October 2023, he was elevated to Vice President of Operations for North America and Europe, two regions that contribute significantly to Tesla’s overall revenue.
In a 2024 profile, The Wall Street Journal described Afshar as “Musk’s fixer,” a behind-the-scenes force helping Musk execute some of his most ambitious projects. He had recently relocated to Austin, Texas, as part of a company-wide restructuring that centralized leadership at Tesla’s headquarters. Afshar played a key role in overseeing the robotaxi pilot launch in Austin and celebrated the achievement with a June 23 post on X (formerly Twitter), calling it an “absolutely historic day.”
Yet behind the celebratory tone, cracks in Tesla’s operational strategy were already beginning to show.
Declining Sales and Unmet Expectations
Afshar’s firing comes as Tesla grapples with a sustained drop in EV sales in both the U.S. and Europe. According to auto industry data, May marked the fifth consecutive month of declining sales in Europe, while Tesla’s U.S. sales have remained sluggish in 2025 despite new incentives and price cuts.
Even in China, Tesla’s largest international market sales slumped by 15% in May. Analysts now project that global deliveries for the quarter ending June 30 will total approximately 392,800 units, down from 443,956 in the same quarter last year. Tesla stock has mirrored this decline, dropping 19% year-to-date and falling another 3.8% to $327.55 following news of Afshar’s departure.
Compounding these troubles is the Cybertruck debacle. Once positioned as a revolutionary vehicle in Tesla’s portfolio, it has failed to meet volume targets, leading to customer dissatisfaction and denting the company’s reputation for innovation.
Musk’s Political Ties and Image Problem
Tesla’s brand has also taken a hit due to Elon Musk’s growing alignment with politically divisive figures, including his vocal support and financial contributions to former President Donald Trump. Musk’s leadership of the controversial DOGE initiative, which aimed to drastically reduce federal jobs and regulatory oversight, has only fueled negative perceptions.
Many analysts and brand experts argue that Musk’s politicized persona is alienating a segment of Tesla’s traditional customer base, which once included environmentally conscious and tech-savvy early adopters. In such a climate, Afshar’s mandate to revive operations in the U.S. and Europe may have been undermined before he even began.
Instead of focusing on revamping its EV lineup or launching new affordable models, Tesla under Musk’s leadership is now aggressively pursuing a future centered on AI, robotaxis, and humanoid robots. In late June, Tesla launched a small-scale robotaxi service in Austin, a pilot that was far from the revolutionary leap it was marketed to be.
Only a dozen or so Tesla Model Ys were included in the program, operating in a controlled 30-square-mile area and carrying only a small, pre-approved group of riders. Each vehicle still had a safety technician in the driver’s seat, and early user reports noted erratic behavior by the autonomous systems.
Despite these limitations, Tesla has marketed the robotaxi project as a core part of its long-term value proposition. However, skepticism abounds. Alphabet’s Waymo, considered a leader in autonomous mobility, continues to outpace Tesla in terms of reliability and regulatory compliance. Meanwhile, the National Highway Traffic Safety Administration (NHTSA) has already begun reviewing incidents involving the Austin pilot program.
Afshar’s dismissal could reflect internal tension between Tesla’s operational realities and Musk’s visionary aspirations. As the company leans harder into speculative AI ventures, it appears to be deprioritizing core vehicle production and consumer satisfaction, raising concerns among investors and employees alike.
With the EV market becoming increasingly competitive especially due to the rapid rise of Chinese automakers like BYD and Nio,Tesla’s current trajectory may be unsustainable without substantial strategic recalibration.
The firing of a top executive like Omead Afshar just days before quarterly earnings is a clear signal of deep unease within Tesla’s leadership. Whether this move is part of a broader restructuring or a scapegoating tactic remains to be seen.
But one thing is clear: Tesla is at a crossroads. As Musk continues to bet big on robotaxis and AI while dismissing near-term product development, the company must prove it can deliver on its futuristic promises without sacrificing the strength of its present-day business.
If not, it risks alienating both consumers and investors two groups that, despite Tesla’s cultural prominence, may not stick around for another quarter of missed expectations.
