Tesla Faces Leadership Shakeup Amid Global Sales Slump
June 27, 2025 – Austin, Texas — Tesla is undergoing a dramatic leadership shakeup as the electric vehicle (EV) giant grapples with a sustained global sales decline and mounting investor pressure. The most high-profile departure: Omead Afshar, Tesla’s Vice President of Operations for North America and Europe and a longtime confidant of CEO Elon Musk.
Afshar’s dismissal, confirmed just days before the end of Tesla’s second fiscal quarter, comes amid a projected 10% drop in global deliveries and a 15% sales slump in China for May alone. Europe has seen five consecutive months of declining sales, while U.S. demand remains sluggish despite price cuts and incentives.
A Trusted Insider Ousted
Afshar, often referred to as “Musk’s fixer,” joined Tesla in 2011 and played a pivotal role in major initiatives, including the recent robotaxi pilot launch in Austin. His abrupt exit signals internal dissatisfaction with Tesla’s operational performance in its most critical markets.
Strategic Turbulence
Tesla’s troubles extend beyond sales. The much-hyped Cybertruck has failed to meet production targets, and the company’s pivot toward speculative ventures like AI, robotaxis, and humanoid robots has drawn skepticism from analysts and investors alike.
Despite launching a limited robotaxi service in Austin on June 22, early reports of erratic vehicle behavior have prompted a review by the National Highway Traffic Safety Administration (NHTSA). The pilot, involving a small fleet of Model Ys operating in a geofenced area, has yet to prove its viability.
Political Fallout and Brand Erosion
Tesla’s brand image has also taken a hit due to Musk’s increasingly political public persona. His vocal support for former President Donald Trump and controversial policy stances have alienated segments of Tesla’s traditional customer base, particularly environmentally conscious buyers.
What’s Next?
With Tesla’s stock down 19% year-to-date and investor confidence wavering, Afshar’s firing may be the first of several leadership changes as the company attempts to recalibrate. Analysts warn that unless Tesla refocuses on its core EV business and addresses growing competition from Chinese automakers, its long-term dominance could be at risk
