tesla shakes up leadership: musk ousts key confidant amid sales concerns
Austin, Thursday, 26 June 2025.
tesla’s head of manufacturing, omead afshar, has been terminated. the firing comes as tesla faces declining sales figures and increased market scrutiny. afshar, once dubbed “musk’s fixer,” oversaw north american and european operations. his departure follows a series of executive exits and a 19% drop in tesla’s stock this year. sales in europe have declined for five consecutive months. afshar’s exit raises questions about tesla’s future production strategies and investor confidence.
sales decline and market performance
Tesla’s recent performance indicates significant challenges. New car sales in Europe have fallen for five straight months [2][4]. In May, sales in Europe alone plunged by 28% [4][7]. China, a key market for Tesla, experienced a 15% drop in sales in May [5]. Equity analysts anticipate a worldwide decline in tesla’s ev deliveries of at least 10% for the quarter ending june 30 [5]. This translates to approximately 392,800 units, compared to 443,956 units a year prior [5]. These figures underscore the growing pressure on tesla’s sales and production [GPT].
afshar’s role and responsibilities
Omead Afshar’s role was critical to tesla’s operations in north america and europe [4][5]. He oversaw sales and manufacturing in these key regions after being promoted to vice president in october 2024 [4][6]. Before his termination, afshar led a team of more than half a dozen high-level employees and reported directly to elon musk [2]. Afshar also led the construction of tesla’s gigafactory in texas [8]. His departure raises concerns about tesla’s ability to maintain production efficiency and meet delivery targets [GPT].
investor concerns and stock impact
The departure of a key executive like afshar, coupled with declining sales, can significantly impact investor confidence [1]. Tesla’s stock is already down 19% this year [2][5]. The recent leadership shakeup and sales slump may further erode investor sentiment, potentially leading to additional stock volatility [1]. Tesla shares closed at $325.78 on thursday, june 26, 2025 [5]. Investors will closely monitor tesla’s second-quarter delivery numbers, expected next week, for further insights into the company’s performance [4][7].
robotaxi rollout and future prospects
Despite the current challenges, tesla is pushing forward with new initiatives, such as the robotaxi service [4][5]. A pilot program launched in austin, texas, on june 22 [5]. Afshar had recently praised the robotaxi rollout, calling it an “absolutely historic day for tesla” [4][6]. However, the national highway traffic safety administration is reviewing incidents of erratic behavior by tesla test vehicles in austin [5]. The success of these initiatives remains uncertain, and investors are wary of the potential impact on tesla’s stock value [alert! ‘the impact on stock value is speculative’] [GPT].