TESLA Shakes Up After Global SALES Slump

Elon Musk’s unexpected decision to fire Tesla’s Omead Afshar amidst an ongoing sales decline has stolen the spotlight in the auto industry.

At a Glance

  • Elon Musk has fired Omead Afshar, a key manufacturing executive and longtime “fixer” for the company.
  • The firing comes as Tesla faces a major global sales slump, with sales down 28% in Europe and 15% in China last month.
  • Afshar was a trusted lieutenant who played a central role in building and running Tesla’s critical Gigafactory in Texas.
  • Analysts project a potential 10% plunge in Tesla’s total deliveries for the year as the company grapples with slowing demand.

A High-Level Firing Amidst a Sales Slump

In a major executive shakeup, Tesla CEO Elon Musk has fired Omead Afshar, the vice president of manufacturing and operations who ran the company’s massive Texas Gigafactory. The decision comes as the electric automaker grapples with a significant and sustained decline in vehicle sales in key global markets.

Afshar’s termination is seen as a direct response to the company’s recent struggles and a potential strategic shift as Musk seeks to stabilize Tesla’s slipping dominance in the increasingly competitive electric vehicle sector.

The Numbers Behind the Shakeup

The firing follows a string of dismal sales reports for Tesla. According to a report from Forbes, the company’s European sales plunged by 28% in May, marking the fifth consecutive monthly decline. In China, Tesla’s largest market, sales dropped by 15% in the same period.

This sustained downturn has led analysts to project a potential 10% reduction in Tesla’s overall deliveries for the year, a shocking reversal for a company whose valuation was built on a narrative of explosive growth. The company’s stock price has reflected these struggles, falling 19% year-to-date.

The Rise and Fall of a Trusted “Fixer”

The departure of Afshar is particularly significant due to his long-standing role as one of Musk’s most trusted lieutenants. Often described as Musk’s “fixer,” Afshar joined Tesla in 2017 and quickly rose through the ranks. As detailed by the New York Post, he played a central role in overcoming production challenges and was instrumental in the construction and scaling of the Texas Gigafactory, a cornerstone of Tesla’s manufacturing operations.

His sudden ouster suggests a major recalibration by Musk as he confronts the company’s first serious period of contracting demand. The move could also be part of a broader strategic pivot, as Musk has been increasingly focusing the company’s narrative on future technologies, like its planned robotaxi service, rather than vehicle production volume.