Tesla Fires Longtime Executive Amid Sales Decline

Elon Musk has reportedly let go of Omed Afshar, a key figure in Tesla’s North American and European operations, following a persistent decline in sales in these major markets.

Afshar was seen as a significant player within the company, having been promoted to oversee sales and manufacturing in these two regions just last year. According to reports, discussions regarding his firing have circulated among Tesla employees recently.

The exact timing of his departure remains unclear, and while Tesla has not commented on the matter, insiders suggest his name has already been removed from the company directory.

This shift comes at a challenging time for Tesla, with stock values dropping over 13% since the year began. Investors are particularly attentive as the company prepares to announce its second quarter delivery figures next week.

Data from the European Association of Auto Manufacturers shows that Tesla’s sales in Europe fell by 28% in May, marking five straight months of decline as competition from Chinese electric vehicle manufacturers grows stronger.

Just the other day, Afshar had shared progress updates regarding Tesla’s Robotaxi project on social media, describing a recent milestone as “an absolute historic day for Tesla.” He expressed gratitude towards Musk for the encouragement and effort of the team throughout the year.

In the past, he had been dubbed Musk’s “fixer,” playing a critical role in significant projects, including the construction of Tesla’s Gigafactory in Texas. However, he’s not the only executive to leave Tesla recently; several high-level departures have occurred amid ongoing restructuring efforts. This includes notable figures such as CFO Zach Kirkhorn and chief battery engineer Drew Baglino.

Another noteworthy exit is Milanokobak, who led engineering for the company’s Optimus robot and chose to resign for personal reasons. Reports also indicate that Jenna Ferrua, leading HR operations in Austin, is no longer with the company.

Amid concerns about Tesla’s aging vehicle lineup and increasing competition, Musk’s collaboration with the government continues to be a topic of discussion, especially considering its impact on the brand’s challenges.

Some supporters remain hopeful that the self-driving Robotaxi initiative will revolutionize Tesla’s business model, although there have been issues with safety and traffic law compliance during limited deployments in Texas.