Tesla’s Vice President of Sales and Manufacturing for North America and Europe, Omead Afshar, has reportedly been terminated by CEO Elon Musk according to sources familiar with the matter. The abrupt dismissal comes during a critical period for the electric vehicle manufacturer as it faces mounting operational challenges and declining sales performance.
Industry analysts note Afshar’s exit marks the departure of one of Musk’s most trusted advisors, having risen through the ranks since joining Tesla in 2017. The executive’s LinkedIn profile previously highlighted his central role in major infrastructure projects, including oversight of the company’s expansive Austin production facility during Tesla’s rapid expansion phase.
Economic Headwinds Intensify
- 2024 marked Tesla’s first annual sales decline since initial vehicle production
- Q1 2025 profits plummeted 71% compared to previous year
- European market sales dropped 28% year-over-year in May 2025
- Upcoming quarterly delivery figures expected to show continued challenges
The leadership shuffle follows investigative probes into Afshar’s activities during his tenure. Federal regulators previously scrutinized his involvement in controversial construction projects allegedly linked to Musk’s personal ventures. Internal corporate investigations reportedly examined procurement processes for specialized materials ahead of these federal inquiries.
“Afshar’s social media activity showed no signs of impending departure, with enthusiastic posts about Tesla’s robotaxi initiative just days before termination,” noted automotive industry analyst Michael Tran. “This sudden exit raises questions about strategic disagreements at the executive level.”
Additional staffing changes accompany Afshar’s departure, with sources confirming the recent exit of Tesla’s North American HR director Jenna Ferrua. Leadership transitions continue as Musk shuffles executives between his corporate portfolio, including previous moves involving SpaceX and X (formerly Twitter) personnel.
Operational Challenges Mount
Market analysts highlight several pressing issues facing Tesla’s leadership team:
- Declining consumer confidence in EV market segment
- Increased domestic and international competition
- Political controversies surrounding executive leadership
- Supply chain complexities in manufacturing operations
Industry observers await Tesla’s upcoming earnings report and delivery metrics for clearer indications of corporate strategy adjustments. The executive departure underscores the volatile nature of leadership within Musk’s enterprises, particularly during periods of financial strain and regulatory scrutiny.
