Tesla fires key top executive amid plummeting sales in US and Europe

Ilon Musk fired Omead Afshar, the vice president of sales and production in North America and Europe, who was called his "decider" and close ally. The reason was a sharp drop in Tesla sales: in the U.S. sales fell 16% in April, the forecast for the current quarter - a decline of another 21%. In Europe, the drop was 28% in May, and this is the fifth consecutive month of declining demand for Tesla models.

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Afshar had been with Tesla since 2017, returning to the company in 2024 and overseeing projects like the Gigafactory in Texas and the launch of robotaxi. His unexpected resignation comes amid a 71% drop in Tesla's Q1 2025 earnings and growing political resistance, with users reacting negatively to Musk's political activism, including his ties to Trump and MAGA initiatives.

In addition to Afshar, North America HR director Jenna Ferrois and Optimus project manager Milan Kovacs have also left their posts, suggesting a broader reshaping of the management team.

Amid the crisis, Tesla is betting on robotaxi - a pilot project has started in Austin, but has so far raised safety concerns. The company will have to prove to investors that it can handle the downturn in sales and the political wave, especially against the backdrop of rapid growth of Chinese and European rivals.

Source: Bloomberg