Omead Afshar, Tesla’s head of operations in North America and Europe exited the company after CEO Elon Musk reportedly fired him amid tumbling sales and declining brand popularity.
The departure of the top executive comes just days before the close of the second quarter and shortly after reports revealed that Tesla’s EV sales in Europe have declined for the fifth straight month.
Omead Afshar, an American with Iranian roots, began his journey at Tesla as a project manager and gradually became one of Elon Musk’s most trusted advisors.
Declining sales and eroding market share
Tesla is facing mounting challenges in Europe, where its vehicle sales fell by almost 28% in May compared to the same time last year marking five straight months of decline.
The drop is even more striking given that the overall European EV market grew by more than 27% during that period.
Buyers are turning toward lower-cost Chinese models and trusted European brands, leading to a dip in Tesla’s market share to 1.2%, down from 1.8% a year earlier.
The outlook isn’t much better in the US, where Tesla is steadily ceding ground to traditional carmakers and rising EV startups.
Meanwhile, the sales have also tumbled in China, which is known as the biggest market for EVs.
Market analysts expect Tesla’s global EV deliveries to drop by at least 10% for the quarter ending June 30, with estimated figures around 392,800 units, down from 443,956 during the same period last year.
The Trump effect?
The market observers claim that Elon Musk’s strong ties with President Donald Trump have taken a toll on Tesla’s image, especially during his involvement in the controversial federal cost-cutting DOGE initiative.
At a time when the company urgently needs to refresh its vehicle lineup after the Cybertruck missed its production targets and faced widespread criticism, Tesla also faces growing pressure from rapidly advancing Chinese competitors.
Yet instead of expanding its electric vehicle offerings to regain momentum, Elon Musk has shifted focus toward ambitious projects like robotaxis, humanoid robots, and artificial intelligence.
It’s a risky move, considering that nearly all of Tesla’s current revenue still comes from its core business: electric vehicles, batteries, and charging solutions.
Tesla bets big on the future as core business stalls
The exit of Omead Afshar comes days after Tesla launched its much-awaited robotaxi pilot in Austin, Texas on 22 June.
Tesla’s robotaxi launch, initially rolled out despite strong opposition from safety advocates, got off to a smooth start but signs of trouble are now emerging.
The videos from the company-selected riders show that Tesla robotaxis is getting involved in multiple traffic problems and driving issues.
The reports claim that Tesla robotaxis are veering into the wrong lanes, abruptly dropping passengers in the middle of busy roads or intersections, braking suddenly, exceeding speed limits, and even mounting curbs.
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