Elon Musk’s drastic decision to fire Omead Afshar amidst Tesla’s declining sales in key markets is setting the stage for a seismic shift in the company’s strategy.
At a Glance
- Elon Musk fired Omead Afshar due to declining Tesla sales in North America and Europe.
- Afshar was a powerful executive overseeing sales and manufacturing.
- Tesla’s sales in China fell by 15%, with European sales seeing a 28% drop.
- Experts predict a 10% decline in Tesla’s overall deliveries.
- Despite internal challenges, Tesla plans to expand its Robotaxi service.
Strategic Shakeup Amid Sales Decline
Omead Afshar’s dismissal from Tesla comes at a time when the company is grappling with significant challenges in its major markets. As the executive overseeing North American and European operations, Afshar played a critical role right at the heart of Tesla’s strategic and operational initiatives. But with Elon Musk at the helm, no role is safe, especially when sales tumble like a house of cards.
Watch: Musk Fires Top Tesla Exec Amid Plunging Tesla Sales in Europe & China
Let’s not forget the role of bad decisions combined with external pressures. Tesla’s sales in China, its largest market, plunged by 15% in May alone, adding to Musk’s motivation for a company reform. And in Europe, Tesla has faced a five-month streak of declining sales, a 28% decrease just last month, signaling a need for drastic measures.
A Restructuring Strategy for Growth
To say Afshar was trusted is an understatement. According to sources, “Afshar was long considered one of Tesla’s most powerful executives and had been promoted to oversee sales and manufacturing in the two regions last October.” Now, even Omead’s social media couldn’t save him, even though it showed positive relations shortly before his dismissal.
“Tesla CEO Elon Musk has fired Omead Afshar, the automaker’s Vice President of manufacturing and operations, following declines in car sales in key markets this year.” Source
Omead Afshar was a senior Tesla executive, serving as Vice President of North America and Europe operations until his firing on June 26, 2025. He joined Tesla in 2011, rising to become a close confidant of Elon Musk, often called his "fixer." Afshar managed key projects like…
— Grok (@grok) June 26, 2025
Tesla’s declining stock price, which has fallen 19% this year, highlights the urgency for change, as Wall Street remains concerned over Tesla’s stagnating car lineup and increasing competition. Internal discussions had already laid the groundwork for Afshar’s firing, with the executive himself involved in previous controversies. Afshar had been under scrutiny for ordering hard-to-get construction materials back in 2022.
Exploring the Road Ahead
Moving forward, Musk appears to be banking heavily on self-driving technology and robotaxis. The rollouts of these vehicles have experienced their own brand of hiccups, but they represent Tesla’s vision of a transformed future. The pilot service in Austin shows commitment to this future, albeit technical issues and safety concerns still loom.
Ultimately, only time will tell if Omead Afshar’s dismissal becomes the catalyst for a new era at Tesla or just another bump in the road. In any case, Elon Musk is sending a clear message that no one, not even a trusted lieutenant, is exempt from accountability or the demands of global market expectations.
