Tesla CEO Elon Musk has reportedly fired Omead Afshar, a key executive who recently oversaw the company’s manufacturing and sales operations across North America and Europe. The departure comes at a challenging time for the automaker, marked by declining sales in crucial markets and broader company turmoil.
Sources familiar with the situation confirmed Afshar’s dismissal, with reports circulating among employees and his name reportedly removed from internal directories. Neither Tesla nor Musk has publicly commented on the matter.
A Trusted Confidant’s Rise and Fall
Afshar was a long-time lieutenant and confidant of Elon Musk, often described as his “fixer.” He joined Tesla in 2017 and rapidly ascended through the ranks, playing a central role in significant projects, including the construction of the Gigafactory Texas. He previously served in roles akin to Musk’s chief of staff, becoming deeply involved in daily operations.
However, Afshar’s tenure was not without controversy. In 2022, he was reportedly the subject of an internal investigation concerning an order for specialized construction materials, including “special glass,” intended for a “secret project” linked to Musk’s personal plans (later reported to be a glasshouse near Austin). Following that probe, Afshar was temporarily reassigned to SpaceX before returning to Tesla.
Despite this past hurdle, he was recently promoted to the significant role of Vice President of Manufacturing and Operations for North America and Europe, making him one of Tesla’s most powerful executives responsible for both production and market performance in these key regions. His tenure in this specific VP role appears to have been relatively short, approximately nine months, according to some reports.
Firing Amidst Tesla’s Headwinds
The reported firing arrives amidst a period of significant headwinds for Tesla:
Sales Decline: Tesla is facing a notable slump in vehicle sales, particularly in Europe. Data indicates sales there fell for a fifth consecutive month in May, with steep year-over-year declines reported (ranging from 28% to over 40% depending on the source and metric), as the company loses market share to European brands and cheaper Chinese electric vehicles like BYD. Challenges are also reported in the Chinese market, and Tesla’s performance has even been cited as dragging down overall EV sales in the US.
Stock Performance: Tesla’s stock price has underperformed significantly this year, down more than 13% year-to-date.
Increased Competition & Aging Lineup: Analysts point to Tesla’s aging vehicle lineup (with the Cybertruck being the only recent addition) and intensifying competition from both established automakers and emerging EV players as key factors impacting demand.
Executive Exits: Afshar’s departure is not an isolated incident, following a wave of other high-profile executive exits over the past year, including the CFO, chief battery engineer, head of Supercharging, and the lead engineer for the Optimus robot program. These changes coincide with company-wide restructuring efforts and job cuts.
The Shadow of Musk’s Persona
Several reports and analysts suggest that the responsibility for Tesla’s sales struggles lies, at least in part, directly with Elon Musk. His controversial public presence, inflammatory rhetoric, and high-profile political activities—including significant financial support for Donald Trump and endorsements of far-right figures/parties—are widely reported to have caused brand and reputational damage, fueling a “Tesla Takedown movement” and alienating potential customers.
The timing of Afshar’s firing, just days before Tesla is expected to report potentially weak second-quarter delivery results, adds another layer of speculation.
Interpretation and What’s Next
The dismissal of Omead Afshar, a loyalist who worked closely with Musk for years and was recently entrusted with vast operational oversight, has sparked various interpretations. While he was directly responsible for sales and manufacturing in the struggling regions, some sources question if he is taking the fall for deeper issues rooted in Musk’s own strategic decisions (or lack thereof regarding new models) and his controversial public image.
The firing of a close confidant could also signal that nobody’s position is safe at Tesla amidst the current challenges or serve as a pre-emptive move ahead of anticipated poor financial results. Afshar’s seemingly unexpected praise for Tesla’s Robotaxi launch on X just days before news of his exit broke further highlights the sudden nature of his departure.
As Tesla navigates slumping sales, executive turnover, and external pressures, the company is increasingly focusing on its AI-based initiatives like the Robotaxi service, though the path to mass deployment faces significant hurdles. The firing of a top operational executive underscores the intense pressure within Tesla to reverse its current trajectory.
