Core Insights - Elon Musk has reportedly fired Omead Afshar, the head of Tesla's North American and European operations, following a prolonged sales slump in these key regions [1][5][9] - Afshar's departure is indicative of ongoing turmoil within Tesla, as the company has seen its shares decline over 13% since the beginning of the year [5][12] - Tesla's sales in Europe dropped by 28% in May, marking the fifth consecutive month of declines, as competition from Chinese electric vehicle manufacturers increases [5][12] Company Developments - Afshar, who joined Tesla in 2017, was considered one of Musk's most powerful executives and played a significant role in major projects, including the Texas Gigafactory [6][9] - His exit follows a series of executive departures in 2024, which were part of a company-wide restructuring aimed at focusing on artificial intelligence and robotics [9][10] - Tesla is set to report its second-quarter delivery numbers soon, which will be closely monitored by investors [6] Market Context - The company is facing challenges due to an aging car lineup and increased competition, particularly from Chinese manufacturers like BYD [5][12] - Musk's involvement with the Trump administration has contributed to a brand crisis, further complicating Tesla's market position [5][12] - Despite safety measures, Tesla's Robotaxis have experienced glitches and issues with local traffic laws, raising concerns about the rollout of this technology [12][13]
Elon Musk reportedly fires longtime ‘fixer' Omead Afshar as Tesla sales slump