Core Viewpoint - Tesla is undergoing significant leadership changes to address declining sales and market presence, particularly in Europe, as CEO Elon Musk seeks to revitalize the company's performance [1]. Group 1: Leadership Changes - Elon Musk has dismissed the head of North American and European operations, Omead Afshar, due to poor sales performance in the European market [1]. - This dismissal marks the second high-level executive change within the month, indicating Musk's aggressive restructuring efforts [1]. Group 2: Sales Performance - Tesla's electric vehicle sales in Europe have dropped significantly, with a 28% decrease in May 2024 compared to May 2023, despite an overall increase in demand for electric vehicles in Europe [1]. - The number of new Tesla registrations in Europe fell to 8,729 units in May, representing a 40.5% year-over-year decline, reducing its market share from 1.6% to 0.9% [2]. - Year-to-date, Tesla's market share in Europe has hovered around 1%, down from approximately 2% a year ago [2]. Group 3: Analyst Expectations - Analysts expect Tesla to deliver approximately 393,000 electric vehicles in the second quarter, reflecting an 11% year-over-year decline but a 17% increase from the previous quarter [2]. - Baird has revised its delivery forecast down to 377,000 units, citing weak third-party data and ongoing production adjustments for the new Model Y [3]. - UBS has maintained a "sell" rating on Tesla, projecting a second-quarter delivery of about 366,000 units, which is 10% lower than market expectations [4]. Group 4: Market Sentiment - Despite disappointing delivery numbers, there is a focus on Tesla's upcoming fully autonomous taxi service, which may overshadow current sales performance in the eyes of some investors [4]. - UBS warns that underwhelming delivery reports could serve as a reality check for investors, as historical data shows that missed delivery expectations typically lead to stock price declines [4].