Elon Musk Cuts Ties with Tesla VP Omead Afshar Over Sales Drop: Report

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Elon Musk Cuts Ties with Tesla VP Omead Afshar Over
Tesla CEO Elon Musk speaks during an event to launch the new Tesla Model X Crossover SUV on September 29, 2015 in Fremont, California. Justin Sullivan/Getty Images/Getty Images

Tesla CEO Elon Musk has reportedly dismissed one of his closest and most trusted aides, Omead Afshar, amid mounting concerns over slumping electric vehicle sales in key global markets.

The move marks the latest shake-up at Tesla as the company works to navigate a tough financial and branding period.

Afshar, who joined Tesla in 2017 and was promoted to vice president of North American and European operations just last year, had long been considered a powerful figure within the company.

Known internally as "Musk's fixer," he played major roles in projects like the Texas Gigafactory and was heavily involved in the recent rollout of Tesla's robotaxi pilot program in Austin, NY Post said.

According to Bloomberg and other sources familiar with the matter, Afshar's departure came quietly, with his name recently removed from Tesla's internal employee directory.

Neither Musk nor Tesla have officially commented on the decision, and Afshar has not issued a public statement.

The timing of his exit comes just days before Tesla's second-quarter delivery report, which is expected to show a global decline of at least 10%.

Analysts estimate the company will report about 392,800 deliveries, down from 443,956 during the same period last year.

Tesla Sales Tumble Again as Europe, China Post Major Declines

In Europe, Tesla sales fell for the fifth straight month in May, dropping by 28%. US sales have also declined, and China—Tesla's largest market—saw a 15% drop in the same month.

These losses come as competitors, particularly in China, continue to gain market share.

Musk's high-profile political ties, including his public support for Donald Trump and involvement in federal cost-cutting programs, have also weighed on Tesla's brand image, especially among younger and more progressive customers.

Despite internal praise for the June 22 launch of Tesla's robotaxi service in Austin, the pilot has already faced criticism.

Reports of erratic driving behavior by the self-driving vehicles have prompted a review by the National Highway Traffic Safety Administration.

According to Forbes, Afshar celebrated the robotaxi launch on X, calling it "an absolutely historic day for Tesla" and thanking Musk for his leadership.

That post, dated just days before his reported firing, now adds an ironic note to his sudden exit.

His departure follows a series of executive resignations in the past year, including Tesla's CFO, battery chief, and leaders from the Optimus robot and Supercharging teams.

Tesla stock closed at $325.78 on Thursday, little changed, but shares remain down 19% for the year.

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