Omead Afshar dismissed as pressure mounts on Tesla’s operations and reputation
Tesla CEO Elon Musk has fired Omead Afshar, the company’s vice president of manufacturing and operations, following months of slumping sales in major markets and ongoing reputational challenges. The move, confirmed by CNBC, reflects deeper turbulence within Tesla’s leadership ranks amid intensifying competition and public scrutiny.
Afshar, who reported directly to Musk, oversaw a powerful team that included Tesla’s regional sales heads for North America, EMEA, and key figures in public policy. His dismissal was first reported by Forbes, while Bloomberg had noted Afshar’s quiet departure earlier this week.
Leadership shake-up amid operational and reputational setbacks
The termination follows growing pressure on Tesla’s executive team. Internal sources confirmed that Afshar had been involved in a 2022 internal investigation regarding unusual procurement of construction materials—allegedly for a top-secret Musk project involving specialty glass. Despite the probe, Afshar returned to Tesla from a stint at SpaceX and was eventually promoted to VP of operations.
This latest shake-up comes on the heels of the departure of Milan Kovac, who previously led Tesla’s Optimus humanoid robotics project. While Kovac cited personal reasons, the dual exits point to deeper instability within Tesla’s senior leadership.
Sales dip, stock slump, and a shifting EV landscape
Tesla’s stock is down 19% year-to-date, underperforming both the Nasdaq and its tech megacap peers. According to the European Automobile Manufacturers Association (ACEA), Tesla’s car sales in Europe dropped for the fifth consecutive month in May. Industry analysts cite a growing shift toward more affordable Chinese electric vehicles as a key factor eroding Tesla’s market share.
Meanwhile, Tesla’s much-hyped Robotaxi service quietly launched a pilot in Austin, Texas. Afshar had recently praised Musk for the milestone, still listing himself as a Tesla executive on X (formerly Twitter). However, the sentiment was not enough to secure his position.
Political backlash and brand erosion
Tesla’s commercial challenges are compounded by mounting political controversy surrounding its CEO. Musk has come under fire for his increasingly polarizing public stances, including a $300 million campaign backing President Trump’s reelection and public endorsements of Germany’s far-right AfD party. These moves have alienated a portion of Tesla’s customer base, particularly in liberal-leaning markets and among environmentally conscious buyers.