Tesla CEO Elon Musk has dismissed Omead Afshar, the company’s vice president of manufacturing and operations, as the automaker continues to face weakening global demand and market share losses. Afshar, a top executive who reported directly to Musk, oversaw Tesla’s manufacturing operations and led a team that included senior leaders responsible for sales across North America, Europe, and the Middle East.
Afshar’s departure follows months of declining new-vehicle sales in key markets, such as Europe, where Tesla deliveries fell for a fifth consecutive month in May. Tesla has struggled to maintain momentum as competition from Chinese electric vehicle makers and established European brands intensifies. Its stock price is also down 19% year to date, lagging behind the broader Nasdaq index and most large-cap tech peers.
Although the company has not issued a public statement, multiple outlets, including Forbes and Bloomberg, reported Afshar’s termination earlier this week. Afshar had previously faced scrutiny in 2022 during an internal investigation into his procurement of specialty construction materials for a confidential project linked to Musk. Following the probe, he briefly transitioned to SpaceX before returning to Tesla and being elevated to the vice president position.
The firing adds to a recent wave of executive turnover at Tesla. Earlier this month, Milan Kovac, who led the company’s Optimus humanoid robotics program, resigned.
Afshar’s exit comes just as Tesla launches its pilot Robotaxi service in Austin, Texas, a project he recently promoted online.
Tesla’s challenges extend beyond internal leadership changes. The company continues to navigate reputational issues tied to Musk’s political endorsements and public statements. Musk has committed nearly $300 million in support of President Donald Trump’s re-election bid and has backed Germany’s far-right AfD party, further complicating Tesla’s global image.