News has recently broken that Omead Afshar, a high-ranking executive at Tesla, overseeing sales and production in North America and Europe, has been dismissed by the company’s CEO Elon Musk. Forbes has reported this surprising development, though the details surrounding his termination are not immediately clear. Afshar, often considered as a trusted aide to Musk within the company, played a fundamental role in Tesla’s operations. Notable reports about this abrupt exit were first publicized by Bloomberg News.
Before his exit, Afshar was vocal about his support for the initial deployment of Tesla’s self-driving taxi service, termed as ‘robotaxi’, in Austin, Texas. He expressed his views on the topic as recently as the preceding Tuesday, which makes his sudden exit more intriguing. This major shift in Tesla’s executive team has occurred during a challenging phase for the company, particularly with respect to its overall sales growth.
The auto giant has experienced a declining growth curve, with the sale of its vehicles dwindling in 2024 less than what it achieved in the previous year. This deserved notable attention as it was the first instance of an annual decline in Tesla’s sales since the company began mass manufacturing electric vehicles over ten years ago. The bleak sales situation persisted into the first half of 2025 as well.
As far as financial figures are concerned, Tesla confronted a drastic year-over-year fall in their profits during the first quarter of the year, dwindling by a significant 71%. Their performance in Europe was particularly affected, with sales plunging nearly 28% year-over-year in the month of May alone. More comprehensive figures reflecting the global deliveries for the second quarter are set to be published next week, followed by details from the mid-July financial update.
Afshar was a vital cog in Tesla’s executive machinery but wasn’t known to be extensively visible in public fora. Since joining the organization in 2017, he spent considerable time working in close quarters with the CEO’s office. Over the years, he shouldered increasingly vital responsibilities as the company navigated through expansion and challenges alike.
A crucial accomplishment for Afshar at Tesla was the successful management and completion of Tesla’s sprawling manufacturing unit in Austin, Texas. Musk has acknowledged Afshar’s major role in this high-stake project in the past. However, following this achievement, Afshar’s journey at Tesla became fraught with complications.
In 2022, Afshar saw himself as the focus of an internal investigation after he was purportedly associated with a plan to procure specific material for constructing a glass building. This attracted attention not only within the organization, but also called for inquiries from external regulatory bodies.
By 2023, both the Department of Justice and the Securities and Exchange Commission started scrutinizing the aforementioned procurement that involved Afshar. Meanwhile, Afshar was reputedly associated with another project within the company, denominated as Project X for some time.
After some reshuffling within the company, Musk promoted Afshar to the position of vice president in the later part of 2024. This move by Musk followed a prior event where another senior executive, Tom Zhu, had transitioned back to China. Amid all these changes within the organization, Elon Musk has maintained confidence in Afshar’s leadership.
Aside from Afshar’s departure, another shift in the upper echelons of Tesla has come to light. According to a report by Bloomberg News also released this Thursday, there has been a change in Tesla’s Human Resources department for North America. Jenna Ferrua, who held the key position of the Director of HR, is reportedly no longer associated with the company.
These developments highlight a phase of significant changes within Tesla’s top leadership. With the dismissal of key executives like Afshar and Ferrua, the existing dynamics within the company are bound to be impacted significantly. As the company navigates market challenges and changing consumer demands, these shifts are pivotal.
The changes including Afshar’s exit, under controversial circumstances, and the changing responsibility of key roles underline the internal restructuring within the company. As Tesla moves forward with its ambitious plans surrounding electric vehicles and autonomous taxi services, the strategic role of leadership is undeniable.
While the context of these departures is still under speculation, the impact on the company’s trajectory and its strategies is undoubted. Tesla, grappling with a decline in sales and a challenging market, will have to design a strong roadmap to steer ahead.
Amidst all these internal changes, it will be intriguing to see who steps into the shoes of these key role players, particularly given their significant contributions to their respective domains. These transitions will bring new leaders to the forefront, who will play significant roles in shaping the future trajectory of Tesla.
As Tesla prepares for the announcement of its global delivery numbers for the second quarter, these alterations in the leadership ranks might cast new light on the company’s strategic approach and bolster its resilience in times of market adversities. The forthcoming mid-July financial report could provide deeper insights into how the company is aligning its strategies in the wake of these dramatic shifts.