As the head of a company, it’s a difficult decision to make when sales take a nosedive. Take Elon Musk, who responded to an ongoing slump in his company’s performance by eliminating the position of his North American and European VP of Production and Operations. It was Omead Afshar who bore the unfortunate brunt of this move, despite having diligently served in the company since 2017 and having been elevated to his VP role as recently as 2024.
News of Afshar’s departure from the electric vehicle manufacturing titan circulated before it was officially announced that he was indeed let go by Musk. Previously, Musk had sung praises for Afshar, applauding him particularly for his leadership in the construction of Tesla’s Texas-based Gigafactory. Afshar also drew attention recently for his public comments regarding Tesla’s futuristic self-driving robotaxis.
Interestingly, Afshar’s role at Tesla wasn’t solely confined to manufacturing and operations. Back in 2022, he was in the middle of a company internal probe due to accusations of his part in a covert plan to secure unique materials for the enigmatic ‘Project 42’, which allegedly involved a glass construction somewhere in Austin, Texas.
Once the scrutiny concluded, Afshar took on responsibilities at SpaceX and was rumored to have had a stint at X before making a comeback to Tesla. His return to the electric vehicle pioneer wasn’t long before his ascension to the VP position in the final quarter of 2024.
Tesla, however, has been grappling with tough times of late. A notable decline in vehicles sold in 2024—compared to the preceding year—marked the brand’s first annual dip in sales since a decade. The European market has not been kind either, with sales figures tumbling for the fifth month in a row.
The United States market hasn’t spared Tesla either, with subpar sales being recorded this year. Even in China, which is arguably Tesla’s primary market, there was a 15% reduction in sales in May alone. The overall continued slide in Tesla’s sales metrics points to some underlying issues that need to be addressed.
There’s a burgeoning school of thought that argues for the culpability of Musk himself rather than Afshar for Tesla’s financial underperformance. It is suggested that Musk’s political affiliations and prior close associations with influential political personalities have had some impact on the company’s sales.
Consequently, Tesla has faced numerous protests. An instance of such backlash was an outright attack on a Tesla dealership in Rome, which ended in a destructive fire that ruined as many as 17 parked Tesla vehicles. These demonstrations signify larger issues at play facing Tesla, and in turn its sales numbers.
Additionally, financial repercussions stemming from Musk’s public disagreements with political individuals have also been reported, although the full extent of their impact on the company’s financial health remains unclear.
Moreover, it’s come to light that other high-ranking officials have also left Tesla. Milan Kovac, the lead of Tesla’s Optimus humanoid robot team, purportedly left the company. As did Jenna Ferrua, who, until recently, held the title of Tesla’s Director of HR for North America.
These departures suggest a possible internal tumult within Tesla’s ranks that could be further destabilizing the company. Along with declining sales figures, they paint a picture of a company that is facing challenges internally as well as externally.
Though the reasons behind Tesla’s declining sales and the high-profile departures remain speculative, they do bring forth debates about leadership and decision-making. How sustainable are these decisions for Tesla in the long run and the role of the influential Elon Musk are questions that have gained some traction lately.
With controversies surrounding its high-ranking officials and their apparent exits, Tesla’s corporate dramas have perhaps overshadowed their technological advancements and market potential. How Tesla navigates these internal challenges will be crucial for its rebound in the market.
While Omead Afshar’s exit, under the circumstances of declining sales, can be seen as an extreme measure by the company’s CEO, some argue that it was a strategic move to divert attention from other ongoing issues. The impact of such moves on Tesla’s prospects remains to be seen.
Despite the current challenges, it’s important to remember that this isn’t the end of the road for Tesla. They still remain a pioneer in the electric vehicle industry and have a strong market presence globally. The narrative of Tesla’s success or failure will eventually be dictated by how it confronts and overcomes these testing times.