Elon Musk fires sales boss: Is Tesla in crisis?

Elon Musk fires sales boss: Is Tesla in crisis?

In a surprise move, Tesla CEO Elon Musk has fired senior executive Omead Afshar. Afshar, who joined the company in 2017, most recently held the position of vice president of sales and manufacturing in North America and Europe. His departure could be related to Tesla's current challenges with declining sales and profits. This is reported by [oe24] and calls the dismissal part of possible restructuring plans in the company.

The decline in demand for Tesla vehicles in Europe is alarming. In May 2025 in particular, sales figures fell by almost 28% compared to the previous year. The background to the collapse in demand is an outdated model range, increased competition from China and Musk's political statements, which are often perceived as a growing burden for the company. Despite repeated requests from Reuters, Tesla did not respond and attempts to reach Afshar by email were unsuccessful.

Unexplained reasons and previous challenges

The exact reasons for Afshar's dismissal are still unclear. However, there is speculation that his departure is also related to falling sales figures and increasing criticism of Musk's political activities. Recently, Tesla has been struggling with flat sales and a dramatic 71% drop in profits in the first quarter of 2025. This marks the first time in over a decade that the company's sales have fallen, according to [it-boltwise].

In addition to being a close confidant of Musk, Afshar also played a key role in the construction of the Tesla factory in Austin, Texas, and was involved in the development of the Tesla robotaxi service. Despite these successes, in 2022 he was embroiled in an internal investigation involving the purchase of specialized materials that attracted the attention of the Department of Justice and the U.S. Securities and Exchange Commission.

Future developments and personnel changes

In addition to Afshar's firing, Jenna Ferrua, director of human resources in North America, has also left Tesla. These personnel changes could indicate a broader restructuring policy within the company. Later this year, Tesla will release global delivery figures for the second quarter and financial results in July. These numbers could be crucial to the company's strategic direction in the future and certainly point to the challenges ahead that Tesla will face.

Tesla has not yet responded to the question about future steps, but it remains to be seen how the situation will develop further.