Tesla CEO Elon Musk has terminated Omead Afshar, the company’s Vice President of Manufacturing and Operations, CNBC confirmed on Thursday. Afshar’s removal comes in the wake of declining vehicle sales across major global markets, signaling continued turbulence for the electric vehicle giant. Internal organizational charts viewed by CNBC reveal that Afshar reported directly to Musk and oversaw a team of high-level executives.
This move follows a series of recent setbacks for Tesla, including a sharp 19% drop in its stock value this year. Industry data from the European Automobile Manufacturers Association shows that Tesla’s new car sales in Europe declined for the fifth consecutive month in May, as customers turned to more affordable Chinese EVs and legacy European automakers.
Afshar’s firing was initially reported by Forbes, with Bloomberg also confirming his departure. Tesla has not released an official statement, and neither Afshar nor other top executives responded to media inquiries at the time of reporting.
A Checkered Tenure and Internal Turmoil
Omead Afshar’s tenure at Tesla has not been without controversy. In 2022, he was the subject of an internal investigation regarding the procurement of rare construction materials, including specialized glass, for an undisclosed project led by Musk. Following the probe, Afshar temporarily moved to SpaceX, Elon Musk’s aerospace firm, before returning to Tesla and securing the senior manufacturing role.
Afshar’s team at Tesla included several prominent figures such as Troy Jones (VP of North American Sales), Joe Ward (VP for Europe, Middle East, and Africa), and Karen Steakley, a former legislative advisor to Texas Governor Greg Abbott who now oversees Tesla’s business development and policy operations.
Despite his dismissal, Omead Afshar social media activity has remained supportive of Musk. In a recent post on X, he publicly thanked Musk following the launch of Tesla’s Robotaxi pilot service in Austin, Texas.
Broader Executive Turnover and Political Controversies
Omead Afshar exit is the latest in a string of high-profile leadership changes at Tesla. Earlier this month, Milan Kovac, head of the company’s Optimus humanoid robotics division, stepped down, citing personal reasons and a desire to spend more time with family. Musk acknowledged Kovac’s contributions in a public message.
These internal changes come at a time when Tesla is battling not just economic challenges but also brand and reputational issues. CEO Elon Musk’s increasingly political public stance has drawn criticism. He has invested nearly $300 million in supporting Donald Trump’s 2024 presidential campaign and has endorsed Germany’s far-right AfD party, both moves sparking backlash among Tesla’s global consumer base.
As Tesla grapples with falling demand, internal shakeups, and external controversies, analysts say the automaker’s future may hinge on restoring consumer trust and stabilizing its executive leadership.
