Elon Musk fires vice president of manufacturing amid falling EV sales
- Omead Afshar was overseeing multiple upper-level staff prior to his termination.
- The decision to fire him follows a significant drop in Tesla's auto sales and profits.
- The company is facing challenges from increased competition and changing consumer preferences.
On June 26, 2025, in the United States, Tesla CEO Elon Musk made a significant leadership change by terminating Omead Afshar, the company’s vice president of manufacturing and operations. This decision followed a notable decline in auto sales across Tesla's major markets, with the company's stock price taking a substantial hit over the previous months. Afshar was responsible for overseeing several senior employees, including vice presidents in charge of sales in key regions. This was not an isolated event, as it came shortly after the resignation of Milan Kovac, head of the Optimus humanoid robotics program, signaling potential internal turbulence within the company. The background to Afshar's firing includes previous scrutiny regarding his actions in securing materials for confidential projects and a troubling sales report. In fact, the company registered a 19% drop in stock value this year and a dramatic profit decline of 71% in the first quarter. This downturn can be attributed to increased competition from cheaper Chinese electric vehicles, which seems to be changing buyer preferences away from Tesla. Furthermore, issues surrounding the broader electric vehicle market, including falling sales for Tesla for the first time since mass production commenced, have created a challenging environment for the company to navigate. Current market analysis suggests that Tesla’s challenges stem from significant shifts in consumer behavior, where buyers are increasingly gravitating toward more affordable EV options. Tesla's European sales figures reflect this trend, reporting a 28% drop, indicating a shift in the competitive landscape that the company must adjust to in order to maintain its position. These economic headwinds have led analysts to speculate about Tesla's strategy going forward, especially as it looks to stabilize under difficult commercial conditions. In light of these recent challenges, sectors of the industry are closely watching how Musk's leadership alterations will affect company operations and long-term brand perception. Many stakeholders remain concerned that continuing sales declines could not only impact Tesla’s market share but also affect investor confidence and the company’s future innovation plans. Overall, this period marks a crucial juncture for Tesla as it deals with leadership changes amidst a volatile market.