Elon Musk Reportedly Fires Top Tesla Sales and Manufacturing Executive Omead Afshar Amidst Sales Challenges
In a significant development within the upper echelons of Tesla, Omead Afshar, the company's vice president in charge of sales and manufacturing operations across North America and Europe, has reportedly been fired by CEO Elon Musk. The news, which surfaced through reports from Forbes and Bloomberg News, marks the departure of one of Musk's long-standing and closest confidants within the electric vehicle and energy company. As of the time of reporting, neither Afshar, Musk, nor Tesla had publicly commented on the reasons behind this high-profile exit.
Afshar's reported firing comes at a particularly sensitive time for Tesla. The company has been navigating a period of significant headwinds, notably a stark reversal in its previously relentless sales growth trajectory. For the first time in over a decade since it began mass-producing electric vehicles, Tesla experienced an annual drop in car sales in 2024 compared to the previous year. This downturn has persisted into the first half of 2025, raising concerns among investors and analysts about the company's market position and future prospects.
Adding to the pressure, Tesla's financial performance has also taken a hit. In the first quarter of 2025, the company reported a dramatic 71% year-over-year decline in profits, a downturn attributed to weaker sales and, according to some analyses, negative sentiment potentially linked to Elon Musk's public activities and political stances. The challenges are not confined to a single market; European sales, a key region under Afshar's purview, saw a nearly 28% year-over-year slump in May. The industry is now keenly awaiting Tesla's global delivery figures for the second quarter, expected next week, and the full financial results in mid-July, which will provide a clearer picture of the company's performance during this turbulent period.
Omead Afshar's Journey Within Tesla
Omead Afshar was not typically one of Tesla's most public-facing executives, yet his influence behind the scenes was considerable. He joined Tesla in 2017, initially working within the highly influential and closely guarded "office of the CEO." This position placed him in close proximity to Elon Musk, allowing him to gain deep insight into the company's strategic direction and operational priorities directly from the top.
Over his more than seven years with the company, Afshar's responsibilities steadily grew. He took on increasingly critical roles, demonstrating a capacity for managing large-scale, complex projects. One of his most notable achievements, and one that Elon Musk himself has publicly credited him with, was leading the construction of Tesla's massive manufacturing facility near Austin, Texas – known as Giga Texas. This factory is a cornerstone of Tesla's production capacity in North America, designed to produce millions of vehicles annually, including the Model Y, Cybertruck, and potentially future models. Overseeing the rapid development and ramp-up of such a colossal and technologically advanced facility was a testament to Afshar's operational capabilities and his trusted position within Musk's inner circle. The successful execution of the Giga Texas project solidified his reputation as a highly effective operator capable of delivering on Musk's ambitious timelines and visions.
Navigating Controversy: The 'Glass House' Probe
Despite his operational successes, Afshar's tenure was not without controversy. In 2022, he became the subject of an internal investigation at Tesla. This probe reportedly centered around allegations that Afshar was involved in a plan to improperly purchase specialized construction materials. These materials were allegedly intended for a proposed glass building, a unique architectural project that Elon Musk reportedly desired to build near the Giga Texas site. The specifics of the alleged plan and the nature of the materials raised questions internally, leading to the company's own investigation.
The internal scrutiny quickly escalated, attracting the attention of federal authorities. By 2023, both the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) had reportedly launched their own investigations into these purchases. Such investigations by federal bodies are serious matters for both the individuals involved and the company, potentially looking into issues ranging from corporate governance and financial controls to potential misuse of company resources or securities law violations. While the outcomes of these investigations have not been widely publicized, their existence cast a shadow over Afshar's position and highlighted the intense scrutiny surrounding Tesla's operations and executive conduct.
During at least some of the period when these investigations were ongoing or had recently begun, reports indicated that Omead Afshar was moved to other roles within Musk's ecosystem of companies. He reportedly spent time working at SpaceX, Musk's aerospace company, and was also said to have been involved with X, the social media platform also owned by Musk. These shifts, while not explicitly framed as demotions or disciplinary actions, occurred while the 'glass house' controversy was unfolding, suggesting a potential link between the internal and external probes and his temporary relocation away from a core leadership role at Tesla.
Return to a Key Leadership Role
Despite the past controversy and temporary shifts to other Musk ventures, Omead Afshar was eventually brought back into a prominent leadership position at Tesla. In late 2024, he was elevated to the role of Vice President overseeing Tesla's critical sales and manufacturing operations in both North America and Europe. This appointment followed the relocation of another top executive, Tom Zhu, who had previously held significant responsibilities in these areas, back to China to focus on Tesla's operations there, particularly the Shanghai Gigafactory.
Afshar's return to such a vital role underscored his enduring relationship with and trust from Elon Musk, despite the earlier investigations. The North American and European markets are fundamental to Tesla's global sales volume and profitability. Placing Afshar in charge of both sales and manufacturing in these regions indicated a belief in his ability to drive performance and streamline operations across the value chain, from production lines to customer deliveries. His mandate would have been to navigate the increasingly competitive EV landscape, manage production output, optimize logistics, and ultimately boost sales figures in these key territories.
Just days before the reports of his firing emerged, Afshar was publicly active, posting messages of support for the limited rollout of Tesla's robotaxi service in Austin, Texas. On June 23rd, he shared his enthusiasm on X, stating it was an "Absolutely historic day for Tesla" and expressing gratitude to Elon Musk "for pushing us all!" These public statements, made so close to his reported departure, highlight the suddenness of the event and the lack of any apparent public indication of impending change in his status or relationship with Musk.
Context of Executive Turnover and Company Performance
Omead Afshar's reported firing is not an isolated incident but rather the latest in a pattern of significant executive turnover that has characterized Tesla under Elon Musk's leadership. Musk is known for his demanding management style, rapid decision-making, and willingness to make swift personnel changes at all levels, including the very top. While some turnover is normal in any large corporation, the frequency and high-profile nature of departures at Tesla have often drawn scrutiny, raising questions about organizational stability and succession planning.
The timing of Afshar's departure is particularly noteworthy given the company's current struggles. As mentioned, Tesla's sales growth has stalled, and profits have declined sharply. The competitive landscape in the electric vehicle market has intensified dramatically, with established automakers and new entrants alike launching compelling EV models. This increased competition, coupled with potential softening in overall EV demand in some markets and pricing pressures, has created a challenging environment for Tesla to maintain its historical growth rates and profit margins.
Tesla's performance in key regions like North America and Europe, the areas directly under Afshar's responsibility, has been central to these challenges. The significant drop in European sales in May, for instance, points to difficulties in those specific markets, whether due to competition, macroeconomic factors, or execution on sales and delivery strategies. While it is not known if Afshar's firing is directly linked to these performance metrics, the timing suggests that the company's operational and sales results in these crucial territories may have played a role.
Furthermore, the lingering questions surrounding the past 'glass house' investigation by the DOJ and SEC could potentially be a factor, even years later. While Afshar returned to a senior role, the existence of federal probes could represent an ongoing risk or complication that might have contributed to the decision, although this remains speculative without official confirmation.
The news of Afshar's departure also coincided with another reported exit: Jenna Ferrua, Tesla's director of HR for North America, is also reportedly no longer with the company, according to Bloomberg News. While the connection between these two departures, if any, is unclear, the simultaneous exit of a top operational executive and a senior HR leader in the North American region could signal broader organizational changes or restructuring underway at Tesla.
Potential Implications for Tesla
The departure of a Vice President overseeing sales and manufacturing in Tesla's two largest markets – North America and Europe – is a significant event with potential implications for the company's operations and strategy. Afshar held a dual role, bridging the gap between the factory floor and the customer. His replacement will need to possess a deep understanding of both complex manufacturing processes and the dynamics of vehicle sales and delivery in diverse and challenging markets.
Finding a successor who can quickly step into such a critical role and effectively manage operations across two continents will be crucial for Tesla, especially as it seeks to reverse the recent sales decline and navigate intense competition. The new leader will face the immediate challenge of boosting sales figures, optimizing production efficiency, and potentially overseeing the rollout of new models or updates in these regions.
Moreover, frequent changes in senior leadership can sometimes lead to disruptions in strategy and execution, potentially impacting morale and stability within the organization. Investors and analysts will be watching closely to see who is appointed to fill Afshar's role and what, if any, strategic shifts might follow this change.
Omead Afshar's reported firing underscores the high-stakes environment within Tesla and the direct, often unpredictable, nature of leadership under Elon Musk. While the specific reasons for his departure remain undisclosed, it occurs against a backdrop of significant business challenges for Tesla, including slowing sales and increased scrutiny on its operations and leadership. His exit, particularly given his history with the company and his recent elevation to a critical VP role, adds another layer to the ongoing narrative of executive dynamics and performance pressures at one of the world's most closely watched companies.