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Tesla CEO Elon Musk has dismissed Omead Afshar, the company’s vice president of manufacturing and operations, CNBC has confirmed. The move comes amid a year-over-year decline in Tesla’s vehicle sales across critical markets and ongoing internal challenges within the automaker.
Afshar, who reported directly to Musk, managed a leadership team of more than six senior executives, including Troy Jones, Tesla’s VP of North American sales, and Joe Ward, who oversees operations in Europe, the Middle East, and Africa. Karen Steakley, another key executive on Afshar’s team, now leads business development and policy at Tesla, following her previous role as deputy director for legislative affairs under Texas Governor Greg Abbott.
Though Forbes initially broke news of Afshar’s firing, Bloomberg earlier reported his departure from Tesla. Efforts by CNBC to obtain comments from Afshar, Tesla executives, and board members were met with no immediate response.
Afshar’s tenure was not without controversy. In 2022, Tesla conducted an internal investigation related to Afshar’s procurement of scarce construction materials, including specialized glass linked to a confidential Musk project. Following this, Afshar briefly transitioned to SpaceX—Musk’s aerospace and defense company—before returning to Tesla and being elevated to his VP role.
Despite the recent termination, Afshar’s public profile on X (formerly Twitter) still lists him as a Tesla executive. He recently expressed support for Musk following the launch of Tesla’s pilot Robotaxi service in Austin, Texas.
Afshar’s departure follows the resignation of Milan Kovac, head of Tesla’s Optimus humanoid robotics division, who stepped down earlier this month citing family reasons. Musk publicly acknowledged Kovac’s contributions.
Tesla’s stock has struggled, falling nearly 19% in 2025, lagging behind the Nasdaq and other major tech companies. European new car sales declined for a fifth consecutive month in May, according to the European Automobile Manufacturers Association (ACEA). Customers in the region are shifting toward local brands and lower-cost Chinese electric vehicles, intensifying competition for Tesla.
Tesla’s recent struggles extend beyond sales figures. The company’s brand and reputation have taken hits, partly fueled by Musk’s divisive political actions and rhetoric. Musk’s substantial investment—nearly $300 million—in support of former U.S. President Donald Trump’s reelection campaign, coupled with efforts to reduce federal agency budgets, has sparked controversy.
Additionally, Musk’s open endorsement of Germany’s far-right, anti-immigration Alternative for Germany (AfD) party has drawn criticism, contributing to concerns over Tesla’s public image.
Omead Afshar’s firing highlights the growing pressure on Tesla’s leadership to navigate a shifting automotive landscape marked by declining sales, fierce competition, and reputational challenges. As Tesla seeks to stabilize and innovate, the company’s executive changes signal a strategic recalibration amid a pivotal moment for the electric vehicle industry.