In a surprising shakeup at Tesla, CEO Elon Musk has terminated Omead Afshar, the company's vice president of manufacturing and operations. This significant decision comes as Tesla grapples with a decline in car sales across pivotal markets this year, as confirmed by CNBC. Afshar, who directly reported to Musk, was at the helm of a team comprising several high-ranking officials, including Troy Jones, Tesla's vice president of North American sales, and Joe Ward, who oversees the Europe, Middle East, and Africa regions. Notably, Karen Steakley, who now directs business development and policy for Tesla, was also part of Afshar's team; she previously served as deputy director for legislative affairs under Texas Governor Greg Abbott. Reports indicate that Afshar's termination follows an internal investigation in 2022 regarding his procurement of scarce construction materials, including specialized glass intended for a confidential project led by Musk. After the investigation, Afshar briefly worked for SpaceX, Musk's aerospace venture, before returning to Tesla and securing a promotion to vice president. Despite his recent praise for Musk on social media regarding the launch of Tesla's pilot Robotaxi service in Austin, Texas, Afshar's dismissal marks a turbulent period for the automaker. This follows the earlier resignation of Milan Kovac, who previously led Tesla's Optimus humanoid robotics program, citing a desire to focus on family. Tesla's stock has seen a notable decline, dropping 19% this year, significantly underperforming compared to the Nasdaq and other major tech companies. Furthermore, new car sales in Europe have plummeted for five consecutive months, as highlighted in recent data from the European Automobile Manufacturers Association. The company continues to navigate challenges related to its brand image, exacerbated by Musk's controversial public statements and political activities, including substantial financial support for various political initiatives. As Tesla navigates these turbulent waters, the repercussions of Afshar's dismissal remain to be seen, along with the ongoing impacts on the company's leadership and market performance.
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