A key executive widely regarded as a close associate of Tesla CEO Elon Musk has departed the electric vehicle maker, signaling another turn in Tesla’s leadership as the company shifts gears. Omead Afshar, who joined Tesla in 2017 and rose rapidly to oversee sales and manufacturing in Europe and North America and played a crucial role in the Texas Gigafactory, recently left the firm. His exit comes amid a broader wave of turnover during an ongoing round of layoffs and realignment toward autonomy and robotics.
Afshar’s departure reflects widening internal changes as Tesla grapples with declining demand across key markets. Sales in Europe and North America have softened, with Tesla anticipating its first annual drop in vehicle deliveries since its founding. Analysts are pointing to rising competition, an aging model lineup, and political distractions linked to Musk's public alliances as contributing factors. Tesla’s stock is down around 19% year-to-date, under pressure from both macroeconomic and brand perception challenges.
Losses of such magnitude among top executives could impact Tesla’s operational continuity. People familiar note that Afshar’s role bridged sales, production, and Musk's office—a critical nexus, especially amid the Tesla Gigafactory rollout. His deep institutional knowledge and close relationship with Musk will be missed. The simultaneous departure of HR head Jenna Ferrua further underscores the depth of turnover.
Tesla is pushing forward with its next frontier: autonomous taxi services. Limited trials have begun in Austin, Texas, as Musk refocuses on robotics and AI. But the technology's readiness—and public reception—remain under scrutiny. Safety concerns and technology reliability continue to shape the rollout's viability.
Looking ahead, Tesla faces a delicate balancing act: investing heavily in new platforms while managing costs and preserving talent. The AI- and robotics-centric pivot demands highly specialized expertise, making the retention of top talent essential. Meanwhile, restructuring and layoff efforts, though aimed at streamlining, risk eroding internal momentum if not handled carefully.
Tesla is at a crucial inflection point. The loss of seasoned leaders like Afshar amid aggressive strategic pivots introduces short-term disruption risks. Yet this type of turnover isn’t unusual during transformative periods. Success hinges on Tesla's ability to maintain institutional knowledge, especially as it directs its focus toward autonomy and next-gen products. If leadership continuity isn’t restored, the company may struggle to execute on its ambitious roadmap.