Following the firing of Omead Afshar, Tesla's longtime head of manufacturing and sales, CEO Elon Musk has taken the helm of sales for the car brand in Europe and the U.S.
Afshar's departure from the electric vehicle giant is a result of poor sales over the past two quarters, according to Bloomberg. Musk will divide sales oversight with China-based senior vice president Tom Zhu, who will manage the Asia market. Zhu will also take over manufacturing operations globally in the wake of Afshar's departure.
Tesla sold 389,400 vehicles during Q2 of 2025, down roughly 12% year-over-year. While there was a slight recovery from the significant sales drop in Q1, financial experts project the EV company will deliver only 1.65 million vehicles throughout the entire fiscal year, down 8% from 2024.
The company's delay in the rollout of more affordable models has posed a problem in sales, isolating the middle-class consumer who would benefit from an EV. This step toward affordability will be crucial to Tesla's sales in the coming years, as competitor EV manufacturers, such as BYD, gain ground because of the cost-effective models they offer.
While EV production isn't perfect — the production of their batteries does have an impact on the planet — recent research has found the long-term carbon footprint of these vehicles to be significantly less than that of their gas counterparts. EV charging also saves owners money over time, making the cars more cost-effective and having a widespread effect on the savings of potential buyers.
Musk's controversial and vocal political moves over the past year also have likely played a part in the sales decline. His support of far-right candidates and parties has alienated a section of Tesla's car buyers in key markets. While his stint in Washington, D.C., is definitively over, his departure and ongoing feud with President Donald Trump have also fueled discontent among more conservative buyers.
Musk's decision to oversee the European market is a particularly interesting development, considering that sales nosedived 37% in the first five months of 2025. Bloomberg noted that recent polls reflect negative public opinion of the CEO in key markets, namely Germany and the United Kingdom.
Despite stagnant sales in the first half of 2025, only time will tell if this executive shake-up will deliver a needed boost to Tesla's share of the EV market.
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