Tesla’s vice president of sales and manufacturing for North America and Europe, Omead Afshar, has left the electric vehicle (EV) giant, marking another high-profile exit as the company navigates declining sales and a pivot to autonomous technology. The departure, confirmed by three sources familiar with the matter, comes as Tesla grapples with a 19% year-to-date drop in its stock price and intensifying competition in key markets, according to Reuters.

Leadership Shakeup Amid Strategic Shift

Afshar, a trusted confidant of CEO Elon Musk since joining Tesla in 2017, played a pivotal role in overseeing sales and manufacturing across two continents. His exit follows a wave of executive departures over the past 14 months, including chief battery engineer Drew Baglino, supercharging division lead Rebecca Tinucci, and global public policy head Rohan Patel in spring 2024.

The company’s focus has shifted from traditional EV production to artificial intelligence (AI) and self-driving technology, highlighted by the recent debut of Tesla’s robotaxi service in Austin, Texas, on June 22, 2025. Afshar celebrated the launch on X, calling it an “absolutely historic day for Tesla” and thanking Musk “for pushing us all.”

Tesla Executive Omead Afshar Departs Amid Ev Sales Slump And Robotaxi Push

Declining Sales and Market Pressures

Tesla faces significant headwinds in North America and Europe, where demand for its aging vehicle lineup has weakened. In 2024, the company reported its first annual sales drop since it began mass-producing EVs over a decade ago.

Former Tesla sales manager Matthew LaBrot, recently fired for publicly criticizing Musk, noted that Afshar faced “significant pressure internally” to address sales declines, particularly severe in Europe, where rivals offer more affordable EVs. Tesla’s Gigafactory in Austin, Texas, a project Afshar helped lead, produces the Model Y and Cybertruck but struggles to offset slumping demand.

Robotaxi Ambitions and Technical Challenges

Tesla’s robotaxi launch, covering roughly 12 miles (19 kilometers) of Austin streets, signals Musk’s ambition to redefine the company as a leader in autonomous transport. However, analysts warn that expanding the service to other cities by late 2025 could face regulatory and safety hurdles.

The technology relies on Tesla’s Full Self-Driving (FSD) system, which uses cameras and AI to navigate roads but remains under scrutiny for reliability. The company’s shift to robotics, including the Optimus humanoid robot, has also led to exits like that of Optimus team head Milan Kovac earlier this month.

Industry and Economic Implications

Afshar’s departure, alongside North America HR Director Jenna Ferrua’s reported exit, underscores Tesla’s ongoing restructuring. The company has slashed thousands of jobs to cut costs, with Musk redirecting resources to AI and autonomy.

At approximately $250 billion in annual revenue, Tesla faces pressure to deliver on its $1 trillion valuation, driven largely by investor optimism about robotaxis. However, with shares down 19% in 2025, economic challenges and reputational risks tied to Musk’s political activities, including his $300 million support for Donald Trump’s campaign, could deter some buyers.

What’s Next for Tesla Owners and Enthusiasts?

For Tesla owners and EV enthusiasts, Afshar’s exit raises questions about the company’s ability to stabilize leadership while scaling new technologies. The robotaxi service could transform urban mobility, potentially reducing ownership costs if expanded successfully. However, Tesla must address FSD safety concerns and refresh its vehicle lineup to compete with affordable rivals.

As Musk refocuses on Tesla post-Washington, the company’s next moves will shape its trajectory in the evolving EV landscape.