- Elon Musk assumes direct oversight of Tesla’s sales operations in Europe and the US following the departure of Omead Afshar.
- Tesla’s sales in Europe plummeted 28% in May, while US sales dropped 16% year-over-year, signaling deepening challenges.
- The leadership shakeup coincides with political backlash and intensifying competition in key EV markets.
Musk Steps In as Tesla Faces Steep Declines
Elon Musk is now directly managing Tesla’s sales in Europe and the US after Omead Afshar, the head of operations for these regions, exited the company, according to people familiar with the matter. The move comes as Tesla grapples with historic sales declines—down 28% in Europe last month and 16% in the US year-over-year—amid waning demand and fierce competition.
Tesla’s struggles contrast sharply with the broader European EV market, which grew 25% year-on-year in May, led by strong performance in Germany. Analysts attribute Tesla’s slump to a combination of Musk’s polarizing political statements, model fatigue, and aggressive moves by rivals like Volkswagen and Volvo.
Political and Competitive Headwinds
Musk’s public alignment with far-right groups, including Germany’s Alternative for Germany party, has alienated some consumers in critical markets. In the US, Tesla’s perceived ties to the Trump administration and recent job cuts have further dented its reputation. Meanwhile, incentives and discounts have failed to reverse the sales slide, raising questions about Tesla’s pricing strategy.
Despite the downturn, there are glimmers of hope: June sales rebounded in the UK, Spain, and the Netherlands, suggesting localized recovery. Investors are now watching for the launch of Tesla’s anticipated cheaper model later this year, which could reignite demand. But with Musk at the helm of sales, the company faces a pivotal test—balancing operational urgency with long-term brand rehabilitation.