Tesla's Musk Takes Over US, Europe Sales Amid 14% Delivery Drop

Tesla's CEO, Elon Musk, has taken over the company's sales operations in the United States and Europe following a decline in delivery volumes. This move comes after Omead Afshar, who had been serving as a key executive, left the company. Afshar, who was responsible for Tesla's sales and production in North America and Europe, departed at the end of last month. Following his departure, Musk and senior vice president Tom Zhu will assume different reporting responsibilities.

Zhu, who is based in China, will continue to oversee Tesla's sales in Asia and will also take on full responsibility for global production operations. This restructuring is part of Tesla's efforts to recover from a series of quarters with declining vehicle delivery volumes.

Musk's political activities have led to a loss of core consumers for electric vehicles, resulting in a significant drop in sales in key markets such as Europe, China, and certain regions of the United States, including California. Despite this, the overall purchase of electric vehicles continues to grow.

Tesla's delivery volume in the second quarter of 2024 was 443,956 vehicles, with 410,831 vehicles produced. In contrast, the second quarter of 2025 saw a production volume of 410,244 vehicles and a delivery volume of 384,122 vehicles, a 14% decrease from the same period last year.

This decline in delivery volumes has raised concerns about Tesla's performance in key markets. The company's market share in Europe has been under pressure, and the decline in deliveries has raised questions about its ability to maintain its competitive edge.

The decision to have Musk directly oversee sales in these regions underscores the urgency of the situation. By having Musk directly involved in sales operations, the company aims to streamline decision-making and ensure that its sales strategies are aligned with its overall business objectives. This move also reflects the company's commitment to innovation and its willingness to adapt to changing market conditions.

The appointment of Zhu to oversee global manufacturing and operations in Asia is another key aspect of this restructuring. Zhu's experience and expertise in manufacturing will be crucial in ensuring that Tesla can continue to produce high-quality vehicles and meet the growing demand for electric vehicles in the region.

In summary, Tesla's decision to have Musk take over sales operations in the United States and Europe, along with the appointment of Zhu to oversee global manufacturing, is a strategic response to the challenges the company is facing. This restructuring aims to address the decline in delivery volumes and ensure that Tesla can continue to innovate and maintain its market position in a competitive landscape.