Tesla's North America and Europe Head Ousted Amid 37% Sales Drop

Omead Afshar, the head of North America and Europe for Tesla, was recently terminated from his position. The dismissal came as a result of his failure to reverse the declining demand for the brand's electric vehicles (EVs). This downturn in sales is attributed to the controversial acquisition of Twitter by Tesla's CEO, Elon Musk, and his subsequent divisive political activism, which has significantly impacted the company's reputation among American consumers.

Three years ago, when Musk first announced his intention to acquire Twitter, Afshar, one of Musk's most trusted lieutenants at Tesla, expressed his unwavering support. However, the acquisition and Musk's management of the social media platform have led to a decline in Tesla's EV sales growth, which began to slow in 2023 and turned negative for the first time last year. The situation worsened as Musk's political views shifted from centrist to what he termed "Dark MAGA," causing sales to plummet further.

Afshar, who started at Tesla eight years ago, was known for his versatility and problem-solving skills, earning him the reputation of being a "fixer." His most notable role was in establishing the Austin gigafactory, a plant with a larger footprint than the Pentagon. This facility became the hub of Tesla's operations, where innovations like the structural 4680 battery pack and the Cybertruck were first introduced. More recently, it has housed a new "Cortex" data center for training self-driving software and will be the manufacturing site for the upcoming CyberCab robotaxi model.

Despite his efforts, Afshar was unable to address the growing demand problem, which was exacerbated by the "Tesla Takedown" boycotts in the United States. Global deliveries dropped by 13% in the first quarter, and Musk admitted to having "great difficulty" managing his companies while serving the Trump administration. The situation in Europe was even worse, with consumers fleeing the brand due to Musk's fascist-like salute and endorsement of Germany's far-right AfD party, leading to a 37% decline in sales in the two months through May.

The decline in Tesla's reputation is evident in the annual Axios Harris poll, where consumers are asked to name companies with the best and worst reputations. Tesla, which had climbed to 8th place only two years prior, was first registered as having a negative reputation in 2023. Last month, Tesla joined Twitter (now "X") and the Trump Organization among those named with the worst reputations. This shift in public perception highlights the significant impact of Musk's political activism on Tesla's brand image and sales performance.