Tesla TSLA Soars 5.52% on Leadership Shakeup

On July 2, 2025, Tesla's stock surged by 5.52% in pre-market trading, reflecting a significant uptick in investor sentiment.

Tesla recently announced a major personnel reshuffle, which has drawn widespread attention in the automotive industry. Following the dismissal of manufacturing and operations vice president Omid Afshar, CEO Elon Musk has taken over the European and American sales operations. Meanwhile, senior vice president Zhu Xiaotong has been promoted to oversee global manufacturing, while continuing to lead Asian sales. This move comes at a critical juncture for Tesla, as it faces declining sales and intensified market competition.

Zhu Xiaotong's career at Tesla has been marked by notable achievements. He joined the company in April 2014 as the project manager for China's Supercharger network and was quickly promoted to vice president of global operations and president of China operations in December of the same year. In 2018, he took the helm of the Greater China region and spearheaded the construction and operation of the Shanghai Gigafactory, setting a record for rapid construction and production. In April 2023, he was appointed senior vice president of automotive operations, becoming one of Tesla's four top executives. Despite facing challenges with Tesla's advanced driver-assistance systems in China, his recent promotion to global manufacturing head underscores Musk's confidence in his capabilities.

This personnel change highlights Tesla's current market challenges. In major markets, Tesla is experiencing varying degrees of difficulties. In the U.S., sales growth has stagnated, while in China, local competitors like BYD, NIO, and Xpeng, along with new entrants like Xiaomi's SU7, are eroding Tesla's market share. In Europe, Tesla's performance has been particularly weak, with a 37% year-over-year decline in sales over the past two months and a 28% drop in new car registrations in May. Analysts predict that Tesla's second-quarter delivery volume will decrease by about 12% year-over-year, with global deliveries falling by more than 10% to approximately 392,800 units. Additionally, Tesla's delayed launch of an affordable new model, originally planned for the first half of 2025, has further exacerbated sales pressures.

Internally, Tesla has seen a series of high-level departures. In addition to Afshar's dismissal, the head of the Optimus humanoid robot project, Milan Kovac, and North American human resources director Jenna Ferrua have also left the company. These frequent leadership changes indicate a need for organizational restructuring and transformation within Tesla.

Musk's decision to appoint Zhu Xiaotong to lead global manufacturing may be strategic. Zhu's success in Shanghai could bring fresh energy and innovation to Tesla's global manufacturing operations, helping to enhance product competitiveness through optimized production processes, improved efficiency, and cost reductions. However, Tesla's future remains uncertain. While the Robotaxi project is highly anticipated, its technological readiness and regulatory hurdles could delay its commercialization, making it unlikely to contribute to revenue in the near term. Tesla must also focus on product innovation, marketing, and customer service to regain market share and consumer trust.