Will a Personnel Change Correct Tesla’s Sales Dive?
Elon Musk has fired Omead Afshar, the head of Tesla’s sales and manufacturing operations in North America and Europe, Gizmodo and other outlets reported Thursday. While not officially confirmed by Tesla, Afshar’s ouster would come amid declining car sales in the United States and Europe.
On Thursday Bloomberg reported that Afshar, who has also worked for Musk’s rocket company SpaceX as well as Tesla, had “left” the company for unspecified reasons. Forbes then reported that Afshar had been fired by Musk, something CNBC echoed in its reporting. Tesla’s lack of a functioning public relations department makes getting a clear answer more difficult.
Tesla Sales Continue to Nosedive
Tesla
These reports arrive as Tesla sales continue to fall. Though it remains the largest U.S. producer of battery-electric vehicles, Tesla is saddled with large inventories of Cybertruck pickups, and the refreshed Model Y has failed to gain momentum. A pause in production at the automaker’s Austin, Texas, factory, which Tesla attributes to maintenance needs, will provide an opportunity to draw down those inventories.
Tesla reportedly suffered a 16% dip in year-over-year registrations in April, according to data from S&P Global Mobility, while Cox Automotive announced Wednesday that it’s projecting U.S. Tesla sales to fall 21% this quarter compared to the same period last year.
The European Automobile Manufacturers’ Association also reported this week that Tesla sales in 30 European countries had fallen 28% in May. That follows double-digit sales decreases for the automaker in Europe earlier this year.
Threadbare Lineup, Musk’s Politics, To Blame?
Tesla’s sales slump could be attributed to several factors—and it’s unclear what the automaker is doing to address them.
Tesla faces more competition in both the U.S. and Europe as other automakers ramp up EV sales and, in the case of Europe, Chinese EV brands continue to make inroads into the market. In April, when Tesla saw a double-digit dip in year-over-year U.S. registrations, Chevrolet and Cadillac saw triple digit increases in their registrations, for example.
The automaker’s lineup also remains top-heavy with expensive models like the Cybertruck, as well as the aged Model S and Model X. Tesla has repeatedly put off development of a truly affordable EV that could compete with the Chevrolet Equinox EV or the upcoming Bolt EV revival.
Musk’s hard turn to the political right, exemplified by his recently concluded role as an advisor to the Trump Administration, has also alienated many traditional Tesla buyers, industry analysts previously told Autoblog. It’s also led to boycotts and protests that will likely make new buyers harder to find.
Robotaxi Launch Not Going Well
Instead of focusing on its core auto manufacturing business, Musk has led Tesla down the rabbit hole of automation. After years of hype and promises, the automaker finally launched its robotaxi service in Austin earlier this week. A pilot program uses a fleet of around a dozen Model Y crossovers to give public rides, but with human safety monitors onboard.
But according to multiple reports, the National Highway Traffic Safety Administration (NHTSA) has already reached out to Tesla about numerous safety issues, including alleged speeding, random braking, and stopping in intersections for no reason. The NHTSA has already investigated Tesla for problems with driver-assist systems the automaker installs in production cars, and a lawsuit was recently filed over a fatal crash allegedly involving this tech.
Related: Toyota, VW, And GM Slam The Feds Over Outdated Safety Rules
