At 01:44 PM +07 on Tuesday, July 1, 2025, the tech and automotive industries are reeling from a seismic shakeup at Tesla, where CEO Elon Musk has reportedly fired Omead Afshar, one of the company’s most powerful executives. This abrupt personnel decision comes as Tesla grapples with a dramatic decline in sales across key markets and a growing wave of global backlash against Musk’s leadership and political affiliations.

The departure of Afshar, a long-time confidant and vice president of manufacturing and operations for North America and Europe, signals a desperate attempt to stabilize a company facing its most challenging period since its inception. This article delves into the details of this executive purge, the underlying sales crisis, the backlash fueling the turmoil, and the potential implications for Tesla’s future, drawing on the latest reports and public sentiment.

The news broke on June 26, 2025, with multiple outlets, including Forbes, Bloomberg, and Reuters, confirming Afshar’s exit. Described as “Musk’s fixer” and a key figure in overseeing Tesla’s manufacturing and sales operations across two critical regions, Afshar’s departure marks a significant blow to the company’s operational stability. Reports indicate that Musk personally ordered the firing, a move attributed to Tesla’s five consecutive months of declining sales, with a particularly steep 45.2% drop in Europe compared to the previous year, as noted by The Daily Beast. In China, sales fell by 15% in the same period, compounding the crisis. Afshar, who joined Tesla in 2017 and was promoted to vice president in late 2024, had been instrumental in managing production during Tesla’s expansion, but his exit just before the end of the second quarter suggests a scapegoat for the company’s faltering performance.

Tesla’s sales slump is a stark departure from its former dominance in the electric vehicle (EV) market. Once a leader with a market valuation exceeding $1 trillion, the company has seen its stock plummet 19% in 2025, reflecting investor concerns over dwindling demand. Analysts, including Wedbush’s Dan Ives, have pointed to an “aging model lineup” and intensified competition from Chinese manufacturers like BYD as contributing factors, as reported by CBS News. However, the most significant driver appears to be a consumer backlash against Musk, tied to his political activities. Since joining the Trump administration in early 2025 to lead the Department of Government Efficiency (DOGE), Musk’s support for controversial policies and his public feuds with the president have alienated a substantial portion of Tesla’s customer base, particularly in Europe and North America.

The global backlash has manifested in tangible ways. In Sweden, Tesla sales dropped 80.7% in May 2025, according to Newsweek, amid protests at dealerships where activists urged boycotts over Musk’s far-right views and his role in DOGE, which has slashed federal budgets. Similar demonstrations have occurred across Europe and the U.S., with “Tesla Takedown” events drawing hundreds, as reported by The Independent. In Italy, a $1.5 billion secure communications deal was halted, and Ontario canceled a $68 million contract, citing geopolitical concerns linked to Musk’s affiliations, per Newsweek. This public discontent has been compounded by Musk’s own actions, including his criticism of a Trump-backed budget bill in late June, which further eroded his political capital and, by extension, Tesla’s brand image.

Musk’s leadership decisions have drawn scrutiny, with some insiders suggesting the Afshar firing reflects a pattern of impulsive management. Afshar, who praised Musk’s leadership in a June 23 X post celebrating the Austin robotaxi debut, was blindsided by the dismissal, according to TechCrunch. His tenure included stints at SpaceX and X, showcasing his versatility within Musk’s empire, but the timing—days before Q2 delivery reports—hints at a strategic purge to deflect blame. This follows the recent resignation of Milan Kovac, who led the Optimus robot project, and the reassignment of Tom Zhu to China, leaving Tesla with only three named executives: Musk, CFO Vaibhav Taneja, and Zhu, as noted by The Times of India. The rapid turnover raises questions about internal morale and Tesla’s ability to navigate its current crisis.

The sales collapse is not solely a market issue but a reflection of Musk’s polarizing persona. His exit from the Trump administration in late May 2025, after a 130-day stint as a special government employee, was marked by a public spat with Trump over the budget bill, as reported by CNBC. This feud, coupled with his vocal support for right-wing causes and cryptocurrency ventures like DOGE, has fueled a perception of Tesla as an extension of Musk’s personal brand, a view echoed by Harris Poll CEO John Gerzema in Axios, who noted growing doubts about the company’s “character and trust.” A May 2025 AP-NORC poll showed Musk’s U.S. favorability at just 33%, down from 2024 highs, correlating with Tesla’s reputation plunge, per Newsweek.

Tesla’s response has been to double down on innovation, with the robotaxi trial launched on June 23 in Austin, a move Musk touted as “historic” on X. However, early footage from 11 rides revealed flaws, including a robotaxi veering into oncoming traffic, as reported by The Guardian, underscoring technological hurdles. This pivot to AI and autonomous driving, while ambitious, has not stemmed the sales decline, with Skoda overtaking Tesla in European EV sales in June 2025, per The Telegraph, amid ongoing protests against Musk. The company’s focus on robotaxis, rather than addressing its aging Model S and X lineup, has been criticized as a risky distraction, with Investopedia noting Tesla’s stock resilience despite Musk’s latest budget bill critique on June 30.

The executive purge has broader implications. Afshar’s departure, following a string of high-profile exits, suggests a leadership vacuum at a time when Tesla needs cohesion. His role in securing construction materials during 2022 shortages, as per Bloomberg, highlights his operational importance, making his ousting a potential misstep. Critics on X have labeled it “ruthless,” with some tying it to Musk’s habit of firing confidants like Afshar when results falter, a pattern seen with other Tesla layoffs. This internal turmoil, combined with external backlash, could erode investor confidence further, especially as Q2 delivery numbers—expected to show a 10% global drop, per The Economic Times—loom.

Musk’s personal life adds another layer. Reports of drug use, including ketamine and Adderall, as noted by The New York Times in 2025, have raised concerns about his decision-making, though unproven. His family dynamics, with 14 children and ongoing custody disputes with Grimes, may also influence his stress levels, potentially reflected in impulsive moves like Afshar’s firing. The Austin compound, where Musk balances work and fatherhood, has been a focal point for such personal-professional overlaps, with recent social media speculation about his son X Æ A-Xii’s emotional needs adding to the narrative.

Public sentiment, as seen on X, is divided. Some defend Musk’s shakeup as necessary—“Elon’s cutting the fat to save Tesla”—while others decry it as “panic mode,” with posts highlighting the backlash’s role in sales woes. The incident has also sparked memes, with one depicting Musk as a “corporate purge master,” reflecting the polarized view of his leadership. Tesla’s brand, once synonymous with innovation, now faces a crisis of identity, with Reuters noting the company’s struggle to regain its footing amid Musk’s political entanglements.

As of July 1, 2025, Tesla’s trajectory remains uncertain. The Afshar purge may be a signal of Musk’s intent to realign the company, but without addressing the root causes—market competition and his polarizing image—it risks being a superficial fix. The global backlash, fueled by his Trump ties and policy stances, suggests a need for a strategic pivot, possibly a leadership overhaul or a public relations campaign. For now, the executive’s exit marks a critical juncture, with Tesla’s next moves under intense scrutiny as it navigates this storm of collapsing sales and mounting dissent.