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Goodbye Tesla – the company’s situation is so dire that Elon Musk had to let go of his most influential executive, Andrew Baglino, in the midst of falling sales

by Laura M.
July 4, 2025
in Mobility
Goodbye Tesla - the company's situation is so dire that Elon Musk had to let go of his most influential executive, Andrew Baglino, in the midst of falling sales

Goodbye Tesla - the company's situation is so dire that Elon Musk had to let go of his most influential executive, Andrew Baglino, in the midst of falling sales

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Musk is going through one of his most difficult times at the helm of Tesla. No, he is not stealing the spotlight again (make a wish). But it is even worse. Sales are plummeting, the brand’s image is growing increasingly unpopular, robotaxis are under NHTSA review, and the CEO’s own reputation, even his political era is now mostly forgotten, has left the company’s image in tatters…

In the middle of this dramatic scenario, Musk has made yet another (and controversial) decision: he has fired Omead Afshar, his closest collaborator and right-hand man in operations… Why? Tesla demanded a sacrifice, and Musk has offered up Afshar.

This situation is very serious and complicated, and this move reflects a desperate attempt to appease investors by disguising the dismissal as a “change of course” (“a change” of course…)

But it’s not just an internal issue, Musk’s political decisions, his public actions, his controversial statements… they’re taking a real toll on his company (and not a good one). And now, it’s the people around him who are paying the price.

Tesla crashes during its worst moment

In the first quarter of 2025, Tesla saw a 13% drop in global sales, but the real blow came from Europe, where the fall reached 45%, just as the electric vehicle market was growing 15% year over year. Wow.

Meanwhile, the competition is lurking, waiting for Tesla to fall to take its place in the market (have you seen those Chinese cars?). And it seems absolutely nothing can stop the customer exodus.

Musk and his political era

Of course, much of this crisis stems from the image Musk projected during his political era… Not just his closeness, friendliness, and fights with Donald Trump, but also his direct involvement in political debates that the public did not appreciate at all. This mix has caused former buyers to feel alienated, and new ones to stay far away. Musk, we need a bit of social and environmental awareness, not just millions in the bank and luxuries!

Omead Afshar: from confidant to sacrifice

Omead Afshar was much more than an executive. According to The Wall Street Journal, he was “Musk’s problem solver”. He led Model 3 production, the Austin Gigafactory, the Optimus project, the robotaxi rollout, and even participated in the Twitter acquisition. In 2024, he was appointed head of sales in the U.S. and Europe, a high-pressure position with the numbers in the red.

An inevitable exit to calm the markets

Afshar’s dismissal came with complete silence, Musk didn’t comment at all, unlike when Milan Kovac decided to step down. And as the saying goes, some silences say it all… When things go wrong, even Musk’s closest allies can fall (and he doesn’t seem to care…)

An increasingly unstable environment at Tesla

Afshar’s departure wasn’t the only one. As mentioned, Milan Kovac, leader of the Optimus project, and Jenna Ferrua, head of HR in North America, also left the company. Coincidence? Or consequence?

What began as Musk’s attempt to influence U.S. politics has ended up creating global backlash,  even from within his own workforce.

Can Tesla recover?

Yes, but it won’t be easy. The company will have to separate the brand from the public figure, reconnect with former customers, and prove it still leads in technology, while leaving the scandals behind.

A strategy shift or a purge?

It’s hard to tell whether Musk is redesigning the company’s strategy or just putting out fires… What’s clear is that Tesla can’t afford more mistakes. Investors are anxious, competitors are gaining ground, and the margin for error is shrinking fast. Tesla needs results, not headlines!

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