Tesla has implemented a significant management restructuring amid declining sales performance and internal leadership departures. CEO Elon Musk is now directly overseeing sales operations in the United States and Europe, while Tom Zhu has assumed responsibility for global manufacturing operations, according to Bloomberg sources.
This Tesla shakes up management move follows the exit of Omead Afshar, a longtime Elon associate who previously managed both sales and manufacturing across North America and Europe. Omead’s departure represents the latest in a series of high-level executive exits occurring as Tesla faces sustained sales challenges across multiple markets.
Tesla Omead Afshar Exits Company Amid European Sales Decline
The restructuring effectively divides Omead’s former responsibilities between two senior leaders. Elon has taken direct control of sales oversight in Tesla’s EU and US markets, while Tom manages all global production facilities.
Tom’s expanded role includes oversight of critical factory operations, with key facility heads like Hrushi Sagar in Fremont and Jason Shawhan in Giga Texas now reporting directly to him. Meanwhile, Troy Jones, VP of North American sales, has been placed under Elon’s direct supervision.
Tesla shakes up management approach suggests the company is centralizing decision-making authority during a period of operational challenges and market headwinds.
European sales performance has become particularly concerning for Tesla’s leadership team. In May, Elon publicly acknowledged the company’s European difficulties during the Qatar Economic Forum, citing regional headwinds affecting operations.
Statistical data supports these concerns. Tesla sold only 512 new vehicles in the United Kingdom during April—representing a 62% YoY decline. Performance in the Netherlands, Sweden, and Denmark showed even steeper drops, contributing to Tesla’s fifth consecutive monthly sales decline in Europe.
The European market contracted 28% for Tesla in May, even as the broader regional EV market expanded by an equivalent percentage. Divergence highlights Tesla’s specific challenges rather than general market conditions. Tesla’s European struggles extend beyond pure sales metrics.
Elon’s political commentary has reportedly damaged brand perception in European markets, creating additional headwinds for the company’s regional operations.
Tom Zhu’s career progression at Tesla has been notably rapid since joining the company in 2014. He initially led the construction and operational ramp-up of the Giga Shanghai before being promoted to Senior VP of Automotive with global responsibilities spanning manufacturing, delivery, and service operations.
Tesla is expected to release Q2 delivery figures this week, with analyst projections indicating continued pressure. JPMorgan’s Ryan Brinkman forecasts Q2 deliveries will decline 19% year-over-year to approximately 360k units.
These projections follow Tesla’s Q1 delivery performance, which fell to its lowest level in nearly three years. Whether this Tesla shakes up management strategy will address these operational challenges remains to be determined.
The restructuring represents Tesla’s attempt to recharge its leadership approach during a period of significant market and operational turbulence.
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