[NEW YORK] Chief executive officer Elon Musk has assumed oversight of Tesla’s sales in Europe and the US following the departure of longtime deputy Omead Afshar, sources familiar with the matter said.
Afshar was responsible for Tesla’s sales and manufacturing operations in North America and Europe before leaving the electric vehicle (EV) maker late last month. Following his exit, Musk and Tom Zhu, a senior vice-president, are divvying up reporting lines as Tesla looks to recover from another quarter of declining vehicle deliveries.
Zhu, who’s based in China, will continue to oversee Tesla’s sales in Asia and take over manufacturing operations globally, according to the sources familiar with the changes, who declined to be identified discussing private information.
Representatives for Tesla did not respond to requests for comment. The carmaker’s shares traded down 4.8 per cent as at 1.20 pm on Tuesday (Jul 1) in New York.
Tesla likely delivered around 389,400 vehicles in the three months that ended in June, according to analysts’ estimates compiled by Bloomberg. That would be down roughly 12 per cent from a year earlier, following a 13 per cent drop in the first quarter.
With Musk alienating some car buyers in key markets and the rollout of more affordable models apparently delayed, investors are now bracing for a second consecutive annual drop in Tesla car sales. Analysts surveyed by Bloomberg are on average projecting the company will deliver around 1.7 million vehicles in 2025, down about 8 per cent from 1.8 million last year.
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Musk’s focus on Europe is noteworthy, considering he’s called the region Tesla’s weakest market. The company’s new-vehicle registrations across Europe fell 28 per cent in May and plunged 37 per cent to the first five months of the year, as Chinese electric-car makers led by BYD gained ground.
The CEO likely has contributed to Tesla’s demand issues, with polls finding Musk is viewed negatively in major electric car markets, including Germany and the UK. He’s also endorsed far-right parties and candidates in Europe, spurring protests and acts of vandalism in France, Italy and elsewhere.
After pledging to turn his focus back to Tesla following his months-long stint in Washington, Musk also has repeatedly feuded with US President Donald Trump, threatened to start a new political party and vowed to fund primary challenges against members of Congress who vote for the US spending bill.
With Zhu now responsible for manufacturing globally, his direct reports include Hrushi Sagar, who oversees Tesla’s factory in Fremont, California, and Jason Shawhan, who oversees its plant in Austin, sources familiar with the matter said. Troy Jones remains the vice-president of North America sales and now reports to Musk, these sources said, declining to speak publicly on the matter.
It’s unclear if the revised management structure is permanent or if reporting lines could still change.
Zhu joined Tesla in April 2014 and quickly rose through the ranks, leading the construction and opening of the company’s first overseas factory in Shanghai as vice-president of Greater China. In April 2023, he was promoted to senior vice-president of automotive operations, expanding his remit to global production, sales, deliveries and service, and moving to the US.
Tesla sent Zhu back to China and he returned to a more regional role last year, after Tesla encountered a number of technological and regulatory obstacles related to launching its advanced driver-assistance features.
Chinese authorities have since released draft guidelines concerning the transmitting of automotive data overseas, a move seen as potentially clearing the path for a broader rollout of Tesla’s driver-assist functions in the country. BLOOMBERG
