Elon Musk finds his Tesla 'scapegoat' after billionaire's White House antics were blamed for cratering EV sales
Elon Musk has fired one of his top lieutenants at Tesla after the billionaire's White House antics cratered the EV firm's profits and stock price.
The Tesla chief sacked the company's head of operations in North America and Europe, Omead Afshar, as profits in the two continents struggled.
His departure, first reported by Forbes, came days before Tesla's second quarter earnings, suggesting they'll make for grim reading.
It follows a dismal few months that saw Tesla's electric vehicle sales drop for a fifth consecutive month in Europe.
Worldwide, analysts say that they expect Tesla's EV deliveries to have dropped at least 10 percent in the second quarter. So far this year, Tesla stock is down almost 14 percent.
Much of that fall may be attributed to the Chinese market, the largest for the electric car company, which saw a 15 percent drop in May alone.
But Musk is also widely regarded as doing horrendous damage to his car firm by acting as Donald Trump's efficiency chief for the first few months of his presidency.
Musk's businesses faced nationwide boycotts as he took an axe to the federal government's programs through his Department of Government Efficiency (DOGE).
His antics saw the type of liberal, environmentally-conscious driver who'd previously flocked to Tesla shun the brand for electric rivals.
President Trump staged a bizarre White House lawn 'infomercial' to try and drum up interest in the cars and even bought one himself.
But that further annoyed woke Tesla drivers and likely did little to win around conservative drivers, who tend to favor traditional gas engines.
Trump announced he's selling his own Tesla Model S after the pair fell out, with the vehicles and their dealerships vandalized and firebombed across the world.
Musk's decision to sack Afshar ended his 14-year career at Tesla, after he began as an engineer before rising to one of Musk's top lieutenants.
He was promoted to vice president last October and was tasked with overseeing Europe and North America, but this year's struggles have now seen him axed.
Last year, a Wall Street Journal profile described him as 'Musk's fixer' and as 'one of the most powerful executives at the electric-car maker.'
Although Tesla has suffered a poor start to the year, Musk received good news this week as he rolled out a new self-driving 'robotaxi' product, which will soon ferry passengers around the streets of Austin in Texas.
The debut of the modified Tesla Model Y cars helped increase the share price by nine percent.
Musk's personal net worth rose $15 billion on Monday as markets reacted to the futuristic product, and he extended his lead as the world's richest man by a staggering $170 billion over Oracle founder Larry Ellison.
Days before he faced the axe, Afshar praised the robotaxi rollout, saying on X on Monday: 'Absolutely historic day for Tesla. This has been *years* of hard work and focus by so many people within the company.
'Thank you, Elon, for pushing us all!'
Although some investors said the prototype exceeded expectations, it was not without fault, as some riders said the self-driving Model Y SUVs were turning down the wrong side of the road and stopped to let passengers out on busy intersections.
The successful rollout of the robotaxi was welcome news for Musk as his other recent vehicle, the Cybertruck, missed its sales goals by a staggering 84 percent this year.
Sales fell over 50 percent from Q4 in 2024 at 12,900 units to just 6,406 in Q1 of 2025.
Across the board, estimates of Tesla EV deliveries dropped significantly this quarter, down to 392,800 units compared to 443,956 at the same time last year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
27 minutes ago
- Reuters
Oil market reflects slim chance of supply disruption, Goldman analysts say
June 26 (Reuters) - Options markets suggest the probability of a disruption of oil flows through the Strait of Hormuz is just 4% following the Iran-Israel ceasefire, Goldman Sachs analysts said in a note on Thursday. Fears that Iran could close the Strait of Hormuz after U.S. strikes on its nuclear facilities sent Brent crude futures to a high of $81.40 on Monday, but concerns eased in the wake of the truce declared the next day, sending crude back below $68. The sharp drop in the geopolitical risk premium likely reflected traders' recent experiences with major geopolitical shocks without significant oil disruptions, Iran's restrained response, strong U.S. and China incentives to avoid large disruptions, and the likely shift to large inventory builds from the fall, Goldman analysts said. Options markets see a 60% chance that Brent will stay in the $60s in three months and a 28% probability they would exceed $70, Goldman analysts said. Were oil flows to be disrupted through the Strait of Hormuz, Brent would climb to $90 a barrel, they said.
Reuters
an hour ago
- Reuters
EU received 'latest' trade proposal from US, von der Leyen says
BRUSSELS, June 27 (Reuters) - European Commission President Ursula von der Leyen said on Thursday the EU had received the "latest U.S. document" for further negotiations on tariffs but did not reveal details of Washington's demands. "All options remain on the table," she told reporters following a EU summit in Brussels. "We are assessing it," von der Leyen said of the U.S. proposal. "Our message today is clear. We are ready for a deal. At the same time, we are preparing for the possibility that no satisfactory agreement is reached." She said that the EU would "defend the European interest as needed." The U.S. Trade Representative's office did not immediately respond to a request for comment on the latest U.S. proposal. The U.S. and EU have held a number of negotiating sessions in recent weeks, but the Trump administration's attention has shifted to the conflict over Iran's nuclear program and keeping a trade truce with China on track. A July 9 deadline set by U.S. President Donald Trump for the EU and other countries to reach a tariff-reducing deal with the U.S. is fast approaching. Under Trump's "reciprocal" tariffs announced in April, the temporary 10% additional duty on EU imports would double to 20% if no deal is reached by the deadline. U.S. Treasury Secretary Scott Bessent has said that negotiating deadlines on some countries negotiating in good faith could be extended. European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the United States and the European Union, sources familiar with the talks have told Reuters. But the EU also is saddled with Trump's 25% tariffs on autos, steel and aluminium and could face additional sectoral duties on semiconductors and pharmaceuticals. Separately, French President Emmanuel Macron on Thursday told reporters that France wants a quick and pragmatic trade deal with the U.S., but that his country would not accept terms that were unbalanced. If the U.S. baseline tariff rate of 10% remained in place then Europe's response would have to have an equivalent impact, he added. The European Commission, led by von der Leyen, sets trade policy for France and other EU countries.
Daily Mail
an hour ago
- Daily Mail
Crystal Palace's European fate could be decided TODAY after former owner John Textor rushed to sell his shares due to UEFA's multi-club ownership rules
A decision on whether Crystal Palace can play in the Europa League or not next season could be made as early as today. The Eagles' historic place in the Europa League had been under threat under UEFA's rules on multi-club ownership thanks to the fact that Eagle Football Holdings - who had a 43 per cent stake in the club - are also the owners of Lyon. John Textor, who owns the group, sold his stake in Palace to New York Jets owner Woody Johnson in a desperate attempt to keep the south London side in the competition following their shock FA Cup Final win over Manchester City. A decision had been expected by the end of the month after Palace officials flew to UEFA HQ in Switzerland for a crunch summit. Under UEFA rules, Lyon would have taken the spot in the Europa League because they finished higher (sixth) in their domestic league than Palace (12th). Palace officials had been due in Switzerland again today, and Mail Sport understands a decision is expected either today or on Monday. The rules state that in multi-club groups the club which finished in a higher league position take precedent in such circumstances. Palace have been confident of finding a resolution given that no facilities, players or resources are shared with Lyon. It is thought that Johnson will be subject to the same set-up as Textor's firm, in that despite owning 43 per cent of the club, he will only have a quarter share of the voting rights, along with chairman Steve Parish, and US investors Josh Harris and David Blitzer. Blitzer's ownership of Danish club Brondby was another potential sticking point should Palace have been 'demoted' from the Europa League to the Europa Conference. Lyon, meanwhile, last year, reported debts of around €500 million (£418m). Textor, though, has insisted the financial state had improved before Lyon stood in front of the DNGC. The club have been relegated to Ligue 2, but the decision is subject to appeal. The relegation of the club, who faced off against Manchester United in the Europa League quarter-finals last season, will mean former Premier League stars could line up in the second tier next season. Former United and Chelsea man Nemanja Matic is on the club's books, as well as ex-Arsenal duo Ainsley Maitland-Niles and Alexandre Lacazette. They are seven-time Ligue 1 champions, last winning the league in 2008 - their seventh domestic title in a row. Palace and UEFA declined to comment.
