Investor Gary Black has shared his thoughts on the recent departure of Omead Afshar from Tesla Inc. Afshar’s exit comes as the company is experiencing declining sales.
Sales Decline
According to Black, Tesla’s sales have declined across the board in Q2 2025, with a -15% year-over-year (YoY) decline. This is consistent with the company’s Q1 2025 deliveries, which were down 13% YoY. Black attributes some of the sales weakness to brand damage associated with CEO Elon Musk’s right-wing political rhetoric and DOGE activities.
Brand Damage
Black believes that Musk’s political endorsements have resulted in brand damage for the EV giant, a consensus shared by other experts. This brand damage is likely to have contributed to the decline in sales, particularly in the US and Europe.
Market Performance
Tesla’s sales have been struggling in multiple markets, with numbers hitting record lows. In Europe, May sales were down -27.9%, and the company’s market share from January 2025 to May 2025 shrank to 1.3%. In China, sales also dropped, with new insured registrations falling over 11%.
Conclusion
The departure of Omead Afshar, Tesla’s vice president in charge of sales and manufacturing in North America and Europe, comes at a challenging time for the company. With declining sales and brand damage, Tesla faces significant hurdles in the coming quarters.
Key Statistics
- Q2 2025 sales: -15% YoY decline
- Q1 2025 deliveries: -13% YoY decline
- May sales in Europe: -27.9% decline
- Market share in Europe (January 2025 to May 2025): 1.3%
- New insured registrations in China: -11% decline
What’s Next
As Tesla navigates this challenging period, investors will be watching closely to see how the company responds to the decline in sales and brand damage. Will Tesla be able to rebound and regain its position as a leader in the EV market, or will the company continue to struggle? Only time will tell.