Elon Musk, CEO of Tesla Inc., will personally oversee the company’s sales in Europe and the US, following the departure of Omead Afshar. Musk will be responsible for sales in these regions, while Tom Zhu, an executive officer at Tesla based in China, will oversee sales operations in Asia and take over global production operations.
What Happened
Musk and Zhu will divide reporting lines among themselves. Zhu will continue to oversee sales operations in Asia, but his new role will include responsibility for global production operations. Afshar was previously responsible for overseeing sales and production operations at Tesla in Europe and the US.
Why It Matters
The news comes as Tesla has been struggling with poor sales figures in multiple markets. Despite a surge in sales in Norway, the company has experienced declines in other regions, including:
- A 60% decline in sales in Denmark and Sweden
- Poor sales figures in Canada, which have dropped to almost zero
- A decline in market share in Europe
The decline in sales has been attributed in part to Musk’s right-wing politics and close ties to the Trump administration in the US.
Future Plans
Despite the decline in sales, Tesla has confirmed that it will be introducing more affordable models in its lineup in 2025. The company has not yet announced whether these models will be trimmed-down versions of existing vehicles or entirely new models.
Company Performance
Tesla scores well on Momentum, Quality, and Growth metrics, but offers poor Value. The company’s performance has been closely watched by investors and analysts, who are eager to see how the new leadership structure will impact sales and growth.
Next Steps
As Tesla moves forward with its new leadership structure, the company will be closely watched to see how it will address its declining sales and market share. With the introduction of new, affordable models, Tesla hopes to regain its footing in the competitive electric vehicle market.