The stock of the electric vehicle giant Tesla declined at the opening of Wall Street following a new confrontation between its billionaire owner, Elon Musk, and U.S. President Donald Trump regarding fiscal policy in America. Around 16:35 (Greek time), Tesla shares dropped to $296.61, marking a decline of 6.62%. At the same time, CEO Elon Musk has taken over sales oversight in Europe and the U.S., leaving Deputy and Senior Vice President Tom Zhu in charge of Asia, after the high-profile departure of Omead Afshar, according to sources from Bloomberg.
Afshar was responsible for sales and manufacturing activities in North America and Europe, but the long-time right-hand man of Musk left the EV company last month, becoming the latest senior executive to exit during a challenging period for Tesla as it grapples with falling sales across most of its major markets.
With Afshar’s departure, Musk and Zhu are effectively splitting his responsibilities, with Zhu, based in China, overseeing Tesla’s manufacturing activities globally, said people familiar with the matter who wished to remain unnamed when discussing private information. Musk’s focus on Europe is significant given that the continent is currently the weakest market for the electric vehicle manufacturer. The billionaire acknowledged this weakness during an interview with Bloomberg News at the Qatar Economic Forum earlier this month.
Only 512 new Teslas were registered in the UK in April, down 62% compared to a year earlier, while Denmark, the Netherlands, and Sweden experienced even steeper declines year-over-year. In May, Tesla’s total sales in Europe fell for the fifth consecutive month by nearly 30%, while the broader EV market there expanded by roughly the same amount.
Although Musk pledged to refocus on Tesla after spending time in Washington, his political connections and involvement in efforts to cut government spending under the Trump administration have damaged Tesla’s brand image in Europe. Tesla’s outdated vehicle lineup and lack of hybrid models have also made it less competitive against emerging Chinese automakers like BYD Co.
With Zhu now responsible for global manufacturing, his direct reports include Hrushi Sagar, who oversees Tesla’s factory in Fremont, California, and Jason Shawhan, who manages the Texas Gigafactory, said people familiar with the restructured reporting lines. Troy Jones remains vice president of North American sales and now reports directly to Musk, these people added, declining to speak publicly about the matter.
It remains unclear whether the management structure is a permanent decision or if the reporting lines could still change. Zhu joined Tesla in April 2014 and quickly rose through the ranks, leading the successful construction and operation launch of the company’s first overseas factory in Shanghai as Vice President for greater China. In April 2023, he was promoted to Senior Vice President of Automotive, expanding his responsibilities to global production, sales, deliveries, and service before relocating to the U.S.
Zhu was transferred back to China last year into a more regionally focused role after Tesla faced a series of technological and regulatory hurdles related to launching advanced driver-assist features. Since then, Chinese authorities have published a draft set of guidelines concerning vehicle data transmission overseas—a move seen as potentially paving the way for broader deployment of Tesla’s advanced driver-assist systems in the country.
Tesla is set to announce its second-quarter deliveries this week. EV deliveries are estimated to drop by 19% year-over-year to 360,000 units, wrote a JP Morgan analyst in a note. Meanwhile, Tesla’s deliveries in the first quarter were at a nearly three-year low.