Tesla Faces Turbulent Times: Executive Shakeups, Falling Sales, Cybertruck Woes, and a Risky Pivot to Robotaxi

Tesla is entering one of its most turbulent phases, marked by executive exits, declining global sales, and an uncertain transition toward future tech. The latest blow came with the firing of Omead Afshar, VP of North American and European operations, a longtime close associate of CEO Elon Musk.

Afshar’s exit comes amid a storm of negative indicators. In Europe, Tesla's sales have now declined for five straight months, with May 2025 data showing a 41% YoY drop in new car registrations in the EU. North America isn’t faring better—analysts expect Q2 deliveries to fall by up to 18%, while global deliveries could drop over 10%. Tesla stock is already down 19% YTD.

The EV market is expanding, but Tesla's market share is shrinking. Competitors from China and Europe are catching up fast, and many cite Tesla’s aging lineup and the polarizing image of Elon Musk as contributing factors.

Meanwhile, the Cybertruck rollout has gone from buzz to bust. After an initial surge of enthusiasm, demand is faltering, and inventory is piling up. Mass production challenges and disappointing reviews are raising serious questions about its long-term viability.

In response to its faltering EV business, Tesla is trying to redirect focus to its future bets, notably the Robotaxi program. A pilot has launched in Austin, Texas, using a small fleet of Model Y vehicles in a tightly controlled environment. For now, only pre-approved riders can use the service, and all cars still require a safety technician onboard.

However, reports of erratic driving behavior have already emerged, and the NHTSA is reviewing the program. The rollout appears to be more about keeping investor faith than offering a real alternative to Tesla's core business.

Adding to the chaos, Optimus robot project lead Milan Kovac also exited the company in June, further destabilizing the executive team. As Tesla shifts toward unproven ventures, it faces a daunting challenge: Can it survive the present while gambling on the future?