Musk Ally Afshar Exits Tesla Amid Turbulent Times

By 
 updated on June 27, 2025

Tesla Inc. just lost a heavyweight: Omead Afshar, a top executive and close ally of Elon Musk, has walked away from the electric vehicle giant.

According to Yahoo! Finance, Afshar’s departure, marking yet another high-profile exit, comes during a rocky period for Tesla, with declining sales, tumbling shares, and a bold pivot toward AI, robotics, and driverless cars.

Afshar joined Tesla in 2017, stepping into the chaos of scaling up production for the Model 3 sedan, a pivotal moment for the company.

Afshar’s Rise in Tesla’s Inner Circle

From the start, Afshar was embedded in Musk’s orbit, serving in the office of the CEO since 2017 and often working grueling hours alongside the billionaire. “I was with Elon nearly every single day during Model 3 hell,” Afshar wrote in a 2024 post on X, highlighting the intensity of those early years. Last year, he was promoted to oversee sales and manufacturing operations across North America and Europe, a critical role amid growing competition.

Key Projects and Internal Scrutiny

Afshar also played a major part in constructing Tesla’s Austin plant, a cornerstone of the company’s U.S. expansion strategy. However, in 2022, he faced internal scrutiny over his involvement in sourcing hard-to-get construction materials, including a specialized type of glass. Despite such challenges, Afshar remained a powerful figure, with his LinkedIn profile even listing his title as a cowboy hat emoji—a quirky nod to his unique style.

Departure Details and Company Shifts

News of Afshar’s exit has trickled through Tesla’s internal channels in recent days, though the reasons for his leaving remain unclear. His name has vanished from the company’s internal directory, according to sources familiar with the matter, confirming his departure. Some directors who once reported to Afshar now answer to Tom Zhu, Tesla’s senior vice president of automotive and a key figure overseeing the Shanghai factory.

Tesla’s Broader Struggles and Transitions

Tesla is navigating a brutal year, with shares down roughly 19% and demand for its EV models weakening in North America and Europe. Competition is heating up, and consumer sentiment has soured, partly due to Musk’s political involvement, including his role in President Trump’s administration.

At the same time, Musk is steering Tesla into uncharted territory, focusing on artificial intelligence, robotics, and autonomous vehicles, with a limited rollout of robotaxis in Austin already underway.

More Exits and Market Implications

Afshar isn’t the only one heading for the door—recent departures include Milan Kovac, head of engineering for Tesla’s Optimus robot program, and Jenna Ferrua, a human resources director for North America.

These exits signal deeper unrest at Tesla, a company already under pressure to deliver results as it reports global delivery figures for the second quarter next week. For investors, the timing couldn’t be worse: Tesla’s stock briefly dipped after news of Afshar’s departure broke, though it remained largely unchanged by mid-afternoon in New York.

What Investors Should Watch Next

Looking ahead, Tesla’s pivot to AI and driverless tech could be a game-changer—or a costly distraction from its core EV business.

Free-market enthusiasts should note that Tesla’s challenges stem partly from market dynamics, not just internal upheaval; competition is the lifeblood of innovation, even if it stings. For those with skin in the game, keep an eye on next week’s delivery numbers—they’ll reveal whether Tesla can stabilize its core operations amid this strategic shift.

Afshar’s Legacy and Musk’s Empire

Afshar’s tenure at Tesla and even a stint at SpaceX reflect the fluid nature of talent across Musk’s sprawling business empire, where loyalty and grit often define success. Yet, with his plans unknown, Afshar’s exit leaves a void in Tesla’s leadership at a time when stability is sorely needed.

Investors and liberty-minded readers alike should ponder this: Tesla’s ability to weather these storms—without government crutches—will test whether Musk’s vision can truly thrive in a competitive, unforgiving market.

About Melissa Smith

Become Wealthier... 
In Just 5 Minutes Per Day

Subscribe to Capital Digest and get fast, actionable insights on markets, money, and opportunity — straight to your inbox.