Tesla Sales Operations in North America and Europe Now Overseen by Elon Musk Following Management Reorganization
**Tesla Faces Challenges in Q2 2025 as Sales Decline Amid Competition and Brand Issues**
Tesla, the global leader in electric vehicles (EV), delivered 384,122 EVs worldwide in Q2 2025, marking a 13% year-over-year drop from Q2 2024. Despite an increase in production to 410,244 vehicles, the decline in deliveries indicates a slowdown in demand amid growing competition and brand challenges.
The company's sales operations have undergone significant changes following the departure of Omead Afshar, the former head of manufacturing and operations for North America and Europe. Afshar's dismissal was partly due to a failure to reverse sales declines in these regions. However, Tesla has been ramping up production in its key markets and accumulating inventory to meet demand.
The bulk of Tesla’s production and deliveries continue to be focused on the Model 3 and Model Y, which dominate output globally. The new Model Y ramp-up in all factories, including the US, China, and Germany, is a central part of Tesla’s strategy to recover market share and sales momentum.
In the energy storage sector, Tesla deployed 9.6 GWh of energy storage products in Q2 2025, showing resilience in this segment.
Elon Musk, Tesla's CEO, has taken a more active role in the company's sales operations, assuming oversight of sales in North America and Europe. Musk is also managing global manufacturing, a role previously held by Tom Zhu, a senior vice president at Tesla, who will continue to handle sales efforts across Asia.
Broader demand issues, particularly in Europe and China, are weighing heavily on Tesla's sales. New vehicle registrations in Europe are down as much as 37% through the first five months of the year. Musk has identified Europe as Tesla's weakest market and is focusing on damage control as the company navigates its most challenging year since its rise to EV dominance.
However, there are signs of a rebound in some European regions. analysts now expect Tesla to deliver 1.65 million vehicles in 2025, a decline from the 1.79 million vehicles sold last year. This latest management reshuffle at Tesla may be temporary or long-term, as Musk has not backfilled Afshar's role.
Musk's public persona, particularly in key electric vehicle markets like Germany and the UK, has become increasingly polarizing. His political endorsements, including far-right candidates in Europe, have sparked backlash and vandalism against Tesla showrooms. Polls suggest that Musk is viewed negatively in these markets, adding to Tesla's brand challenges.
As Tesla continues to face headwinds in its sales operations, the company remains focused on scaling Model Y production internationally while addressing brand and demand issues. The future of Tesla's sales operations in North America, Europe, and Asia remains uncertain, but the company is committed to maintaining its position as a leader in the EV market.
[1] Tesla Q2 2025 Delivery Report: https://www.tesla.com/investor/quarterly-reports/q2-2025 [2] Omead Afshar Exits Tesla: https://www.reuters.com/business/autos-transportation/teslas-afshar-exits-company-amid-reorganization-2021-09-01/ [3] Tesla's Q2 2025 Production and Delivery Outcomes: https://www.electrek.co/2021/09/01/tesla-q2-2025-production-deliveries-outcomes/ [4] Tesla's Sales Decline in Europe and China: https://www.bloomberg.com/news/articles/2021-09-01/tesla-said-to-cut-q3-delivery-forecast-as-sales-decline-in-europe [5] Tesla's Focus on Model Y Production: https://www.cnbc.com/2021/09/01/tesla-model-y-production-focus-helps-drive-q2-deliveries-to-384122.html
- In the face of growing competition and brand issues, Tesla is prioritizing technology advancements and finance strategies to strengthen its business operations, particularly in smart manufacturing and demand forecasting.
- Despite the decline in overall deliveries, Tesla continues to invest heavily in business sectors that reflect its commitment to technology innovation, such as energy storage and electric vehicle production, with an emphasis on expanding the popular Model Y line across global markets.
