With Tesla's dropping sales, which have driven its stock price for most of the year, Elon Musk has allegedly fired Tesla's head of operations in North America and Europe. The two regions experienced major sales drops in the first quarter, and while some analysts attributed the drop to Musk's politics, the executive insisted that retooling at Tesla's factories also had a role to play. Tesla's shares have lost 9.7% over the past month, partly driven by investor concerns over the firm's freshly launched robotaxi service facing trouble.
Tesla's Head Of Europe & North America Let Go After Disappointing Sales Performance, Says Report
The latest bit of analyst coverage about Tesla's deliveries came in the form of a Baird report yesterday which kept Tesla's share rating at Neutral and estimated that the firm's vehicle deliveries for the second quarter to sit at 377,000, which is well below the consensus estimate of 392,800. The bearishness surrounding the deliveries appears to have continued to the second quarter, and in its report, Baird shared a couple of factors that are driving its assessment.
According to the research firm, weak data from retailers and the new Model Y can end up affecting deliveries during the second quarter. The weak delivery performance appears to have led Musk to fire Tesla's head of operations in North America and Europe, according to a fresh report from Forbes.
While providing few details, the Forbes report outlines that Musk fired Omead Afshar ahead of the second quarter's close. Afshar was once considered a close Musk ally, and the report speculates that the decision came after Tesla's poor sales performance in Europe and North America.
Data from the European Automobile Manufacturers Association (ACEA) released yesterday showed that Tesla's European market share fell to 1.2% in May, a 0.6 percentage point drop from the year-ago figures. Overall, Tesla sales in Europe dropped by 27.9% in May despite the fact that fully electric vehicle sales jumped by 27.2%. The dip marked the fifth consecutive month of sales drop in Europe, particularly as Tesla continues to face the heat from Chinese EV manufacturers who compete with the firm on the basis of cost and quality.
Yesterday's disappointing European sales data, coupled with reports of troubles with the robotaxi rollout, have taken a toll on Tesla's stock. While the shares gained 8% on Monday after Sunday's robotaxi event, they have lost 5.8% since then. Year-to-date, the stock has lost 13% as it struggles to recover from bearish investor sentiment resulting from disappointing sales and a lack of clarity regarding ride-sharing initiatives.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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