Musk to Take Over Tesla’s US, Europe Sales After Afshar’s Exit

• Tesla Inc. (TSLA) shares dropped nearly 5% to $303.25 amid renewed tensions between CEO Elon Musk and President Trump over the One Big Beautiful Bill Act, which Musk claims will add $5 trillion to the federal deficit, prompting threats to cut subsidies for Tesla and SpaceX.
• The departure of key executive Omead Afshar, with Musk taking direct control of U.S. and Europe sales, coincides with a reported 60% sales decline in Sweden and Denmark in June, reflecting challenges with Tesla’s aging vehicle lineup.
• Tesla faces mounting competitive pressures and an expected 11% year-over-year slide in global deliveries, to be reported on Wednesday, as rivals offer more affordable electric vehicle alternatives.

Tesla Inc. (TSLA) shares slid nearly 5% to $303.25 in early trading on Tuesday, reflecting investor concerns over a confluence of challenges, including a public feud between CEO Elon Musk and President Donald Trump, a reported executive shakeup, and weakening demand for Tesla’s vehicles in key markets. The escalating tensions, centered on the proposed One Big Beautiful Bill Act, have amplified uncertainty around Tesla’s reliance on government subsidies, while internal leadership changes and competitive pressures further cloud the company’s outlook.

At the heart of the latest market reaction is Musk’s vocal opposition to the One Big Beautiful Bill Act, which he claims will inflate the federal deficit by $5 trillion. Musk, who also leads SpaceX and owns the social-media platform X, has positioned himself as a critic of government spending, a stance that has put him at odds with Trump. The president retaliated with threats to slash subsidies for Musk’s enterprises, including Tesla and SpaceX, in a move that could jeopardize the financial underpinnings of Tesla’s electric vehicle (EV) business. Federal and state incentives have been critical to Tesla’s growth, helping offset production costs and making its vehicles more accessible to consumers. Any reduction in these supports could exacerbate Tesla’s challenges in maintaining its market dominance, particularly as competitors roll out more affordable EV alternatives.

Compounding these external pressures is a reported leadership transition within Tesla. According to Bloomberg News, Omead Afshar, a longtime Musk confidant, has departed the company, with Musk assuming direct oversight of sales in Europe and the U.S. Reuters sources indicate that Afshar had taken on expanded responsibilities earlier in 2025 when Musk was preoccupied with advisory roles in Washington. This executive exit comes at a critical juncture, as Tesla grapples with a sales slump in key markets. In June, Tesla’s sales in Europe plummeted, with declines exceeding 60% in Sweden and Denmark, driven by softening demand for its aging vehicle lineup. Wall Street anticipates Tesla’s global delivery report, due on Wednesday, will show an 11% year-over-year decline, underscoring the competitive headwinds from rivals offering lower-priced EVs.

The interplay of these factors highlights Tesla’s precarious position. Musk’s high-profile disputes with political figures, while consistent with his outspoken persona, risk alienating policymakers whose support is vital for Tesla’s subsidy-dependent business model. SpaceX, though privately held, also faces potential fallout from severed government contracts, which could indirectly affect Musk’s broader empire. Meanwhile, the departure of a key executive like Afshar raises questions about Tesla’s operational stability, particularly as Musk stretches his attention across multiple ventures and public policy advocacy. The sales downturn in Europe and North America further signals a need for Tesla to refresh its product lineup to counter intensifying competition from both established automakers and emerging EV players.

Investors are now weighing the combined impact of these developments on Tesla’s future. The 5% stock drop reflects immediate concerns about subsidy risks and declining sales, but the broader implications hinge on Musk’s ability to navigate political and competitive landscapes while maintaining internal cohesion. With Tesla’s global delivery report looming, the market awaits clarity on whether the company can reverse its downward trajectory or if these challenges will further erode its position in the rapidly evolving EV sector.

WallStreetPit does not provide investment advice. All rights reserved.

• Bulenox: Get 91% OFF ... Use Discount Code: ZYY8U
• Risk Our Money Not Yours | Get 50% to 90% OFF ... Use Discount Code: MMBVBKSM
• Looking for the Best Cash Back? You’ve Found It