TLDR
- Tesla’s head of sales and manufacturing for North America and Europe, Omead Afshar, has left the company
- Tesla stock dropped 0.5% Thursday, extending losses after falling nearly 4% Wednesday due to weak European sales data
- The company sold 13,863 cars in Europe in May, down 28% year-over-year, with 2025 European sales down 37% overall
- Analysts expect Tesla’s Q2 deliveries to be 366,000-377,000 units, below consensus of 390,000 and last year’s 444,000
- Benchmark analyst raised price target to $475 citing successful robotaxi launch, while UBS maintains $215 target with sell rating
Tesla faces leadership changes and delivery headwinds as the electric vehicle maker prepares to report second-quarter results next week.
The company’s head of sales and manufacturing operations for North America and Europe, Omead Afshar, has departed. Afshar was a top lieutenant to CEO Elon Musk and had been promoted to the role just last year.
The executive departure comes as Tesla grapples with declining sales in several key markets. Tesla stock fell 0.5% Thursday, extending losses from a nearly 4% drop Wednesday.
Wedbush Securities analyst Dan Ives said the departure wasn’t surprising. “Tesla needed change and this was the right move by Musk and Tesla in our view,” Ives stated.
Despite the recent declines, Tesla shares remain up 1.7% for the week. Monday’s 8% surge following the robotaxi launch in Austin, Texas helped offset some losses.
European Sales Struggle
Tesla’s European performance has been particularly weak. The company sold just 13,863 vehicles in the region during May, marking a 28% decline from the previous year.
For the first five months of 2025, Tesla’s European sales have dropped 37% compared to the same period in 2024. This decline stands in stark contrast to overall European EV sales, which have increased 27% during the same timeframe.
The data highlights Tesla’s eroding market share in a crucial region. European buyers appear to be choosing alternative electric vehicle options over Tesla’s offerings.
Delivery Estimates Fall Short
Attention now turns to Tesla’s upcoming second-quarter delivery report. Analysts are expressing caution about the numbers.
Baird analyst Ben Kallo forecasts deliveries of 377,000 units. This estimate falls below the FactSet consensus of 390,000 units.
UBS has set an even lower bar, projecting 366,000 deliveries for the quarter. The firm maintains a sell rating with a $215 price target.
Barclays analyst Dan Levy also projects deliveries around 375,000 units. All these estimates fall well short of the 444,000 vehicles Tesla delivered in the second quarter of 2024.
The projected 10-15% year-over-year decline in deliveries would mark another challenging quarter for Tesla. Demand weakness appears to be a persistent issue across multiple markets.
Robotaxi Optimism Provides Support
Despite delivery concerns, Tesla’s autonomous driving ambitions continue to generate excitement. Benchmark analyst Mickey Legg raised his price target to $475 from $350 following the robotaxi launch.
“Winning over regulators and public opinion is paramount and will allow a rapid scale-up if achieved,” Legg noted. He pointed to new Texas regulations taking effect September 1 as a potential catalyst.
Legg believes Tesla’s camera-based approach offers advantages over competitors like Waymo. The scalability and cost-effectiveness of Tesla’s solution could prove decisive in the autonomous vehicle race.
👀What an interesting interaction. A Waymo ended up in the wrong lane, and a Tesla Robotaxi handled it like a pro.
No headlines about this will likely be made by mainstream media, of course.pic.twitter.com/I1Qw2GsIFj
— TESLARATI (@Teslarati) June 26, 2025
From a technical perspective, research firm S3 Partners sees positive momentum. “Tesla’s breakout from recent lows is backed by strong technical factors,” managing director Matthew Unterman said.
The lack of heavy short positioning could allow shares to climb further. However, macro conditions or sentiment shifts could bring short sellers back into play.
Tesla stock has gained 26% since early April despite the recent pullback. The company’s 2025 performance remains challenged, with shares down roughly 15% year-to-date.
Second-quarter delivery numbers are expected to be released next week, providing the next major catalyst for the stock.
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