Tesla executive shake-up sparks major leadership changes
Tesla is undergoing a significant executive shake-up, raising questions about the company’s future direction. In June 2025, Tesla reportedly fired Omead Afshar—former operations chief in North America and Europe—and lost another senior leader, Milan Kovac. The timing is critical, as the company faces slumping sales and ramps up its robotaxi strategy. However, Tesla also made a strategic hire: Henry Kuang, former Head of Autonomy at Cruise, has joined to lead AI and deep learning efforts for autonomous driving. This mix of departures and new leadership reflects a pivotal moment in Tesla’s evolving business strategy.
Omead Afshar fired amid Tesla sales slump
The most talked-about Tesla executive shake-up involved the abrupt firing of Omead Afshar, a close associate of Elon Musk who had been with the company since 2017. Reports from CNBC and Forbes confirm Musk made the call himself, as Tesla’s auto sales dropped by 20% year-over-year in the last quarter. Afshar previously faced an internal investigation in 2022 over questionable purchases related to a secretive glass project. Though some sources only confirmed his departure without citing the firing, industry insiders believe the sales decline heavily influenced the decision.
Optimus robot leader Milan Kovac exits Tesla
Another key figure in the Tesla executive shake-up is Milan Kovac, who led the company’s Optimus humanoid robot program. Kovac announced his departure to focus on spending more time with his family abroad, a move that Musk publicly acknowledged with gratitude. His exit comes as the Optimus project is still in development and remains a futuristic bet for Tesla. Kovac’s leadership was instrumental in pushing early iterations of the robot, and his absence may slow short-term momentum for the robotics team.
Tesla hires Cruise’s Henry Kuang to lead autonomy AI
Despite the recent setbacks, Tesla is bolstering its AI leadership with the recruitment of Henry Kuang, formerly the Head of Autonomy at Cruise, GM’s now-defunct robotaxi unit. Kuang now serves as Tesla’s Director of AI / Deep Learning for Autonomous Driving, per his LinkedIn profile. This move underscores Tesla’s renewed focus on autonomous vehicle technology, especially as it prepares for a much-anticipated robotaxi rollout. With Cruise’s collapse still fresh, Kuang brings valuable insights—and perhaps cautionary lessons—that could shape Tesla’s next chapter in autonomy.
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