This case study analyzes Tesla's strategic decision to manufacture motor vehicles in China. It begins with a background on Tesla's rise and the challenges it has faced, particularly since Elon Musk took over. The core of the analysis focuses on the external environment in China, evaluating political factors (government regulations, trade policies), economic factors (GDP growth, FDI), social factors (consumer preferences), and technological factors (China's technological advancements and policies). The case study highlights how these factors influence Tesla's operations and strategic choices in the Chinese market, concluding with a summary of the opportunities and challenges the company faces. The assignment demonstrates an understanding of strategic management principles through external environment analysis and the application of academic literature.