SUMMARY Over the past decade, Tesla has been one of the most success-ful American companies in the US's electric vehicle(EV) industry. Notsatisfied with dominating the US market, the company turned in 2014to China to expand its vehicle sales.There,Tesla entered a market witha mix of privately owned companies, joint ventures, and state-ownedmanufacturers, all operatingsince 2009 with government support.Indeed, in China, as it did in the United States, Tesla has benefittedgreatly from both central and local government subsidies to EV manu-facturers and customers.In 2020,China was reported to be the fastestgrowing market for Tesla, whose new manufacturing base in Shang-hai made its vehicles more cost competitive. With China's governmentmandating that by 2030,40 percent of all vehicle sales should be EVs,the future seems bright. But challenges include planned changes in government-supported incentives.