This paper first introduces the development trend of new energy vehicles in the world, and then focuses on the development of new energy vehicles in the Chinese market. It also focuses on the development of the Chinese market for new energy vehicles in the next fifteen years from a policy perspective. Then it comes the current situation of the new energy industry, from its development history, to the current situation of China's new energy vehicle industry, and then to the prospect of new energy in China. After that, Tesla is analysed with Porter's five forces model, followed by a deeper analysis in terms of employee management, environmental impact, product impact, and marketing campaign. Later it discusses difficulties encountered by Tesla in terms of tax, localisation, brand competition, the impact of COVID-19, and safety issues. Lastly, a few recommendations are provided to encounter the difficulties mentioned above.