The health of the macro environment can be a very useful indicator of the future potential of an industry. Electric vehicles are gaining popularity and market share globally. Governments offer subsidies and rebates to promote electric vehicles. The largest tech giants such as Apple and Amazon started to invest in their own electric vehicle projects. At the same time, car manufacturers face a global semiconductor shortage during the pandemic. Electric car manufacturers need to understand the changing environment as it helps them in management in future planning and decision making. Using PESTEL analysis, examine the business environment of Tesla, one of the leading electronic car companies. Identify the factors affecting this company in this scenario and draw appropriate conclusions for its operations