TraderBullCrypto – With China granting rare earth export licenses to GM, Ford (NYSE:F), and Stellantis (NYSE:STLA)—but not to Tesla (NASDAQ:TSLA)—questions are mounting over whether Tesla is being deliberately targeted amid ongoing trade tensions and Elon Musk’s outspoken stance on foreign policy.

“Media reports indicate that only GM, F, and STLA have received licenses. This suggests that TSLA and RIVN (NASDAQ:RIVN) may still be awaiting approval. This could be the result of Musk’s aggressive foreign policy stance and China’s objective to support domestic EV manufacturers,” wrote Wells Fargo (NYSE:WFC), citing expert Dr. Gracelin Baskaran.

China controls nearly 100% of the global supply of the seven most critical heavy rare earth elements (REEs), essential for EV motors and other advanced manufacturing.

The U.S. auto sector is the largest end-user of these materials, but American consumption represents only a small fraction of global output—just 6,600 tons out of the 390,000 tons produced last year. Following China’s restrictions on April 4, 2022, automakers were left with only 2–3 months of safety stock, which is now being depleted.

While six-month licenses keep operations going for some U.S. automakers, Wells Fargo warns that the current arrangement is “still a band-aid, not a solution,” with supply risks likely to persist for another 2 to 5 years as capacity outside China slowly ramps up.

For now, China’s selectivity in license approvals and tight scrutiny over end-use means Tesla—and others still waiting—may face increasing pressure until rare earth supply chains become more globally diversified.