China's recent decision to grant rare earth export licenses to GM, Ford, and Stellantis, but not Tesla, has sparked speculation about whether Tesla is being deliberately targeted. Here are some key points to consider ¹ ² ³:

- *Rare Earth Export Restrictions:* China controls nearly 100% of the global supply of critical heavy rare earth elements (REEs) and has imposed export restrictions, affecting Tesla's production of Optimus humanoid robots and electric vehicles.

- *Impact on Tesla:* Elon Musk confirmed that China's export curbs on rare earth magnets have disrupted Tesla's production, particularly for the Optimus robot, which relies on advanced magnets for its motor systems.

- *Potential Reasons:* Wells Fargo analyst Dr. Gracelin Baskaran suggests that Tesla might be targeted due to Elon Musk's outspoken stance on foreign policy and China's objective to support domestic EV manufacturers.

- *Global Supply Chain:* The US relies heavily on China for rare earth imports, with China's export restrictions creating uncertainty and potential shortages for Western firms.

- *Future Outlook:* Supply risks are expected to persist for 2-5 years as capacity outside China slowly ramps up, with some experts warning that the current arrangement is "still a band-aid, not a solution".

*Recent Developments:*

- *JL MAG Export License:* China granted JL MAG Rare-Earth permission to resume shipments to the US, Europe, and Southeast Asia, providing temporary relief to automakers facing critical magnet shortages.

- *Trade Negotiations:* US officials are preparing talks with China to ease export restrictions, which could potentially alleviate some of the pressure on Tesla and other affected companies ⁴ ⁵.