Elon Musk's China trap

Catch up quick: The Commerce Department rule is rooted in national security fears of a future in which Beijing could gather information on, or even take control of, vehicles operating on U.S. roads.

• Biden already rocked the Chinese EV industry with a 100% tariff earlier this year.

Zoom in: Tesla doesn't break out vehicles sales by country, but China is thought to be its second-largest market, and the one with the greatest growth opportunity for EVs.

• Most, if not all, of those vehicles were manufactured in China, but using software and hardware designed in the U.S.

What they're saying: The Chinese government has criticized the proposed ban, calling it "protectionist," but hasn't specified its possible response.

• Musk hasn't publicly commented.

The bottom line: Other U.S. automakers also sell into China, but Tesla could get harder hit were Beijing to adopt a similar rule — because its cars are all connected and have autonomous driving capabilities.

• A bigger issue for some U.S. automakers, including General Motors, would be needing to find alternate suppliers for some parts they currently source from China.