**Tesla Caught in Crossfire as U.S. Considers Ban on Chinese Auto Tech**

Tesla's relationship with the Biden administration faces new tension following the White House's proposal to ban Chinese software and hardware in advanced vehicles. This move aims to address national security concerns but has broader implications for the auto industry.

The proposed rule stems from fears that Beijing could potentially gather information or even gain control over vehicles on American roads. While this could temporarily benefit Tesla by keeping Chinese electric vehicles (EVs) out of the U.S. market, it may backfire if China retaliates.

China is considered Tesla's second-largest market, offering significant growth potential for its EVs. Although Tesla does not disclose vehicle sales by country, many industry analysts view China as a crucial area for future expansion.

In response to the proposed ban, the Chinese government has labeled the measure as "protectionist" but has not yet specified how it would retaliate. The situation is particularly risky for Tesla since its cars are equipped with connectivity features and autonomous driving capabilities, making them more vulnerable to any reciprocal actions by Beijing.

While other U.S. automakers also conduct business in China, Tesla could bear the brunt of any retaliatory measures. The automaker's advanced technological integration in its vehicles makes it a prime target for restrictions, potentially exacerbating the company's challenges in one of its most promising markets.