Weird over the wheel part?

[Bombillo]

My Model X is about one month old (possession on 6/21/19). While cleaning I just now noticed this strange mechanical protrusion over the top of the wheel. It is a bit concerning as there appears to be about a 1.5 inch clearance between the tire and this piece. A kicked up rock or certainly snow will encounter this thing. Does this retract while the car is being driven? Thanks for any help. If I could fit the car into my bed at night I would do it.

 

[Zoomit]

Steering spindle upper ball joint. It moves up and down with the wheel and is located above the tire by the engineers to make the steering axis more vertical while also optimizing the scrub radius.

 

[Bombillo]

Steering spindle upper ball joint. It moves up and down with the wheel and is located above the tire by the engineers to make the steering axis more vertical while also optimizing the scrub radius.

 

[Bombillo]

Thank you for the informative response. I am not sure this assuages my concerns about running in snow , mud etc...