that's the exhaust.
the tip is exposed to some rain, but i think it would take some very heavy rain to become an issue. Im pretty sure with the amount of carbon in the turbine, rust wont be an issue and when i fire it up it will just spray out any water. The angle of the tip cuts down the ease for rain to enter. I havent been on trails yet, as there is no front driveshaft yet, and im going to wait until i get some more miles on the engine.
...BTW your Bieber avatar is awesome.-Malone