This Doesn't Look Good!

[JohnFranklin - Zone 7b]

This Chinese Elm is 16 months old, grown from seed. I have three others and this is at least 15-20% larger than the others. But I just noticed this on the trunk this morning, any ideas what it is. It looks seriously bad. The tree otherwise appears healthy.

 

[BonsaiMatt]

Cicada damage!
Probably will need to chop below it.

 

[JohnFranklin - Zone 7b]

Hmm, we had many here in Maryland. I removed them when I saw them on my trees.......Thanks.

 

[penumbra]

It does look like a good time to do a chop, regardless of the bonsai damage.
I think the lady cicada that did this is leading you in the right direction.