This would be the correct choice in a simplified scenario without considering the competition, but car makers know how it'd work out: Tesla would sell even more

This would be the correct choice in a simplified scenario without considering the competition, but car makers know how it'd work out: Tesla would sell even more cars and they'd sell none. Why are they doing what they're doing? Possibly because they want to slow down Tesla's growth and virtue-signal a little without losing too much money. I'm not sure it's working very well for Jaguar and Audi at the moment.