Because among other reasons, CAFE standards force quotas via mandated averages, which leads to weird incentives and unexpected results (like EPA regs resulting

Because among other reasons, CAFE standards force quotas via mandated averages, which leads to weird incentives and unexpected results (like EPA regs resulting in larger, not smaller, trucks). If you're a company that needs to hit an mpg average, and fed rules allow absurd conversion on calculated equivalent empg, then your end up with the market we see today: Inexpensive to make SUVs and Trucks being turned into luxury products to justify absurd price increases, just to offset the losses from hitting ev/high-mpg quotas. (Which are relatively expensive to manufacture and sell for less). This upside down market was predicted years ago, and has been moving in this direction for 20+ years. It was only a matter of time till profit-margin turned to loss-margin. If it keeps going they'll approach prices practically giving EVs away in order keep selling their other vehicles that actually make a profit. Tangent: from a sustainability engineering perspective, the lifetime energy costs/consumption of EVs is heavily front-loaded compared to iceVs. You pay more upfront (in both energy and $s) manufacturing the batteries and electric motors, whereas ice vehicles are cheaper to make but use/waste more energy in-use (per fillup). A lot of (economic) market and regulatory forces are being pushed/pulled beyond limits to get to a desired result. That's why it doesn't make sense, prima facia.