If they hadn't lobbied to make small cars more expensive because the margins were lower, they could have built a model that was capable of being EV or gasoline,

If they hadn't lobbied to make small cars more expensive because the margins were lower, they could have built a model that was capable of being EV or gasoline, to get economy of scale for most of the vehicle. Well, worked with Daewoo to make a nicer version of the Chevy Aveo which could be a 4-seater gasoline car or 2-seater EV... Well, problem with that idea is the EV-1 was only popular with Hollywood types because it was a statement vehicle, so everybody knew what you were doing. I guess the dual-purpose vehicle would not. tl;dr You're right :)