You couldn't build a cheap EV with a decent amount of range and make a profit, and car companies literally couldn't give away EVs with only 50 miles of range. So they stuffed 2-300 miles worth of battery packs into a car, added a bunch of cheap electronics with huge margins and sold the cars for a lot of money to people with a lot of money. Then they realized they could just to that to ICE cars and make a lot more per car.

Meanwhile, China focused on building battery factories instead of cars and now has a lead in both cost and numbers of batteries produced, and can undercut everyone else on the most expensive part of an EV.