This isn't "the market". The market is speaking quite loudly on EVs:
Ford halts F150 Lightning production:
CNN: 2023 02 14...
Fiskar pauses production
reuters.com - Autos transportat...

As usual you cherry pick an example or two and ignore the larger trend. EV sales are up pretty dramatically year over year, and continue to increase, even as a couple of manufacturers find they have over-estimated demand and are throttling back.

EV sales aren't doing all that well at the moment.

 Since Q3 2021, EV sales have increased every quarter, and the share of total 
light-duty vehicle sales that EVs represent isn’t shrinking, either. 

theicct.org - US EV sales soar into.

This x1000. You don't get to claim "The market has spoken"! when you're the one literally dictating to the market what it can produce and offer to consumers in the first place.

I’m not saying “the market has spoken”. I’m saying EVs are growing, and yes, they’re being helped along by subsidies. Just like nuclear power grew with government subsidies, just like highways and electrification grew with subsidies, just like microchips and the internet grew with subsidies. The market is a great and wonderful thing, but it is not perfect. In this case it doesn’t take into account externalities: tailpipe emissions, pollution, smog, and potential climate change.

The very purpose of regulations is to modify behavior. It’s to stop bad meat from reaching your table, whack medicines from being on the market, and (in this case) nudging the market - over time - to transition to more efficient use of energy stocks for the good of the country.