The US big 3 and VW canceled several EV product lines because the government policy flipped from subsidizing them to subsidizing ICE production. With the Iran war, the economics has shifted again and some of the products they canceled could have been made profitable, but it's too late for most of them now. This actually creates an opening for Rivian's downmarket R2 line expansion.
Meanwhile the Chinese companies are disrupting the overseas market for all of them (which is why Toyota is fretting). Many don't realize the disruptive potential of China's battery, EV, and solar panel supply chain combined with the oil shock - many subtropical countries are on the verge of flipping their economies to be linked to China's because of this. The long term consequences for American and European manufacturing supply chains will be major - not just in terms of present but future orders, since many of those countries are continuing to grow their consumer base faster than US/EU.
How are they subsidizing ICE production over EVs? Or is it just that the subsidies are easier to get if you don't need to include rare earth elements, which EVs require, in your inventory?