the argument is that the car company becomes something like China mixed with North Korea, big, powerful, uncaring, unavoidable, with a lot of resources, expansionist, etc.

car companies, however misaligned they are, are not particularly smart, nor are they generally intelligent. they are paperclip maximizers, but that's also their limitations (sell more cars). it took an eccentric madman to even open their eyes to a new untapped market (EVs!), of course we can argue that before Tesla car makers were in a metastable equilibrium, and incumbents were unable to rationally break out of it ... but that just shows how narrow their search space is.

these car companies are run by humans, regulated by humans, etc. they are pretty well aligned. it shows because we saw that they are just mimeing self-improvement. we know they were working on EVs, but very half-heartedly. (because they are risk averse, also because regulators don't let them merge into one giant company, etc)