Yeah we allowed a deranged billionaire to transform auto industry, even if it cost us democracy and threats of fascism and authoritarianism for the foreseeable future.
Completely delusional.
The place we went wrong wasn't incentivizing Tesla, it was allowing the other guy to escape conviction.
To me it is like claiming without iphones we wouldn't have gotten smartphones or touchscreens until a decade later. Except PDAs and touch screens already existed, apple just got a few years jump start on a big brand model before many other companies did the math on how cheap mobile computing and touch screens were becoming.
With automakers it seemed like in the 20-teens they all shrugged and said, "looks like hybrids are the best we can do". Then Tesla started selling sedans and SUVs and exactly one legacy auto design cycle later we got the electric Mustang, Golf, 3-series, etc. I think they would have milked ICE as long as they could had no one come along with a successful ev.