They aren’t giving up, they are outcompeted. Tho Musk is still doing well in all fronts - ev, ai, optimus, rockets, starlink - all the essentials minus drones.
The 'big beautiful bill' was giving up. Dismantling the existing automotive supply chains, instead of continuing to shift them to electric was giving up. The US needs a strong market for EV's supplied by manufacturing that takes advantage of a diverse supply chain including low cost countries like Mexico.