Yes, but nobody ever expected Germany to be quick and adapt. Germany does not do that in general. It takes something that exists, perfects it, and then sells the perfection of the existing thing, ideally until really not a single person on the world needs it anymore. US on the other hand, has the reputation where innovation begins and does wonders. I am asking myself, where is the innovation in their autoindustry? Last thing was actually Tesla itself, when they started producing first electric cars.

It is the same situation, but the expectation is completely opposite.

Expensive is not a problem it it's followed by the appropriate quality. Also, US should be far more able to use tech to automate and make efficient, same as China can use cheap labour. In the end, a robot is a one-time fee, doesn't get sick, and can work 24/7, easy and fast to learn new processes. Long term a robot will always outpeform a human.

They could try going for quality or features.

But instead they are only going for size, what 94% of the world does not care for or want. (this includes the 5% of Americans)

Tesla somehow manages to do well(at least prior to the nazi events). Still at a good price in Norway.

But all other manufacturers have dragged their feet with EVs, and that price cost of starting is large enough that they are in trouble. I'm not a huge fan of China, but they did the investment and are ahead exactly because of that (and crazy subsidies). Being left behind is their own fault imo, and I think that applies a lot to EU as well. Eg. WV.

If they are too expensive due to cost of labor, they can do, look at other comments, increased automation.

With automation China's advantages over US are mostly in the bureaucratic efficiency area. Both in the government's parts interacting with big companies and in the companies themselves.

US big companies are just too used to preferential treatment and solving market problems with lobbying, which worked when they were the spearhead of progress or something.