Regulation guides market behavior.

If the market was already behaving in the desired way, then removing the regulation does nothing.

If removing the regulation allows “market forces to drive production”, then the market was not behaving in the desired way and that’s probably why the regulation existed in the first place.

Fuel efficiency standards create a floor that would not be there otherwise.

I have never once seen or heard of market deregulation resulting in an improvement in the health of that market.

make prices higher for consumers

Per the article:

The agency last year said the rule for passenger cars and trucks would reduce gasoline consumption by 64 billion gallons and cut emissions by 659 million metric tons, reducing fuel costs with net benefits estimated at $35.2 billion for drivers.

Market regulations prevent abuses. Without them, it's always a race to the bottom. The free market won't save you, it just mindlessly pursues profits (it literally can't do otherwise).

Can you really not think of anything not included in quarterly profit-taking? Long term thinking? Externalities? Tragedy of the Commons?

This is government failing its duties yet again. Higher Short term profits for a few, at the expense of a livable climate, violence related to petrostates, higher costs for consumers, increased injuries and deaths, increased funding needs for military, infrastructure, etc ….. including long term viability of the industry

Of course you do dude, you believe in the invisible handjob of the market.

The only reason the market is heading toward EVs is because fuel efficiency regulations and incentives have pushed auto makers to start phasing out their ICE product lines in favor of EVs. The demand was clearly there, but nobody wanted to invest the R&D into providing a product. Market forces aren't enough to drive change when it's easier and more profitable for them to just keep the status quo.

"I feel better, so I don't need the meds anymore"

The market is not heading towards EVs in US.

But the market cares about profit, not people. That's why regulations exist!