When did it start falling apart?
Why hasn't the same happened to SpaceX? (Gov contracts, too big to fail, national defense, no competition yet, etc.?)
And honestly, why hasn't anyone domestically put up a decent fight against Tesla? Best I can think of is Rivian, and those have their own issues.
No, the way to stop it is to talk to your representatives.
You have the power. You just have to pick up a phone, and ask your friends, relatives, neighbors, to do the same. (They will, because it affects all of them.) Tell your reps to remove the legislation or you're voting them out. They don't want to lose their jobs. They will change if you tell them to. But only if you tell them. That is your power. Use it or lose it.
Then they just continue with that was already happening.