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The EV1 was a wildly impractical vehicle with < 100 miles of range that cost $100,000 in 1996 money (over $200,000 today). It was never ever going to be any kind of mass produced consumer vehicle. Without GM subsidizing the ever loving shit out of them the only people who could have afforded them were the ultra wealthy.
Regardless, the only thing political was California's insanely premature ZEV mandate set to take effect in 1998. That was political but not the EV1 itself.
BTW GM never really gave up on ZEV / PZEV even though most people think they did. I had a most excellent Hybrid Tahoe in the late 2000s but at 55k-ish new in 2009 ($82,000 today) it was simply too damn expensive to be a mass market vehicle. Just like the EV1.