Rotary its more complicated then that. From those videos and more research from non-conspiracy foil hat wearing people, you can see why.

The profit margin vs cost was much lower.
Replacement parts market was MUCH MUCH lower.
Amount of cars needed to be sold to cover cost of plants, employees etc wasn't enough. If I showed you a list of 2000 names, it would look HUGE, but in auto sales, thats garbage.
I also read a major concern was other states adopting (or a nation wide law) California's strict emission bullshit if they showed they could make these cars practical. This would mean they would have to sell more of these low profit cars. You understand that even a 10% cut in profit is BILLIONS of dollars right? I don't blame them, in the late 90s we where booming and didn't have such a demand for EVs.