I agree that we need both. Basic research is a good example. I'm not familiar with the economics of electric cars, but you might be right about Tesla too. But beware the easy incrementalism of this all. Each step is logical and difficult to oppose on its own, but the collective result is a society drained of its dynamism and freedom. And then the real kicker is that the government programs that you sacrificed them to don't work. They become barriers to entry for competition, vehicles for political pork, permanent bureaucracies that lobby for their own existence, and more opportunity to waste other people's money.
As an aside, businesses do have a very good reason to continue to serve the public interest: they need to continue to create value for their customers, or they soon won't have any.
(And no, disbanding all governance will not make power spread itself evenly among everyone - it's not a stable state. We'd be back to having warlords instead.)
RE Tesla, they took some DOE loans (inb4 someone pops up with "evil Musk eating taxpayer money" again - loans which they paid back in full and way before the due time) that were important to their growth. It's a textbook example of why those loans, and other grants, exist in the first place.
I agree that all the problems you mentioned are real and important. Governments do create nasty issues. But they handle some things well. Markets too have issues, just different ones, and also have terrible failure modes in other areas (which include bribing governments into changing laws to benefit them instead of the general population). Personally, I'm advocating for dropping the ideological approach and just evaluating every problem on its own, whether it is solved best by top-down governance, bottom-up free market work, or some combination of both.
The great thing about business is also one of the worst things about it. Profit drive is a very powerful optimization force, and we owe to it most of the wealth around us. It's great when it kind of follows along the lines society wants it to. But, as you said, it has essentially no reason to keep doing that, and so when being horrible and evil is more profitable, the business turns horrible and evil and that's where we need the government - an agent that does not follow the same incentive gradient - to step in and force that business to behave.
The market is like a great river. It's simple - it flows downhill. Put an obstacle on its way, and the river shall destroy it or route around it. But just as majestic and life-giving it is, it can equally easily take lives away. It will flood villages and cities without stopping. Governments are like people tasked with landscaping. They don't have the power of the river. But they can put things on its path to redirect it - whether away from settlements in danger, or towards a barren land, or straight into a power plant that will help feed millions.
We need both.