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They absolutely can. It is totally, physically possible for them to stop making ICE vehicles. But that's not what's preventing them from making the transition from ICE vehicles to EVs. The auto makers are for profit corporations, and as such their primary concern is maximizing profit. The legacy auto makers aren't yet convinced that they can maximize profits by ceasing ICE production and transitioning to EV production, exclusively. That's what's standing in the way. That would change if consumer demand for EVs was higher.
Obviously we dont wait for automakers to choose to care about the environment, it would be legislated
The government definitely does need to get involved. They need to make sure the grid is ready for mass EV adoption (and renewable energy, for that matter), and they need to make sure there are a sufficient number of charging stations. The government needs to help increase the demand for EVs by making EVs as easy, accessible, and affordable as possible. Once the demand is there, the automakers will provide the supply. Again, they just want to sell cars and make money. They don't necessarily care if they're selling ICE cars or EVs. If the demand is there, they will make the switch, they will go where the money is.