>They have world-class batteries and
insatiable domestic demand
Excellent, then they won't have an issue with losing their export markets to tariffs, because they can just sell their EVs to the "insatiable demand" of the local consumers.
>what if China is undercutting us because their cars are just better
Price/performance they ARE better, China can produce cheaper because of their years of (government aided) investments and economies of scale. Of course, we aren't obligated to buy from belligerent states engaging in strategic mercantilism producing the goods of the future. We aren't obligated to prop up the Chinese export-oriented economic model in pursuit of one generation of cheap EV cars.