While it's a factor it probably isn't the root of the problem. The problem is car manufacturers are building the cars faster than the market is growing and at high price points than consumers want in a time of economic difficulty and inflation.
We're still seeing build out of electric infrastructure, expensive cars vs petrol cars, and a relatively small second hand market (which also drives infrastructure expansion). It also doesn't help that countries are pushing back promises to ban non-EV car sales. Dealership monopolies certainly exacerbate all those problems.
This story headline is nonsense though. EVs are working and are growing. The story is actually that car companies have made expensive attempts at grabbing market share which haven't worked and are now counting the costs. They're delaying the rate of growth in production, not reducing production - significant difference.