Just watched the video and it is very interesting (I don't really follow PragerU except for the occasional "Youtube recommends" scenario). Did not know that. For the record, yeah, not very capitalist at all, because the government is not letting the market decide. I have known for years that electric cars are shit, so it's funny to see it on the video. As far as the video is concerned, I agree with it.
"While cars are a freeform transportation, it is government agencies that hand out the drivers' licenses, maintain the roads and freeways, and operate the state troops who hand out speeding tickets."
So this one is a tough one to inch in the capitalism vs socialism debate, largely because it doesn't affect the consumer choice. For example, driver licenses' do not affect a person's desire to get a different car or not, it only affects if they are able to drive said car. The requirements also don't require a consumer choice, just that you prove you can operate the vehicle safely. To further distinguish the points, take away the two and consider how that plays out.
First, we take away the Obama era CAFE rules and eliminate the bureaucracy behind pushing public transportation, and we are left with choice. Innovation is pushed by profit rather than by government standards and subsidies that actually make products worse.
Now take away driver licenses and speeding tickets. Now you usher in all sorts of chaos from people who lack common courtesy and conviction of other's well being (trust me, it ain't pretty. I have lived in 3 of the most dangerous cities for driving in the US in my lifetime).
Now the one that I don't think fits is the maintenance of freeways and roads though. I think I agree with you again on that one. Take away government intervention there and we are left to drive on dirt roads, which would create a demand for better roads, which would create a demand for toll operated roads, which would create other more competitive roads to drive down the price of those tolls. Which could create private businesses who could innovate on how to use those roads. I lived in Orlando in my late twenties where traffic is notoriously awful. The people pushed for a fast pass lane (pay a little extra in tolls but it would be a very limited traffic lane), but the city brushed the idea off. If that was a private business, hell yeah they would have done it. So yeah, I agree with you on this one, not very capitalist nor does it allow for innovation.