> Why is it seen initially so negatively?

Because Tesla is being measured against the benchmarks they set for themselves. It's not a good look with cancelled models, declining sales, and a lot of self-inflicted brand damage.

Musk used to claim Tesla will sell 20 million vehicles per year:

https://www.reuters.com/business/autos-transportation/tesla-...

The new goal is to have sold 20 million in total by 2035. That target represents a further decline in sales. And, given that Tesla over-hypes everything, maybe they won't achieve it:

https://www.nytimes.com/2025/09/05/business/elon-musk-tesla-...