Voahangy Rasetarinera, the owner of The Giving Pies in San Jose, faced unexpected financial strain when Tesla abruptly canceled a $16,000 order.
The order, initially seen as a significant business opportunity, was canceled without prior notice, causing considerable disruption and financial loss for the bakery.
Tesla’s Interaction with The Giving Pies
The New York Post reports that Tesla reached out to The Giving Pies on Valentine’s Day, requesting a substantial order of 2,000 mini pies for imminent delivery.
Rasetarinera, encouraged by the opportunity to work with such a prominent company, prepared to meet the demand, reflecting her business’s reputation for serving notable Silicon Valley corporations.
Approval and Anticipation
After receiving Tesla’s order, Rasetarinera sent a quote, which was approved by a Tesla representative. This approval led her to anticipate a straightforward business transaction.
However, despite the approval, the payment from Tesla’s vendor was delayed, causing initial concerns for the bakery owner.
A Surprising Request to Double the Order
In a late-night conversation, a Tesla representative informed Rasetarinera of the need to double the order to 4000 pies ABC7 details.
Despite receiving no prior payment, Rasetarinera agreed to the increased demand, showcasing her commitment to fulfilling client requests and her trust in the company’s professionalism.
Commitment and Preparation
Rasetarinera rallied her team at The Giving Pies for the massive order of 4,000 pies.
NBC Bay Area reveals that the quick turnaround required her staff to work additional hours, and Rasetarinera to invest in extra ingredients and supplies, even forgoing other 3 catering opportunities to meet the demanding delivery schedule.
The Cancellation Notification
Shortly after committing to the expanded order, Rasetarinera received a text message from Tesla indicating a change in plans and the cancellation of the entire order.
The sudden cancellation left The Giving Pies with excess ingredients and a significant loss, Rasetarinera told NBC Bay Area.
Financial Impact on The Giving Pies
The cancellation had a substantial financial impact on The Giving Pies, costing the business over $2,000.
This loss was particularly significant given the small scale of the bakery and its reliance on such large orders for revenue.
Tesla’s Explanation and Subsequent Outreach
Following the incident, Tesla attributed the cancellation to a miscommunication, stating that the employee who made the order did not have the authority for such financial commitments.
This explanation was provided during a follow-up interaction with the bakery.
Reconsidering Business Practices
The experience prompted Rasetarinera to reassess her business’s engagement with large corporations.
In a Facebook post, she wrote “This experience serves as a stark reminder of the vulnerability faced by small businesses when dealing with larger corporations. Despite our best efforts to uphold our commitments and provide quality service, we are often left at the mercy of decisions made in corporate boardrooms.”
Community Support for The Giving Pies
ABC7 reports that in response to the bakery’s plight, the San Jose community rallied in support of The Giving Pies.
Many locals visited the store, purchasing goods and expressing solidarity, which helped mitigate the financial blow from the cancellation.
Customer Advocacy for Local Businesses
Customers like Bryce Felperin emphasized the importance of supporting local businesses, highlighting the role of community in sustaining small enterprises.
This sense of local solidarity was a silver lining for The Giving Pies amidst its challenges.
The Importance of Local Business Solidarity
It is essential for Americans to look out for their local small business. Protecting and supporting local businesses, especially eateries, is important in this climate of economic struggle and inflation.
According to the Small Business Administration, small businesses account for 44 percent of US economic activity. They are often operating on thin margins, and a blow like what happened toRasetarinera could see someone’s favorite business go under.
Local Food Places in America are Struggling
The cost of eating out for the average American is increasing across the country thanks to recent high levels of inflation and other economic consequences from the COVID-19 pandemic.
Dallas News recently reported that food prices are still 25% higher now than they were before the pandemic started. 77% of restaurants reported supply shortages and delays in 2023, which also has an effect on pricing.
Workforce Shortages for Bakers
The American Bakers Association issued a warning in 2023 of the possible consequences of the looming workforce shortage being experienced by food-related industries.
They estimated that the baking industry is experiencing a shortfall of more than 50,000 workers. This estimate comes in collaboration with research firm NDP Analytics, whose data found that skilled bakery workers are becoming difficult to find.
Dire Threat to the Bakery Industry
The last thing bakers like Rasetarinera need is a huge order cancellation in the middle of a struggling economy. The President of the American Bakers Association, Eric Dell, declared that the labor shortage could upend the entire market.
“The data speaks for itself and is a chasm that threatens the very foundation of our industry and requires immediate and collective action.” (via Food Manufacturing)
Hope for Small Businesses
A new survey by PNC Financial Services Group found that recent optimism among small business owners is giving some cause for hope.
Despite the challenges being experienced by small and medium-sized businesses, 55% of respondents reported being highly optimistic about the US economy going into 2024. Eight out of 10 owners were also confident about their own businesses’ ability to survive.
The Emotional Toll of Tesla’s Cancellation
Rasetarinera expressed a deep sense of being undervalued when Tesla canceled their large order, saying, “It felt like we didn’t matter.”
Her prior success with large clients like Google and Apple did not soften the blow of Tesla’s cancellation, which not only affected her team’s morale but also left the bakery financially vulnerable, as the absence of payment from Tesla meant no chance to recover the incurred expenses.
Elon Musk Promises to Make Ammends
Elon Musk, the multi-billionaire owner of Tesla, responded to the story on social media platform X, promising to make amends with the bakery owner.
“Just hearing about this,” Musk wrote on X. “Will make things good with the bakery. People should always be able to count on Tesla trying its best.”
Tesla Pays Rasetarinera
According to the Toronto Sun, Elon Musk eventually did make good on his promise to pay the bakery owner after his company Tesla canceled the $16,000 order. Tesla paid Rasetarinera $2,000 about an hour after she spoke to local news outlet KRON about the canceled order.
While this amount isn’t enough to cover the entire price they would have paid for the order, it was enough to cover the costs the business owner lost out on.
A Beautiful Moment Born From Strife
While the emotional struggle and media attention Rasetarinera experienced were likely stressful, the situation ended up creating an opportunity for her local community to show her the better side of their humanity.
According to the New York Post, she reportedly said her business traffic has tripled since the cancellation. Her story is an inspiration for everyone to go out into their communities and show support to struggling businesses.
