A bakery accepted an order for 2,000 cakes for Tesla. Elon Musk had to mediate to avoid bankruptcy
Large companies are not only a pole of job creation or direct wealth for those who work in them, but, indirectly, they are also a driver of indirect development for other companies in the area. Sometimes, they can also be your downfall. In early 2024, a small artisan bakery in San Jose, California, nearly went bankrupt when it tried to fill a huge order for cakes for Tesla’s offices. A last-minute change of heart left the small business on the brink of bankruptcy and in debt. As and how they counted in The Guardian, Elon Musk had to intervene. Laura’s sweet request Voahangy Rasetarinera, owner of the Giving Pies bakery, was challenged to handle an order of 2,000 mini pies for a Tesla employee event. This request represented a great economic opportunity for small businessbut it also represented a significant logistical challenge given its magnitude and the bakery’s limited resources. Rasetarinera consulted his staff and they agreed to accept the order by sending the invoice to Tesla. Delivery dates would be Tuesday and Thursday of the following week. Elon Musk’s company diverted payment for the cakes to a third-party supplier called City Flavor, which did not respond to payment requests after delivering the first round of cakes. “I remained optimistic as I waited for the payment on Thursday. However, when it didn’t materialize, I became concerned.” That same day, Laura, Rasetarinera’s contact at Tesla, called the bakery to apologize for the delay in payment for the first round, citing the inexperience of the suppliers. On that same call, Laura requested to double the cake order. In total, the bill already amounted to $16,000 for 4,000 cupcakes that Giving Pies was to deliver. The bakery was forced to redouble its efforts paying overtime to staff, purchasing more ingredients that he had not yet charged for, and, most importantly, rejecting other orders to meet Tesla’s enormous demand. After consulting with the employees again, everyone agreed to go ahead, so Rasetarinera sent a new expanded invoice to Tesla with the new amount and they got into trouble with the new shipment, but not before sending a message to Laura, to demand payment for the first batch of cakes. “I’m sorry to bother you again, but I’m a small business. I don’t have the luxury of infinite resources, so I really need to get paid to insure my staff,” the businesswoman wrote to Tesla, as published the local media Kron4. Tap on the image to go to the original message However, the joy was short-lived. Just a week before the delivery date, Tesla canceled the order without notice. Just like Rasetarinera explained on the bakery’s Instagram account, “we received an email saying they were canceling the order. There was no explanation. Just a message saying, ‘Hey, I’m so sorry, I don’t think we’re going to need this order anymore.’” Unpaid bills and 2,000 cupcakes in the oven The cancellation of the order had serious consequences for Giving Pies. The pastry shop He had already invested in ingredients, increased his staff and rejected other orders in order to fulfill Tesla’s order. What was shaping up to be a great opportunity to work with a great company had turned into a nightmare of unpaid bills. Rasetarinera explained on his social networks that “we had to buy additional ingredients, hire extra staff and schedule overtime.” All of this represented a considerable expense for a small business. “I had invested time, resources and effort based on Tesla’s guarantees, only to be left in the lurch,” declared the owner to Guardian. The news spread quickly on social networks and local media that echoed the bad trick that Tesla had done to this small merchant, generating outrage among users due to Tesla’s lack of consideration for a local business. The word spread through social networks, even reaching the ears of Elon Musk himself. Elon Musk and the unexpected solution When Elon Musk found out about the situation, he decided to take matters into his own hands. From your X accountMusk apologized for what happened to the bakery and promised to resolve the problem. “I just found out about this. We are fixing it immediately,” the billionaire wrote. Tap on the image to go to the original message Musk’s solution was simple but effective: Tesla would buy all the pies Giving Pies could produce, and he also invited the owner on a tour of the factory. “People should always be able to count on Tesla to do its best,” Elon Musk wrote in his X message. A Tesla representative would later confirm to KGO-TV that there had been a communication problem and that Laura did not have the capacity to authorize payments. For Giving Pies, this experience ended up being positive. Not only did they overcome the financial hardship due to the investment made in the order, but they also gained publicity and support from the community. As shown on your websitetoday, Giving Pies sweetens the holidays for some of Silicon Valley’s biggest tech companies. In Xataka | An Englishman named his restaurant “Tesla.” He was immediately left without a name and with a fine of 14,000 euros thanks to Musk In Xataka | Tesla has been suing buyers and journalists for criticizing its cars in China for some time. And he’s winning Image | DVIDS (Justin Pacheco), Giving Pie A version of this article was published in February 2025