Tesla Cancels £12.6K Cake Order From California Bakery Amidst 21% Stock Slump and Rumours of Massive Job Cuts

Tesla, the electric vehicle and clean energy company, reportedly cancelled a substantial £12,600 ($16K) cake order from a California bakery just before the schedule of delivery.

On Valentine's Day, Voahangy Rasetarinera, the proprietor of The Giving Pies in San Jose, was contacted by a representative from the Elon Musk-owned company.

The Tesla employee, acknowledging Rasetarinera's well-regarded business among other Silicon Valley heavyweights, placed an order for 4,000 pies.

The request specified delivery the following week for an event dedicated to commemorating Black History Month.

To accommodate Tesla's request, the bakery owner had to cancel other existing orders and procure additional ingredients.

After shouldering the increased workload, Rasetarinera received a text message from the Tesla representative stating, "It unfortunately sounds like we will be changing plans and will not be needing this order. Thank you so much for your support; I appreciate it."

Stuck with the thousands of prepared pies at her bakery, she sought clarification from Tesla regarding the cancellation and she was informed that the decision originated from upper management.

The "attempt to shift blame to upper management only compounded the betrayal I felt. To me, it was clear that Tesla's corporate culture prioritised convenience over accountability, disregarding the livelihoods of small business owners like myself," Voahangy shared on Facebook.

This transgression comes in the wake of a 21 per cent dip in Tesla's stock value and swirling speculations regarding potential significant job cuts within the company.

Tesla's recent financial woes, marked by a substantial drop in its stock value, have raised eyebrows and prompted speculation about the company's financial health.

The 21% decline in Tesla's stock has sparked concerns among investors and industry analysts, leading to increased scrutiny of the company's overall stability and prospects.

The stock slump is viewed as a notable setback for Tesla, a company that has often been regarded as a trailblazer in the electric vehicle and clean energy sectors.

The reasons behind the sharp decline are multifaceted, with some attributing it to broader market trends, while others point to specific challenges within Tesla, such as production issues, competition, and potential macroeconomic factors.

The cancellation of the £12,000 cake order further adds a layer of intrigue to Tesla's current circumstances.

Speculation has been rife about internal challenges and potential restructuring within the company, leading to rumours of significant job cuts.

Concerns about widespread job losses at Tesla have been growing following reports that managers have been tasked with determining the criticality of their employees' positions.

According to sources cited by Bloomberg, Tesla has opted to cancel some employees' biannual performance reviews.

An email, containing a single-line question, was purportedly sent to US managers, prompting them to evaluate the importance of their subordinates' roles.

This development is noteworthy, considering that Tesla continues to list hundreds of job openings on its website.

These developments follow a sequence of layoff announcements from companies such as Snap, the owner of Snapchat, as well as Macy's and Estée Lauder Companies.

Billionaire CEO Elon Musk also recently underscored the importance of cost-cutting at Tesla in response to a noticeable deceleration in its sales growth.

As per Bloomberg's report, the company's workforce expanded by 10 per cent in the previous year alone.

Elon Musk is said to have informed investors last month that the company finds itself amid "two major growth waves," anticipating the introduction of a more affordable vehicle slated for a late 2025 release.

Tesla is now grappling with the challenge of striking a balance between investment and its objective to reduce price points.

The company has reportedly allocated over £7.8 billion for capital expenditures this year, with an anticipated increase in research and development spending to approximately £3.5 billion.