In San Jose, California, a baker expressed frustration towards Tesla on Wednesday, revealing that the electric car company had placed an order of $16,000 worth of pies for a Black History Month event, only to cancel the order abruptly, leaving her facing significant financial losses.

Voahangy Rasetarinera, the owner of The Giving Pies, took to Instagram to share her experience. She explained that Tesla had approached her bakery on February 14th, requesting an order of 2,000 mini pies to be delivered the following week. Despite providing a quote and receiving approval for the order, Rasetarinera did not receive payment from Tesla’s vendor, City Flavor, as expected. Instead, she received a call from her Tesla contact late in the evening on the following day, asking her to double the order.

As the week progressed, Rasetarinera still hadn’t received payment. To compound matters, Tesla eventually informed her that the order was no longer needed. This sudden reversal left Rasetarinera grappling with the realization of the impact on her small business, having invested significant time, resources, and effort based on assurances from Tesla.

Despite The Giving Pies having a cancellation policy, Rasetarinera was unable to recoup the $2,000 the bakery lost in fulfilling the order, as Tesla had not paid the invoice. The bakery had to allocate additional resources and labor to fulfill the order, including purchasing more expensive vegan supplies and turning down other catering opportunities for Black History Month.

This incident marked the first time The Giving Pies had received an order from Tesla. While City Flavor had previously approached the bakery for a Black History Month event catering job last year, they had declined Rasetarinera’s quote at the time.

Following public attention to the issue, a Tesla representative reached out to Rasetarinera to apologize, stating that the original point person lacked the authority to promise payment. The representative extended an invitation for Rasetarinera to tour the factory and offered her the opportunity to cater two Tesla events in March.

Another poorly timed controversy for Tesla

Rasetarinera, who identifies as Black, clarified to Fortune that the oversight was not racially motivated but rather a result of miscommunication. Nevertheless, the irony is palpable in the carmaker’s oversight of a Black-owned business during Black History Month, especially considering the backdrop of multiple racism allegations against the company.

The Equal Employment Opportunity Commission filed a lawsuit against Tesla in September, alleging the company’s tolerance of anti-Black racism and retaliation against Black employees who voiced concerns. The lawsuit detailed instances dating back to 2015, where non-Black employees at Tesla’s Fremont facility reportedly used racial slurs. Additionally, in April, Tesla reached a settlement of $3.2 million with a Black former employee after a federal jury in San Francisco found the company negligent in addressing severe racial harassment in a California factory.

Tesla faced further criticism last month for omitting diversity-related language from its annual report just before Black History Month. In its January 24 release, Tesla removed language from the “Human Capital Resources” section emphasizing the importance of supporting a diverse workforce through employee resource groups. This move contrasts with Tesla’s previous efforts, including the publication of its first diversity, equity, and inclusion report in 2020 and the inclusion of diversity information in its annual reports since 2021.

The decision to remove diversity language from the report aligns with Tesla CEO Elon Musk’s public skepticism toward diversity, equity, and inclusion initiatives, which he has referred to as “propaganda words” and “literally the definition of racism.” However, Musk has also leveraged diversity-oriented language to support his arguments, as evidenced by his recent criticism of Google’s AI model Gemini for generating historically inaccurate images. Musk shared on X that a Google executive reached out to him in response to the criticism, assuring him of immediate action to address racial and gender bias in Gemini.

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