German car rental firm cancels Tesla order after dispute over quality

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German car rental firm cancels Tesla order after dispute over quality

German car rental company Nextmove had decided to walk away from a Tesla order what could involve purchase of as many as 85 Tesla Model 3 vehicles worth of $5.55 million (€5 million) after a dispute on fixing quality issues, the German car rental company said on Friday, the 16th of August 2019.

In point of fact, Nextmove, the German car rental company had ordered for 100 Tesla Model 3 electric vehicles last year, nonetheless, raised disputes over quality after receiving delivery of first 15 cars and suspended contracts for the rest 85 e-vehicles.

Nonetheless, the disputes began earlier this year after the rental company had asked for a solution to resolve shortfalls in quality, while as a response, Tesla had triggered a refund clause at that time, but later disputed that the company had cancelled orders.

Aside from that, Tesla Inc., the Palo Alto, CA-based e-vehicle manufacturer had also added that the German car rental service provider decided not to take delivery of the cars. Adding that the Model 3 vehicles had terrible defects including faulty wiring, scratches on the dashboards, faulty wheels, paint defects alongside condensation in the headlights, the German company had been quoted saying on Friday (August 16th) that use of faulty vehicles in its rental service would have ruined Nextmove’s reputation, while as a response, blaming an unresolved dispute with the German company over quality earlier this year behind latest cancellation of orders, Tesla Inc.

said in a statement on shortly after Nextmove’s comment, “We believe the customer’s decision not to take delivery of its remaining Model 3 orders wasn’t entirely due to quality issues, but was largely influenced by their frustration with an unrelated dispute from earlier in the year