German Car Rental Company Nextmove Cancels its $5M Tesla Order Over Quality Issues
Germany's leading car rental company wanted to add 100 Tesla Model 3's to its fleet and become the biggest Tesla customer in the country, so it placed an order for 100 Tesla Model 3's.
However, after receiving the first 15 of the electric sedans, Nextmove began to notice quality problems, such as condensation in the headlights, faulty wiring, paint quality problems and other issues. The problems led to Nextmove cancelling the remaining 85 Model's it planned to purchase.
For Tesla its a big financial hit, the value of the cars is around $5.5 million. The news was first reported by Bloomberg.
Nextmove said it canceled the order for the remaining 85 vehicles after failing to reach agreement with Tesla over how to fix quality problems. Tesla said it was in the process of repairing the issues and had provided loaner vehicles to the customer at the time the order was canceled.
"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," Tesla said in a statement, without elaborating further.
Tesla said any customer who is unhappy with their car can return it for a full refund up to seven days after purchase.
It said customer satisfaction data showed that German customers have largely been satisfied with their vehicles, including the quality and condition of their cars upon delivery.
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