German Rental Car Company Cancels Tesla Order

Nextmove, a German electric car rental company, has canceled an order for 100 Tesla Model 3 electric sedans, citing repair and quality issues.

The Leipzig-based company received the first four Model 3s in February and later increased its fleet to 15 cars. Nextmove already has about 350 EVs in its rental fleet, including several dozen pricier Tesla Model S sedans and Model X crossovers.

But Executive Director Stefan Moeller says he cancelled the remainder of the €5 million ($5.5 million) Model 3 order because of unresolved problems with scratched paint and interior trim, faulty wiring, defective tires and condensation within the headlamps affecting about three out of four cars.

Moeller tells Bloomberg News that the Model 3 is a “fantastic car.” but he adds that “the organization behind it doesn’t match that.”

Tesla CEO Elon Musk admitted earlier that a shortage of service facilities in Germany was impeding sales growth in the country.

Tesla says it had been making repairs and providing loaner vehicles for affected Model 3s when the order was cancelled. The EV maker also says it believes the main reason for Nextmove’s withdrawal is an unrelated dispute that began earlier this year.

Other media reports says Nextmove has been waiting for three months to receive a repair fender for one of its Model 3s and more than two years to replace a defective Model X seat.