German car rental company Nextmove has decided to cancel its order of 85 units of the Tesla Model 3 over a dispute on how to fix quality issues, Reuters reports. Nextmove had initially ordered 100 units of the car in 2018 and taken delivery of 15 Model 3s earlier this year.

However, the rental firm said the Teslas had paint defects, faulty wiring, scratches on the dashboard, faulty wheels and condensation in the headlights. A refund clause was triggered, but Tesla argues that Nextmove cancelled the order by choosing not to take delivery of the remaining cars.

According to Nextmove, offering faulty vehicles to customers would compromise its reputation for quality. Tesla later admitted that it was in the process of resolving the issues and had provided replacement vehicles.

In a statement, Tesla said: “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 added that unhappy customers can ask for a full refund up to seven days after purchasing the car. In fact, it said customer satisfaction data revealed that German Model 3 owners have largely been satisfied with their cars, including the quality and condition of their cars upon delivery.

The Model 3 is currently Tesla’s best-selling model, with prices starting from US$35,000 (RM145k). It offers a driving range of 354 km and would sprint from 0-100 km/h in 5.6 seconds before maxing out at 209 km/h. An extra US$9,000 (RM37k) buys a long-range model which can stretch to 499 km, do 0-100 km/h in 5.1 seconds and top out at 225 km/h.

A higher performance AWD model with the dual motor all-wheel drive is also available, which accelerates from 0 to 98 km/h in 3.5 seconds. It has a sportier look, wearing huge 20-inch wheels with bigger brakes and lowered suspension. There’s also a carbon-fibre spoiler that helps improve stability at higher speeds.