Tesla Loses Huge Model 3 Order From German Company Over Service, Quality Issues

German car rental firm Nextmove has recently canceled a massive Tesla Model 3 order. Reports claimed that the company noticed problems with Tesla’s delivery of the cars. Potentially, Nextmove and Tesla’s deal would have been the car company’s largest deal for the Model 3 in Europe.

Nextmove canceled an order for 100 Model 3 units for its rental fleet, according to a report by Bloomberg. Nextmove CEO Stefan Moeller said that the company was having problems with Tesla’s service department after 15 cars were delivered, thus they decided to push through with the cancellation. Moeller said that their company likes the Model 3 as their customers do but doesn’t like Tesla's performance and service.

The problems with the vehicles could have been minor delivery damages, according to a Tesla representative. While the company confirmes that it was willing to repair these issues, the orders have already been canceled. Tesla also confirmed that many German buyers are happy with their cars.

Among Tesla’s many EVs, the Model 3 has been a popular pick. Its popularity was undeniable after its immense growth overshadowed not only the higher-end Model S and Model X, but also the Model 3’s electric car rivals. After the Model 3, the company’s next most affordable vehicle would be the Model Y crossover SUV.

While the Model 3 is popular, the company had problems in keeping up with its demand. The canceled pre-orders could help alleviate the order issues for the company, but it can also hurt Tesla's bottom line.

Many prospective car owners prefer the Tesla Model 3 due to its affordable price and good quality. Aside from the Model 3’s price, Tesla has a network of Supercharger stations throughout Europe and U.S. which made it a great pick. Most electric cars are not conveniently compatible with these stations.

Tesla’s fans and customers will have to wait until the end of the year to see if these problems would still be around by the release of the next Model Y crossover SUV. The company actually needs their cars to sell well to avoid an impending bankruptcy in a decade’s time.