German rental car company Nextmove canceled the bulk of a 100-vehicle order from Tesla (TSLA - Get Report) due to quality issues with the electric car company's vehicles, according to a report from Reuters.
The company first ordered the vehicles in 2018, but started raising objections about their quality after taking delivery of the first 15 in the spring of 2019. The company said it cancelled the order for the remaining 85 vehicles after failing to come to terms with Tesla on how to fix quality problems.
Those problems included paint defects, faulty wiring, scratches on the dashboard and condensation in the headlights, according to Nextmove.
Tesla, meanwhile, said in a statement that it doesn't believe the decision to cancel the order was entirely tied to quality issues.
"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, according to Reuters.
Tesla shares were rising 2.25% to $220.49 on Friday.