Tesla Motors Inc Chief Executive Elon Musk said on Tuesday the company will offer a larger upgraded battery pack for performance versions of its Model S and X vehicles that will extend range and allow for super fast acceleration.
The new 100 kilowatt hour battery pack means high end versions of the Model S sedan, called the P 100D, will be the world’s fastest accelerating car in production, the Silicon Valley automaker said.
“These are very profound milestones and I think will help convince people around the world that electric is the future,” said Musk on a conference call with journalists.
The new battery extends the range of performance versions of the new Model S beyond 300 miles (482.8 km), Tesla said. Musk said that if the weather is not too hot, a driver could travel from San Francisco to Los Angeles without recharging.
After rising 2.1 percent to $227.71 in afternoon trade, shares dipped from session highs to $224.87, up less than 1 percent.
News of the upgrade comes as the all-electric car maker lays the groundwork for a controversial buyout of SolarCity Corp , while it also prepares for next year’s launch of its high profile Model 3 mass-market vehicle.
SolarCity agreed to Tesla’s $2.6 billion offer to buy the solar panel installer earlier this month, clearing one obstacle in the way of Musk’s ambitious goal to create a carbon-free energy and transportation company.
Both companies are still trading below where they were when SolarCity’s approval for the deal was announced.
In May, Tesla said it was stepping up production plans for its upcoming Model 3 mass-market sedan and would build a total of 500,000 all-electric vehicles in 2018, two years ahead of schedule, but it warned that spending will ramp up as well.
Tesla earlier this month reported a steeper than expected quarterly loss on higher spending at its vehicle and battery factories.
(Reporting by David Shepardson; Editing by Chizu Nomiyama and Tom Brown)