TSLA Tesla Inc

Tesla Motors Inc. on Tuesday announced it will sell a battery capable of taking an electric car 315 miles on a charge, the first time an auto maker is providing that much electric range in a vehicle, the company said.

The company said it would begin selling its Model S sedan and Model X SUV with a 100 kilowatt-hour battery. It will allow the company to sell a "P100" version of these vehicles that operate in the company's well-known "Ludicrous Mode."

The current Tesla product range can reach roughly 210 miles to 270 miles on a charge.

In a conference call, Tesla Chief Executive Elon Musk said Tesla will now offer the "fastest car in the world," and he said the fact the vehicle is an electric one is a milestone that foreshadows the future of the auto industry. Tesla claims the sedan can travel from 0 to 60 miles an hour in 2.5 seconds, while the SUV can achieve it in 2.9 seconds.

Faster cars have been produced by Porsche AG and Ferrari SpA, the company said, but it noted those cars cost about $1 million and are no longer produced. Tesla's P100D sedan will cost $134,500 and the SUV will cost $135,500.

Electric vehicles have been slow to catch on the U.S., particularly amid low gasoline prices. Mr. Musk's goal has been to create attractive electric cars that are in demand regardless of energy prices. On Tuesday, he said Tesla is trying to "build a great electric car that everyone can afford." The company aims to sell a cheaper Model 3 electric car in 2017.

Mr. Musk said the company will make 200 packs a week due to production constraints. That represents about 10% of the company's volume, he said.

"I wish we could make more," he said.

Shares of Tesla rose 0.8% to $224.80 in afternoon trading.

Write to John D. Stoll at john.stoll@wsj.com

(END) Dow Jones Newswires

August 23, 2016 16:05 ET (20:05 GMT)

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