TSLA Tesla Inc

By John D. Stoll 

Tesla Motors Inc. said it is offering its electric vehicles with a battery capable of going up to 315 miles on a charge, the first time a major auto maker has provided that much electric range in a vehicle.

The company unveiled new versions of its Model S sedan and Model X sport-utility vehicle with 100 kilowatt-hour batteries; previously the largest battery size was 90 kwh. The upgrade -- which Tesla executives said was made possible by increasing the energy density of its battery packs -- will allow the Palo Alto, Calif-based company to sell a P100 version of those two vehicles with Tesla's well-known "Ludicrous Mode."

The 315-mile range sets a new benchmark for automotive engineers looking to lessen fears about so-called range anxiety, which drivers encounter when travelling longer distances in an electric car. Because electric cars must be plugged into charging ports that aren't as readily available as gas stations, nor as fast, many car buyers have refused to even consider one.

Tesla's Model S sedan will get the 315-mile range. The heavier SUV won't be able to travel as far on a charge.

The P100D sedan will cost $134,500 and the SUV will cost $135,500. The current Tesla line starts at about $75,000 and can go roughly 200 miles on a single 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 100 kwh 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 production cars have been sold by sports-car makers Porsche AG and Ferrari SpA, the company said, but it noted those cars cost about $1 million and are no longer produced.

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 beginning 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.

Tesla shares rose less than 1% to $224.84 at 4 p.m. in Nasdaq trading on Tuesday.

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

(END) Dow Jones Newswires

August 23, 2016 17:41 ET (21:41 GMT)

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