Shares of Tesla Motors (NASDAQ:TSLA) ended slightly higher Tuesday after sales of new homes grew more than expected. The stock climbed 1 percent following CEO Elon Musk’s announcement that the company will introduce a battery capable of powering an electric car 315 miles on a single charge, the longest range of any existing electric vehicle in the market.
The new 100 kilowatt hour battery pack suggests that the high-end version of the Model S unit, will be known as the world’s fastest accelerating car in production, according to Tesla. The long-range battery pack is also available for the performance version of the Model X SUV.
Tesla’s Model X is already the fastest SUV, but with the new battery pack, the Model X P100D will now accelerate from 0-60 mph in less than 3 seconds.
The company’s new product also increases the driving range of the vehicles, taking the performance version of the new Model S beyond 482.8 km.
Musk also stated that a driver could now travel from San Francisco to Los Angeles in a moderate weather without recharging.
"These are very profound milestones and I think will help convince people around the world that electric is the future," he said.
Customers who had ordered a Model S P90D Ludicrous, which were not yet delivered, could ask to upgrade to the 100 kWh pack for $10,000. On the other hand, existing owners can upgrade for $20,000 as the old pack must be recycled.
Tesla stock closed the session 17 percent off of its 52-week high as it gets support at its 50-day moving average.
Back in May, Tesla disclosed that it was increasing production plans for its upcoming Model 3 sedan and would manufacture a total of 500,000 fully-electric vehicles in 2018.
Model S and X vehicles equipped with the upgraded batteries will help fund the more affordable Model 3 still in development.
"Of course this is an expensive car. But it's very important to bear in mind that is what it's paying for, the Model 3," Musk explained.
The leading electric car manufacturer has been the most assertive in promoting self-driving technology to the public. However, Tesla is under government investigation after the recent fatal crash of a Tesla Model S in Floria, in which the driver was reported using the company’s Autopilot feature. Subsequent to the accident, the automaker’s supplier of advanced driver-assist systems, revealed that its partnership with Tesla was being terminated.
Tesla’s Recent Sales Performance
Tesla Motors is projected to sell 80,000 cars this year, up from 51,000 during the same period last year.
The estimate is derived from the fact that the Model S, Model X, and the upcoming Model 3 mass-market sedan don’t really lie in the same ecosystem as other electric vehicles. Rivals such as Nissan, BMW, and Mercedes units can’t compete with Tesla in terms of range and performance. However, they are considerably cheaper than Tesla’s products.
The distance is even greater in terms of branding. In a very short amount of time, the automaker has built a branding durability that makes it resistant to this change in sentiment away from electric vehicles.
Earlier in 2016, the company took nearly 400,000 pre-orders for the upcoming $35,000 Model 3.