Shares of Tesla Motors (NASDAQ:TSLA) rallied in late-afternoon trading on Tuesday after CEO Elon Musk announced that the automaker will launch a 100 kilowatt hour battery pack for its new Model S and Model X vehicles.
Musk revealed a newly developed 100 kWh battery option for the Model S P100D with Ludicrous mode, which will allow it to accelerate from 0 miles per hour to 60 miles per hour in just 2.5 seconds, compared to 2.8 seconds for the P90D Ludicrous version. Tesla owners who have pre-ordered the P90D Ludicrous could avail of the upgraded battery pack for $10,000, while existing owners of that vehicle will have to spend $20,000 for the upgrade.
Meanwhile, the Model X P100D with Ludicrous mode will now reach 60 miles per hour in merely 2.9 seconds.
The Model S version will be able to travel for 315 miles on a single charge, while the Model X will run for 289 miles on one charge.
The automaker’s weaknesses include its weakening net income, generally low historical performance in the stock itself and frail growth in its earnings per share.
Why Tesla’s Long-Range Battery is Important
Tesla Motors unveiled a new battery pack for its performance cars that stored more energy. This breakthrough isn’t just another achievement for the electric car manufacturer. It shows how Tesla continues to lead the auto industry, and it is far ahead of rivals in terms of developing electric car battery technology.
The company said that the new Model S P100D is the third fastest accelerating production car ever built, including traditional gas-powered cars. At 315 miles, the new Model S version also has the longest range ever for a production electric vehicle.
Six years ago, the company’s first car has allowed its early customers to travel a little over 200 miles on a single charge. Next was the Model S, which increased the range close to 300 miles on a single charge, followed by an optional upgrade to a 90 kWh battery pack in 2015.
Tesla has now been able to load even more energy into the same size pack, with the same battery cells. The automaker’s battery packs hold thousands of lithium-ion battery cells that release energy to power the car. Tesla owners have an option to upgrade to the 100 kWh battery pack from the 90 kWh battery pack.
During a conference call with reporters on Tuesday, Musk said that the 100 kWh battery pack is coming close to hitting the theoretical limit of how much energy density that Tesla can pack into that size and shape battery pack using those specific batteries.
For the company to obtain a higher density for future battery packs, it would need to enhance the battery chemistry by integrating new materials or adjusting the battery cell outline.
The new battery pack will only be sold to the car manufacturer’s high-end cars in the meantime, and will only represent nearly 10 percent of production, according to Musk. However, Tesla will eventually extend the 100 kWh battery pack for all versions of the Model S and Model X.