Tesla just became the first electric car on the market to exceed 300 miles of range

Tesla announced a major battery upgrade Tuesday that will extend the Model S with Ludicrous mode's range to 315 miles, making it the longest-range production vehicle on the market.

CEO Elon Musk announced the new 100 kWh battery upgrade on a call with journalists Tuesday. It means the Model S with Ludicrous mode is the first electric car to ever exceed 300 miles.

Tesla drivers who currently own a Model S P90D Ludicrous can upgrade to the 100 kWh packs for $20,000. Those who ordered a P90D Ludicrous, but haven't received it yet, can upgrade for $10,000. The reason it's more expensive for those who already have a Model S or Model X P90D Ludicrous is because the battery has to be recycled.

The Model S P90D previously had a range of 270 miles.

Tesla was smart to release the new battery option at a time where other automakers are preparing to release electric cars exceeding a range of 300 miles.

Volkswagen is planning to release an all-electric car in October that could have as much as 372 miles of range, and Porsche is working on a Tesla killer with 300 miles of range that could pop up in showrooms in 2019.

Audi is also beginning production of its new electric car in 2018 - the SUV will have a range of 310 miles on a single charge. Mercedes is also expected to debut a prototype of an electric vehicle with a range of 310 miles per charge at the Paris Motor Show in October.