Tesla just announced a huge upgrade for the Model S and Model X

The Tesla Model X and Model S are getting longer ranges thanks to a new battery option, Tesla announced Tuesday.

CEO Elon Musk said the company would offer a new 100 kWh battery option for the Model S and Model X cars that have Ludicrous modes Tuesday. The new battery option will extend the range of the Model S to 315 miles per charge, making it the first electric car on the market to exceed 300 miles of range.

The Model X will also be offered with a 100 kWh battery option to extend its range to 289 miles.

The Model S P90D previously had the longest range at 270 miles. The P90D version of the Model X provided 250 miles of range.

Tesla drivers who currently own a Model S or Model X 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 upgrade will also enable the Model S P100D Ludicrous to accelerate from zero to 60 miles per hour in just 2.5 seconds, making it the world's third fastest production car. That places it behind the the LaFerrari and the Porsche 918 Spyder.

The larger battery pack will also make the Model X the world's quickest SUV with the ability to accelerate to 60 miles per hour in 2.9 seconds.

Competition is mounting in the electric car space as more automakers are racing to release vehicles with longer ranges. 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.

The new battery option doesn't come as a surprise. Dutch blog Kenteken.TV reported earlier in August that RDW, the Dutch authority responsible for vehicle registrations, has approved a 100 kWh battery option for both Tesla cars.

Additionally, a hacker found a mention of a P100D in the software that runs the cars, hinting that a Tesla with a more powerful 100 kWh battery could be on the way, in March.