Tesla's big battery upgrade shows just how competitive the electric car space is becoming

Tesla

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 upgrade on a call with journalists Tuesday. It was a smart, decisive move considering competition in the electric car space is mounting, with several companies looking to release EVs with ranges exceeding 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.

Musk is ensuring Tesla stays ahead of the competition in the electric car market by being the first to exceed 300 miles.