Model S

Make
Tesla
Segment
Sedan

Meeting European Tesla owners, CEO Elon Musk used an Amsterdam appearance to announce the company's intention of building an all-wheel drive Model S. He also unveiled plans for higher-capacity batteries, extending Model S ranges and earmarked for use on future models, like the upcoming Model X SUV. Tesla says that its "giga factory" could lower battery costs by 40 percent, improving the company's ability to produce a mass-market, 200-mile range $30,000 car.

Last year, Tesla promised that the Model S's rear-wheel drive system would handle slippery roads just as well as an all-wheel drive vehicle. But with growing competition in the premium EV and hybrid market, the company wants to stay ahead of the game in drive-lines as well as in efficiency and performance. Tesla Motor Co.'s Model X, which was already unveiled in Detroit, is expected in showrooms in late 2014 or early next year. Joined by the all-wheel drive Model S, they will both enjoy the Version 6.0 software update, which should be available to existing owners in coming weeks. This will add real-time traffic data, suspension-setting controls and ride height adjustments.