Tesla working on an all-wheel drive Model S

The Tesla Model S has quickly become one of the most desirable electric vehicles to ever be produced and a new report is indicating the company is developing an all-wheel variant.

Details are limited, but The Verge is reporting the all-wheel drive model could be launched as early as next year in an "ultra-premium" trim level. The car will apparently be based on the P85 variant and be able to accelerate from 0-60 mph in 4.2 seconds or less. After the initial roll-out, the all-wheel drive system could become optional on less expensive models.

Tesla declined to comment on the report, but the company has already announced plans to offer an optional all-wheel drive system on the Model X crossover. The system uses an electric motor at each axle for improved grip and acceleration.

Why All-wheel-drive? Well quite simply, luxury buyers in the key northeast US and northern European markets expect it. And you can thank Audi for that. But it’s not just Audi, every other luxury brand offers all-wheel-drive on their core sedans.

Tesla Model S P85 vs 2008 Mitsubishi Evo GSR – Standing Start [VIDEO]

More Tesla Model S street racing from the guys at Drag Times. This time they're racing the Model S Performance against a 2008 Mitsubishi Evo is running 25 psi boots with a full turbo back exhaust, tune, intake and upgraded clutch.

This race is from a standing start with the Evo using a 5,500 rpm Launch control to build turbo boost while stationary.

Panasonic to make more lithium-ion batteries to meet robust US automotive demand

Panasonic will increase domestic production of lithium-ion battery used for automobiles to meet robust demand in the United States, company officials said on Thursday.

The electronics maker will resume operation of idled lines at the Suminoe Plant in Osaka Prefecture, which produces batteries for U.S. automaker Tesla Motors Inc., as early as next January, while another factory in Kaizuka City in the prefecture, which the company has suspended its operation since March, will reopen by the end of next fiscal year, Panasonic spokesperson Megumi Kitagawa said to Xinhua.

She also said that the company will add some manufacturing lines at the Kasai plant in Hyogo Prefecture, which produces batteries for domestic automakers, by the end of the current fiscal year through next March.

In June Panasonic announced that shipments of its automotive-grade lithium-ion battery cells for Tesla Motors’ premium, all-electric Model S sedan surpassed 100 million units.