Tesla announced an upgrade of its Model S sedan Thursday during an event at Hawthorne Airport in Los Angeles, home to one of the e-car pioneer's engineering labs and design studios.

Tesla founder Elon Musk said Model D stood for "dual motor," meaning the new car would have two motors powering both the front and rear wheels.

While all-wheel-drive systems on conventional cars often make them less efficient due to being heavier, Musk said, Tesla's new system would improve speed, acceleration and mileage through optimal use of the different motors.

"This car is nuts," Musk told a crowd of several hundred Tesla enthusiasts. "It's like taking off from a carrier deck."

Tesla's new model will come in three versions: 60D, 85D and the premium P85D, with progressively higher engine power. All of them will be equipped with anti-collision features, including radar that will "scan the car in front of you in fog, snow and sand," according to the company.

The system includes lane-keeping assistance, but will move the car over a lane when the driver uses the turn signal. Moreover, it will read speed limit signs and adjust the car's speed to them automatically.

The P85D top-of-the-line version will be able to reach 250 kilometers (155 miles) per hour, and will go on sale in North America in December for a price of $120,000. The other versions will follow in February.

No speed in Tesla sales

Electric cars represent about 3.5 percent of all auto sales in the United States, with demand expected to grow in years to come.

Tesla 2014 sales in the US, however, have slumped 3 percent to 13,850 vehicles by September, highlighting the need for a new model offensive.

The company recently upgraded its factory near San Francisco to produce its new Model X crossover, which is expected to go on sale next year.

In addition, Tesla announced a partnership with Japan's electronic giant Panasonic in September, aimed at building the world's largest lithium-ion battery plant in Nevada. The move is supposed to make batteries less expensive, thus boosting the popularity of e-cars among consumers.

uhe/cjc (AP, dpa, AFP)