Electric Blue, an E1 streamliner designed and modified by more than 130 Brigham Young University (BYU) students over the past 10 years, averaged 330kph on two qualifying runs this month.
The new mark obliterates the previous record, 250kph, which was set by the same BYU car in 2011.
"When we set the record three years ago we felt like we left a lot on the table," said BYU student and team captain, Kelly Hales.
The car notched the record this month in front of approximately 180 teams and their cars at the Bonneville Salt Flats in northwestern Utah.
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Jim Burkdoll, president of the Utah Salt Flats Racing Association, drove the car to set the record, which was certified by the Southern California Timing Association.
Electric Blue is called a streamliner because it has a long, slender shape and enclosed wheels that reduce air resistance.
BYU's car is in the E1 category, which means it is electric and weighs less than 1,100 pounds.
BYU students custom-built the lightweight carbon fibre body of Electric Blue over a six-year period, with the help of computer programmes that model wind tunnels.
Aerodynamic performance and lithium iron phosphate batteries helped the car reach its high speeds over the last four years of runs, researchers said.
"We were going to retire the car last year when head faculty advisor, Perry Carter, left for an LDS mission, but we petitioned for one more year," Hales said.