A team of German students competing in Elon Musk's Hyperloop challenge have reached 201 mph in the latest milestone for the superfast transport system.

The team from the Technical University of Munich hit the record speed with a prototype pod in an 0.8-mile tube over the weekend.

It is the first time that a test of the Hyperloop transport system has broken the 200 mph barrier. Musk, the technology billionaire behind Tesla and SpaceX, said it would be possible to reach supersonic speeds on the track.

The Hyperloop is a futuristic mode of transport that levitates on its tracks to theoretically travel at speeds of up to 700mph in a near-vacuum.