If you bought the dip of Tesla Motors Inc (NASDAQ:TSLA) stock back in February, you are likely to be smiling now. In less than two months, Tesla stock surged over $100.00 per share, or 70%!

Here are three reasons why the momentum in Tesla stock could keep going.

Tesla Model 3

The “Model 3” has been the most obvious catalyst for TSLA stock in recent weeks. Everyone was excited about Tesla’s upcoming mass-market electric vehicle (EV). While the company has a huge following around the world, not everyone could afford a “Model S” or “Model X.”

Starting at $35,000 before government incentives, the Tesla Model 3 is expected to bring huge business to the company. In fact, it already did. According to Elon Musk’s Twitter post, Tesla received 276,000 Model 3 preorders by the end of Saturday.




276k Model 3 orders by end of Sat — Elon Musk (@elonmusk) April 3, 2016

Note that to reserve a Model 3, you have to put down $1,000. That means with just the preorders, Tesla received a whopping $276 million.

The amount would seem minimal if you think about how much money Tesla will make once it starts production of the Model 3. Elon Musk said that the selling price with the average option mix is around $42,000. That means Tesla has the potential to generate $11.6 billion in revenue from these 276,000 preorders.

Tesla Model X

While introducing a mass market EV, Tesla is not forgetting the lucrative upper-end market. The company launched the Model X electric SUV last year. The entry-level Model X is priced at $80,000. The top-of-the-line “Signature Series” Model X starts at a whopping $132,000.

The neat thing is that despite being a seven-seater SUV, the Tesla Model X does not compromise on performance. In “Ludicrous Mode,” the Model X “P90D” can sprint from zero to 60 miles per hour in 3.17 seconds, making it the fastest production of an SUV in the world. (Source: “Tesla Model X is the Fastest Production SUV in the World—Does 0-100 mph in 7.98 seconds,” EV Obsession, February 10, 2016.)

When you combine functionality, performance, and Tesla’s brand name, the product is undoubtedly going to be a huge hit. It was reported that the Model X had 27,000 preorders before production even started. Note that the Model X is a lot more expensive than the Model 3. And to reserve one, you had to give Tesla a check for $5,000, or $40,000 for a Signature Series model. The Signature Series orders will be delivered first. (Source: “Total Tesla Model X Pre-orders Could Be Almost 27,000,” Autoblog, September 10, 2015.)

Tesla Model S

Okay, the Model S might not sound that exciting because it has been around for a few years, but that doesn’t mean it can’t be a catalyst for TSLA stock. In fact, the Model S has been the bread and butter of Tesla’s business.

For Tesla, 2015 was a record year. The company delivered a total of 50,580 electric vehicles. Only 208 of them were Model Xs, while the Model S made up 99.6% of all Tesla cars delivered in 2015.

If you think sales of the Model S would slow down because of the newly introduced models, think again. The momentum is still going strong for the Model S. In the first quarter of this year, orders of the Model S increased 45% year-over-year. (Source: “Tesla Delivers 14,820 Vehicles in Q1 2016; On Track for Full-Year Delivery Guidance,” Tesla Motors Inc, April 4, 2016.)

The Bottom Line on TSLA Stock

Tesla is also ramping up production to meet the huge demand. In the first quarter of 2016, the company delivered a total of 14,820 vehicles, nearly 50% more than the first quarter of last year. Tesla is confident that it will hit its full-year delivery goal of 80,000–90,000 new vehicles this year.

With huge demand and improving supply, the future is bright for TSLA stock.