Electric vehicle stocks, like NIO (NIO), could accelerate well into 2022, for three very important reasons.

First, governments all over the world are racing to reduce carbon emissions.

In fact, the U.S. just pledged to reduce emissions by as much as 52% over the next several years. Europe wants to cut CO₂ emissions by up to 55% by 2030. To achieve these goals, global leaders want to put millions of electric vehicles (EVs) on the roads.

Secondly, analysts at Ernst & Young say that EV sales could outpace combustion engines in Europe, China, and the U.S. in the next 12 years.

Third, EV demand is on the rise. Look at NIO, for example.

In December, according to a company press release, NIO delivered 10,489 vehicles—a 49.7% jump year over year. For the fourth quarter, NIO deliveries reached 25,034, a 44.3% increase from the same period the prior year. Comparing the full years of 2021 and 2020, NIO deliveries were up 109.1%, to 91,429.

Even better, those full-year 2021 numbers more than quadrupled figures from 2019, according to NIO.

And 2022 could be even better for the company.

That’s when, according to a company press release, “NIO will begin delivering three vehicle models developed on the NT2.0 (NIO Technology Platform 2.0).” NIO will be putting its second factory, located in the NeoPark—a smart EV industry park in China—into operation as of the third quarter of this year. And, the release continues, “Worldwide, NIO will bring its products and comprehensive service experience to Germany, the Netherlands, Sweden and Denmark.”

No wonder Macquarie analyst Erica Chen just launched coverage of NIO with a buy rating, and a price target of $37.70. The analyst believes NIO sales could grow about 50% for the next couple of years, as pointed out by Barron’s.

Even HSBC analyst Yuqian Ding raised his price target on NIO from $43 to $54, also giving it a “buy” rating after the company’s December delivery report and news of new 2022 vehicles.

With plenty of catalysts, NIO could accelerate to higher highs in New Year 2022.

From a current price of $30.45, shares of NIO could test prior resistance around $44, near-term.