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Countries all across the world are taking the big step to slash carbon emissions. What does that mean for Nio (NYSE:NIO) stock?

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In the U.S., President Joe Biden announced a goal of a 50% reduction in greenhouse gas emissions by 2030. This move gave a direct push to electric vehicle manufacturers.

Led by Tesla (NASDAQ:TSLA), the EV industry is growing by leaps and bounds. China and Europe are leading the market and players like China-based Nio are making the most of the moment. The EV market in China is growing at such a rapid pace that the country is considering consolidation. Nio stock should be rising as demand grows, but it is showing volatility lately.

The stock was trading at $53 at the end of June and has dropped to $42 today. Nio had to deal with supply chain issues, which led to a drop in October deliveries but it does not mean that the company is bad.

Nio has massive growth potential and the dip is a solid chance to buy Nio stock. Here are two reasons to make your move before the end of this year.

1. There’s a Lot in Store for 2022

Nio managed to double the EV sales in the third quarter, and if you look at the year over year sales growth each month, it is nothing but impressive. Manufacturing upgrades and supply chain issues led to a dip in October sales by 27.5%, but this is temporary. The entire EV industry is facing a chip shortage. However, Nio has a lot in store for the coming year.

It plans to launch new EV models soon and aims to deliver three new models next year. It includes the ET7, the first electric sedan. The company plans to launch it in the first quarter of next year. It will also be the first model that will be launched in Germany in 2022. ET7 is a high-tech vehicle and it could give Nio a solid position in the industry.

Apart from ET7, the company intends to launch two more models next year. The company might share additional details on Nio day, which is expected Dec. 18.

2. Look For a Big Increase in Production Capacity

To meet the growing demand, Nio has already planned to increase production capacity to 240,000 vehicles annually. The company plans a phased upgrade of the production line and it will be completed next year, which will increase the production capacity by 120,000.

After the completion of the expansion work, the plant will be able to manufacture up to 300,000 cars annually. The expansion move is very well-timed as it will allow the company to focus on overseas expansion.

Nio is already delivering cars in Norway and will enter other parts of Europe very soon.

The Bottom Line on NIO Stock

All in all, a lot is working in favor of Nio. With a solid lineup of cars and a massive production capacity, Nio is set to become one of the top EV players in the industry.

Nio stock has a lot of potential to grow in 2022 and it could soar higher after Nio Day when the company shares more details about the new models.

The current dip in Nio stock is a solid chance to buy. Forget about the temporary dip in October delivery numbers and look at the long-term potential of the automaker. There is a solid chance the stock could soar to new highs in 2022.

Load up on Nio stock before the company’s Dec. 18 presentation and watch it hit new highs in the coming months.

On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long-term gains. Her knowledge of words and numbers helps her write clear stock analysis.