12 Best Long-Term Penny Stocks to Buy According to Hedge Funds

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3. NIO Inc. (NYSE:NIO)

Stock Price: $4.36

5-Year Sales Growth: 49.65%

Number of Hedge Fund Holders: 20

NIO Inc. (NYSE:NIO) is another Chinese automotive company that focuses on developing premium smart electric vehicles. One of its standout features is its battery-swapping technology, which allows drivers to quickly exchange their depleted batteries for fully charged ones at designated stations. Moreover, in September 2024, the company introduced a mass-market brand called ONVO, which focuses on providing vehicles that also support battery swapping and various battery range options.

During the fiscal third quarter of 2024, NIO Inc. (NYSE:NIO) set a new record with 61,855 vehicle deliveries, marking an increase of 11.6% year-over-year and a 7.8% increase from the previous quarter. The company maintained its status as the top-selling brand in China’s battery electric vehicle (BEV) segment for vehicles priced above RMB 300,000, capturing a 48% market share in that category.

Moreover, its ONVO brand began delivering its first model, the L60, a midsize SUV that competes directly with popular models like the Tesla Model Y and Toyota RAV4. Its upcoming flagship model, the ET9, is in the final testing phase with deliveries expected to start in March 2025. NIO Inc. (NYSE:NIO) plans to increase its monthly production capacity to 10,000 units by December 2024 and further to 20,000 units by March 2025, supporting its growth strategy as it prepares for new product launches. It is one of the 12 best long-term penny stocks to buy according to hedge funds.

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