12 Best Robinhood Stocks to Buy Under $20

5. NIO Inc. (NYSE:NIO)

Number of Hedge Fund Holders: 20

NIO Inc. (NYSE:NIO) is a holding company specializing in the research, development, and manufacturing of premium smart electric vehicles. The company designs, develops, and sells high-end electric vehicles. It is also at the forefront of developing cutting-edge technologies like battery swapping, autonomous driving, and its NAD (NIO Autonomous Driving) system.

NIO Inc. (NYSE:NIO) has been making significant strides in its product and market expansion during late 2024 and early 2025. In December 2024, the company set a new monthly record by delivering 31,138 vehicles, representing a 72.9% increase year-over-year, while January 2025 saw 13,863 deliveries, up 37.9% from the previous year.

For Q3 2024, NIO Inc. (NYSE:NIO) had a mixed financial performance. Vehicle sales totaled $2.38 billion, a 4.1% decline from Q3 2023, while gross profit rose 31.8% to $286 million. The company incurred a net loss of $721 million, an 11.0% increase compared to last year. Operating expenses also rose, with R&D costs up 9.2% to $473 million. However, the company remains in a strong liquidity position, with cash and equivalents totaling $6 billion, providing a solid buffer for ongoing investment and future expansion despite the profitability challenges.

A major highlight in the company’s product strategy was the introduction of the NIO ET9, a smart electric executive sedan, which is expected to start deliveries in March 2025. Additionally, NIO Inc. (NYSE:NIO) expanded its global footprint by unveiling its Firefly brand, aiming to capture the European market with small, premium electric vehicles, with the first model expected to launch in mid-2025.