Shares of drone maker AeroVironment were falling Wednesday despite a deal with Israeli firm Elsight to beef up the communications abilities in their new Mayhem 10 drones while deployed.
The deal essentially allows control of the drones even if one or more connectivity sources stop working. "The integration will enable Mayhem 10 to intelligently manage multiple communications networks, including satellite, private and public cellular and point-to-point radio, through a single connectivity layer," AeroVironment said in a press release announcing the deal.
That means that even if one communications mode such as satellite gets blocked, the drones can automatically switch to another, such as cellular or radio, with minimal downtime.
Launched in April, the Mayhem 10 allows for a modular payload and can handle everything from surveillance to precision strikes. Launchable in less than five minutes, it can carry up to 10 pounds and operate within a 50 mile range for up to 50 minutes. Its networking capabilities allow it to work either alone or in "collaborative swarms."
"Integrating our technology with Mayhem 10 will help operators maintain reliable control across changing and contested environments, without the added workload of managing multiple communications links," Elsight CEO Yoav Amitai added.
AeroVironment's main customers are the Defense Department and U.S. allies such as Ukraine, which has used other autonomous devices from the company in its war against Russia.
Drone stocks have been having a rough year along with other defense stocks over worries that the midterm elections could lead to a split Congress and a tighter defense budget as the Iran war drags on.
Shares of AeroVironment have fallen nearly 50% in 2026 despite a strong earnings report in its fiscal first quarter showing continued growth and a growing backlog of $1.5 billion in contracted orders. A canceled government contract valued at a billion dollars earlier in the year hasn't helped.
But AeroVironment isn't alone in feeling the pain. In fact, a sense of malaise has fallen over the entire sector lately. Other drone stocks, including Kratos and Karman (which supplies technology for drones), are also down 48% and 59%, respectively, for the year.
AeroVironment stock was down 3.4% at $122.87 by midday Wednesday.
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