Trump's Drone Plan Sparks Stock Rally: What to Watch
Last Friday, Donald Trump signed several executive orders to boost the U.S. drone industry and related technologies.
In the past, Trump and his team have strongly supported the drone industry, so if he returns to office, drone stocks in the U.S. could see big growth.
This focuses on important companies working on low-flying aircraft and drones, including:
$Joby Aviation (JOBY.US)$: A leader in electric air taxis. Joby plans to start commercial flights as early as 2025. It's expanding globally, working on approvals in Australia, doing test flights in Japan, and preparing for business in the UAE. Toyota has invested nearly $900 million in Joby.
$Archer Aviation (ACHR.US)$: Its electric aircraft, called Midnight, is close to finishing the third phase of FAA certification and is moving quickly toward final approval. In August 2024, Archer delivered its first aircraft to the U.S. Air Force as part of a $142 million deal.
$Red Cat Holdings (RCAT.US)$: A U.S. defense drone company now working with $Palantir Technologies Inc (PLTR.CA)$. They're adding Palantir's AI and navigation software to Red Cat's Black Widow drone.Thiscould change how small military drones work.The U.S. Army has already chosen the drone for short-range missions and is expected to perform much better with the new tech.
In addition to the major players, several other drone-related companies are listed on U.S. stock exchanges. These include $EHang (EH.US)$, known as the world's first publicly listed eVTOL (electric vertical takeoff and landing) company; $Vertical Aerospace (EVTL.US)$ from the UK, which is actively developing eVTOL aircraft; $Lilium (LILMF.US)$, a German firm focused on advanced air mobility (AAM); and, a subsidiary of Brazil's Embraer (ERJ.US) dedicated to the eVTOL sector.
Other notable drone companies include $AeroVironment (AVAV.US)$, a defense contractor specializing inunmanned systems; $ParaZero Technologies (PRZO.US)$, which develops safety systems for drones; and $Unusual Machines (UMAC.US)$, a drone components manufacturer often linked to the "Junior Trump" theme.
There's also $Dragonfly Energy (DFLI.US)$, which focuses on industrial drone and IoT technology; $AgEagle Aerial Systems (UAVS.US)$, considered a pioneer in the drone industry; and companies like $Ondas Holdings (ONDS.US)$, $Palladyne AI (PDYN.US)$, $Kratos Defense & Security Solutions (KTOS.US)$, and $Northrop Grumman (NOC.US)$ that are engaged in drone and defense-related technologies.
In addition, $SES AI Corp (SES.US)$ is developing advanced lithium-metal rechargeable battery technology, which is crucial for electric vehicles (EVs), urban air mobility (UAM), and eVTOL aircraft.
That said, most of these drone-related stocks are small-cap companies. Their prices can be very volatile, with large swings up and down, so investors should approach them cautiously.
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