The Drone Business In America Is About To Boom

The business of drones in America might be on the verge of going to the next level. But, why?

What’s happening:

• The Pentagon has issued a new memo signed by United States Defense Secretary Pete Hegseth titled Unleashing U.S. Military Drone Dominance that is bringing sweeping changes to the federal government’s plan for accelerating drone innovation and purchasing drones for military purposes
  

Why it matters:‍

• The new memo is largely focused on prioritizing purchasing drones that are made within the United States of America and removing regulatory barriers that have historically slowed done the military’s ability to quickly purchase large quantities of drones for combat purposes
  

Going deeper:‍

• The new memo will reclassify drones into a similar category as ammunition and consumables, which will allow the United States military to purchase combat drones much more seamlessly and without needing to go through a complex process to secure federal approval
  
• The United States Defense Secretary Pete Hegseth also publicly stated that he is encouraging military leaders to begin embracing drones and to integrate drones into all future military training
  

The intrigue:‍

• The new memo signed by United States Defense Secretary Pete Hegseth comes just after President Donald Trump made waves in Washington, D.C. when he signed a new executive order focused on scaling up American drone manufacturing and production
  

Market reaction:‍

• Shares of Red Cat Holdings (NASDAQ: RCAT) surged +26.40%
  
• Shares of AeroVironment (NASDAQ: AVAV) closed up more than +11.04%

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