Drone Stock Skyrockets 100% on Trump Jr. Advisory Board Appointment
Donald Trump Jr.’s advisory board addition, along with recent comments from Tesla and SpaceX CEO Elon Musk helped send shares of drone maker Unusual Machines to new heights.
Unusual Machines (NYSE Arca: UMAC) stock soared over 100% on Wednesday following the US-based drone manufacturer’s announcement that Donald Trump Jr. has joined its advisory board. The dramatic rise in UMAC stock underscores investor confidence in the company’s strategic pivot to strengthen domestic manufacturing and reduce reliance on foreign-made drone components.
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The news of Don Trump Jr.’s appointment was met with enthusiasm from both the market and industry insiders, with Unusual Machines CEO Allan Evans emphasizing the significance of the addition by stating:
“Don Jr. joining our board of advisors provides us unique expertise we need as we bring drone component manufacturing back to America. He brings a wealth of experience and I look forward to his advice and role within the Company as we continue to build our business.”
Rising Prominence in the Drone Sector
Unusual Machines, which manufactures consumer and enterprise-grade drones, has been making steady strides in bolstering its presence in the industry. The company’s third-quarter sales rose by 9% to $1.53 million, reflecting its ongoing growth. With a gross margin of 26%, the firm remains on track to meet its $5 million revenue target for 2024.
Trump Jr., an investor and advocate for US-made products, expressed his commitment to the company’s vision, saying:
“The need for drones is obvious. It is also obvious that we must stop buying Chinese drones and Chinese drone parts. I love what Unusual Machines is doing to bring drone manufacturing jobs back to the USA and am excited to take on a bigger role in the movement”.
Market Reaction and Broader Impacts
The stock price of Unusual Machines shot up from $5.36 to an intraday high of $11.67, fueled by the announcement, with heavy trading volume. Over 56 million shares changed hands on Wednesday, dwarfing the company’s average 10-day trading volume of 380,000 shares. After pulling back slightly from its peak, Unusual Machines stock closed the day up 84.51%.
Elon Musk, CEO of Tesla (NASDAQ: TSLA) and SpaceX, may have also played a role in the stock’s rise. Over the weekend, Musk criticized the F-35 fighter jet program on social media, suggesting that coordinated drones could outperform traditional military aircraft. This sparked broader interest in drone technology and contributed to a 4% drop in Lockheed Martin (NYSE: LMT), the maker of the F-35.
The F-35 design was broken at the requirements level, because it was required to be too many things to too many people.
This made it an expensive & complex jack of all trades, master of none. Success was never in the set of possible outcomes.
And manned fighter jets are… https://t.co/t6EYLWNegI
— Elon Musk (@elonmusk) November 25, 2024
While Lockheed’s stock took a hit, Unusual Machines capitalized on the increased attention. Industry analysts believe the company could benefit from growing interest in cost-effective, non-Chinese drone solutions for both consumer and defense markets.
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Strengthening US Manufacturing
Unusual Machines is not just riding a wave of publicity; it has tangible plans to scale its operations. The company recently released the Brave F7 FPV Flight Controller, which is fully compliant with the National Defense Authorization Act (NDAA) standards. This move aligns with the US Department of Defense’s push for domestic sourcing of drone components to safeguard national security.
Moreover, the firm has secured approval from the Defense Innovation Unit for its products to be included in the Blue UAS Framework, a list of trusted drone suppliers for government and military use. These developments underscore Unusual Machines’ commitment to reducing reliance on foreign supply chains, a sentiment echoed by Trump Jr.
Broader Market Implications
The addition of Trump Jr. to the advisory board has drawn parallels to Trump Media (NASDAQ: DJT), another company with strong ties to the Trump family, in which his father President-elect Donald Trump holds a 65% stake. Unusual Machines’ stock rally reflects the enduring influence of the Trump brand on market performance, especially in sectors tied to innovation and domestic growth.
With Tesla’s Elon Musk continuing to champion drone technology and Unusual Machines gaining momentum, the future of the U.S. drone industry looks promising. The company’s efforts to diversify its offerings and expand its footprint in the enterprise market could solidify its position as a rising star in the sector.
As Unusual Machines positions itself for sustained growth, its stock performance serves as a testament to the market’s optimism about its trajectory. Whether this enthusiasm translates into long-term success will depend on the company’s ability to execute its ambitious plans and capitalize on its newfound attention.
Unusual Machines (UMAC) Stock Price Action and Chart
Fueled by the Trump Jr. appointment and Musk’s comments, shares of Unusual Machines (NYSE Arca: UMAC) stock soared by as much as 118% during intra-day trading on Wednesday, reaching a new all-time high of $11.67. Unusual Machines stock closed the day at $9.89, up 84.51%.
YTD, UMAC stock is up 226.4%.
Leading Aerospace and Defense ETFs traded down on Wednesday with iShares US Aerospace & Defense ETF (CBOE: ITA) dropping 0.54%, while Invesco Aerospace & Defense ETF (NYSE Arca: PPA), and SPDR S&P Aerospace & Defense ETF (NYSE Arca: XAR) fell 0.44% and 0.38%, respectively.
View Unusual Machines Interactive Stock Chart on Barchart
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
