Drone Stocks Fly As Defense Secretary Fast-Tracks Drone Production, Deployment

Drone stocks are taking off after hours Thursday after Defense Secretary Pete Hegseth issued new orders to fast-track drone manufacturing and deployment.

What Happened: In a video posted on X after the market close on Thursday, Hegseth announced he was signing memos to rescind restrictive policies regarding drone production and deployment.

The memos, which are being shared by various accounts across social platforms, state that Hegseth plans to delegate authorities to procure and operate drones, deemed “vital” technology.

“Lethality will not be hindered by self-imposed restrictions, especially when it comes to harnessing technologies we invented but were slow to pursue. Drone technology is advancing so rapidly, our major risk is risk-avoidance. The Department’s bureaucratic gloves are coming off,” Hegseth wrote in one of the memos.

Several drone-related stocks were moving higher in Thursday’s after-hours session. Red Cat Holdings Inc RCAT shares were up 13.6% at $7.70, AeroVironment Inc AVAV shares were up 3.34% at $245.50, Unusual Machines, Inc UMAC shares were up 11.6% at $9.72 and AgEagle Aerial Systems Inc UAVS shares were up 11% at $1.36. Ondas Holdings Inc ONDS shares were up 8.96% at $2.18 and Kratos Defense & Security Solutions Inc KTOS shares were up 3.48% at $47.88.

The news comes after President Donald Trump signed executive orders in June aimed at strengthening domestic drone production and securing American airspace. The orders said the U.S. was enabling routine beyond line-of-sight operations to empower the domestic drone economy and addressing growing threats of foreign misuse of drones inside U.S. airspace.

Read Next:

• Forget Tech—Trump Just Made Defense The Hottest Trade On Wall Street

Photo: Shutterstock.