President Donald Trump recently signed three executive orders aimed at revitalizing the development, manufacturing, integration, and export of U.S.-made drones and electric vertical takeoff and landing (eVTOL) aircraft. These orders come as a response to the stalled progress in the sector during the previous administration, allowing China to surpass the U.S. in drone technology.
The new directives instruct the Federal Aviation Administration (FAA) to accelerate regulations for operating eVTOL aircraft beyond visual line of sight and enhance security measures to counter national security threats posed by drones. Concerns have been raised about foreign adversaries using drones for surveillance purposes near sensitive locations, including military bases.
“The United States must expedite the safe commercialization of drone technologies and fully integrate UAS into the National Airspace System,” one of the orders states. It emphasizes the need to speed up testing, enable routine drone operations, boost domestic production, and expand the export of American-manufactured drone technologies globally.
In addition to enhancing safety and security, the executive orders are expected to drive innovation in the aerospace and drone industries. Following the announcement, air mobility stocks saw an increase in early premarket trading:
– Archer Aviation +9%
– Joby Aviation +9%
– Vertical Aerospace +8%
– Blade Air Mobility +2%
The decision to prioritize the U.S. drone sector comes after concerns raised by billionaire investor Marc Andreessen about the stifling of the industry under the previous administration, while China’s drone technology flourished.
The importance of the drone industry for the economy and national security in the 2030s cannot be understated. The U.S. aims to catch up with China and regain its position as a leader in drone technology.