Secretary of Defense, Hegseth’s drone dominance orders are favoring drone stocks and is a clear no brainer.
The order removed prior DOD policies from 2021 and 2022 that restricted the U.S. military from buying drones and components made by Chinese companies. It also assigns to combat units authority to buy, test and train with small UAS drones that comply with statutes, according to reports.
"While our adversaries have produced millions of cheap drones before us we were mired in bureaucratic red tape," Hegseth said in the video online. "Not anymore."
The memo aims to bolster U.S. drone manufacturing by "approving hundreds of American products" for military purchase. It also calls to leverage private capital that supports the industry. The DOD plans to arm combat units with a "variety of low-cost drones" made by American engineers and AI experts.
The order will also expand the Blue List of DOD-approved unmanned drones, components and software, as part of a collaboration between the Defense Innovation Unit and the Defense Contract Management Agency, according to reports. The DOD in 2020 established an effort called Blue UAS, which is the process for certifying commercial drones for military use.
"Modern battlefield innovation demands a new procurement strategy that fuses manufacturers with our front line troops," the memo said.
Lastly, the DOD plans to integrate drones into relevant combat training starting next year, which includes force-on-force drone wars.
"Lethality will not be hindered by self-imposed restrictions, especially when it comes to harnessing technologies we invented but were slow to pursue," Hegseth wrote in the memo.
The announcement builds on a June 6 executive order from the White House to invest in drone technology and integrate it into the national airspace.
As of their recent Town Hall announcement, RedCat has finally received the green light from the Army to announce LRIP (Low Rate Initial Production) portion of the SRR contract. Announcing 690 systems rather previous 550. Their guidance for fiscal year is 80-120M projected to hit 55M for Q3 this year. Today, they announced their first delivery of 45 systems for a total of $3.5M. We did the numbers and it took them approximately 3.4 days to deliver 45 drones, which indicates they can easily produce, deliver and execute.
Following news today, RedCat’s Black Widow just got approved for the NATO NSPA Catalogue signaling NATO countries likely to purchase RedCat’s drones.
They recently did an offering for 170M that got gobbled up by tutes and they exercised underwritten options
TLDR: Drone warfare is here. American drone dominance is here. Plan to outpace China which means $$$$$ for drone industry. RedCat won SRR contract beating 30+ competitors for it. Meeting the supply demand for the contract.
Has connections to current administration. Approved for NATO.
I am 7k shares long.
