"There is no force on earth more powerful than an idea whose time has come." - Victor Hugo
Bots in the News:
Once again the best performer within the Bot Index was Joby Aviation, who has experienced a ‘three-pete in double-digit returns. The stock gained 14.12%. Joby is experiencing a high level of interest for both transportation and within the defense industry. Kathy Wood’s Ark Investment posts new holdings of Joby and a Motley Fool headline just read, “The Low Altitude Market Could Be Worth $9 Trillion by 2050, According to Morgan Stanley.”
Shares of AeroVironment, the drone maker jumped 7.13% along with fellow drone maker (not a Bot Index component) Kratos Defense and Security Solutions Corp (+11.76%). According to Investor’s Business Daily, “Drone manufacturers including AeroVironment and Kratos Defense jumped early Friday after the Department of Defense on Thursday announced a directive to "unleash U.S. military drone dominance."
The DoD on Thursday detailed changes to the ways the Pentagon procures and implements drones for U.S. military operations, in a memo and an accompanying video from Secretary of Defense Pete Hegseth.
The DOD is rescinding "restrictive policies that hindered production and limited access" to drone technologies, and "unleashing the combined potential of American manufacturing and warfighter ingenuity," Hegseth said.
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.”
