The U.S. federal government appears to be throwing its considerable weight behind the development of robots in the country. News of this gave some real power to stocks in the industry on Wednesday. Richtech Robotics (RR 3.59%) was one such beneficiary; its share price closed the day nearly 19% higher in value.
Rise, robots
That morning, a report in Politico stated that the Trump administration aims to support the development of the domestic robotics sector in various ways. This initiative apparently advanced with a meeting Commerce Secretary Howard Lutnick held with a group of CEOs in the industry.
Image source: Getty Images.
Citing "three people familiar with the discussions" who were not named, the politics-focused site said Lutnick is fully committed to the administration's effort. President Trump's team is apparently considering the issuance of an executive order on robotics development next year.
Politico quoted an unidentified Department of Commerce spokesperson as saying that "We are committed to robotics and advanced manufacturing because they are central to bringing critical production back to the United States."
Additionally, the Department of Transportation will form a robotics working group, Politico wrote.
NASDAQ: RR
Key Data Points
Chinese competition
The key geopolitical goal appears to be bolstering competition with China, which has a considerable robotics industry. The Politico article cited International Federation of Robotics research indicating the Asian country had 1.8 million industrial robots deployed in its factories, a considerably higher number than nations such as the U.S.
I feel we need to be cautious about this kind of potentially industry-impacting news. While it's very encouraging, this administration tends to see-saw in some of its policies, and it hasn't always pursued its stated goals with zeal. Personally, I wouldn't buy into Richtech solely on the basis of this article.
