Shares of Ondas (ONDS 0.04%) surged on Thursday, following reports that the U.S government was considering taking steps to accelerate domestic drone production.
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Game of Drones
The U.S. military wants to slash the cost of drones that are rapidly becoming an indispensable part of the modern battlefield.
To do so, the Trump Administration is seeking to provide growth capital to multiple U.S. drone makers -- via both debt financing and equity investments -- to strengthen their manufacturing networks and boost supply.
That's according to a report by The Wall Street Journal released late on Wednesday.
NASDAQ: ONDS
Key Data Points
This initiative coincides with the Pentagon's Drone Dominance program, which seeks to mass-produce over 300,000 relatively inexpensive combat drones by the end of 2027.
The Journal cited a Defense Department's estimate from early 2025 that placed U.S. drone production at up to 100,000 drones annually. That's in stark contrast to the more than four million drones Ukraine reportedly made last year.
Ondas seeks to become a key drone infrastructure supplier
Ondas was not one of the companies specifically mentioned in The Journal's report. But as a leading provider of autonomous drones and counter-drone systems, the defense contractor does stand to benefit from the rapidly rising demand for these technologies among the U.S. military and its allies.
